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LK 7: Taxable distributions and NRWT rules
or “Rules for tax credits on distributions from foreign companies you partly own”
You could also call this:

“Tax credits are shared among companies in a consolidated group”

If you are part of a consolidated group of companies, and that group has a tax credit under [section LK 1], you need to know that the credit belongs to the whole group. This means the tax credit is not owned by any single company in the group. Instead, it’s shared by all the companies that make up the consolidated group.

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Next up: LK 9: Use of company’s credits carried forward

or “How a company in a group can use its leftover tax credits from the previous year”
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Part L Tax credits and other credits
Tax credits relating to attributed controlled foreign company income

LK 8Tax credits of consolidated companies

  1. If a consolidated group has a tax credit under section LK 1, the credit is treated as the consolidated group’s credit and not the credit of a group company.

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