220ACarry forward of CITR

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).