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OP 21: Consolidated ICA transfer from group’s policyholder credit account
or “Removed rule: Transferring funds between group accounts no longer applies”
You could also call this:

“Moving money between company accounts in a group to pay bills”

You can transfer money from one account to another in a group of companies. This happens when there’s not enough money in the main account to cover a bill, but there’s extra money in another company’s account.

The main company in the group can choose to move some or all of the extra money from the other company’s account to the main account. This helps pay the bill in the main account.

There are some rules for doing this:

  1. Both accounts need to have kept their money safely until the day the bill needs to be paid.

  2. You have to use up the money in the main account first, then use the money from other companies’ accounts in order of when they got the money.

  3. You can only move as much money as you need to pay the bill in the main account.

To make this transfer happen, the main company writes down how much money they’re moving. They show it as money leaving the other company’s account and money coming into the main account.

When this happens, it counts as new money coming into the main account. The day this new money comes in is the same day the bill needs to be paid.

You can find more information about keeping money in accounts if you want to learn more about the rules.

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Next up: OP 23: Consolidated ICA elimination of double debit

or “Removing duplicate tax debits for company groups”
Next

Part O Memorandum accounts
Memorandum accounts of consolidated groups: Imputation credits of consolidated imputation groups

OP 22Consolidated ICA transfer from group company’s ICA

  1. This section applies when—

  2. the imputation credit account of a consolidated imputation group has an imputation debit described in a row of table O20: imputation debits of consolidated imputation groups; and
    1. the imputation credit account of a group company has a credit balance; and
      1. the credit balance referred to in paragraph (b) existed before the debit referred to in paragraph (a) arose in the imputation credit account of the group.

        1. The nominated company of the consolidated imputation group may choose to transfer some or all of the credit balance in the imputation credit account of the group company to the imputation credit account of the group.

        2. The following restrictions apply to a transfer under subsection (2):

        3. the consolidated imputation group and the group company must meet the requirements of section OA 8 (Shareholder continuity requirements for memorandum accounts) for the carrying forward of imputation credits until the end of the day on which the debit referred to in subsection (1)(a) arises in the imputation credit account of the group:
          1. credits in the imputation credit accounts of the group and all group companies must be used to reduce the debit referred to in subsection (1)(a) in the order in which the credits arose:
            1. the total amount of the credit balances in the imputation credit accounts of companies in the group referred to in subsection (1)(a) that may be transferred to the imputation credit account of the group is limited to the amount of the imputation debit referred to in that paragraph.

              1. The nominated company makes an election under subsection (2) by recording the amount of the credit balance that it chooses to transfer as—

              2. a debit in the group company’s imputation credit account; and
                1. a credit in the group’s imputation credit account.

                  1. When the nominated company makes an election under subsection (2) for a group company, the consolidated imputation group has an imputation credit for the amount of the credit balance transferred.

                  2. The imputation credit in subsection (5) is referred to in table O19: imputation credits of consolidated imputation groups, row 17 (transfer from group company’s ICA).

                  3. The credit date is the same as the debit date for the debit referred to in subsection (1)(a).

                  Notes
                  • Section OP 22: replaced (with effect on 1 April 2008), on , by section 126(1) (and see section 126(2) for application) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).