CREC071700 - Expenditure credit redemption: Step 5

S1179CC CTA 2009 

Any amount remaining after Step 4 is used to discharge any other liability of the company to pay a sum to HMRC. This includes both: 

  • liabilities reported elsewhere on the CT600 tax return, such as section 455 tax on loans to company participators 

  • liabilities outside Corporation Tax 바카라 사이트“ for example, an outstanding VAT charge or liabilities under any contract settlement 

Only liabilities that are outstanding are discharged. A company cannot use credit to discharge tax already paid and receive a refund. 

Example: 

Production Company A has £100,000 credit remaining after Step 4. It also has an unpaid VAT liability of £15,000. 

At Step 5, the VAT liability is fully discharged and reduced to nil. Production Company A has £85,000 credit remaining to carry forward to Step 6.Â