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D7.922 Ring fence expenditure supplement

Ring fence expenditure supplement (RFES) is available to those companies carrying on a ring fence trade or undertaking activities in contemplation of carrying on a ring fence trade¹. RFES increases the value of unused expenditure carried forward from one period to another. The relevant percentage of RFES is currently set at 10%².

RFES can be claimed for a maximum of ten accounting periods, which need not be consecutive³. The first six periods are referred to as the 'initial six periods'; the next four as the 'additional four periods'. The additional four periods can not be accounting periods beginning before 5 December 2013⁴. Where an accounting period straddles 5 December 2013, the period before and after this date are treated as two separate accounting periods amounts apportioned accordingly⁵.

The RFES supplement applies to:

1. Ìý

   •ÌýÌýÌýÌý qualifying pre-commencement expenditure incurred before the start of trading

2. Ìý

   •ÌýÌýÌýÌý losses incurred during trading

3. Ìý

   •ÌýÌýÌýÌý any supplement allowed in earlier periods as adjusted for disposal