Corporation Tax Act 2010

Part 1 U.K. Introduction

1 Overview of Act U.K.

(1) Part 2 is about calculation of the corporation tax chargeable on a company's profits, in particular—

(a) the rates at which corporation tax on profits is charged (see Chapter 2),

(b) ascertaining the amount of profits to which the rates of tax are applied (see Chapter 3), and

(c) the currency in which profits are to be calculated and expressed (see Chapter 4).

(2) [F1 Parts 3A] to 7 make provision for the following reliefs—

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

[F3 (a) relief for companies with small profits (other than ring-fence profits) (see Part 3A),]

(b) relief for trade losses (see Chapters 2 and 3 of Part 4),

(c) relief for losses from property businesses (see Chapter 4 of Part 4),

(d) relief for losses on a disposal of shares (see Chapter 5 of Part 4),

(e) relief for losses from miscellaneous transactions (see Chapter 6 of Part 4),

(f) group relief (see Part 5),

[F4 (fa) group relief for carried-forward losses (see Part 5A),]

(g) relief for qualifying charitable donations (see Part 6), F5 ...

[F6 (ga) relief for expenditure on grassroots sport (see Part 6A), and]

(h) community investment tax relief (see Part 7).

[F7 (2A) Part 7ZA contains provision restricting the amount of certain deductions which may be made in calculating the profits of a company on which corporation tax is chargeable.]

(3) [F8 Parts 7A] to 13 make provision about special types of business and company etc, in particular—

[F9 (za) banking companies (see Part 7A),]

(a) oil activities (see Part 8),

[F10 (aa) oil contractor activities (see Part 8ZA),

(ab) profits arising from the exploitation of patents etc (see Part 8A),]

[F11 (ac) trading profits taxable at Northern Ireland rate (see Part 8B),]

[F12 (ad) restitution interest (see Part 8C),]

(b) leasing plant or machinery (see Part 9),

(c) close companies (see Part 10),

(d) charitable companies etc (see Part 11),

(e) Real Estate Investment Trusts (see Part 12),

(f) corporate beneficiaries under trusts (see Chapter 1 of Part 13),

(g) open-ended investment companies, authorised unit trusts and court investment funds (see Chapter 2 of Part 13),

F13 (h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(i) securitisation companies (see Chapter 4 of Part 13),

(j) companies in liquidation or administration (see Chapter 5 of Part 13),

(k) banks etc in compulsory liquidation (see Chapter 6 of Part 13),

(l) co-operative housing associations and self-build societies (see Chapters 7 and 8 of Part 13), and

(m) community amateur sports clubs (see Chapter 9 of Part 13).

(4) Parts 14 to [F14 21C] contain provisions relating to tax avoidance, in particular with respect to—

(a) change in company ownership (see Part 14),

[F15 (aa) transfer of deductions (see Part 14A),]

[F16 (ab) carried-forward losses (see Part 14B),]

(b) transactions in securities (see Part 15),

(c) factoring of income (see Part 16),

F17 (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F18 (da) manufactured dividends (see Part 17A),]

F19 (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f) the sale and lease-back of assets (see Part 19),

(g) leasing plant or machinery (see Part 20), F20 ...

(h) other arrangements involving asset leasing (see Part 21) F21 ...

[F22 (i) risk transfer schemes (see Part 21A).]

[F23 (j) group mismatch schemes (see Part 21B).][F24 , and

[F25 (ja) tax mismatch schemes (see Part 21BA),]

(k) tainted donations made to charities (see Part 21C).]

(5) Part 22 contains miscellaneous provisions, including provision with respect to—

(a) transfers of trade without a change of ownership (see Chapter 1),

(b) transfers of trade to obtain balancing allowances (see Chapter 2),

(c) transfer of relief within partnerships (see Chapter 3),

(d) the surrender of tax refunds within groups of companies (see Chapter 4),

(e) the set off of income tax deductions against corporation tax (see Chapter 5),

(f) the assessment, collection and recovery of corporation tax from UK representatives of non-UK resident companies (see Chapter 6),

(g) the recovery of unpaid corporation tax due from non-UK resident companies (see Chapter 7), and

(h) exemptions (see Chapter 8).

(6) Part 23 contains provisions about the meaning of “distribution” and certain associated matters.

(7) Part 24 contains definitions that apply for the purposes of the Corporation Tax Acts and other general provisions that have effect for the purposes of those Acts.

