[F137(1)This paragraph applies if—U.K.
(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.]
Textual Amendments
F1Sch. 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)