M1(1)Where a company begins or ceases to carry on a trade, or to be within the charge to corporation tax in respect of a trade, the company’s income shall be computed as if that were the commencement or, as the case may be, discontinuance of the trade, whether or not the trade is in fact commenced or discontinued.
(2)Subject F1. . . to any other provision of the Corporation Tax Acts which expressly authorises such a deduction, no deduction shall be made in computing income from any source—
(a)in respect of dividends or other distributions; nor
(b)in respect of any [F2annuity or other annual payment which is not interest] or in respect of any such other payments as are mentioned in section 348(2), but not including sums which are, or but for any exemption would be, chargeable under Schedule A.
[F3(2A)In computing any profits or losses of a company in accordance with the provisions of this Act applicable to Case I of Schedule D, subsection (2)(b) above shall not prevent the deduction of any annuity or other annual payment which is payable by a company wholly or partly in satisfaction of any claim under an insurance policy in relation to which the company is the insurer.
(2B)The reference in subsection (2A) above to an annuity payable wholly or partly in satisfaction of a claim under an insurance policy shall be taken, in relation to an insurance company (within the meaning of Chapter I of Part XII), to include a reference to every annuity payable by that company; and [F4the reference in section 338(2)] to an annuity paid wholly or partly as mentioned in subsection (2A) above shall be construed accordingly.]
(3)F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F1Words in s. 337(2) repealed (with effect in accordance with s. 105(1) of the repealing Act) by Finance Act 1996 (c. 8), Sch. 41 Pt. 5(3), Note (with Sch. 15)
F2Words in s. 337(2)(b) substituted (with effect in accordance with s. 105(1) of the amending Act) by Finance Act 1996 (c. 8), Sch. 14 para. 14(1) (with Sch. 15)
F3S. 337(2A)(2B) inserted (with effect in accordance with s. 165(4)(5) of the amending Act) by Finance Act 1996 (c. 8), s. 165(1)
F4Words in s. 337(2B) substituted (with effect in accordance with s. 67(7) of the amending Act) by Finance Act 1997 (c. 16), s. 67(4)(b)
F5S. 337(3) repealed (with effect in accordance with s. 105(1) of the repealing Act) by Finance Act 1996 (c. 8), Sch. 14 para. 14(2), Sch. 41 Pt. 5(3), Note (with Sch. 15)
Marginal Citations
M1Source-1970 s.251