Modifications etc. (not altering text)
C1Pt. 15 modified (with effect in accordance with s. 105(1) of the modifying Act) by Finance Act 1996 (c. 8), Sch. 13 para. 6(1) (with Sch. 13 para. 16, Sch. 15)
Textual Amendments
F1Pt. 15 Ch. 1C heading substituted for heading before s. 686 (with effect in accordance with s. 74(2) of the amending Act) by Finance Act 1995 (c. 4), Sch. 17 para. 12
Modifications etc. (not altering text)
C2Pt. 15 Ch. 1C modified (6.4.2005 with effect in accordance with s. 883(1) of the modifying Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 457(1)(3) (with Sch. 2)
Textual Amendments
F2Cross-heading before s. 686 replaced by Pt. 15 Ch. 1C heading (with effect in accordance with s. 74(2) of the amending Act) by Finance Act 1995 (c. 4), Sch. 17 para. 12
(1)This section applies where—
(a)trustees make a payment to a company;
(b)section 687 applies to the payment; and
(c)the company is chargeable to corporation tax and does not fall within subsection (2) below.
(2)A company falls within this subsection if it is—
(a)a charity, as defined in section 506(1);
(b)a body mentioned in section 507 (heritage bodies); or
(c)an Association of a description specified in section 508 (scientific research organisations).
(3)Where this section applies—
(a)none of the following provisions, namely—
(i)section 7(2),
(ii)section 11(3),
(iii)paragraph 5(1) of Schedule 16,
shall apply in the case of the payment;
(b)the payment shall be left out of account in calculating the profits of the company for the purposes of corporation tax; and
(c)no repayment shall be made of the amount treated under section 687(2) as income tax paid by the company in the case of the payment.
(4)If the company is not resident in the United Kingdom, this section applies only in relation to so much (if any) of the payment as is comprised in the company’s chargeable profits for the purposes of corporation tax.]
Textual Amendments
F3S. 687A inserted (with effect in accordance with s. 27(2) of the amending Act) by Finance (No. 2) Act 1997 (c. 58), s. 27(1)