Textual Amendments
F1Sch. A1 inserted (with effect in accordance with Sch. 25 para. 9 of the amending Act) by Finance Act 2008 (c. 9), Sch. 25 para. 5
1(1)A company may claim a first-year tax credit for a chargeable period in which it has a surrenderable loss, unless it is an excluded company in relation to that chargeable period.U.K.
(2)A company has a surrenderable loss in a chargeable period if in that chargeable period—
(a)a first-year allowance is made to the company in respect of relevant first-year expenditure (see paragraph 3) incurred for the purposes of a qualifying activity the profits of which are chargeable to corporation tax, and
(b)the company incurs a loss in carrying on that qualifying activity (see paragraphs 4 to 9).
(3)The amount of the surrenderable loss is equal to—
(a)so much of the loss incurred in carrying on the qualifying activity as is unrelieved (see paragraphs 10 to 16), or
(b)if less, the amount of the first-year allowance made in respect of the relevant first-year expenditure in the chargeable period in question.
(4)A company is an excluded company in relation to a chargeable period if at any time during that period it is [F2entitled to make—
(a)a claim under section 642 or 643 of CTA 2010 (reliefs for co-operative housing associations),
(b)a claim under section 651 or 652 of CTA 2010 (reliefs for self-build societies), or
(c)a relevant claim under Part 11 of CTA 2010 (charitable companies etc).]
[F3(5)For the purposes of sub-paragraph (4)(c) a claim under Part 11 of CTA 2010 is a relevant claim unless—
(a)it is a claim for exemption under—
(i)section 475 or 476 (reliefs for certain heritage bodies etc),
(ii)section 480 (exemption for profits of small-scale trades), or
(iii)section 481 (exemption from charges under provisions to which section 1173 of CTA 2010 applies), or
(b)the company is entitled to make it only by virtue of section 490 (application of exemptions to certain heritage bodies etc).]
Textual Amendments
F2Words in Sch. A1 para. 1(4) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 364(2)(a) (with Sch. 2)
F3Sch. A1 para. 1(5) inserted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 364(2)(b) (with Sch. 2)
2(1)The amount of the first-year tax credit to which a company is entitled for a chargeable period in which it has a surrenderable loss is an amount equal to—U.K.
(a)19% of the amount of the surrenderable loss for the chargeable period, or
(b)if the amount mentioned in paragraph (a) exceeds the upper limit, the upper limit.
(2)The upper limit is the greater of—
(a)the total amount of the company's PAYE and NICs liabilities for payment periods ending in the chargeable period (see paragraph 17), and
(b)£250,000.
(3)A company which is entitled to an amount of first-year tax credit may claim the whole amount or part only of the amount.
[F4(3A)The Treasury may by order—
(a)amend sub-paragraph (1) so as to provide for a different percentage to apply where the surrenderable loss relates to a qualifying activity that is an NI rate activity, and
(b)substitute for any percentage for the time being specified in sub-paragraph (1) such other percentage as the Treasury thinks fit.]
(4)The Treasury may by order substitute for the percentage for the time being specified in sub-paragraph (1)(a) such other percentage as it thinks fit.
(5)An order under sub-paragraph (4) may make such incidental, supplemental, consequential and transitional provision as the Treasury thinks fit.
Textual Amendments
F4Sch. A1 para. 2(3A) inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), Sch. 1 para. 10
3(1)In this Schedule “relevant first-year expenditure” means expenditure which—U.K.
(a)is first-year qualifying expenditure by virtue of section 45A (energy-saving plant or machinery) or section 45H (environmentally beneficial plant or machinery), and
(b)is incurred in the period beginning with 1 April 2008 and ending with [F531 March 2018],
but does not include expenditure which is treated as first-year qualifying expenditure within paragraph (a) by virtue of section 236 (additional VAT liability treated as expenditure).
(2)In determining whether expenditure is relevant first-year expenditure, any effect of section 12 on the time at which it is to be treated as incurred is to be disregarded.
