Charges on income are allowed as deductions from a company’s total profits in computing the corporation tax chargeable for an accounting period.

They are deducted from the company’s total profits for the period as reduced by any other relief from tax other than group relief.

The amount of the deduction is limited to the amount that reduces the company’s total profits for the period to nil.

Except as otherwise provided, a deduction is allowed only in respect of payments made by the company in the accounting period concerned.

The above provisions are subject to any express exceptions in the Corporation Tax Acts.