Corporation Tax Act 2010

[F1Northern Ireland intangibles credits and Northern Ireland intangibles debitsU.K.

Textual Amendments

F1Pt. 8B inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1

357OBNorthern Ireland intangibles credits and debits: SMEs [F2that are Northern Ireland employers] U.K.

(1)This section applies to a company that—

(a)is a Northern Ireland company in an accounting period by virtue of the [F3SME (Northern Ireland employer) condition] in section 357KA, and

(b)carries on a trade which is a qualifying trade by virtue of section 357KB(1) (trade other than excluded trade).

(2)If the company does not carry on an excluded activity—

(a)the Northern Ireland intangibles credits for the accounting period are—

(i)the credits treated by section 747(2) of CTA 2009 as receipts of the qualifying trade for the period, except credits in respect of pre-commencement assets and realisation credits, and

(ii)the Northern Ireland element of each realisation credit for the period, and

(b)the Northern Ireland intangibles debits for the accounting period are—

(i)the debits treated by section 747(3) of CTA 2009 as expenses of the qualifying trade for the period, except debits in respect of pre-commencement assets and realisation debits, and

(ii)the Northern Ireland element of each realisation debit for the period.

(3)If the company carries on an excluded activity, the Northern Ireland intangibles credits for the accounting period are—

(a)the credits treated by section 747(2) of CTA 2009 as receipts of the qualifying trade for the period, to the extent that—

(i)they are neither credits in respect of pre-commencement assets nor realisation credits, and

(ii)they are not attributable to assets held for the purposes of the excluded activity, and

(b)the Northern Ireland element of each realisation credit for the period.

(4)If the company carries on an excluded activity, the Northern Ireland intangibles debits for the accounting period are—

(a)the debits treated by section 747(3) of CTA 2009 as expenses of the qualifying trade for the period, to the extent that—

(i)they are neither debits in respect of pre-commencement assets nor realisation debits, and

(ii)they are not attributable to assets held for the purposes of the excluded activity, and

(b)the Northern Ireland element of each realisation debit for the period.

(5)For the meaning of “pre-commencement asset”, see section 357OH.

(6)For the meaning of a “realisation credit” and “realisation debit” and of the “Northern Ireland element” of either, see sections 357OD and 357OE.

Textual Amendments

F2Words in s. 357OB heading inserted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 7 para. 10(2)

357OCNorthern Ireland intangibles credits and debits: [F4SMEs that are not Northern Ireland employers and] large companiesU.K.

(1)This section applies to a company that is a Northern Ireland company in an accounting period by virtue of [F5the SME (election) condition or] the large company condition in section 357KA.

(2)The Northern Ireland intangibles credits for the accounting period are—

(a)the credits treated by section 747(2) of CTA 2009 as receipts of the qualifying trade for the period, to the extent that—

(i)they are neither credits in respect of pre-commencement assets nor realisation credits,

(ii)they are not attributable to assets held for the purposes of an excluded activity, and

(iii)they would in accordance with the separate enterprise principle in section 357NC be attributed to the company's NIRE, and

(b)the Northern Ireland element of each realisation credit for the period.

(3)The Northern Ireland intangibles debits for the accounting period are—

(a)the debits treated by section 747(3) of CTA 2009 as expenses of the qualifying trade for the period, to the extent that—

(i)they are neither debits in respect of pre-commencement assets nor realisation debits,

(ii)they are not attributable to assets held for the purposes of an excluded activity, and

(iii)they would in accordance with the separate enterprise principle in section 357NC be attributed to the company's NIRE, and

(b)the Northern Ireland element of each realisation debit for the period.

(4)For the meaning of “pre-commencement asset”, see section 357OH.

(5)For the meaning of a “realisation credit” and “realisation debit” and of the “Northern Ireland element” of either, see sections 357OD and 357OE.]

Textual Amendments

F4Words in s. 357OC heading inserted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 7 para. 11(2)