Corporation Tax Act 2009

Chapter 17 U.K. Priority rules

Modifications etc. (not altering text)

C1 Pt. 5 applied (with modifications) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 990(5), 1184(1) (with Sch. 2)

464 Priority of this Part for corporation tax purposes U.K.

(1) The amounts which are brought into account in accordance with this Part in respect of any matter are the only amounts which may be brought into account for corporation tax purposes in respect of it.

(2) Subsection (1) is subject to any express provision to the contrary.

(3) For further provisions relating to the rule in this section, see in particular—

(a) section 445(2) (disapplication of section 444 where [F1 Part 4 of TIOPA 2010] applies),

(b) section 465 (exclusion of distributions except in tax avoidance cases),

(c) section 700 (relationship of Part 7 to this Part),

(d) [F2 section 96(4) of CTA 2010] (write-off of government investment),

(e) [F3 sections 286 [F4 to 287A] of CTA 2010 (oil] activities: loan relationships),

(f) [F5 section 31(5) of TIOPA 2010] (computation of income subject to foreign tax),

(g) [F6 section 112(5) of TIOPA 2010] (deduction for foreign tax where no credit available),

(h) F7 ... and

(i) [F8 section 640(2) of CTA 2010] (banks etc in compulsory liquidation: taxation of certain receipts).

(4) See also the following sections (under which amounts prevented from being brought into account under this Part are treated as if they were so brought into account for the purposes of this section)—

(a) section 327(5) and (6) (disallowance of imported losses etc), F9 ...

(b) section 441(4) and (5) (loan relationships for unallowable purposes) [F10 , and

(c) section 455A(3) (debits arising from derecognition of creditor relationships).]

Textual Amendments

F1 Words in s. 464(3)(a) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 138 (with Sch. 9 paras. 1-9, 22)

F2 Words in s. 464(3)(d) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 622(a) (with Sch. 2)

F3 Words in s. 464(3)(e) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 622(b) (with Sch. 2)

F4 Words in s. 464(3)(e) substituted (with effect in accordance with s. 87(3) of the amending Act) by Finance Act 2013 (c. 29), s. 87(2)

F5 Words in s. 464(3)(f) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 90(a) (with Sch. 9 paras. 1-9, 22)

F6 Words in s. 464(3)(g) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 90(b) (with Sch. 9 paras. 1-9, 22)

F7 S. 464(3)(h) omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 158

F8 Words in s. 464(3)(i) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 622(c) (with Sch. 2)

F9 Word in s. 464(4)(a) omitted (19.7.2011) (with effect in accordance with Sch. 4 para. 13 of the amending Act) by virtue of Finance Act 2011 (c. 11), Sch. 4 para. 6

F10 S. 464(4)(c) and word inserted (19.7.2011) (with effect in accordance with Sch. 4 para. 13 of the amending Act) by Finance Act 2011 (c. 11), Sch. 4 para. 6

Modifications etc. (not altering text)

C2 S. 464(1) excluded (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 96(4), 640, 1184(1) (with Sch. 2)

C3 S. 464(1) excluded by 2010 c. 4, s. 357YV(2) (as inserted (with effect in accordance with s. 38(9)-(12) of the amending Act) by Finance (No. 2) Act 2015 (c. 33), s. 38(3))

465 Exclusion of distributions except in tax avoidance cases U.K.

(1) Credits or debits relating to any amount falling, when paid, to be treated as a distribution must not be brought into account for the purposes of this Part, except, in the case of credits, so far as they are avoidance arrangement amounts (see subsection (4)).

(2) Nothing in section 464(1) prevents amounts that are not brought into account because of subsection (1) from being brought into account for corporation tax purposes otherwise than under this Part.

(3) But see the following provisions (under which some amounts are prevented from being distributions for corporation tax purposes and accordingly are within this Part)—

[F11 (zza) section 420A(2) (hybrid capital instruments),]

[F12 (za) section 490(2) (holdings in OEICs, unit trusts and offshore funds treated as rights under creditor relationships),]

(a) section 523(2)(b) (shares subject to outstanding third party obligations and non-qualifying shares),

(b) [F13 section 1019 of CTA 2010] (relevant alternative finance return under alternative finance arrangements),

(c) [F14 section 1054 of CTA 2010] (building society dividends etc), F15 ...

(d) [F16 sections 1055 and 1057 of CTA 2010] (dividends, bonuses and other sums payable to shareholders in [F17 registered societies] and UK agricultural or fishing co-operatives) [F18 , and

(e) paragraph 44 of Schedule 2 to FA 2022 (distributions under certain securities issued by qualifying asset holding companies).]

(4) For the purposes of this section an amount is an avoidance arrangement amount if it arises in consequence of, or otherwise in connection with, arrangements of which the purpose, or one of the main purposes, is securing a tax advantage for any person.

(5) In this section “arrangements” includes any scheme, agreement or understanding, transaction or series of transactions.

Textual Amendments

F11 S. 465(3)(zza) inserted (with effect in accordance with Sch. 20 para. 10(b) of the amending Act) by Finance Act 2019 (c. 1), Sch. 20 para. 7(3)

F12 S. 465(3)(za) inserted (with effect in accordance with s. 27(7)-(9) of the amending Act) by Finance Act 2014 (c. 26), s. 27(2)

F13 Words in s. 465(3)(b) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 623(a) (with Sch. 2)

F14 Words in s. 465(3)(c) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 623(b) (with Sch. 2)

F15 Word in s. 465(3) omitted (24.2.2022) by virtue of Finance Act 2022 (c. 3), Sch. 2 para. 56(3)

F16 Words in s. 465(3)(d) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 623(c) (with Sch. 2)

F17 Words in s. 465(3)(d) substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 144 (with Sch. 5)

F18 S. 465(3)(e) and word inserted (24.2.2022) by Finance Act 2022 (c. 3), Sch. 2 para. 56(3)

Modifications etc. (not altering text)

C4 S. 465 disapplied (24.2.2022) by Finance Act 2022 (c. 3), Sch. 2 para. 44(2)

C5 S. 465 disapplied (24.2.2022) by Finance Act 2022 (c. 3), Sch. 2 para. 45(3)