SCHEDULES

SCHEDULE 13A Surrenders of advance corporation tax

Time limit for withdrawing claims

9

(1)

Subject to sub-paragraph (3) below, a claim shall not be withdrawn after the earlier of—

(a)

the end of the period of six years from the end of the relevant accounting period of the surrendering company; and

(b)

the date on which an assessment for any relevant accounting period of the subsidiary in whose favour the claim was made becomes final.

(2)

In this paragraph “relevant accounting period of the subsidiary” means, in relation to a claim, any period in which a distribution is treated under section 240(2) as made by virtue of the claim.

(3)

In the circumstances given by sub-paragraph (4) below, a claim may be withdrawn at any time before the end of the period of six years from the end of the relevant accounting period of the surrendering company.

(4)

The circumstances are that—

(a)

the claim was made—

(i)

after the date on which an assessment for a relevant accounting period of the subsidiary in whose favour the claim is made becomes final; and

(ii)

after a further assessment has been made on the subsidiary for that period by an officer of the Board or the Board; and

(b)

immediately before the claim is withdrawn, none of the advance corporation tax which, by virtue of the claim, is treated as paid by the subsidiary has been finally dealt with to the subsidiary’s advantage.

(5)

For the purposes of sub-paragraph (4) above, advance corporation tax is finally dealt with to the subsidiary’s advantage if—

(a)

it is set against any liability of the subsidiary under any assessment to corporation tax which has become final; or

(b)

any of it is repaid to the subsidiary.