Finance Act 2000

46 Exemption for small trades etc. U.K.

(1) [F1 Subject to subsections (2) and (2A) below, exemption—,

F2 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) from corporation tax under Case I or VI of Schedule D,

shall be granted] on a claim made in that behalf to the Board, in respect of any income of a [F3 charitable company] if the requirements of subsection (3) below are satisfied with respect to the income.

[F4 (2) Exemption shall not be granted under subsection (1) above in respect of income which is chargeable to—

F5 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) corporation tax under Case VI of Schedule D,

by virtue of any of the provisions mentioned in subsection (2A).

(2A) The provisions are—

(a) sections 214, F6 ..., 703, 776, 788 [F7 or 790] of the Taxes Act 1988;

(b) paragraph 52(4) of Schedule 18 to the Finance Act 1998; [F8 and]

F9 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) any other enactment specified in an order made by the Treasury.]

(3) The requirements of this subsection are satisfied with respect to any income for [F10 an accounting] period if it is applied solely for the purposes of the [F11 charitable company] and either—

(a) the [F12 charitable company's] gross income for the [F13 accounting] period does not exceed the requisite limit; or

(b) the [F11 charitable company] had, at the beginning of the period, a reasonable expectation that its gross income for the period would not exceed that limit.

(4) Subject to subsection (5) below, the requisite limit is whichever is the greater of—

(a) £5,000; and

(b) whichever is the lesser of £50,000 and 25% of all of the [F14 charitable company's] incoming resources for the [F15 accounting] period.

(5) For [F16 an accounting] period of less than twelve months, the amounts of £5,000 and £50,000 specified in subsection (4) above shall be proportionally reduced.

(6) In this section—

• [F17 “charitable company” means any body of persons established for charitable purposes only;]

• F18 ...

• “gross income”, in relation to a [F19 charitable company], means income before deduction of any expenses;

• “income”, in relation to a [F20 charitable company], means [F21 —

  (a)

  F22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

  (b)

  any profits or gains or other income which is chargeable to [F23 corporation] tax under Case I or VI of Schedule D and which is not, apart this section, exempted from tax under that Case.

(7) This section applies F24 ... for accounting periods beginning on or after 1st April 2000.

Textual Amendments

F1 S. 46(1) substituted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 514(2) (with Sch. 2)

F2 S. 46(1)(a) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(2)(a), Sch. 3 Pt. 1 (with Sch. 2)

F3 Words in s. 46(1) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(2)(b) (with Sch. 2)

F4 S. 46(2)(2A) substituted (6.4.2005) for s. 46(2) (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 514(3) (with Sch. 2)

F5 S. 46(2)(a) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(3), Sch. 3 Pt. 1 (with Sch. 2)

F6 Word in s. 46(2A) omitted (with effect in accordance with Sch. 14 para. 18 of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 14 para. 17(i)

F7 Words in s. 46(2A)(a) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(4)(a) (with Sch. 2)

F8 Word in s. 46(2A)(b) inserted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(4)(b) (with Sch. 2)

F9 S. 46(2A)(c) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(4)(c), Sch. 3 Pt. 1 (with Sch. 2)

F10 Words in s. 46(3) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(5)(a) (with Sch. 2)

F11 Words in s. 46(3) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(5)(b) (with Sch. 2)

F12 Words in s. 46(3)(a) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(5)(c) (with Sch. 2)

F13 Word in s. 46(3)(a) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(5)(d) (with Sch. 2)

F14 Words in s. 46(4)(b) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(6)(a) (with Sch. 2)

F15 Word in s. 46(4)(b) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(6)(b) (with Sch. 2)

F16 Words in s. 46(5) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(7) (with Sch. 2)

F17 Words in s. 46(6) inserted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(8)(a) (with Sch. 2)

F18 Words in s. 46(6) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(8)(b), Sch. 3 Pt. 1 (with Sch. 2)

F19 Words in s. 46(6) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(8)(c) (with Sch. 2)

F20 Words in s. 46(6) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(8)(d)(i) (with Sch. 2)

F21 Words in s. 46(6) inserted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 514(4)(a) (with Sch. 2)

F22 Words in S. 46(6) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(8)(d)(ii), Sch. 3 Pt. 1 (with Sch. 2)

F23 Word in s. 46(6) inserted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 514(4)(b) (with Sch. 2)

F24 Words in s. 46(7) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(9), Sch. 3 Pt. 1 (with Sch. 2)