Finance Act, 1986
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Amendment of certain time limits. |
55.—(1) The Corporation Tax Act, 1976 , is hereby amended— | |
(a) in subsection (5) of section 25 and in subsection (4) of section 26 by the deletion of “and this assessment shall be made not later than two years from the end of the subsequent accounting period”, and | ||
(b) by the insertion in subsection (4) of section 26 after “the said tax credit” of “and the time limit for a claim under this subsection shall be two years from the end of the subsequent accounting period”, | ||
and the said subsection (5) (apart from the proviso) and the said subsection (4), as so amended, are set out in the Table to this subsection. | ||
TABLE | ||
(5) Where a company has obtained payment of a tax credit on a claim under this section or under section 15 (4) and apart from such a claim any amount could be set off against or deducted from profits of a subsequent accounting period, then the company may claim that the amount shall be so set off or deducted but in that case to the extent to which the amount was used to obtain payment of a tax credit, such tax credit shall be recoverable from the company by an assessment on it to income tax under Case IV of Schedule D for the year of assessment in which the subsequent accounting period ends on an amount the income tax on which at the standard rate for the said year of assessment is equal to the amount of the said tax credit: | ||
(4) Where a company has obtained payment to it of a tax credit by virtue of this section on a claim under section 16 (1) and apart from such a claim a loss could be set off against or deducted from profits of a subsequent accounting period, then the company may claim that the loss shall be so set off or deducted but, in that case, to the extent to which the loss was used to obtain payment of a tax credit, such tax credit shall be recovered from the company by an assessment on it to income tax under Case IV of Schedule D for the year of assessment in which the subsequent accounting period ends on an amount the income tax on which at the standard rate for the said year of assessment is equal to the amount of the said tax credit and the time limit for a claim under this subsection shall be two years from the end of the subsequent accounting period. | ||
(2) This section shall have effect— | ||
(a) as respects subsection (1) (a), in relation to any assessment made under section 25 (5) or 26 (4) of the Corporation Tax Act, 1976 , for the purpose of recovering a tax credit from a company consequent on the making by the company, on or after the 4th day of April, 1986, of a claim under the said section 25 (5) or 26 (4), as the case may be, and | ||
(b) as respects subsection (1) (b), in relation to any claim under the said section 26 (4) made on or after the date of the passing of this Act. |