Paragraph 37 F1

a company (“P”) liable to a penalty under this Part of this Schedule has an agreement in relation to the penalty with one or more other companies within the charge to corporation tax, and

as a result of the agreement, P receives a payment or payments in respect of the penalty that do not, in total, exceed the amount of the penalty.

is not to be taken into account in calculating the profits for corporation tax purposes of either P or the company making the payment, and

is not to be regarded as a distribution for corporation tax purposes.