Corporation Tax Act 2009

[F1 BLAGAB] company tax credits U.K.

Textual Amendments

F1 Words in s. 1164 cross-heading substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 200

1164 Entitlement to tax credit U.K.

(1) A company is entitled to [F2 a BLAGAB tax credit] for an accounting period if it has a [F3 qualifying BLAGAB loss] in the period (see section 1165).

(2) For the company to obtain [F4 a BLAGAB tax credit] in respect of all or part of the [F5 qualifying BLAGAB loss] it must make a claim.

(3) The amount of [F6 a BLAGAB tax credit] to which the company is entitled is determined in accordance with section 1166.

(4) See also section 1168, which restricts the carry forward of expenses payable where a company claims [F7 a BLAGAB tax credit].

Textual Amendments

F2 Words in s. 1164(1) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 201(2)(a)

F3 Words in s. 1164(1) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 201(2)(b)

F4 Words in s. 1164(2) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 201(2)(a)

F5 Words in s. 1164(2) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 201(2)(b)

F6 Words in s. 1164(3) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 201(3)

F7 Words in s. 1164(4) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 201(3)

1165 Meaning of [F8 “qualifying BLAGAB loss”] U.K.

(1) For the purposes of this Chapter a company has a [F9 “qualifying BLAGAB loss”] in an accounting period (“the relevant accounting period”) if in the period—

(a) it is entitled to relief under section 1161 [F10 or 1162], and

(b) an amount falls to be carried forward to a subsequent accounting period under [F11 section 73 of FA 2012 as excess BLAGAB expenses].

(2) In determining for the purposes of subsection (1)(b) whether there is an amount which falls to be carried forward to a subsequent accounting period under [F12 section 73 of FA 2012 as excess BLAGAB expenses], no account is to be taken of the amounts specified in subsection (3).

(3) Those amounts are amounts—

(a) brought forward from an earlier accounting period, and

[F13 (b) 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 relevant accounting period as a result of—

(i) the previous application of section 73 or 93 of FA 2012, or

(ii) the carry forward to the relevant accounting period of an amount under section 391 of this Act (surplus deficit).]

(4) The amount of the [F14 qualifying BLAGAB loss] is—

(a) the amount which falls to be carried forward as mentioned in subsection (1)(b), or

(b) if less, 150% of the qualifying Chapter 4 expenditure in respect of which the relief was obtained.

Textual Amendments

F8 Words in s. 1165 heading substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 202(6)

F9 Words in s. 1165(1) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 202(2)(a)

F10 Words in s. 1165(1)(a) inserted (with effect in accordance with Sch. 7 paras. 27, 28 of the amending Act) by Finance Act 2009 (c. 10), Sch. 7 para. 15

F11 Words in s. 1165(1)(b) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 202(2)(b)

F12 Words in s. 1165(2) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 202(3)

F13 S. 1165(3)(b) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 202(4)

F14 Words in s. 1165(4) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 202(5)

1166 Amount of tax credit U.K.

(1) The amount of the [F15 BLAGAB tax credit] to which a company is entitled for an accounting period is 16% of the amount of the [F16 qualifying BLAGAB loss] for the period.

(2) The Treasury may by order replace the percentage for the time being specified in subsection (1) with a different percentage.

(3) An order under subsection (2) may contain incidental, supplemental, consequential and transitional provision and savings.

Textual Amendments

F15 Words in s. 1166(1) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 203(a)

F16 Words in s. 1166(1) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 203(b)

1167 Payment of tax credit etc U.K.

(1) The provisions mentioned in subsection (2) have effect in relation to [F17 a BLAGAB tax credit] subject to the modifications set out in subsection (3).

(2) The provisions referred to in subsection (1) are—

• section 1151(4) (payment of tax credit by officer of Revenue and Customs);

• section 1155 (supplementary provision about payment of tax credit);

• section 1156 (tax credit payment not income of company);

• section 1157 (qualifying expenditure excluded for capital gains purposes).

(3) The modifications referred to in subsection (1) are as follows—

(a) for any reference to a land remediation tax credit substitute a reference to [F18 a BLAGAB tax credit], and

(b) in section 1157(2) for the reference to qualifying land remediation expenditure substitute a reference to qualifying Chapter 4 expenditure.

Textual Amendments

F17 Words in s. 1167(1) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 204

F18 Words in s. 1167(3)(a) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 204

1168 Restriction on carrying forward expenses payable where tax credit claimed U.K.

(1) This section applies if a company claims [F19 a BLAGAB tax credit] to which it is entitled for an accounting period.

(2) For the purposes of [F20 section 73 of FA 2012] the amount which may be—

(a) carried forward from the accounting period under [F21 that section as excess BLAGAB expenses], and

(b) brought into account in accordance with [F22 step 5 in section 76 of FA 2012],

is treated as reduced by the amount of the surrendered loss for the period.

(3) The “amount of the surrendered loss” for the period means the amount of the [F23 qualifying BLAGAB loss] in respect of which the land remediation tax credit is claimed for the period.

Textual Amendments

F19 Words in s. 1168(1) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 205(2)

F20 Words in s. 1168(2) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 205(3)(a)

F21 Words in s. 1168(2) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 205(3)(b)

F22 Words in s. 1168(2) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 205(3)(c)

F23 Words in s. 1168(3) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 205(4)