Section 939FA — Corporation Tax Act 2010: Clawback of corporation tax relief where donation becomes tainted in later accounting period

Clawback of corporation tax relief where donation becomes tainted in later accounting period 939FA 1 This section applies where—

a a company makes a relievable charity donation in an accounting period (“the donation period”),

b the donation becomes a tainted donation in a later accounting period ( “the tainting period” ),

and c if the donation had become a tainted donation in the donation period, the company’s liability to corporation tax for the donation period would have been greater than it in fact was for that period.

2 The company’s liability to corporation tax for the tainting period is increased by an amount equal to the difference between—

a the amount of corporation tax for which it would have been liable for the donation period had the donation become a tainted donation in that period, and b the amount of corporation tax for which it was in fact liable for the donation period.

3 Section 87A of TMA 1970 (interest on overdue corporation tax etc) has effect in relation to tax for which a company is liable by virtue of subsection (2) as though the tax had become due and payable on the day following the expiry of 9 months from the end of the donation period.