(3)The Treasury may by order substitute, for the date for the time being specified in sub-paragraph (1)(b) as the date with which the period ends, such later date as it thinks fit.
(4)An order under sub-paragraph (3) may make such incidental, supplemental, consequential and transitional provision as the Treasury thinks fit.
Textual Amendments
F5Words in Sch. A1 para. 3(1)(b) substituted (28.3.2013) by The Capital Allowances (First-year Tax Credits) Order 2013 (S.I. 2013/464), arts. 1, 2
4U.K.Paragraphs 5 to 9 apply for the interpretation of paragraph 1(2)(b).
5(1)This paragraph applies where the qualifying activity is [F6an ordinary UK property business or an ordinary overseas property business] and paragraph 7 does not apply.U.K.
(2)References in this Schedule to a loss incurred in carrying on the qualifying activity are to a loss incurred in carrying on that part of the business (if any) to which [F7sections 62 and 63 of CTA 2010 (UK property business losses) apply (see section 64 of that Act)].
Textual Amendments
F6Words in Sch. A1 para. 5(1) substituted (with effect in accordance with Sch. 14 para. 13 of the amending Act) by Finance Act 2011 (c. 11), Sch. 14 para. 12(16)(a)
F7Words in Sch. A1 para. 5(2) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 364(3) (with Sch. 2)
6(1)This paragraph applies where the qualifying activity is an overseas property business and paragraph 7 does not apply.U.K.
(2)References in this Schedule to a loss incurred in carrying on the qualifying activity are to a loss incurred in carrying on that part of the business (if any) to which [F8section 66 of CTA 2010] (losses from overseas property business) applies [F9(see section 67 of that Act)].
Textual Amendments
F8Words in Sch. A1 para. 6(2) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 364(4)(a) (with Sch. 2)
F9Words in Sch. A1 para. 6(2) inserted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 364(4)(b) (with Sch. 2)
7(1)This paragraph applies where—U.K.
(a)the qualifying activity is a [F10UK property business] or an overseas property business, and
(b)the company is an insurance company.
(2)References in this Schedule to a loss incurred in carrying on the qualifying activity are to a loss [F11which, as a result of section 87(3) of FA 2012, is treated for the purposes of section 76 of that Act as a deemed BLAGAB management expense for an accounting period ].
(3)Where the insurance company is treated under section [F12section 86] of that Act as carrying on more than one [F13UK property business] or overseas property business, references in this Schedule to a loss incurred in carrying on the qualifying activity are to be construed in accordance with section [F12section 87(4)]) of that Act (aggregation of losses).
Textual Amendments
F10Words in Sch. A1 para. 7(1)(a) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 521(3)(a) (with Sch. 2 Pts. 1, 2)
F11Words in Sch. A1 para. 7(2) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 106(2)(a)
F12Words in Sch. A1 para. 7(3) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 106(2)(b)
F13Words in Sch. A1 para. 7(3) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 521(3)(b) (with Sch. 2 Pts. 1, 2)
8(1)This paragraph applies where the qualifying activity is managing the investments of a company with investment business.U.K.
(2)The company incurs a loss in carrying on that activity in a chargeable period if in that chargeable period—
[F14(a)the sum of the amounts mentioned in section 1223(2) of CTA 2009, exceeds]
(b)the amount of the profits from which those expenses and charges are deductible,
and the amount of the loss is the amount of the excess.
Textual Amendments
F14Sch. A1 para. 8(2)(a) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 521(4) (with Sch. 2 Pts. 1, 2)
9(1)This paragraph applies where the qualifying activity is [F15basic life assurance and general annuity business] and the profits of that business are charged to tax [F15in accordance with the I - E rules].U.K.
(2)The company incurs a loss in a chargeable period if in that chargeable period an amount falls to be carried forward to a succeeding chargeable period under [F16section 73 of FA 2012] (carrying forward unrelieved expenses).
(3)The amount of the loss is the amount which falls to be so carried forward.
