Corporation Tax Act 2009

Chapter 7 U.K. Annual payments not otherwise charged

976 Overview of Chapter U.K.

(1) This Chapter—

(a) applies the charge to corporation tax on income to annual payments not otherwise charged to corporation tax (see section 977), and

(b) provides for an exemption (see section 978).

(2) The following are also relevant to the tax treatment of annual payments within this Chapter—

(a) section 687A(3) of ICTA (discretionary payments by trustees to companies),

(b) section 494 of ITA 2007 (grossing up of discretionary payment and payment of income tax),

(c) section 848 of ITA 2007 (under which a sum representing income tax deducted under Chapter 6 or 7 of Part 15 of that Act (deduction from annual payments, patent royalties and other payments connected with intellectual property) from an annual payment within this Chapter is treated as income tax paid by the recipient), and

(d) Chapter 8 of Part 15 of ITA 2007 (special provision in relation to royalties).

977 Charge to tax on annual payments not otherwise charged U.K.

(1) The charge to corporation tax on income applies to annual payments that are not otherwise within the application of that charge under the Corporation Tax Acts.

(2) Subsection (1) does not apply to annual payments in respect of which no liability to corporation tax arises because of an exemption.

(3) The frequency with which payments are made is ignored in determining whether they are annual payments for the purposes of this Chapter.

978 Exemption for payments by persons liable to pool betting duty U.K.

(1) No liability to corporation tax arises under this Chapter in respect of a payment which meets conditions A and B.

(2) Condition A is that the payment is made, in consequence of a reduction in pool betting duty, by a person liable to that duty.

(3) Condition B is that the payment is in order to meet (directly or indirectly) capital expenditure incurred in improving the safety or comfort of spectators at a ground to be used for the purposes of playing association football.