Part 7Community investment tax relief
Chapter 1Introduction
CITR
220AF1Carry forward of CITR
1
This section applies if—
a
the investor is entitled to a reduction in its liability for corporation tax for a relevant accounting period under section 220 in respect of the investment, but
b
the amount of the reduction is not fully deducted at Step 2 for that relevant accounting period.
2
The amount (“the excess amount”) not deducted is treated as follows.
3
For each subsequent relevant accounting period for which the investor—
a
is entitled to a reduction in its liability for corporation tax under section 220 in respect of the investment, and
b
makes a claim under this subsection,
the investor is also entitled to a reduction in its liability for corporation tax under this subsection.
4
The amount of the reduction under subsection (3) for any relevant accounting period is the excess amount so far as it has not been deducted at Step 2 for any earlier relevant accounting period by virtue of that subsection.
5
In this section “Step 2” means the second step in paragraph 8(1) of Schedule 18 to FA 1998 (calculation of tax payable).