Corporation Tax Act 2009

277 (1) Amend section 842 (investment trusts) as follows.

(2) In subsection (1AB) for “Chapter 2 of Part 4 of the Finance Act 1996” substitute “Part 5 of CTA 2009”.

(3) In subsection (1AC) for the words from “falls” to the end substitute “is charged to corporation tax under section 1229(3)(b) of CTA 2009 (claw back of relief for expenses of management)”.

(4) After subsection (2C) insert—

“(2D) For the purpose of determining whether a company may be approved for the purposes of this section for an accounting period, the excess of any relevant credits arising in that period over any relevant debits so arising is treated for the purposes of this section as income derived from shares or securities.

(2E) In subsection (2D) “relevant credits” and “relevant debits”, in relation to an accounting period, means credits and debits which are brought into account in respect of that period by virtue of section 574 of CTA 2009 (non-trading credits and debits to be brought into account under Part 5 of that Act).”