»Ê¹ÚÌåÓýapp

S1179CC CTA 2009Ìý

»Ê¹ÚÌåÓýapp amount remainingÌýafter StepÌý2 is used to dischargeÌýany liability of the company to pay Corporation Tax (CT) for any accounting periodÌýother than the currentÌýperiod. »Ê¹ÚÌåÓýapp CT liability of the current period is discharged earlier, at Step 1 (CREC071200).Ìý

Only CT liabilitiesÌýthat are outstandingÌý(due but not settled) are discharged. A company cannot useÌýcredit to discharge tax already paid and receiveÌýa refund.Ìý

»Ê¹ÚÌåÓýapp legislation does not prescribe a priority order, so the company may decide.Ìý In the absence of any offset specified by the company, HMRC may use its discretion to apply the offset.Ìý

Example:Ìý

Production Company A has £100,000 credit remainingÌýafter Step 2. It has £30,000 unpaid CT for the previousÌýaccounting period.Ìý

»Ê¹ÚÌåÓýapp CT liability for the previousÌýaccounting period is fully discharged and reduced to nil.ÌýProduction Company A has £70,000 credit remainingÌýto carry forward to Step 4.Ìý