(1)This section applies if—
(a)the investor is entitled to a reduction in its liability for corporation tax for a relevant accounting period under section 220 in respect of the investment, but
(b)the amount of the reduction is not fully deducted at Step 2 for that relevant accounting period.
(2)The amount (“the excess amount”) not deducted is treated as follows.
(3)For each subsequent relevant accounting period for which the investor—
(a)is entitled to a reduction in its liability for corporation tax under section 220 in respect of the investment, and
(b)makes a claim under this subsection,
the investor is also entitled to a reduction in its liability for corporation tax under this subsection.
(4)The amount of the reduction under subsection (3) for any relevant accounting period is the excess amount so far as it has not been deducted at Step 2 for any earlier relevant accounting period by virtue of that subsection.
(5)In this section “Step 2” means the second step in paragraph 8(1) of Schedule 18 to FA 1998 (calculation of tax payable).]
Textual Amendments
F1S. 220A inserted (with effect in accordance with Sch. 27 para. 12 of the amending Act) by Finance Act 2013 (c. 29), Sch. 27 para. 9