Companies with December year ends will no doubt be putting the finishing touches to their corporation tax returns and year end claims and elections. Those companies will also need to look at whether it is beneficial to make, keep in place, or withdraw ring fence expenditure supplement (RFES) claims for 2012. The normal time limit for withdrawing the claim is two years after the end of the claim period.
The process of deciding the optimum position can be difficult, particularly if it requires looking forward a number of years.
Companies will also now need to consider the draft legislation published last week setting out details of the potential additional four periods of RFES that might be available, in determining the best course of action.
In our earlier Newsbrief on the Autumn Statement we set out how we thought government might achieve their stated aim of providing an additional four periods RFES for losses and RFES arising after 5 December 2013. Having reviewed the draft legislation is clear that the actual approach adopted is quite different and may, in certain circumstances, produce unexpected results.