Finance Act 1994

219 Taxation of profits. U.K.

(1) Corporation tax for any accounting period on the profits arising from a corporate member’s underwriting business shall be computed on the profits of that accounting period.

(2) As respects the profits arising to a corporate member for any accounting period directly from its membership of one or more syndicates, or from assets forming part of a [F1 premium] trust fund—

(a) the aggregate of those profits shall be computed for tax purposes under [F2 Part 3 of the Corporation Tax Act 2009] ; and

(b) accordingly, no part of those profits shall be computed for those purposes [F3 otherwise than under Part 3 of the Corporation Tax Act 2009] .

(3) [F4 Subject to subsection (4A) below,] the profits arising to a corporate member for any accounting period—

(a) from assets forming part of an ancillary trust fund; or

(b) from assets employed by it in, or in connection with, its underwriting business,

shall be computed for tax purposes under [F5 Part 3 of the Corporation Tax Act 2009] if, and to the extent that, they do not fall to be computed for those purposes [F6 otherwise than under Part 3 of that Act] .

(4) Where the profits arising for any accounting period from the assets of a corporate member’s [F1 premium] trust fund include [F7 UK distributions], subsection (2) above shall apply in relation to those distributions F8 . . . notwithstanding anything in [F9 section 1285 of the Corporation Tax Act 2009 (exemption for UK company distributions)] .

[F10 (4A) Notwithstanding anything in section F11 ... [F12 1285 of the Corporation Tax Act 2009] , UK distributions in respect of any assets of a corporate member which are mentioned in paragraph (a) or (b) of subsection (3) above—

(a) shall be taken into account in computing profits of the corporate member for tax purposes; and

(b) shall be so taken into account under [F13 Part 3 of the Corporation Tax Act 2009] [F14 (and not under any other provision of the Corporation Tax Acts)] .

(4B) Section 231(1) of the Taxes Act 1988 (entitlement to tax credit) shall not apply where the distribution there mentioned is a distribution in respect of any asset of a corporate member’s [F1 premium] trust fund.

(4C) In this section “UK distributions” means dividends or other distributions of a company resident in the United Kingdom.]

F15 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Words in s. 219(2)(4)(4B) substituted (1.12.2001) by S.I. 2001/3629, art. 87(a)

F2 Words in s. 219(2)(a) substituted (1.4.2009) (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 392(2)(a) (with Sch. 2 Pts. 1, 2)

F3 Words in s. 219(2)(b) substituted (1.4.2009) (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 392(2)(b) (with Sch. 2 Pts. 1, 2)

F4 Words in s. 219(3) inserted (31.7.1997 with effect as mentioned in s. 22(7) of the amending Act) by 1997 c. 58, s. 22(2)

F5 Words in s. 219(3) substituted (1.4.2009) (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 392(3)(a) (with Sch. 2 Pts. 1, 2)

F6 Words in s. 219(3) substituted (1.4.2009) (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 392(3)(b) (with Sch. 2 Pts. 1, 2)

F7 Words in s. 219(4) substituted (31.7.1997 with effect as mentioned in s. 22(7) of the amending Act) by 1997 c. 58, s. 22(3)(a)

F8 Words in s. 219(4) repealed (31.7.1997 with effect as mentioned in s. 22(7) and the Note to Sch. 8 Pt. II(5) of the repealing Act) by 1997 c. 58, ss. 22(3)(b), 52, Sch. 8 Pt. II(5)

F9 Words in s. 219(4) substituted (1.4.2009) (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 392(4) (with Sch. 2 Pts. 1, 2)

F10 S. 219(4A)-(4C) inserted (31.7.1997 with effect as mentioned in s. 22(7) of the amending Act) by 1997 c. 58, s. 22(4)

F11 Words in s. 219(4A) repealed (10.7.2003) (with effect in accordance with Sch. 43 Pt. 3(6) Note of the amending Act) by Finance Act 2003 (c. 14), Sch. 43 Pt. 3(6)

F12 Words in s. 219(4A) substituted (1.4.2009) (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 392(5)(a) (with Sch. 2 Pts. 1, 2)

F13 Words in s. 219(4A)(b) substituted (1.4.2009) (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 392(5)(b)(i) (with Sch. 2 Pts. 1, 2)

F14 Words in s. 219(4A)(b) substituted (1.4.2009) (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 392(5)(b)(ii) (with Sch. 2 Pts. 1, 2)

F15 S. 219(5) repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 3 (with Sch. 2)