Finance Act 2000

Changes over time for: Section 46

Version Superseded: 01/04/2009

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Point in time view as at 05/03/2009. This version of this provision has been superseded.

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46 Exemption for small trades etc.U.K.

(1)[F1Subject to subsections (2) and (2A) below, exemption—,

F2(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)from corporation tax under Case I or VI of Schedule D,

shall be granted] on a claim made in that behalf to the Board, in respect of any income of a [F3charitable company] if the requirements of subsection (3) below are satisfied with respect to the income.

[F4(2)Exemption shall not be granted under subsection (1) above in respect of income which is chargeable to—

F5(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)corporation tax under Case VI of Schedule D,

by virtue of any of the provisions mentioned in subsection (2A).

(2A)The provisions are—

(a)sections 214, F6..., 703, 776, 788 [F7or 790] of the Taxes Act 1988;

(b)paragraph 52(4) of Schedule 18 to the Finance Act 1998; [F8and]

F9(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)any other enactment specified in an order made by the Treasury.]

(3)The requirements of this subsection are satisfied with respect to any income for [F10an accounting] period if it is applied solely for the purposes of the [F11charitable company] and either—

(a)the [F12charitable company's] gross income for the [F13accounting] period does not exceed the requisite limit; or

(b)the [F11charitable company] had, at the beginning of the period, a reasonable expectation that its gross income for the period would not exceed that limit.

(4)Subject to subsection (5) below, the requisite limit is whichever is the greater of—

(a)£5,000; and

(b)whichever is the lesser of £50,000 and 25% of all of the [F14charitable company's] incoming resources for the [F15accounting] period.

(5)For [F16an accounting] period of less than twelve months, the amounts of £5,000 and £50,000 specified in subsection (4) above shall be proportionally reduced.

(6)In this section—

[F17“charitable company” means any body of persons established for charitable purposes only;]
F18...
“gross income”, in relation to a [F19charitable company], means income before deduction of any expenses;
“income”, in relation to a [F20charitable company], means [F21—
(a)
F22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
(b)
any profits or gains or other income which is chargeable to [F23corporation] tax under Case I or VI of Schedule D and which is not, apart this section, exempted from tax under that Case.

(7)This section applies F24... for accounting periods beginning on or after 1st April 2000.

Textual Amendments

F1S. 46(1) substituted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 514(2) (with Sch. 2)

F2S. 46(1)(a) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(2)(a), Sch. 3 Pt. 1 (with Sch. 2)

F3Words in s. 46(1) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(2)(b) (with Sch. 2)

F4S. 46(2)(2A) substituted (6.4.2005) for s. 46(2) (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 514(3) (with Sch. 2)

F5S. 46(2)(a) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(3), Sch. 3 Pt. 1 (with Sch. 2)

F6Word in s. 46(2A) omitted (with effect in accordance with Sch. 14 para. 18 of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 14 para. 17(i)

F7Words in s. 46(2A)(a) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(4)(a) (with Sch. 2)

F8Word in s. 46(2A)(b) inserted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(4)(b) (with Sch. 2)

F9S. 46(2A)(c) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(4)(c), Sch. 3 Pt. 1 (with Sch. 2)

F10Words in s. 46(3) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(5)(a) (with Sch. 2)

F11Words in s. 46(3) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(5)(b) (with Sch. 2)

F12Words in s. 46(3)(a) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(5)(c) (with Sch. 2)

F13Word in s. 46(3)(a) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(5)(d) (with Sch. 2)

F14Words in s. 46(4)(b) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(6)(a) (with Sch. 2)

F15Word in s. 46(4)(b) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(6)(b) (with Sch. 2)

F16Words in s. 46(5) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(7) (with Sch. 2)

F17Words in s. 46(6) inserted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(8)(a) (with Sch. 2)

F18Words in s. 46(6) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(8)(b), Sch. 3 Pt. 1 (with Sch. 2)