CREC071800 - Expenditure credit redemption: Step 6 and payment

S1179CC CTA 2009Ìý

Any amount remainingÌýafter Step 5 is payable by HMRC to the company, provided certain conditions are met.Ìý

HMRC does not have to pay out any amount at Step 6 if the company is in administration or liquidation at the timeÌýit submitsÌýits claim to the Audio-Visual Expenditure Credit (AVEC) or Video Games Expenditure Credit (VGEC).Ìý

HMRC also does not have to pay any Step 6 amount if:Ìý

  • »Ê¹ÚÌåÓýapp company has an outstanding liability under PAYE regulations.Ìý

  • »Ê¹ÚÌåÓýapp company has an outstanding liability in respect of Class 1 national insurance contributions (NICs).Ìý

  • »Ê¹ÚÌåÓýapp company has an outstanding liability under section 966 of the Income Tax Act 2007 (withholding tax for visiting performers).Ìý

»Ê¹ÚÌåÓýappse rules only cover outstanding liabilities for payment periods ending in the accounting period to which the AVEC/VGEC claim relates.Ìý

In these scenarios, HMRC may decide to make a payment of some or all ofÌýthe amount due, on a provisional basis, if appropriate. Once the company has settled any outstanding liabilities, the full amount at Step 6 can be paid out to it.Ìý

HMRC can also delay payment at Step 6 if an enquiry is opened into the company’s tax return, pending the outcome of the enquiry. Again, HMRC may decide to make a provisional payment of some or all ofÌýthe amount due at Step 6, if appropriate.Ìý