Section LP 3 — Income Tax Act 2007: Use of remaining credits

LP 3 Use of remaining credits When this section applies (1) This section applies when a company has a tax credit remaining for a tax year under section LA 5(3) (Treatment of remaining credits). Grouping amount (2) The company may make the amount available to another company ( company B ) that is part of the same wholly-owned group of companies as the company for the corresponding income year in which the remaining credit arises. Carrying back and using or grouping amount (3) If the amount of the remaining credit has never been carried forward from an earlier tax year, the company may either— (a) use the amount for any 1 of the 4 tax years that are immediately before the tax year in which the remaining credit arises; or (b) make the amount available to company B, if both companies are part of the same wholly-owned group of companies for the relevant tax year in the 4-year period. Carrying amount forward (4) If, after applying subsections (2) and (3), the company has an amount of tax credit remaining for the tax year, the amount must be carried forward to the next tax year as a credit carried forward. Notifying Commissioner (5) The company makes a choice under subsection (2) or (3) by notifying the Commissioner in their return of income for the income year that corresponds to the tax year. When companies in same group (6) For the purposes of subsections (2) and (3), the company and company B must be part of the same wholly-owned group of companies for the whole of the relevant income year or, if 1 of the companies exists for only part of the year, for the whole of the period of the income year when both companies are in existence. Defined in this Act: amount , Commissioner , company , corresponding income year , income year , notify , return of income , tax credit , tax year , wholly-owned group of companies , Compare: 2004 No 35 s LE 2(3), (4), (6), (7) Section LP 3(5): amended (with effect on 1 April 2008), on 6 October 2009, by section 344(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).