Taxes Management Act 1970, Cross Heading: Qualifying corporation tax is up to date with all changes known to be in force on or before 03 March 2025. 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.
Textual Amendments
F1Sch. 3ZB inserted (with effect in accordance with Sch. 49 para. 8 of the amending Act) by Finance Act 2013 (c. 29), Sch. 49 para. 6
5(1)The company is liable to pay qualifying corporation tax in respect of the migration accounting period if CT1 is greater than CT2 where—U.K.
CT1 is the corporation tax which the company is liable to pay for the accounting period, and
CT2 is the corporation tax which the company would be liable to pay for the accounting period if any income, profits, gains, losses or debits arising as a result of any PE qualifying events, and arising only by virtue of the exit charge provisions, were ignored,
(CT2 will be zero if the company would not be liable to pay any corporation tax for the period).
(2)The amount of qualifying corporation tax which the company is liable to pay is the difference between CT1 and CT2.
(3)Exit charge provisions means—
(a)section 25 of the 1992 Act,
(b)section 162 of CTA 2009, where that section applies by virtue of section 41(2)(b) of that Act,
(c)section 334 of that Act,
(d)section 610 of that Act, and
(e)section 859 of that Act, where that section applies by virtue of section 859(2)(b).
(4)References in this Part of this Schedule and Part 3 of this Schedule to qualifying corporation tax are to be read in accordance with this paragraph.]
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