Corporation Tax Act 2010 (c. 4)

Part 11 U.K. Charitable companies etc

Chapter 3 U.K. Other exemptions

Exemptions U.K.

488 Exemption for certain miscellaneous income U.K.

(1) The income mentioned in subsection (3) is not taken into account in calculating total profits if—

(a) it is income of a charitable company, or

(b) it is required, under an Act (including an Act of the Scottish Parliament), court judgment, charter, trust deed or will, to be applied to charitable purposes only.

(2) Subsection (1) applies so far as the income is applied to charitable purposes only.

(3) The income referred to in subsection (1) is—

(a) non-trading gains on intangible fixed assets,

(b) annual payments charged to tax under Chapter 7 of Part 10 of CTA 2009, and

(c) qualifying income from intangible fixed assets.

(4) The exemption under subsection (1) requires a claim.

(5) In this section—

• “intangible fixed asset” has the same meaning as in Part 8 of CTA 2009 (see section 713 of that Act),

• “non-trading credit” has the meaning given by section 301 of CTA 2009,

• “non-trading gain” has the meaning given by section 751 of CTA 2009,

• “pre-FA 2002 asset” has the meaning given by sections 881 and 892 to 895 of CTA 2009, and

• “qualifying income from intangible fixed assets” means income which—

  (a)

  is in respect of intangible fixed assets which are pre-FA 2002 assets,

  (b)

  is of a kind which, if the intangible fixed assets were not pre-FA 2002 assets, would fall to be brought into account under Chapter 6 of Part 8 of CTA 2009 as non-trading credits, and

  (c)

  does not fall within subsection (3)(a) or (b).