Textual Amendments
F15Words in Sch. A1 para. 9(1) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 106(3)(a)
F16Words in Sch. A1 para. 9(2) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 106(3)(b)
10U.K.Paragraphs 11 to 16 apply for the interpretation of paragraph 1(3)(a).
11(1)This paragraph applies where the qualifying activity is a trade [F17, a UK furnished holiday lettings business or an EEA furnished holiday lettings business] and paragraph 14 or 16 does not apply.U.K.
(2)The amount of the loss that is unrelieved is the amount of the loss, reduced by the amount of—
(a)any relief that was or could have been obtained by the company making a claim under [F18section 37(3)(a) of CTA 2010 to deduct the loss from total profits] of the same chargeable period,
(b)any other relief obtained by the company making a claim under [F19section 37(3)(b) or 42 of that Act (losses deducted from] profits of an earlier chargeable period),
(c)any loss that was or could have been surrendered under [F20Part 5] of that Act (surrender of relief to group or consortium members),
(d)any loss surrendered under a relevant tax credit provision, and
(e)any amount set off against the loss under [F21Chapter 7 of Part 4] of that Act (write-off of government investment).
(3)For this purpose no account is to be taken of any losses—
(a)brought forward from an earlier chargeable period under [F22section 45 of CTA 2010],
(b)carried back from a later chargeable period under [F23section 37(3)(b) or 42] of that Act, or
(c)incurred on a leasing contract (within the meaning of [F24section 53] of that Act) in circumstances to which that section applies.
(4)In sub-paragraph (2)(d) “relevant tax credit provision” means—
[F25(a)Chapter 2 or 7 of Part 13 of CTA 2009 (tax credits for expenditure on research and development or vaccine research etc),
(b)Chapter 3 of Part 14 of that Act (tax credits for remediation of contaminated land), F26...
(c)Chapter 3 of Part 15 of that Act (film tax credits).]
[F27(d)Chapter 3 of Part 15A of that Act (television tax credits), F28...
(e)Chapter 3 of Part 15B of that Act (video game tax credits).] F29...
[F30(f)section 1217K of that Act (theatre tax credits)][F31, and
(g) Chapter 3 of Part 15D of that Act (orchestra tax credits).]
Textual Amendments
F17Words in Sch. A1 para. 11(1) substituted (with effect in accordance with Sch. 14 para. 13 of the amending Act) by Finance Act 2011 (c. 11), Sch. 14 para. 12(16)(b)
F18Words in Sch. A1 para. 11(2)(a) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 364(5)(a) (with Sch. 2)
F19Words in Sch. A1 para. 11(2)(b) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 364(5)(b) (with Sch. 2)
F20Words in Sch. A1 para. 11(2)(c) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 364(5)(c) (with Sch. 2)
F21Words in Sch. A1 para. 11(2)(e) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 364(5)(d) (with Sch. 2)
F22Words in Sch. A1 para. 11(3)(a) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 364(5)(e) (with Sch. 2)
F23Words in Sch. A1 para. 11(3)(b) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 364(5)(f) (with Sch. 2)
F24Words in Sch. A1 para. 11(3)(c) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 364(5)(g) (with Sch. 2)
F25Sch. A1 para. 11(4)(a)-(c) substituted for Sch. A1 para. 11(4)(a)-(d) (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 521(5) (with Sch. 2 Pts. 1, 2)
F26Word in Sch. A1 para. 11(4)(b) omitted (with effect in accordance with Sch. 18 para. 23 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 18 paras. 6, 22; S.I. 2013/1817, art. 2(2); S.I. 2014/1962, art. 2(3)
F27Sch. A1 para. 11(4)(d)(e) inserted (with effect in accordance with Sch. 18 para. 23 of the amending Act) by Finance Act 2013 (c. 29), Sch. 18 paras. 6, 22; S.I. 2013/1817, art. 2(2); S.I. 2014/1962, art. 2(3)
F28Word in Sch. A1 para. 11(4)(d) omitted (with effect in accordance with Sch. 4 para. 17 of the amending Act) by virtue of Finance Act 2014 (c. 26), Sch. 4 paras. 7, 16; S.I. 2014/2228, art. 2
F29Word in Sch. A1 para. 11(4)(e) omitted (with effect in accordance with Sch. 8 para. 17(1)(a) of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 8 para. 7
F30Sch. A1 para. 11(4)(f) and preceding word inserted (with effect in accordance with Sch. 4 para. 17 of the amending Act) by Finance Act 2014 (c. 26), Sch. 4 paras. 7, 16; S.I. 2014/2228, art. 2
F31Sch. A1 para. 11(4)(g) and preceding word inserted (with effect in accordance with Sch. 8 para. 17(1)(a) of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 8 para. 7
12(1)This paragraph applies where the qualifying activity is [F32an ordinary UK property business or an ordinary overseas property business] and paragraph 14 does not apply.U.K.
