SCHEDULES
C1C2C3C4C5C6C7C8 SCHEDULE 18 Company tax returns, assessments and related matters
Sch. 18 modified (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 68(c); S.I. 2005/1126, art. 2(2)(h)
Sch. 18 applied (20.7.2005) by Finance (No. 2) Act 2005 (c. 22), s. 61
Sch. 18 applied (with modifications) (6.4.2006) by The Registered Pension Schemes (Accounting and Assessment) Regulations 2005 (S.I. 2005/3454), regs. 1, 13
Sch. 18 excluded (17.7.2013) by Finance Act 2013 (c. 29), s. 210(6)(b)
Sch. 18: power to amend conferred (12.2.2019) by Finance Act 2019 (c. 1), s. 87(5)(a)(6)
Sch. 18 applied (with modifications) (22.7.2020) by Finance Act 2020 (c. 14), Sch. 16 para. 11(4) (with Sch. 16 para. 11(5))
Sch. 18 applied (with modifications) (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), s. 303(7)(8) (with s. 303(6))
Part II Company tax return
Calculation of tax payable
8
1
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:
Second step
Then give effect to any reliefs or set-offs available against corporation tax chargeable on profits:
- 1
Any reduction under F20Part 3A or Chapter 3A of Part 8 of the Corporation Tax Act 2010 (marginal relief for companies with small profits).
- 1A
F1Any relief under Part V of Schedule 15 to the Finance Act 2000 (corporate venturing scheme: investment relief).
- 1B
F2Any relief under F7Part 7 of the Corporation Tax Act 2010 (community investment tax relief).
- 2
Any double taxation relief under F4under sections 2 and 6 of TIOPA 2010 or under section 18(1)(b) and (2) of that Act.
- 3
Any set off for advance corporation tax under section 239 of F5the Taxes Act 1988 or under regulations made under section 32 of this Act.
- 1
Third step
Then add any amounts assessable or chargeable as if they were corporation tax (reduced by any reliefs specific to those amounts):
- 1
Any amount due under F8section 455 F15or 464A of the Corporation Tax Act 2010 (tax on a loanF16, advance or benefit to a participator).
- 1ZA
F17Any sum chargeable under section 269DA of that Act (surcharge on banking companies).
- 1A
F3Any sum chargeable under F9section 330(1) of that Act (supplementary charge in respect of ring fence trades).
- 2
F14Any sum charged at step 5 in section 371BC(1) of the Taxation (International and Other Provisions) Act 2010 (controlled foreign companies).
- 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).
- 4
F21Any amount of residential property developer tax chargeable by virtue of section 33 of the Finance Act 2022.
- 5
F22Any amount chargeable by virtue of section 1 of the Energy (Oil and Gas) Profits Levy Act 2022.
- 1
Fourth step
Then deduct any amounts to be set off against the company’s overall tax liability for that period:
F19Fifth step
Calculate the corporation tax chargeable on any profits of the company that are charged as restitution interest.
- 1
Find the amount in respect of which the company is chargeable for the period under the charge to corporation tax on income under Part 8C of CTA 2010.
- 2
Apply the restitution payments rate in accordance with section 357YK(1) of that Act.
The amount of tax payable for the accounting period is the sum of the amounts resulting from the first to fourth steps and this step.
- 1
F131A
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.
1B
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.
2
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.
Sch. 18 restricted (31.7.1998) by 1988 c. 1, s. 754B(10) (as inserted (31.7.1998 with effect as mentioned in Sch. 17 para. 37 of 1998 c. 36) by 1998 c. 36, s. 113, Sch. 17 para. 11)