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HMRC internal manual

Company Taxation Manual

From
HM Revenue & Customs
Updated
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Corporation Tax self-assessment (CTSA): the payment obligation: payment of tax credit

Claims to payments of tax credit must be made in the company’s return or in an amended return.

This applies whenever a company makes a claim to payment of tax credit, for example:

  • where a company has surplus franked investment income which it wishes to set off against trading losses or other reliefs under ICTA88/S242 (CTM16200). (Note that Section 242 was repealed for accounting periods beginning on or after 2 July 1997.)
  • where a wholly or partly exempt company claims under ICTA88/S231 (2) (CTM16130).

Note that this only applies when:

  • the company is wholly exempt, or only chargeable on trading income, and
  • the tax credit is one in respect of which the company could claim a payment on account under ICTA88/SCH19AB (pension business). (FA98/SCH18/PARA9 and 57 for CTSA periods, TMA70/S42 (4) - (5) for CTPF accounting periods).

You can only make payments of tax credit manually. You should not normally call for vouchers in support of the claim.