Taxation (International and Other Provisions) Act 2010

254 Rule for calculation or recalculation of income etc following receipt notice

(1) This section applies in relation to a qualifying payment if—

(a) a receipt notice specifying the payment is given to the company in relation to which it is a qualifying payment, and

(b) when the notice is given, each of the receipt scheme conditions is met in relation to the company.

(2) The company must calculate (or recalculate)—

(a) its income or chargeable gains for the purposes of corporation tax for the accounting period specified in the notice, or

(b) its liability to corporation tax for that period,

as if so much of the qualifying payment as falls within subsection (3) were a receipt of the company that is chargeable for that period under the charge to corporation tax on income.

(3) The qualifying payment falls within this subsection so far as—

(a) receipt scheme condition D (see section 250(6)) is met in relation to it, and

(b) it is not an amount to which section 251 (amounts within corporation tax) applies.