Corporation Tax Act 2010

Exemptions U.K.

662 Exemption for UK trading income U.K.

(1) A club which is a registered club throughout an accounting period may make a claim for its UK trading income for that period to be exempt from corporation tax if conditions A and B are met.

(2) Condition A is that the receipts which would (but for this section) be brought into account in calculating the club's UK trading income for that period do not exceed the relevant threshold.

(3) Condition B is that the whole of its UK trading income for that period is applied for qualifying purposes.

(4) If a club is a registered club for only part of an accounting period, this section has effect as if—

(a) that part were a separate accounting period, and

(b) the club's UK trading income and receipts for that separate accounting period were proportionately reduced.

(5) In this section “the relevant threshold” means—

(a) £30,000 in the case of an accounting period which is 12 months, and

(b) a proportionately reduced figure in the case of a shorter accounting period.

[F1 (5A) The Treasury may by order amend the figure for the time being specified as the relevant threshold in subsection (5)(a).

(5B) A statutory instrument containing an order under subsection (5A) that amends that figure so as to substitute a lower figure may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.]

(6) In this section “UK trading income” means profits that (apart from this section) are chargeable under Chapter 2 of Part 3 of CTA 2009 and are—

(a) profits of a trade carried on wholly or partly in the United Kingdom, or

(b) profits of an activity other than a trade.

Textual Amendments

F1 S. 662(5A)(5B) inserted (1.4.2010) by Finance Act 2013 (c. 29), Sch. 21 paras. 6, 9 (with Sch. 21 para. 10); S.I. 2015/674, art. 2

663 Exemption for UK property income U.K.

(1) A club which is a registered club throughout an accounting period may make a claim for its UK property income for that period to be exempt from corporation tax if conditions A and B are met.

(2) Condition A is that the receipts which would (but for this section) be brought into account in calculating the club's UK property income for that period do not exceed the relevant threshold.

(3) Condition B is that the whole of its UK property income for that period is applied for qualifying purposes.

(4) If a club is a registered club for only part of an accounting period, this section has effect as if—

(a) that part were a separate accounting period, and

(b) the club's UK property income and receipts for that separate accounting period were proportionately reduced.

(5) In this section “the relevant threshold” means—

(a) £20,000 in the case of an accounting period which is 12 months, and

(b) a proportionately reduced figure in the case of a shorter accounting period.

[F2 (5A) The Treasury may by order amend the figure for the time being specified as the relevant threshold in subsection (5)(a).

(5B) A statutory instrument containing an order under subsection (5A) that amends that figure so as to substitute a lower figure may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.]

(6) In this section “UK property income” means income of a UK property business which would (but for this section) be chargeable under Chapter 3 of Part 4 of CTA 2009.

Textual Amendments

F2 S. 663(5A)(5B) inserted (1.4.2010) by Finance Act 2013 (c. 29), Sch. 21 paras. 7, 9 (with Sch. 21 para. 10); S.I. 2015/674, art. 2

664 Exemption for interest [F3 , gift aid and company gift] income U.K.

(1) A club which is a registered club throughout an accounting period may make a claim for—

(a) its interest income for that period, F4 ...

(b) its gift aid income for that period,

[F5 , and

(c) its company gift income for that period,]

to be exempt from corporation tax if the whole of that interest income [F6 , gift aid income and company gift income] is applied for qualifying purposes.

(2) If a club is a registered club for only part of an accounting period, this section has effect as if—

(a) that part were a separate accounting period, and

(b) the club's interest income for that separate accounting period were proportionately reduced.

(3) In this section—

• [F7 “company gift income”, in relation to a club, means gifts of money made to the club by companies which are not charities,]

• “interest income”, in relation to a club, means interest arising to the club that is not brought into account under section 297 of CTA 2009 (trading credits and debits brought into account under Part 3 of that Act as trading income), and

• “interest income”, in relation to a club, means interest arising to the club that is not brought into account under section 297 of CTA 2009 (trading credits and debits brought into account under Part 3 of that Act as trading income), and

• “interest income”, in relation to a club, means interest arising to the club that is not brought into account under section 297 of CTA 2009 (trading credits and debits brought into account under Part 3 of that Act as trading income), and

• “interest income”, in relation to a club, means interest arising to the club that is not brought into account under section 297 of CTA 2009 (trading credits and debits brought into account under Part 3 of that Act as trading income), and

• “gift aid income”, in relation to a club, means gifts made by individuals to the club which are qualifying donations for the purposes of Chapter 2 of Part 8 of ITA 2007 (gift aid).

Textual Amendments

F3 Words in s. 664 heading substituted (with effect in accordance with s. 35(13) of the amending Act) by Finance Act 2014 (c. 26), s. 35(12)(b)

F4 Word in s. 664(1) omitted (with effect in accordance with s. 35(13) of the amending Act) by virtue of Finance Act 2014 (c. 26), s. 35(10)(a)

F5 S. 664(1)(c) and word inserted (with effect in accordance with s. 35(13) of the amending Act) by Finance Act 2014 (c. 26), s. 35(10)(a)

F6 Words in s. 664(1) substituted (with effect in accordance with s. 35(13) of the amending Act) by Finance Act 2014 (c. 26), s. 35(10)(b)

F7 Words in s. 664(3) inserted (with effect in accordance with s. 35(13) of the amending Act) by Finance Act 2014 (c. 26), s. 35(10)(c)

665 Exemption for chargeable gains U.K.

A registered club to which a gain accrues may make a claim for the gain not to be a chargeable gain for the purposes of TCGA 1992 if the whole of it is applied for qualifying purposes.