Section 220A — Corporation Tax Act 2010: Carry forward of CITR

Carry forward of CITR 220A 1 This section applies if—

a the investor is entitled to a reduction in its liability for corporation tax for a relevant accounting period under section 220 in respect of the investment, but b the amount of the reduction is not fully deducted at Step 2 for that relevant accounting period.

2 The amount (“ the excess amount ”) not deducted is treated as follows.

3 For each subsequent relevant accounting period for which the investor—

a is entitled to a reduction in its liability for corporation tax under section 220 in respect of the investment, and b makes a claim under this subsection, the investor is also entitled to a reduction in its liability for corporation tax under this subsection.

4 The amount of the reduction under subsection (3) for any relevant accounting period is the excess amount so far as it has not been deducted at Step 2 for any earlier relevant accounting period by virtue of that subsection.

5 In this section “ Step 2 ” means the second step in paragraph 8(1) of Schedule 18 to FA 1998 (calculation of tax payable).