The Corporation Tax (Treatment of Unrelieved Surplus Advance Corporation Tax) Regulations 1999

Displacement of unrelieved surplus ACT—consequential provision

21.—(1) Where, with respect to an accounting period of a company (“the affected company”) that is a member of a group at any time in that accounting period–

(a)an amount of unrelieved surplus ACT is displaced under regulation 12(7)(d) or 13(8)(b) or (d), and

(b)as a consequence the affected company is assessed to, or an amendment of its self-assessment is made in respect of, an amount of corporation tax for that accounting period,

then, if the whole of that amount of corporation tax is not paid by the affected company within six months from the date determined under paragraph (2), any other company that is a member of the group at any time in that accounting period may, at any time within two years from that date, be assessed and charged (in the name of the affected company) to the whole or, as the case may be, the unpaid part of that amount; and a company paying any amount of corporation tax under this paragraph shall be entitled to recover from the affected company a sum equal to the aggregate of the amount paid and any interest paid by the company under section 87A of the Taxes Management Act 1970(1) on that amount.

(2) The date referred to in paragraph (1) is whichever is the later of–

(a)the date when the amount of corporation tax became due and payable by the affected company or, as the case may be, the date when that amount is treated as having become due and payable under the Corporation Tax (Instalment Payments) Regulations 1998(2); and

(b)the date when an amendment of the affected company’s self-assessment was made.