SCHEDULES
F1SCHEDULE 7AInterest restriction returns
Annotations:
Amendments (Textual)
PART 2Contents of interest restriction return
Payments between companies in respect of penalties
37
1
This paragraph applies if—
a
a company (“P”) liable to a penalty under this Part of this Schedule has an agreement in relation to the penalty with one or more other companies within the charge to corporation tax, and
b
as a result of the agreement, P receives a payment or payments in respect of the penalty that do not, in total, exceed the amount of the penalty.
2
The payment—
a
is not to be taken into account in calculating the profits for corporation tax purposes of either P or the company making the payment, and
b
is not to be regarded as a distribution for corporation tax purposes.
Sch. 7A inserted (with effect in accordance with Sch. 5 para. 25(1)(2) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 5 para. 2 (with Sch. 5 para. 28)