Schedules
F1SCHEDULE A1First-year tax credits
Part 3Clawback of first-year tax credit
Circumstances in which first-year tax credit clawed back
24
1
This paragraph applies where—
a
a company to which a first-year tax credit is paid for a chargeable period disposes of an item of tax-relieved plant or machinery before the end of the clawback period in relation to that item, and
b
after the disposal the amount (or the aggregate of the amounts) of the original expenditure on the retained tax-relieved plant and machinery is less than the amount of loss surrendered under this Schedule in the chargeable period for which the first-year tax credit was paid.
2
The appropriate part (“the restored loss”) of the loss surrendered under this Schedule in that chargeable period is to be treated as if it were not a surrenderable loss in that chargeable period.
3
The amount of the restored loss is to be calculated in accordance with paragraph 26.
4
The amount of first-year tax credit paid to the company in respect of the restored loss is to be treated as if it ought never to have been paid.
5
The amount of first-year tax credit paid to the company in respect of the restored loss is the relevant percentage of the restored loss.
6
“Relevant percentage” means the percentage specified in paragraph 2(1)(a) for the chargeable period for which the first-year tax credit is paid.
7
This Part of this Schedule applies to an amount of first-year tax credit which is payable for a chargeable period but not yet paid, as it applies to an amount of first-year tax credit which is paid.
Sch. 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