Taxes Consolidation Act 1997 section 959AT

Date for payment of corporation tax: groups

Section 959AT allows a group company that has overpaid preliminary tax to surrender the excess to another group company that has underpaid, so that the underpaying company is deemed to have met its preliminary tax obligations on time.

• A surrendering company that has overpaid its initial or final instalment of preliminary tax may transfer the excess (the "relevant initial balance" or "relevant final balance") to a claimant company in the same group that has underpaid.
• Both companies must jointly notify the Collector-General on or before the surrendering company's specified return date, and the claimant company must pay its full tax liability by that date.
• Any payment made by the claimant company to the surrendering company for the amount surrendered is ignored for corporation tax purposes and is not treated as a distribution or a charge on income.
• The claimant company's exposure to interest under section 1080 is reduced by the amount of any relevant initial balance or relevant final balance deemed to have been paid.