The amount of tax payable for an accounting period is calculated as follows.

• First step

  Calculate the corporation tax chargeable on the company’s profits:

  1. 1

     Take the amount of the company’s profits for that period on which corporation tax is chargeable F1(see section 4(1) and (2) of the Corporation Tax Act 2010).

  2. 2

     Apply the rate or rates of corporation tax applicable to the company.

• Second step

  Then give effect to any reliefs or set-offs available against corporation tax chargeable on profits:

  1. 1

     Any reduction under F2section 19, 20 or 21 of the Corporation Tax Act 2010 (marginal relief for companies with small profits).

  2. 1A

     F3Any relief under Part V of Schedule 15 to the Finance Act 2000 (corporate venturing scheme: investment relief).

  3. 1B

     F4Any relief under F5Part 7 of the Corporation Tax Act 2010 (community investment tax relief).

  4. 2

     Any double taxation relief under F6under sections 2 and 6 of TIOPA 2010 or under section 18(1)(b) and (2) of that Act.

  5. 3

     Any set off for advance corporation tax under section 239 of F7the Taxes Act 1988 or under regulations made under section 32 of this Act.

• Third step

  Then add any amounts assessable or chargeable as if they were corporation tax (reduced by any reliefs specific to those amounts):

  1. 1

     Any amount due under F8section 455 of the Corporation Tax Act 2010 (tax on a loan or advance made by close company to a participator).

  2. 1A

     F9Any sum chargeable under F10section 330(1) of that Act (supplementary charge in respect of ring fence trades).

  3. 2

     F11Any sum charged at step 5 in section 371BC(1) of the Taxation (International and Other Provisions) Act 2010 (controlled foreign companies).

  4. 3

     F12Any amount of the bank levy chargeable by virtue of paragraph 50 or 51 of Schedule 19 to the Finance Act 2011 (the bank levy).

• Fourth step

  Then deduct any amounts to be set off against the company’s overall tax liability for that period:

  1. 1

     Any amount to be set off under F13section 967 or 968 of the Corporation Tax Act 2010 (income tax borne by deduction).

  2. 2

     Any amount to be set off under section 246N or 246Q of F14the Taxes Act 1988 (advance corporation tax paid in respect of foreign income dividend).

Sub-paragraph (1B) applies if an amount of the bank levy chargeable by virtue of paragraph 50 or 51 of Schedule 19 to the Finance Act 2011 (the bank levy) is added at the third step.

Any deductions made at the fourth step are to be treated as made from all other amounts before being made from the amount of the bank levy.

Except as otherwise provided, references in this Schedule to the amount of tax payable by a company for an accounting period are to the amount shown in the company’s self-assessment as the amount payable.