Section 1042L | Treatment of notional tax deduction ^F1

(1)This section applies if an amount is deducted under step 2 in section 1042I.

(2)If the company is a member of a group, it may, in respect of the accounting period in which the expenditure credit arises, surrender the whole or part of the deducted amount to any other member of the group (as to which see section 1042N).

(3)To the extent that the deducted amount is not surrendered under subsection (2), it is to be applied in discharging any liability of the company to pay corporation tax for any subsequent accounting period.