Corporation Tax Act 2010

1160 Calculation of income

(1) Subsections (2) to (4) apply in determining, for the purposes of condition C or D (and accordingly of section 1161(2)(a)), with respect to any accounting period of a company—

(a) the amount of a company’s income, or

(b) the amount of income which a company derives from shares or securities.

(2) The amounts to be brought into account under Part 5 of CTA 2009 in respect of the company’s loan relationships are to be determined without reference to any debtor relationships of the company.

(3) The excess of—

(a) any credits brought into account in respect of the accounting period by virtue of section 574 of CTA 2009 (non-trading credits in respect of derivative contracts), over

(b) any debits brought into account in respect of the accounting period by virtue of that section (non-trading debits in respect of derivative contracts),

is to be treated as income of the period which is derived from shares or securities.

(4) Income treated as arising under regulation 18(1) of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001) is to be ignored.

(5) In determining the amount of a company’s income for the purposes of condition C, no account is to be taken of any amount treated under section 1229(3)(b) of CTA 2009 (claw back of relief for expenses of management) as a receipt chargeable under the charge to corporation tax on income.