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 as defined in section 467,
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.