Part 13Other special types of company etc

Chapter 1Corporate beneficiaries under trusts

Discretionary payments

610Discretionary payments by trustees to companies

1

This section applies if—

a

the trustees of a settlement make a payment to a company,

b

sections 494 and 495 of ITA 2007 (grossing up of trustees' discretionary payments etc) apply in relation to the payment,

c

the company is chargeable to corporation tax, and

d

the company is not excluded by subsection (2).

2

A company is excluded if it is—

a

a charitable company F1...,

b

an eligible body as defined in section 468, or

c

a scientific research association as defined in section 469.

3

If this section applies—

a

none of the following applies in relation to the payment—

i

section 967,

ii

section 968, and

iii

section 952 of ITA 2007 (set-off claims),

b

the payment is to be ignored for the purpose of calculating the company's income for corporation tax purposes, and

c

no repayment is to be made of the amount treated under section 494 of ITA 2007 as income tax paid by the company in relation to the payment.

4

If the company is non-UK resident, this section applies only in relation to so much (if any) of the payment as is income of the company for corporation tax purposes.

5

Payment” includes payment in money's worth.