Part 1

Introduction
CHAPTER 1A

Trades attracting Northern Ireland rate of corporation tax

Giving effect to allowances and charges: NI rate activity cases
6E
1
This section applies if
an
SME
(Northern Ireland employer) company
or a NIRE company is entitled or liable to—
a
an allowance or charge under Part 2 (plant and machinery allowances) where the qualifying activity is a trade,
aa
an allowance under Part 2A (structures and buildings allowances),
b
an allowance or charge under Part 3A (business premises renovation allowances),
c
an allowance or charge under Part 5 (mineral extraction allowances),
d
an allowance or charge under Part 6 (research and development), or
e
an allowance under Part 9 (dredging allowances).
2
For the purposes of the corporate partner calculation, this section also applies if a Northern Ireland firm is entitled or liable to an allowance or charge falling within any of subsection (1)(a) to (e).
3
The allowance or charge is to be given effect in calculating the profits of the trade, by treating—
a
the allowance as an expense of the trade, and
b
the charge as a receipt of the trade.
4
If the allowance or charge relates to an
NI
rate activity, it is treated for the purposes of Part 8B of CTA 2010 (trading profits taxable at the Northern Ireland rate) as forming part of the Northern Ireland profits or Northern Ireland losses of the trade.
5
If the allowance or charge relates to a main rate activity, it is treated for the purposes of Part 8B of CTA 2010 as forming part of the mainstream profits or mainstream losses of the trade.
6
In this section—
a
“
the trade
” means the trade carried on by the company or partnership (disregarding for this purpose section 6D), and
b
“
main rate activity
” means so much of the trade as is not an
NI
rate activity.
S. 45H(2) modified (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 7
Pt. 1 Ch. 1A inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), Sch. 1 para. 2
Words in s. 6E(1) substituted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 7 para. 24(c)
S. 6E(1)(aa) inserted (5.7.2019) by The Capital Allowances (Structures and Buildings Allowances) Regulations 2019 (S.I. 2019/1087), regs. 1, 3(5)