(2)The amount of the loss that is unrelieved is the amount of the loss, reduced by the amount of—
(a)any relief that was or could have been obtained by the company making a claim under [F33section 62(1) to (3) of CTA 2010 to deduct the loss from total profits] of the same chargeable period,
(b)any loss that was or could have been surrendered under [F34Part 5] of that Act (surrender of relief to group or consortium members),
(c)any loss surrendered under [F35Chapter 3 of Part 14 of CTA 2009] (tax credits for remediation of contaminated land), and
(d)any amount set off against the loss under [F36Chapter 7 of Part 4 of CTA 2010] (write-off of government investment).
(3)For this purpose, no account is to be taken of any losses brought forward from an earlier chargeable period under [F37section 62(5) of CTA 2010].
Textual Amendments
F32Words in Sch. A1 para. 12(1) substituted (with effect in accordance with Sch. 14 para. 13 of the amending Act) by Finance Act 2011 (c. 11), Sch. 14 para. 12(16)(c)
F33Words in Sch. A1 para. 12(2)(a) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 364(6)(a) (with Sch. 2)
F34Words in Sch. A1 para. 12(2)(b) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 364(6)(b) (with Sch. 2)
F35Words in Sch. A1 para. 12(2)(c) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 521(6)(b) (with Sch. 2 Pts. 1, 2)
F36Words in Sch. A1 para. 12(2)(d) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 364(6)(c) (with Sch. 2)
F37Words in Sch. A1 para. 12(3) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 364(6)(d) (with Sch. 2)
13(1)This paragraph applies where the qualifying activity is an overseas property business and paragraph 14 does not apply.U.K.
(2)The amount of the loss that is unrelieved is the amount of the loss, reduced by any amount set off against the loss under [F38Chapter 7 of Part 4 of CTA 2010] (write-off of government investment).
(3)For this purpose, no account is to be taken of any losses brought forward from an earlier chargeable period under [F39section 66 of CTA 2010].
Textual Amendments
F38Words in Sch. A1 para. 13(2) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 364(7)(a) (with Sch. 2)
F39Words in Sch. A1 para. 13(3) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 364(7)(b) (with Sch. 2)
14(1)This paragraph applies where—U.K.
(a)the qualifying activity is a [F40UK property business] or an overseas property business, and
(b)the company is an insurance company.
(2)If no amount falls to be carried forward to a succeeding chargeable period under [F41section 73 of FA 2012] (carrying forward unrelieved expenses), no amount of the loss is unrelieved.
(3)If an amount falls to be carried forward to a succeeding chargeable period under [F42section 73] of that Act, the amount of the loss that is unrelieved is equal to the lesser of—
(a)the amount of the loss (see paragraph 7), reduced by any amount within sub-paragraph (4), and
(b)the total amount which so falls to be carried forward.
(4)The amounts mentioned in sub-paragraph (3)(a) are—
(a)the amount of any loss surrendered under [F43Chapter 3 of Part 14 of CTA 2009] (tax credits for remediation of contaminated land), and
(b)any amount [F44set off against the loss under Chapter 7 of Part 4 of CTA 2010] (write-off of government investment).
