CREC071600 - Expenditure credit redemption: Step 4

S1179CC CTA 2009  

If the company is a member of a group, it can choose to surrender some or all of the amount remaining after Step 3 to any other member of the same group of companies. This Step is optional. 

Example 1 

Production Company A has £75,000 credit remaining after Step 3. It chooses to surrender £25,000 at Step 4 to Company B, which is a member of the same group. Production company A has £50,000 credit remaining to carry forward to Step 5. 

There are specific rules about how to use an amount surrendered by a group member (CREC07200).  

If a company surrenders an amount to a group member and that group member is not able to use the full amount to discharge its own liabilities under the surrender rules, the amount not used is treated as if it had never been surrendered. 

Example 2 

The scenario for Production Company A is the same as in example 1. However, of the £25,000 credit it receives, Company B is only able to use £20,000. 

The other £5,000 is treated as if it was never surrendered. Production Company A only uses up £20,000 credit at Step 4 and has £55,000 credit remaining to carry forward to Step 5.Â