Section 963 | Power to surrender tax refund

(1)This section enables a company—

(a)which is a member of a group, and

(b)to which a tax refund is due for an accounting period,

to surrender the refund (or any part of it) to another company which is a member of the same group.

(2)The surrender may be made only if—

(a)the company making the surrender (“the surrendering company”) and the company to which the surrender is made (“the recipient company”) give notice to an officer of Revenue and Customs,

(b)the surrendering company and the recipient company are members of the same group throughout the period beginning with the start of the accounting period for which the tax refund is due and ending on the date on which the notice is given, and

(c)the recipient company also has that accounting period as an accounting period.

(3)A notice under subsection (2) must—

(a)be given before the refund is made to the surrendering company,

(b)be given jointly by the surrendering company and the recipient company,

(c)specify the amount to be surrendered, and

(d)be in such form as the Commissioners for Her Majesty's Revenue and Customs may require.

(4)For the purposes of this section “tax refund”, in relation to an accounting period of a company, means—

(a)a repayment of corporation tax paid by the company for the period, or

(b)a repayment of income tax in respect of a payment received by the company in the period.

(5)For the purposes of this section two companies are members of the same group if (and only if) they would be for the purposes of Part 5 (group relief).