Part III Income Tax, Corporation Tax and Capital Gains Tax
Chapter I Income Tax and Corporation Tax
Corporation tax: periodic payments etc
36 Arrangements with respect to payment of corporation tax.
(1)
The Board may enter into arrangements with some or all of the members of a group of companies for one of those members to discharge any liability of each of those members to pay corporation tax for the accounting periods to which the arrangements relate.
(2)
Any such arrangements—
(a)
may make provision in relation to cases where companies become or cease to be members of a group of companies;
(b)
may make provision in relation to the discharge of liability to pay interest or penalties;
(c)
may make provision in relation to the discharge of liability to pay any amount treated as corporation tax;
(d)
may make provision for or in connection with the termination of the arrangements;
(e)
may make such supplementary, incidental, consequential or transitional provision as is necessary or expedient for the purposes of the arrangements.
(3)
Any such arrangements—
(a)
shall not affect the liability to corporation tax, or to pay corporation tax, of any company to which the arrangements relate; and
(b)
shall not affect any other liability of any such company under the Tax Acts.
(4)
For the purposes of this section a company and all its 51 per cent. subsidiaries form a group of companies and, if any of those subsidiaries have 51 per cent. subsidiaries, the group of companies includes them and their 51 per cent. subsidiaries, and so on.
(5)
The reference in subsection (2)(c) above to any amount treated as corporation tax is a reference—
(a)
to any amount due from a company under section 419 of the Taxes Act 1988 (loans to participators etc) as if it were an amount of corporation tax chargeable on the company;
(b)
to any sum chargeable on a company under section 747(4)(a) of the Taxes Act 1988 (controlled foreign companies) as if it were an amount of corporation tax.