Section 1179CD — Corporation Tax Act 2009: Treatment of notional tax deduction

Treatment of notional tax deduction 1179CD 1 This section applies if an amount is deducted under step 2 in section 1179CC from the amount of the qualifying company’s expenditure credit.

2 If the qualifying company is a member of a group, it may, in respect of the accounting period for which the expenditure credit arises, surrender the whole or part of the deducted amount to any other member of the group (as to which see section 1179CE ).

3 To the extent that the deducted amount is not surrendered under subsection (2) , it is to be carried forward to the next accounting period of the qualifying company, and subsections (4) and (5) apply.

4 The carried-forward amount is to be applied in discharging any liability of the qualifying company to pay corporation tax for the accounting period.

5 If—

a any of the carried-forward amount remains after the application of subsection (4) , and b the qualifying company is a member of a group, the qualifying company may, in respect of the accounting period, surrender the whole or part of the remaining amount to any other member of the group (as to which see section 1179CE ).

6 If any of the carried-forward amount remains after the application of subsections (4) and (5) , it is to be carried forward to the next accounting period of the qualifying company, and those subsections apply again in relation to that accounting period.