Section 851 — Corporation Tax Act 2009: Delayed payment of royalty by company to related party

Delayed payment of royalty by company to related party 851 1 This section applies if—

a a royalty is payable by a company to or for the benefit of a related party, b the royalty is not paid in full within the period of 12 months after the end of the period of account in which a debit in respect of it is recognised by the company for accounting purposes, and c credits representing the full amount of the royalty are not brought into account under this Part in any accounting period by the person to whom it is payable.

2 The royalty is brought into account for the purposes of this Part only when it is paid.