Corporation Tax Act 2010 (c. 4)

Part 13 U.K. Other special types of company etc

Chapter 5 U.K. Companies in liquidation or administration

Introduction U.K.

626 Meaning of “final year”, “penultimate year” etc U.K.

(1) This section applies for the purposes of this Chapter.

(2) In relation to a company that is being wound up—

• “the final year” means the financial year in which the winding up of the company is completed, and

• “the penultimate year” means the last financial year before the company's final year.

(3) In relation to a company in administration—

• “the final year” means the financial year in which the dissolution event in respect of the company occurs, and

• “the penultimate year” means the last financial year before the company's final year.

(4) A reference in this Chapter to the “dissolution event” in respect of a company in administration is a reference—

(a) to the administrator sending a notice in respect of the company under paragraph 84(1) of Schedule B1 to the Insolvency Act 1986 (company moving from administration to dissolution), or

(b) if the company enters administration otherwise than under that Act, to the doing of any other act for a similar purpose.

(5) “Profits” means income and chargeable gains, except so far as the context otherwise requires.

[F1 627 Meaning of “main rate of corporation tax” for companies with ring fence profits or small profits U.K.

(1) This section applies if corporation tax chargeable on any profits of a company for a financial year—

(a) is to be charged at the main ring fence profits rate,

(b) is to be charged at the standard small profits rate or the small ring profits rate, or

(c) is to be reduced by reference to the standard marginal relief fraction or the ring fence marginal relief fraction (within the meaning of Part 3A or Chapter 3A of Part 8).

(2) References in this Chapter to the main rate of corporation tax are to be taken, so far as relating to profits charged at any of the rates mentioned in subsection (1)(a) or (b), as references to the rate or rates concerned.

(3) References in this Chapter to the main rate of corporation tax are, if corporation tax is reduced as mentioned in subsection (1)(c), to be taken as including references to the fraction or fractions concerned (and with references to a rate being “fixed” or “proposed” read accordingly as references to the fraction or fractions concerned being fixed or proposed).]

Textual Amendments

F1 S. 627 substituted (with effect in accordance with Sch. 1 para. 34 of the amending Act) by Finance Act 2021 (c. 26), Sch. 1 para. 29