Part 13 Other special types of company etc

Chapter 1 Corporate beneficiaries under trusts

Discretionary payments

610 Discretionary 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 ...,
Words in s. 610(2)(a) omitted (with effect in accordance with art. 21 of the commencing S.I.) by virtue of Finance Act 2010 (c. 13), Sch. 6 paras. 27(5), 34(2); S.I. 2012/736, art. 21
(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.