Section 1042M Priority of dischargeF1

United Kingdom

(1)

An amount within subsection (2) is to be applied as described in that subsection before any amount within subsection (3) is applied as described in that subsection.

(2)

An amount is within this subsection if it is to be applied under—

(a)

section 1042L (3), or

(b)

section 1042N (3) as it applies in relation to an amount surrendered under section 1042L (2),

in discharging the liability of a company to pay corporation tax for an accounting period.

(3)

An amount is within this subsection if it is to be (or would but for subsection (1) be) applied under—

(a)

step 4 in section 1042I, or

(b)

section 1042N (3) as it applies in relation to an amount surrendered under step 5 in section 1042I,

in discharging the same liability as an amount within subsection (2).

Annotations

Textual amendments

F1: Pt. 13 Ch. 1A inserted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 5, 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2

Notes on Part 13

Textual amendments

F1: Words in Pt. 13 heading omitted (with effect in relation to accounting periods beginning on or after 1.4.2024) by virtue of Finance Act 2024 (c. 3), Sch. 1 paras. 3, 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2