Chwilio Deddfwriaeth

Corporation Tax Act 2010

 Help about what version

Pa Fersiwn

 Help about advanced features

Nodweddion Uwch

Changes over time for: Chapter 4

 Help about opening options

Changes to legislation:

Corporation Tax Act 2010, Chapter 4 is up to date with all changes known to be in force on or before 25 December 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

Close

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.

View outstanding changes

Changes and effects yet to be applied to Part 23 Chapter 4:

Changes and effects yet to be applied to the whole Act associated Parts and Chapters:

Whole provisions yet to be inserted into this Act (including any effects on those provisions):

Chapter 4U.K.Special rules for distributions made by certain companies

Close companiesU.K.

1064Certain expenses of close companies treated as distributionsU.K.

(1)This section applies if a close company incurs an expense in, or in connection with, the provision for any participator of—

(a)living or other accommodation,

(b)entertainment,

(c)domestic or other services, or

(d)other benefits or facilities of any kind.

(2)The company is treated for the purposes of the Corporation Tax Acts as making a distribution to the participator of an amount equal to—

(a)the expense, less

(b)any part of the expense that the participator makes good to the company (so far as not already deducted in calculating the amount of the expense in accordance with subsection (3)).

(3)For the purposes of subsection (2)(a), the amount of the expense is equal to what would, under Chapter 6, 7 or 10 of Part 3 of ITEPA 2003, be the cash equivalent of the resultant benefit to the participator.

(4)Subsection (2) is subject to sections 1065 and 1066, and to any other express exceptions.

1065Exception for benefits treated as employment income etcU.K.

Section 1064 does not apply to expenses incurred—

(a)in the provision for a person or persons mentioned in the first column of the table in this subsection of anything mentioned in the corresponding entry in the second column of the table, or

(b)in connection with such provision.

Person benefitingBenefit
A person employed in employment to which Part 3 of ITEPA 2003 (benefits etc treated as employment income) applies without the exclusion [F1 in section 290C of that Act (provisions of benefits code not applicable to lower-paid ministers of religion)].

Such benefits as are mentioned in—

(a)

Chapter 6, 7 or 10 of Part 3 of ITEPA 2003 (cars and vans, loans and other benefits), or

(b)

section 223 of that Act (payments on account of director's tax).

Any person.Living accommodation which is (within the meaning of Chapter 5 of Part 3 of ITEPA 2003) provided by reason of the person's employment.
The spouse or civil partner, children or dependants of a person (“the employee”) employed by the company.A pension, annuity, lump sum, gratuity or other like benefit to be given on the employee's death or retirement.

Textual Amendments

F1Words in s. 1065 substituted (with effect in accordance with s. 13(4) of the amending Act) by Finance Act 2015 (c. 11), Sch. 1 para. 26

1066Exception for certain transfers between UK resident companiesU.K.

(1)Section 1064 does not apply if the company and the participator are both UK resident and—

(a)one is a 51% subsidiary of the other or both are 51% subsidiaries of a third company which is also UK resident, and

(b)the benefit to the participator arises on a transfer of assets or liabilities—

(i)by the company to the participator, or

(ii)to the company by the participator,

or in connection with such a transfer.

(2)In determining whether one body corporate (“A”) is a 51% subsidiary of another (“B”) for the purposes of subsection (1), B is treated as not being the owner of—

(a)any share capital which it owns directly in a body corporate as trading stock,

(b)any share capital which it owns indirectly, and which is owned directly by a body corporate as trading stock, or

(c)any share capital which it owns directly or indirectly in a body corporate that is not UK resident.

(3)For the purposes of subsection (2) share capital owned by a body is owned as trading stock if (and only if) a profit on the sale of the shares would be treated as a trading receipt of the body's trade.

1067Companies acting in concert or under arrangementsU.K.

(1)Subsection (2) applies if—

(a)each of two or more close companies makes a payment,

(b)each of those payments is made to a person who—

(i)is not a participator in the company making the payment, but

(ii)is a participator in another of those companies, and

(c)the companies are acting in concert or under arrangements made by any person.

(2)For the purposes of sections 1064 to 1066, each payment made to a person as mentioned in subsection (1) is treated as if it had been made to that person by the company in which that person is a participator.

(3)Subsections (1) and (2) apply, with any necessary adaptations, in relation to the giving of any consideration, and to the provision of any facilities, as they apply in relation to the making of a payment.

