- Latest available (Revised)
- Original (As enacted)
Corporation Tax Act 2009, Chapter 12 is up to date with all changes known to be in force on or before 24 December 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.
Whole provisions yet to be inserted into this Act (including any effects on those provisions):
(1)This Chapter applies if—
(a)an amount received by, or owed to, a company carrying on a trade (“the trader”) is brought into account as a receipt in calculating the profits of the trade,
(b)the amount is paid or owed in a territory outside the United Kingdom, and
(c)some or all of the amount is unremittable.
(2)An amount received is unremittable if it cannot be transferred to the United Kingdom merely because of foreign exchange restrictions.
(3)An amount owed is unremittable if it cannot be paid in the United Kingdom and—
(a)it temporarily cannot be paid in the territory in which it is owed merely because of foreign exchange restrictions, or
(b)it can be paid in that territory but, if it were paid there, the amount paid would not be transferable to the United Kingdom merely because of foreign exchange restrictions.
(4)“Foreign exchange restrictions” are restrictions imposed by any of the following—
(a)the laws of the territory where the amount is paid or owed,
(b)executive action of its government, and
(c)the impossibility of obtaining there currency that could be transferred to the United Kingdom.
(5)Section 464(1) (matters to be brought into account in the case of loan relationships) does not prevent any amount from being brought into account in accordance with section 173 or 175.
(1)If—
(a)the trader has profits from the trade in a period of account, and
(b)an unremittable amount has been brought into account as a receipt for that period,
a deduction of the amount is allowed from those profits (but see subsection (5)).
(2)If the trader has profits from the trade in a period of account and the total of—
(a)any unremittable amounts brought into account as receipts for that period, and
(b)any amount carried forward under this subsection or subsection (3) from the previous period of account,
exceeds the amount of those profits, the excess may be carried forward to the next period of account.
(3)If the trader does not have profits from the trade in a period of account and an unremittable amount has been brought into account as a receipt for that period, the total of—
(a)any unremittable amounts brought into account as receipts for that period, and
(b)any amount carried forward under this subsection or subsection (2) from the previous period of account,
may be carried forward to the next period of account.
(4)If an amount is carried forward under this section to a period of account in which the trader has profits from the trade, a deduction of the amount is allowed from those profits (but see subsection (5)).
(5)The total amount deducted under this section from the profits from a trade in a period of account must not exceed the amount of the profits.
(1)No deduction is allowed under section 173 in relation to an amount so far as—
(a)it is used to finance expenditure or investment outside the United Kingdom, or
(b)it is applied outside the United Kingdom in another way.
(2)No deduction is allowed under section 173 in relation to an amount owed so far as a payment under a contract of insurance has been received in relation to it.
(3)No deduction is allowed under section 173 in relation to an amount brought into account in calculating profits if relief under section 1275 (unremittable income) may be claimed in relation to that amount.
(1)This section applies if—
(a)some or all of an unremittable amount has been deducted from profits under section 173, and
(b)any of the following events occurs.
(2)The events are that—
(a)the amount or part of it ceases to be unremittable,
(b)an allowable provision for impairment loss is made in respect of the amount or part of it,
(c)the amount or part of it is used to finance expenditure or investment outside the United Kingdom,
(d)the amount or part of it is applied outside the United Kingdom in another way,
(e)the amount or part of it is exchanged for, or discharged by, an amount that is not unremittable, and
(f)if the amount is an amount owed, a payment under a contract of insurance is received in relation to the amount or part of it.
(3)The amount or the part of it in question is brought into account as a receipt in calculating the profits of the trade of the period of account in which the event occurs, but only so far as—
(a)it has been deducted from profits under section 173, and
(b)it has not already been brought into account as a receipt in calculating the profits of the trade as a result of this section.
(4)If the event is the receipt of a payment under a contract of insurance, the amount brought into account as a receipt must not exceed the amount of the payment.
(5)In subsection (2)(b) “allowable provision for impairment loss” means either—
(a)a debit in respect of the impairment of a financial asset (see section 476(1)) which is brought into account under Part 5 (loan relationships), or
(b)a provision in respect of which a deduction is allowable under section 55 (bad debts).
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Part you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Part you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: