{
  "url": "https://openlegislation.uk/corporation-tax-act-2009/section-1179CE",
  "json_url": "https://openlegislation.uk/corporation-tax-act-2009/section-1179CE.json",
  "legislation": "ukpga/2009/4",
  "legislation_title": "Corporation Tax Act 2009",
  "legislation_url": "https://openlegislation.uk/corporation-tax-act-2009",
  "path": "section/1179CE",
  "kind": "section",
  "number": "1179CE",
  "heading": "Amounts surrendered to other group companies",
  "text": "(1) Subsection (3) applies if an amount of expenditure credit is surrendered by the qualifying company to another member of its group under step 4 in section 1179CC or under section 1179CD(2) or (5).\n(2) For the purposes of that subsection—\n(a) the accounting period in respect of which the surrender is made is “the surrender AP”;\n(b) an accounting period of the other group member is an “overlapping AP” if it overlaps to any extent with the surrender AP.\n(3) The surrendered amount is to be dealt with as follows.\nStep 1\nSelect an overlapping AP.\nStep 2\nCalculate the proportion of the overlapping AP that overlaps with the surrender AP, and apply that proportion to the amount of corporation tax payable by the other group member for that overlapping AP.\nStep 3\nCalculate the proportion of the surrender AP that overlaps with the overlapping AP, and apply that proportion to the surrendered amount.\nStep 4\nThe amount given by step 3 is to be applied in discharging the liability of the other group member to pay the corporation tax mentioned in step 2, up to the amount given by that step.\nStep 5\nSelect another overlapping AP, if there is one, and repeat steps 2 to 4.\nStep 6\nIf any of the surrendered amount remains after steps 2 to 4 have been taken in relation to each overlapping AP, the remainder is to be treated for the purposes of section 1179CC or (as the case may be) section 1179CD as if it had not been surrendered as mentioned in subsection (1).\n(4) A surrender to which subsection (3) applies is not to be—\n(a) taken into account in determining, for corporation tax purposes, the profits of the qualifying company or the other group member, or\n(b) regarded for corporation tax purposes as the making of a distribution.\n(5) Subsection (6) applies (in addition to subsection (3)) if—\n(a) the qualifying company and the other group member have an agreement between them in relation to the surrendering of amounts of expenditure credit, and\n(b) as a result of the agreement the other group member makes a payment to the qualifying company that does not exceed the total amount of expenditure credit surrendered to the other group member.\n(6) The payment is not to be—\n(a) taken into account in determining, for corporation tax purposes, the profits of the qualifying company or the other group member, or\n(b) regarded for corporation tax purposes as a distribution.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Pt. 14A inserted (22.2.2024) by Finance Act 2024 (c. 3), Sch. 2 para. 1 (with Sch. 2 paras. 16(1), 17-25)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "S. 1179CE(5)(6) inserted (with effect in accordance with s. 31(3) of the amending Act) by Finance Act 2026 (c. 11), s. 31(2)(3)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2009/4/section/1179CE",
    "retrieved_at": "2026-10-29T09:11:19.560467+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}