Corporation Tax Act 2009 (c. 4)

Part 3 U.K. Trading income

Modifications etc. (not altering text)

C1 Pt. 3 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 4(1)

[F1 CHAPTER 8A U.K. COMPENSATION FOR COMPULSORY SLAUGHTER OF ANIMALS

Textual Amendments

F1 Ch. 8A inserted (1.3.2012) (with effect in accordance with art. 12 of the amending S.I.) by The Enactment of Extra-Statutory Concessions Order 2012 (S.I. 2012/266), arts. 1, 10

127D Effect of claim for spreading of profits U.K.

If the farm company makes a claim under section 127B in respect of the total compensation profit for an accounting period (“period X”), the profits of the trade carried on by the farm company are to be adjusted for corporation tax purposes as follows—

• Step 1

  Treat the compensation payable for all of the relevant animals slaughtered in period X as a receipt of that period (regardless of when the compensation is finally determined or paid).

• Step 2

  If the farm company makes a profit in the trade in period X, deduct from the profits of that period an amount equal to—

  (a)

  the total compensation profit for period X, or

  (b)

  if the total compensation profit exceeds the profits of period X, such portion of the total compensation profit as will reduce the profits to nil.

• Step 3

  In calculating the profits for each of the 3 consecutive accounting periods following period X, include an amount equal to one third of the amount deducted by virtue of step 2.]