Finance Act 1984

18 Corporation tax for financial years 1983 to 1986: charge, rates and consequential provisions

(1) Corporation tax shall be charged for each of the financial years specified in the first column of the table in subsection (3) below at the rate specified in the second column of that table.

(2) The fraction by which, under section 93(2) of the [1972 c. 41.] Finance Act 1972, chargeable gains are to be reduced before they are for the purposes of corporation tax included in the profits of a company shall, for each of the financial years specified in the first column of the table in subsection (3) below, be the fraction specified in the third column of that table (instead of the fraction specified in section 10(1)(a) of the Finance Act 1974).

(3) The table referred to in subsections (1) and (2) above is as follows:—

TABLE

Financial year	Rate of tax	Reducing fraction
1983	50 per cent.	Two-fifths
1984	45 per cent.	One-third
1985	40 per cent.	One-quarter
1986	35 per cent.	One-seventh

(4) In section 310 of the Taxes Act, subsections (1), (2) and (4) (relief for insurance companies where rate of corporation tax exceeds 37.5 per cent.) shall not have effect with respect to the financial year 1986 or any subsequent financial year.

(5) After subsection (6) of the said section 310 there shall be inserted the following subsection:—

“(7) For the purposes of subsection (6) above, ' unrelieved income ' means income which has not been excluded from charge to tax by virtue of any provision and against which no relief has been allowed by deduction or set-off”.

(6) With respect to the financial year 1986 and subsequent financial years, in paragraph 2(4) of Schedule 18 to the [1972 c. 41.] Finance Act 1972 (which refers to a particular part of unrelieved income) for the words from "subsection (4)" onwards there shall be substituted the words " subsection (7) of that section) from investments held in connection with the company's life assurance business ".