Part 22Miscellaneous provisions
C1Chapter 4Surrender of tax refund within group
964Effects of surrender of tax refund
1
This section makes provision about the effect of the surrender under section 963 of a tax refund due for an accounting period.
2
So far as the company to which the surrender is made (“the recipient company”) is concerned, the effect of the surrender is that—
a
the company is treated for all corporation tax purposes, except the one mentioned in subsection (3), as if it had paid an amount of corporation tax for the accounting period equal to the amount specified in the notice under section 963(2) (“the surrendered amount”), and
b
the payment is treated for those purposes as if it had been made on the relevant date.
3
For the purpose of working out the amount of any penalty to which the recipient company is liable under paragraph 18 of Schedule 18 to FA 1998 (failure to deliver return: tax-related penalty), the recipient company is treated as having paid the amount of corporation tax on the day on which the notice under section 963(2) is given (and not on the relevant date).
4
So far as the company by which the surrender is made (“the surrendering company”) is concerned, the effect of the surrender is that—
a
the company is treated for corporation tax purposes as if it had received a repayment of tax equal to the surrendered amount, and
b
the repayment is treated for those purposes as if it had been received on the relevant date.
5
If the tax refund surrendered is a repayment of corporation tax, any interest relating to it which has been paid by the surrendering company is treated as if it had been paid by the recipient company.
6
For the purposes of this section “the relevant date”, in relation to a tax refund, means—
a
so far as it consists of a repayment of corporation tax paid by the surrendering company after the date on which it became due and payable under section 59D or 59E of TMA 1970, the day on which it was paid by the surrendering company, and
b
otherwise, the date on which corporation tax for the accounting period of the surrendering company became due and payable.
Pt. 22 Ch. 4 applied (with modifications) by S.I. 1998/3175, reg. 9 (as substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Corporation Tax (Instalment Payments) (Amendment) Regulations 2011 (S.I. 2011/1785), regs. 1(1), 12)