(5)Sub-paragraph (6) applies for determining whether there is an amount which falls to be carried forward under [F45section 73 of FA 2012] .
[F46(6)Disregard any amounts brought forward from an earlier chargeable period which fall to be 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 period in question as a result of—
(a)the previous application of section 73 or 93 of FA 2012, or
(b)the carry forward to the period in question of an amount under section 391(3) of CTA 2009 (loan relationship deficit carried forward).]
Textual Amendments
F40Words in Sch. A1 para. 14(1)(a) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 521(7)(a) (with Sch. 2 Pts. 1, 2)
F41Words in Sch. A1 para. 14(2) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 106(4)(a)
F42Words in Sch. A1 para. 14(3) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 106(4)(b)
F43Words in Sch. A1 para. 14(4)(a) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 521(7)(b) (with Sch. 2 Pts. 1, 2)
F44Words in Sch. A1 para. 14(4)(b) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 364(8) (with Sch. 2)
F45Words in Sch. A1 para. 14(5) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 106(4)(c)
F46Sch. A1 para. 14(6) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 106(4)(d)
15(1)This paragraph applies where the qualifying activity is managing the investments of a company with investment business.U.K.
(2)The amount of the loss that is unrelieved is the amount of the loss (see paragraph 8), reduced by the amount of—
(a)any loss that was or could have been surrendered under [F47Part 5 of CTA 2010] (surrender of relief to group or consortium members), and
(b)any amount set off against the loss under [F48Chapter 7 of Part 4] of that Act (write-off of government investment).
(3)For this purpose, no account is to be taken of any amount brought forward from an earlier chargeable period under [F49section 1223 of CTA 2009].
Textual Amendments
F47Words in Sch. A1 para. 15(2)(a) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 364(9)(a) (with Sch. 2)
F48Words in Sch. A1 para. 15(2)(b) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 364(9)(b) (with Sch. 2)
F49Words in Sch. A1 para. 15(3) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 521(8) (with Sch. 2 Pts. 1, 2)
16(1)This paragraph applies where the qualifying activity is [F50basic life assurance and general annuity business] and the profits of that business are charged to tax [F50in accordance with the I - E rules].U.K.
(2)The amount of the unrelieved loss is the amount of the loss (see paragraph 9), reduced by—
(a)any loss surrendered under [F51Chapter 4 of Part 14 of CTA 2009] (tax credits for remediation of contaminated land), and
(b)any amount set off against the loss under [F52Chapter 7 of Part 4 of CTA 2010] (write-off of government investment).
[F53(3)For this purpose, no account is to be taken of any amounts brought forward from an earlier chargeable period which fall to be 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 period in question as a result of—
(a)the previous application of section 73 or 93 of FA 2012, or
(b)the carry forward to the period in question of an amount under section 391(3) of CTA 2009 (loan relationship deficit carried forward).]
Textual Amendments
F50Words in Sch. A1 para. 16(1) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 106(5)(a)
F51Words in Sch. A1 para. 16(2)(a) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 521(9)(a) (with Sch. 2 Pts. 1, 2)
F52Words in Sch. A1 para. 16(2)(b) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 364(10) (with Sch. 2)
F53Sch. A1 para. 16(3) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 106(5)(b)
17(1)For the purposes of paragraph 2(2)(a) the total amount of the company's PAYE and NICs liabilities for a payment period is the total of—U.K.
(a)the amount of income tax for which the company is required to account to HMRC for that period under the PAYE regulations, disregarding any deduction the company is authorised to make in respect of child tax credit or working tax credit, and
(b)the Class 1 national insurance contributions for which the company is required to account to HMRC for that period, disregarding any deduction the company is authorised to make in respect of payments of statutory sick pay, statutory maternity pay, child tax credit or working tax credit.
(2)A “payment period” means a period which ends on the 5th day of a month and for which the company is liable to account for income tax and national insurance contributions to HMRC.]