Commentary

D7.922A Extended ring fence expenditure supplement

Corporate tax
Corporate tax | Commentary

D7.922A Extended ring fence expenditure supplement

Corporate tax | Commentary

D7.922A Extended ring fence expenditure supplement

The extended ring fence expenditure supplement was repealed by FA 2015 from 5 December 2013. From this date the number of accounting periods in which a company can claim ring fence expenditure supplement is increased from six to ten (see D7.922) therefore removing the need for the extended ring fence supplement.

The ring-fence expenditure supplement (D9.722) is extended from six to ten accounting periods for all onshore ring-fence oil and gas losses and qualifying pre-commencement expenditure incurred on or after 5 December 20131. Like RFES, the extended ring fence expenditure supplement (ERFES) increases the value of unused expenditure carried forward from one period to another. The relevant percentage of ERFES is currently set at 10%2.

ERFES can be claimed for a maximum of four accounting periods, which need not be consecutive, but can only be made after the six claims allowed under the RFES provisions (D9.722)3.

The ERFES supplement applies to4:

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