Corporation Tax Act 2010

981 Exemption for trade unions and eligible employers’ associations

(1) No liability to corporation tax arises in respect of qualifying income or gains of a trade union or eligible employers’ association if conditions A and B are met.

(2) Condition A is that the trade union or employers’ association is prevented by its rules or by Act of Parliament from assuring to any person a sum exceeding—

(a) £4,000 by way of gross sum, or

(b) £825 by way of annuity.

(3) Condition B is that the trade union or employers’ association makes a claim for exemption under this section.

(4) The following are to be ignored in determining whether condition A is met—

(a) an annuity contract which constitutes a registered pension scheme, and

(b) an annuity contract which is issued or held in connection with a registered pension scheme other than an occupational pension scheme (within the meaning of section 150(5) of FA 2004).

(5) The Treasury may by order—

(a) amend the sum for the time being specified in subsection (2)(a) or (b) so as to increase it, and

(b) make provision about the income or gains in relation to which an amendment under paragraph (a) has effect.