Corporation Tax Act 2010 section 356JJA

Unactivated amounts attributable to a reference period

Section 356JJA explains how to calculate the total unactivated allowance attributable to a particular reference period and cluster area under the seed enterprise investment scheme relief rules.

• The total unactivated allowance for a reference period and cluster area is calculated as P + Q
• P is the allowance generated by the company in that reference period and cluster area, including any allowance treated as generated following a transfer on acquisition of equity shares
• Q is the amount carried forward from the preceding accounting period, where that accounting period is not itself a reference period
• Where the reference period is immediately preceded by another reference period, Q is instead the unactivated allowance carried forward from that earlier reference period