[F1BLAGAB] company tax creditsU.K.
Textual Amendments
F1Words in s. 1164 cross-heading substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 200
1164Entitlement to tax creditU.K.
(1)A company is entitled to [F2a BLAGAB tax credit] for an accounting period if it has a [F3qualifying BLAGAB loss] in the period (see section 1165).
(2)For the company to obtain [F4a BLAGAB tax credit] in respect of all or part of the [F5qualifying BLAGAB loss] it must make a claim.
(3)The amount of [F6a BLAGAB tax credit] to which the company is entitled is determined in accordance with section 1166.
(4)See also section 1168, which restricts the carry forward of expenses payable where a company claims [F7a BLAGAB tax credit].
Textual Amendments
F2Words in s. 1164(1) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 201(2)(a)
F3Words in s. 1164(1) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 201(2)(b)
F4Words in s. 1164(2) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 201(2)(a)
F5Words in s. 1164(2) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 201(2)(b)
F6Words in s. 1164(3) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 201(3)
F7Words in s. 1164(4) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 201(3)
1165Meaning of [F8“qualifying BLAGAB loss”] U.K.
(1)For the purposes of this Chapter a company has a [F9“qualifying BLAGAB loss”] in an accounting period (“the relevant accounting period”) if in the period—
(a)it is entitled to relief under section 1161 [F10or 1162], and
(b)an amount falls to be carried forward to a subsequent accounting period under [F11section 73 of FA 2012 as excess BLAGAB expenses].
(2)In determining for the purposes of subsection (1)(b) whether there is an amount which falls to be carried forward to a subsequent accounting period under [F12section 73 of FA 2012 as excess BLAGAB expenses], no account is to be taken of the amounts specified in subsection (3).
(3)Those amounts are amounts—
(a)brought forward from an earlier accounting period, and
[F13(b)taken into account in calculating for the purposes of section 73 of FA 2012 the amount of adjusted BLAGAB management expenses of the company for the relevant accounting period as a result of—
(i)the previous application of section 73 or 93 of FA 2012, or
(ii)the carry forward to the relevant accounting period of an amount under section 391 of this Act (surplus deficit).]
(4)The amount of the [F14qualifying BLAGAB loss] is—
(a)the amount which falls to be carried forward as mentioned in subsection (1)(b), or
(b)if less, 150% of the qualifying Chapter 4 expenditure in respect of which the relief was obtained.
Textual Amendments
F8Words in s. 1165 heading substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 202(6)
F9Words in s. 1165(1) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 202(2)(a)
F10Words in s. 1165(1)(a) inserted (with effect in accordance with Sch. 7 paras. 27, 28 of the amending Act) by Finance Act 2009 (c. 10), Sch. 7 para. 15
F11Words in s. 1165(1)(b) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 202(2)(b)
F12Words in s. 1165(2) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 202(3)
F13S. 1165(3)(b) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 202(4)
F14Words in s. 1165(4) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 202(5)
1166Amount of tax creditU.K.
(1)The amount of the [F15BLAGAB tax credit] to which a company is entitled for an accounting period is 16% of the amount of the [F16qualifying BLAGAB loss] for the period.
(2)The Treasury may by order replace the percentage for the time being specified in subsection (1) with a different percentage.
(3)An order under subsection (2) may contain incidental, supplemental, consequential and transitional provision and savings.
Textual Amendments
F15Words in s. 1166(1) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 203(a)
F16Words in s. 1166(1) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 203(b)
1167Payment of tax credit etcU.K.
(1)The provisions mentioned in subsection (2) have effect in relation to [F17a BLAGAB tax credit] subject to the modifications set out in subsection (3).
(2)The provisions referred to in subsection (1) are—
section 1151(4) (payment of tax credit by officer of Revenue and Customs);
section 1155 (supplementary provision about payment of tax credit);
section 1156 (tax credit payment not income of company);
section 1157 (qualifying expenditure excluded for capital gains purposes).
(3)The modifications referred to in subsection (1) are as follows—
(a)for any reference to a land remediation tax credit substitute a reference to [F18a BLAGAB tax credit], and
(b)in section 1157(2) for the reference to qualifying land remediation expenditure substitute a reference to qualifying Chapter 4 expenditure.
Textual Amendments
F17Words in s. 1167(1) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 204
F18Words in s. 1167(3)(a) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 204
1168Restriction on carrying forward expenses payable where tax credit claimedU.K.
(1)This section applies if a company claims [F19a BLAGAB tax credit] to which it is entitled for an accounting period.
(2)For the purposes of [F20section 73 of FA 2012] the amount which may be—
(a)carried forward from the accounting period under [F21that section as excess BLAGAB expenses], and
(b)brought into account in accordance with [F22step 5 in section 76 of FA 2012],
is treated as reduced by the amount of the surrendered loss for the period.
(3)The “amount of the surrendered loss” for the period means the amount of the [F23qualifying BLAGAB loss] in respect of which the land remediation tax credit is claimed for the period.
Textual Amendments
F19Words in s. 1168(1) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 205(2)
F20Words in s. 1168(2) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 205(3)(a)
F21Words in s. 1168(2) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 205(3)(b)
F22Words in s. 1168(2) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 205(3)(c)
F23Words in s. 1168(3) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 205(4)