Corporation Tax Act 2009(c. 4) - Explanatory Notes

Explanatory Notes

Corporation Tax Act 2009

2009 CHAPTER 4

26 March 2009

Introduction

This Act

The end of the Schedules

16. This Act repeals the Schedules so far as they remain for corporation tax and therefore marks the end of the use of the word “Schedule” to define types of income. Instead, the Act uses terms that describe the nature of the income, such as “trading income”.

Features of the Act

17. The Act:

• contains the basic corporation tax provisions including the charge to tax, accounting periods and provisions relating to residence;

• contains provisions relating to trading and property income and income from other sources;

• contains special provisions for companies affecting the calculation of income, such as those for loan relationships, derivative contracts and intangible fixed assets;

• contains provisions governing particular types of expenditure, for example, expenditure on research and development and films; and

• will take the place of many provisions within ICTA, FA 1996, FA 2001 and FA 2002 as the main Act for the areas of corporation tax covered by this Act.

18. The Act has 1330 sections and four Schedules.

19. The sections are arranged as follows:

• Part 1: Introduction

• Part 2: Charge to corporation tax: basic provisions

• Part 3: Trading income

• Part 4: Property income

• Part 5: Loan relationships

• Part 6: Relationships treated as loan relationships etc

• Part 7: Derivative contracts

• Part 8: Intangible fixed assets

• Part 9: Intellectual property: know-how and patents

• Part 10: Miscellaneous income

• Part 11: Relief for particular employee share acquisition schemes

• Part 12: Other relief for employee share acquisitions

• Part 13: Additional relief for expenditure on research and development

• Part 14: Remediation of contaminated land

• Part 15: Film production

• Part 16: Companies with investment business

• Part 17: Partnerships

• Part 18: Unremittable income

• Part 19: General exemptions

• Part 20: General calculation rules

• Part 21: Other general provisions

20. The Schedules are:

• Schedule 1: Minor and consequential amendments

• Schedule 2: Transitionals and savings

• Schedule 3: Repeals and revocations

• Schedule 4: Index of defined expressions

21. Tables of Origins and Destinations have also been prepared. The Table of Destinations shows the destination not only of repealed provisions but of all provisions rewritten in the Act.