1068Meaning of “participator” in sections 1064 to 1067U.K.

(1)In sections 1064 to 1067 “participator” has the same meaning as in Part 10 (see section 454).

(2)Section 1069 extends the meaning given by subsection (1).

1069Additional persons treated as participatorsU.K.

(1)In sections 1064 to 1067 any reference to a participator includes an associate of a participator.

(2)If a company (“A”) controls another company (“B”), a person who—

(a)is a participator in A, or

(b)is an associate of a participator in A,

is treated for the purposes of sections 1064 to 1067 as being a participator in B as well.

(3)In this section the following expressions have the same meaning as in Part 10 (close companies)—

(a)“associate” (see section 448),

(b)“control” (see sections 450 and 451), and

(c)“participator” (see section 454).

Companies carrying on a mutual businessU.K.

1070Companies carrying on a mutual businessU.K.

(1)Subsection (2) applies if a company carries on a business (“the mutual business”) of—

(a)mutual trading,

(b)mutual insurance, or

(c)other mutual business.

(2)The provisions of the Corporation Tax Acts relating to distributions apply to relevant distributions made by the company only so far as they are made out of—

(a)profits of the company which are brought into charge to corporation tax, or

[F2(b)income of the company consisting of exempt ABGH distributions.]

This is subject to subsection (4).

(3)In subsection (2) “relevant distributions” means distributions which—

(a)are made to persons participating in the mutual activities of the mutual business, and

(b)derive from those activities.

(4)If a company carries on a mutual life assurance business, the provisions of the Corporation Tax Acts relating to distributions do not apply to distributions made by the company which—

(a)are made to persons participating in the mutual activities of the business, and

(b)derive from those activities.

(5)Subject to subsections (1) to (4), the fact that—

(a)a distribution made by a company carrying on a mutual business is derived from the mutual activities of that business, and

(b)the recipient is a company participating in those activities,

does not affect the character that the payment or other receipt has for the purposes of corporation tax or income tax in the hands of the recipient.

[F3(5A)In subsection (2) “exempt ABGH distribution” means a distribution which—

(a)is a distribution for the purposes of the Corporation Tax Acts only because it falls within paragraph A, B, G or H in section 1000(1), and

(b)is exempt for the purposes of Part 9A of CTA 2009 (company distributions).]

(6)In subsection (2) “profits” means income and chargeable gains.

Textual Amendments

F2S. 1070(2)(b) substituted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by Finance Act 2016 (c. 24), Sch. 1 para. 37(2)

F3S. 1070(5A) inserted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by Finance Act 2016 (c. 24), Sch. 1 para. 37(3)

Companies not carrying on a businessU.K.

1071Companies not carrying on a businessU.K.

(1)This section applies if a company meets conditions A, B and C.

(2)Condition A is that the company does not carry on, and has never carried on—

(a)a trade, or

(b)a business of holding investments.

(3)Condition B is that the company does not hold, and has never held, an office.

(4)Condition C is that the company is not established for purposes which include—

(a)carrying on a trade,

(b)carrying on a business of holding investments, or

(c)holding an office.

(5)The provisions of the Corporation Tax Acts relating to distributions apply to distributions made by the company only so far as the distributions are made out of—

(a)profits of the company which are brought into charge to corporation tax, or

[F4(b)income of the company consisting of exempt ABGH distributions.]

[F5(5A)In subsection (5) “exempt ABGH distribution” means a distribution which—

(a)is a distribution for the purposes of the Corporation Tax Acts only because it falls within paragraph A, B, G or H in section 1000(1), and

(b)is exempt for the purposes of Part 9A of CTA 2009 (company distributions).]

(6)In subsection (5) “profits” means income and chargeable gains.

Textual Amendments

F4S. 1071(5)(b) substituted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by Finance Act 2016 (c. 24), Sch. 1 para. 38(2)

F5S. 1071(5A) inserted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by Finance Act 2016 (c. 24), Sch. 1 para. 38(3)

Members of a 90% groupU.K.

1072Members of a 90% groupU.K.

(1)In the Corporation Tax Acts “distribution”, in relation to a company which is a member of a 90% group, includes anything distributed out of assets of the company (whether in cash or otherwise) in respect of shares in or securities of another company in the group.

