Section 939FA | Clawback of corporation tax relief where donation becomes tainted in later accounting period ^F1

(1)This section applies where—

(a)a company makes a relievable charity donation in an accounting period (“the donation period”),

(b)the donation becomes a tainted donation in a later accounting period (“the tainting period”), and

(c)if the donation had become a tainted donation in the donation period, the company’s liability to corporation tax for the donation period would have been greater than it in fact was for that period.

(2)The company’s liability to corporation tax for the tainting period is increased by an amount equal to the difference between—

(a)the amount of corporation tax for which it would have been liable for the donation period had the donation become a tainted donation in that period, and

(b)the amount of corporation tax for which it was in fact liable for the donation period.

(3)Section 87A of TMA 1970 (interest on overdue corporation tax etc) has effect in relation to tax for which a company is liable by virtue of subsection (2) as though the tax had become due and payable on the day following the expiry of 9 months from the end of the donation period.