(8) Part 25 contains provisions of general application, including definitions for the purposes of the Act.

(9) For abbreviations and defined expressions used in this Act, see section 1174 and Schedule 4.

Textual Amendments

F1 Words in s. 1(2) substituted (with effect in accordance with Sch. 1 para. 34 of the amending Act) by Finance Act 2021 (c. 26), Sch. 1 para. 19(a)

F2 S. 1(2)(a) omitted (with effect in accordance with Sch. 1 para. 22 of the amending Act) by virtue of Finance Act 2014 (c. 26), Sch. 1 para. 2(b)

F3 S. 1(2)(a) inserted (with effect in accordance with Sch. 1 para. 34 of the amending Act) by Finance Act 2021 (c. 26), Sch. 1 para. 19(b)

F4 S. 1(2)(fa) inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 146(2)

F5 Word in s. 1(2)(g) omitted (with effect in accordance with s. 22(6) of the amending Act) by virtue of Finance (No. 2) Act 2017 (c. 32), s. 22(2)(a)

F6 S. 1(2)(ga) inserted (with effect in accordance with s. 22(6) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 22(2)(b)

F7 S. 1(2A) inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 146(3)

F8 Words in s. 1(3) substituted (with effect in accordance with Sch. 2 paras. 7, 8 of the amending Act) by Finance Act 2015 (c. 11), Sch. 2 para. 4(a)

F9 S. 1(3)(za) inserted (with effect in accordance with Sch. 2 paras. 7, 8 of the amending Act) by Finance Act 2015 (c. 11), Sch. 2 para. 4(b)

F10 S. 1(3)(aa)(ab) inserted (retrospective to 1.4.2014) by Finance Act 2014 (c. 26), Sch. 16 paras. 2, 6

F11 S. 1(3)(ac) inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), Sch. 2 para. 5

F12 S. 1(3)(ad) inserted (18.11.2015) (with effect in accordance with s. 38(9)-(12) of the amending Act) by Finance (No. 2) Act 2015 (c. 33), s. 38(2)

F13 S. 1(3)(h) omitted (6.4.2014) by virtue of The Unauthorised Unit Trusts (Tax) Regulations 2013 (S.I. 2013/2819), regs. 1(3), 39(2) (with reg. 32)

F14 Figure in s. 1(4) substituted (with effect in accordance with Sch. 3 para. 27 of the amending Act) by Finance Act 2011 (c. 11), Sch. 3 para. 20(a)

F15 S. 1(4)(aa) inserted (with effect in accordance with Sch. 14 para. 3 of the amending Act) by Finance Act 2013 (c. 29), Sch. 14 para. 2(1)

F16 S. 1(4)(ab) inserted (with effect and application in accordance with Sch. 3 Pt. 2 of the amending Act) by Finance Act 2015 (c. 11), Sch. 3 para. 2

F17 S. 1(4)(d) omitted (1.1.2014) by virtue of Finance Act 2013 (c. 29), Sch. 29 paras. 42, 52(a)

F18 S. 1(4)(da) inserted (1.1.2014) by Finance Act 2013 (c. 29), Sch. 29 paras. 42(b), 52

F19 S. 1(4)(e) omitted (with effect in accordance with s. 81 of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 77(2) (and also with effect in accordance with Finance (No. 2) Act 2017 (c. 32), s. 39(1)(2))

F20 Word in s. 1(4)(g) omitted (with effect in accordance with Sch. 16 para. 5 of the amending Act) by virtue of Finance Act 2010 (c. 13), Sch. 16 para. 2

F21 Word in s. 1(4)(h) omitted (with effect in accordance with Sch. 5 para. 6 of the amending Act) by virtue of Finance Act 2011 (c. 11), Sch. 5 para. 1

F22 S. 1(4)(i) inserted (with effect in accordance with Sch. 16 para. 5 of the amending Act) by Finance Act 2010 (c. 13), Sch. 16 para. 2

F23 S. 1(4)(j) inserted (with effect in accordance with Sch. 5 para. 6 of the amending Act) by Finance Act 2011 (c. 11), Sch. 5 para. 1

F24 S. 1(4)(k) and word inserted (with effect in accordance with Sch. 3 para. 27 of the amending Act) by Finance Act 2011 (c. 11), Sch. 3 para. 20(b)

F25 S. 1(4)(ja) inserted (with effect in accordance with Sch. 20 para. 6(1) of the amending Act) by Finance Act 2013 (c. 29), Sch. 20 para. 2