(2)Subsection (1) is without prejudice to paragraph B in section 1000(1) (distributions, other than dividends, in respect of shares) as extended by section 1113(1).

(3)Nothing in subsection (1) requires a company to be treated as making a distribution to any other company which is in the same group and is UK resident.

(4)In this section “90% group” means a company and all its 90% subsidiaries.

Yn ôl i’r brig

Options/Cymorth

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open The Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act without Schedules as a PDF

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open y Ddeddf Gyfan

Y Ddeddf Gyfan you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open y Ddeddf Gyfan heb Atodlenni

Y Ddeddf Gyfan heb Atodlenni you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

Y Rhestrau you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Mae deddfwriaeth ar gael mewn fersiynau gwahanol:

Y Diweddaraf sydd Ar Gael (diwygiedig):Y fersiwn ddiweddaraf sydd ar gael o’r ddeddfwriaeth yn cynnwys newidiadau a wnaed gan ddeddfwriaeth ddilynol ac wedi eu gweithredu gan ein tîm golygyddol. Gellir gweld y newidiadau nad ydym wedi eu gweithredu i’r testun eto yn yr ardal ‘Newidiadau i Ddeddfwriaeth’.

Gwreiddiol (Fel y’i Deddfwyd neu y’i Gwnaed): Mae'r wreiddiol fersiwn y ddeddfwriaeth fel ag yr oedd pan gafodd ei deddfu neu eu gwneud. Ni wnaed unrhyw newidiadau i’r testun.

Close

Gweler y wybodaeth ychwanegol ochr yn ochr â’r cynnwys

Rhychwant ddaearyddol: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.

Dangos Llinell Amser Newidiadau: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.

Close

Dewisiadau Agor

Dewisiadau gwahanol i agor deddfwriaeth er mwyn gweld rhagor o gynnwys ar y sgrin ar yr un pryd

Close

Nodiadau Esboniadol

Testun a grëwyd gan yr adran o’r llywodraeth oedd yn gyfrifol am destun y Ddeddf i esbonio beth mae’r Ddeddf yn ceisio ei wneud ac i wneud y Ddeddf yn hygyrch i ddarllenwyr nad oes ganddynt gymhwyster cyfreithiol. Cyflwynwyd Nodiadau Esboniadol ym 1999 ac maent yn cyd-fynd â phob Deddf Gyhoeddus ac eithrio Deddfau Adfeddiannu, Cronfa Gyfunol, Cyllid a Chyfnerthiad.

Close

Rhagor o Adnoddau

Gallwch wneud defnydd o ddogfennau atodol hanfodol a gwybodaeth ar gyfer yr eitem ddeddfwriaeth o’r tab hwn. Yn ddibynnol ar yr eitem ddeddfwriaeth sydd i’w gweld, gallai hyn gynnwys:

  • y PDF print gwreiddiol y fel deddfwyd fersiwn a ddefnyddiwyd am y copi print
  • rhestr o newidiadau a wnaed gan a/neu yn effeithio ar yr eitem hon o ddeddfwriaeth
  • manylion rhoi grym a newid cyffredinol
  • pob fformat o’r holl ddogfennau cysylltiedig
  • slipiau cywiro
  • dolenni i ddeddfwriaeth gysylltiedig ac adnoddau gwybodaeth eraill
Close

Llinell Amser Newidiadau

This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.

Close

Rhagor o Adnoddau

Defnyddiwch y ddewislen hon i agor dogfennau hanfodol sy’n cyd-fynd â’r ddeddfwriaeth a gwybodaeth am yr eitem hon o ddeddfwriaeth. Gan ddibynnu ar yr eitem o ddeddfwriaeth sy’n cael ei gweld gall hyn gynnwys:

  • y PDF print gwreiddiol y fel deddfwyd fersiwn a ddefnyddiwyd am y copi print
  • slipiau cywiro

liciwch ‘Gweld Mwy’ neu ddewis ‘Rhagor o Adnoddau’ am wybodaeth ychwanegol gan gynnwys

  • rhestr o newidiadau a wnaed gan a/neu yn effeithio ar yr eitem hon o ddeddfwriaeth
  • manylion rhoi grym a newid cyffredinol
  • pob fformat o’r holl ddogfennau cysylltiedig
  • dolenni i ddeddfwriaeth gysylltiedig ac adnoddau gwybodaeth eraill