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LE 7: Credit transfer notices
or “How to receive a tax credit for lending shares”
You could also call this:

“Tax credit for retirement scheme contributors who add imputation credits to contributions”

If you’re a retirement scheme contributor, you can get a tax credit when you add an imputation credit to a retirement scheme contribution for someone in an income year. The tax credit you get is for the next tax year. The amount of the tax credit is the smaller of two things: either the amount of the imputation credit, or how much Retirement Scheme Contribution Tax (RSCT) you owe on the contribution.

Sometimes, the imputation credit might be more than the RSCT you owe. If this happens, two things will occur. First, the extra amount is treated as if it were an imputation credit attached to a distribution from you to the person receiving the contribution. Second, the person who’s supposed to take out the RSCT must tell the person receiving the contribution about this extra credit. They need to do this within 30 days of the contribution being made.

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Next up: LE 8: Application of imputation ratio

or “How imputation credits are limited when a dividend's ratio exceeds the maximum”
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Part L Tax credits and other credits
Tax credits for imputation credits

LE 7BCredit of RSCT for imputation credit

  1. A retirement scheme contributor who attaches an imputation credit to a retirement scheme contribution for a person in an income year has a tax credit for the corresponding tax year of an amount equal to the lesser of—

  2. the amount of the imputation credit:
    1. the liability of the contributor for RSCT on the contribution.

      1. If the amount of the imputation credit is more than the liability of the contributor for RSCT on the contribution,—

      2. the amount of the excess is treated as an imputation credit attached to a distribution from the contributor to the person; and
        1. the person responsible for withholding the RSCT must, within 30 days of the contribution, notify the person of the amount of the excess credit.

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          Notes
          • Section LE 7B: inserted, on , by section 442 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).