[F1Circumstances in which first-year tax credit clawed backU.K.
Textual Amendments
F1Sch. A1 inserted (with effect in accordance with Sch. 25 para. 9 of the amending Act) by Finance Act 2008 (c. 9), Sch. 25 para. 5
24(1)This paragraph applies where—U.K.
(a)a company to which a first-year tax credit is paid for a chargeable period disposes of an item of tax-relieved plant or machinery before the end of the clawback period in relation to that item, and
(b)after the disposal the amount (or the aggregate of the amounts) of the original expenditure on the retained tax-relieved plant and machinery is less than the amount of loss surrendered under this Schedule in the chargeable period for which the first-year tax credit was paid.
(2)The appropriate part (“the restored loss”) of the loss surrendered under this Schedule in that chargeable period is to be treated as if it were not a surrenderable loss in that chargeable period.
(3)The amount of the restored loss is to be calculated in accordance with paragraph 26.
(4)The amount of first-year tax credit paid to the company in respect of the restored loss is to be treated as if it ought never to have been paid.
(5)The amount of first-year tax credit paid to the company in respect of the restored loss is the relevant percentage of the restored loss.
(6)“Relevant percentage” means the percentage specified in paragraph 2(1)(a) for the chargeable period for which the first-year tax credit is paid.
(7)This Part of this Schedule applies to an amount of first-year tax credit which is payable for a chargeable period but not yet paid, as it applies to an amount of first-year tax credit which is paid.]