851Delayed payment of royalty by company to related partyU.K.
This section has no associated Explanatory Notes
(1)This section applies if—
(a)a royalty is payable by a company to or for the benefit of a related party,
(b)the royalty is not paid in full within the period of 12 months after the end of the period of account in which a debit in respect of it is recognised by the company for accounting purposes, and
(c)credits representing the full amount of the royalty are not brought into account under this Part in any accounting period by the person to whom it is payable.
(2)The royalty is brought into account for the purposes of this Part only when it is paid.