CREC073400 - Expenditure credit redemption: example 4 - credit received from group member
CT = Corporation Tax听
AP = accounting period听
Company 4听 |
Values听 |
Profit听 |
拢400,000听 |
CT liability @ 25%听 |
拢100,000听 |
Credit for this AP听 |
拢75,000听 |
Credit brought forward听 |
nil听 |
Credit received from group member(s)听 |
拢25,000听 |
CT liability of other AP(s)听 |
nil听 |
Other liabilities听 |
nil听 |
PRE-STEP 1 RESTRICTION听
The amount of credit brought forward听and the amount of credit received from group member(s) are used, in that order, to discharge the CT liability for this AP.听
-听 |
Values听 |
Credit received from group member(s)听 |
拢25,000听 |
CT liability听 |
拢100,000听 |
CT liability after discharge听 |
拢75,000听 |
Excess credit received from group member(s)听 |
nil听 |
If there were any excess credit remaining听after discharge, it would be treated as if it had not been surrendered. The surrendering company should adjust its calculations听as necessary.听
STEP 1听
The credit amount for this AP is used to discharge the remaining CT liability for this AP.听
-听 |
Values听 |
Credit for this AP听 |
拢75,000听 |
Remaining CT liability听 |
拢75,000听 |
CT liability after discharge听 |
nil听 |
Credit remaining听after discharge听 |
nil听 |
STEPS 2 TO 6听
As there is no more credit remaining听after Step 1, there is no need to apply Steps 2 to 6.听
SURRENDER TO GROUP MEMBER听
If the company is a member of a group, it may surrender some or all of听the amount听withheld at Step 2, plus any credit brought forward and not used at the pre-Step 1 restriction, to any other member of the same group.听
Company 4 has no amount of credit withheld at Step 2 or unused credit brought forward, so there is no need to consider a surrender.听
AMOUNTS CARRIED FORWARD听
Any amount withheld at Step 2 and/or any unused credit brought forward which is not surrendered to a group member is carried forward to the next AP.听
Company 4 has no amount of credit withheld at Step 2 or unused credit brought forward, so there is no amount carried forward.听