(1)Subject to subsections (2) and (2A) below, exemption—,
F1(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F2(b)from corporation tax chargeable—
(i)under Part 3 of the Corporation Tax Act 2009 in respect of a trade carried on wholly or partly in the United Kingdom, or
(ii)under or by virtue of any provision to which section 834A of the Taxes Act 1988 (miscellaneous charges) applies,]
shall be granted on a claim made in that behalf to the Board, in respect of any income of a [F3charitable company] if the requirements of subsection (3) below are satisfied with respect to the income.
[F4(2)Exemption shall not be granted under subsection (1) above in respect of income which is chargeable to—
F5(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b)corporation tax [F6under or by virtue of any provision to which section 834A of the Taxes Act 1988 applies],
by virtue of any of the provisions mentioned in subsection (2A).
(2A)The provisions are—
(a)sections 214, F7...[F8 or 776] of the Taxes Act 1988;
F9(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F10(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d)any other enactment specified in an order made by the Treasury.]
(3)The requirements of this subsection are satisfied with respect to any income for [F11an accounting] period if it is applied solely for the purposes of the [F12charitable company] and either—
(a)the [F13charitable company's] gross income for the [F14accounting] period does not exceed the requisite limit; or
(b)the [F12charitable company] had, at the beginning of the period, a reasonable expectation that its gross income for the period would not exceed that limit.
(4)Subject to subsection (5) below, the requisite limit is whichever is the greater of—
(a)£5,000; and
(b)whichever is the lesser of £50,000 and 25% of all of the [F15charitable company's] incoming resources for the [F16accounting] period.
(5)For [F17an accounting] period of less than twelve months, the amounts of £5,000 and £50,000 specified in subsection (4) above shall be proportionally reduced.
(6)In this section—
[F18“charitable company” means any body of persons established for charitable purposes only;]
F19...
“gross income”, in relation to a [F20charitable company], means income before deduction of any expenses;
“income”, in relation to a [F21charitable company], means [F22—
F23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
[F24any profits or gains or other income—
which is chargeable to corporation tax under Part 3 of the Corporation Tax Act 2009 in respect of a trade carried on wholly or partly in the United Kingdom, or
which is chargeable to corporation tax under or by virtue of any provision to which section 834A of the Taxes Act 1988 applies,
and which (in either case) is not, apart from this section, exempted from corporation tax chargeable under or by virtue of that Part or provision.]
(7)This section applies F25... for accounting periods beginning on or after 1st April 2000.
Textual Amendments
F1S. 46(1)(a) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(2)(a), Sch. 3 Pt. 1 (with Sch. 2)
F2S. 46(1)(b) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 463(2) (with Sch. 2 Pts. 1, 2)
F3Words in s. 46(1) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(2)(b) (with Sch. 2)
F4S. 46(2)(2A) substituted (6.4.2005) for s. 46(2) (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 514(3) (with Sch. 2)
F5S. 46(2)(a) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(3), Sch. 3 Pt. 1 (with Sch. 2)
F6Words in s. 46(2)(b) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 463(3) (with Sch. 2 Pts. 1, 2)
F7Word in s. 46(2A) omitted (with effect in accordance with Sch. 14 para. 18 of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 14 para. 17(i)
F8Words in s. 46(2A) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 463(4)(a) (with Sch. 2 Pts. 1, 2)
F9S. 46(2A)(b) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 463(4)(b), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)
F10S. 46(2A)(c) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(4)(c), Sch. 3 Pt. 1 (with Sch. 2)
F11Words in s. 46(3) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(5)(a) (with Sch. 2)
F12Words in s. 46(3) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(5)(b) (with Sch. 2)
F13Words in s. 46(3)(a) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(5)(c) (with Sch. 2)
F14Word in s. 46(3)(a) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(5)(d) (with Sch. 2)
F15Words in s. 46(4)(b) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(6)(a) (with Sch. 2)
F16Word in s. 46(4)(b) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(6)(b) (with Sch. 2)
F17Words in s. 46(5) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(7) (with Sch. 2)
F18Words in s. 46(6) inserted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(8)(a) (with Sch. 2)
F19Words in s. 46(6) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(8)(b), Sch. 3 Pt. 1 (with Sch. 2)
F20Words in s. 46(6) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(8)(c) (with Sch. 2)
F21Words in s. 46(6) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(8)(d)(i) (with Sch. 2)
F22Words in s. 46(6) inserted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 514(4)(a) (with Sch. 2)
F23Words in S. 46(6) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(8)(d)(ii), Sch. 3 Pt. 1 (with Sch. 2)
F24Words in s. 46(6) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 463(5) (with Sch. 2 Pts. 1, 2)
F25Words in s. 46(7) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 392(9), Sch. 3 Pt. 1 (with Sch. 2)