Corporation Tax Act 2010

[F1 357H Introduction U.K.

(1) This Part is about the Northern Ireland rate of corporation tax and the application of that rate to Northern Ireland profits.

(2) Chapter 2 is about how the Northern Ireland rate is determined.

(3) Chapter 3—

(a) applies the Northern Ireland rate to Northern Ireland profits;

(b) makes provision about the operation of certain reliefs for trading losses that are given against profits.

(4) Chapters 4 and 5 define expressions used in this Part in connection with the determination of a company's Northern Ireland profits; see—

• Chapter 4 for definitions of “Northern Ireland company”, “qualifying trade”, “SME” and “Northern Ireland employer”;

• Chapter 5 for provision about whether a company has a Northern Ireland regional establishment (a “NIRE”).

(5) Chapters 6 and 7 contain rules for determining whether profits or losses of a trade are “Northern Ireland profits” or “Northern Ireland losses”; see—

• Chapter 6 for rules applying in the case of a Northern Ireland company that is an SME [F2 and is a Northern Ireland employer];

• Chapter 7 for rules applying in the case of a Northern Ireland company [F3 that—

  (a)

  is an SME that is not a Northern Ireland employer and has made the requisite election, or

  (b)

  is not an SME.]

(6) Chapter 8 is about the treatment of intangible fixed assets in relation to Northern Ireland companies.

(7) Chapters 9 to 15 are about the way in which various credits and reliefs work in relation to Northern Ireland companies; see—

• Chapter 9 for provision about R&D expenditure credits and relief for expenditure relating to research and development;

• Chapter 10 for provision about relief for expenditure relating to the remediation of contaminated or derelict land;

• Chapter 11 for provision about film tax relief;

• Chapter 12 for provision about television production;

• Chapter 13 for provision about video games development;

• Chapter 14 for provision about theatrical productions;

• [F4 Chapter 14A for provision about orchestra tax relief;]

• [F5 Chapter 14B for provision about museums and galleries exhibition tax relief;]

• Chapter 15 for provision about profits arising from exploitation of patents etc.

(8) Chapter 16 contains rules for determining whether profits or losses of a trade are “Northern Ireland profits” or “Northern Ireland losses” in the case of a company that is a partner in a Northern Ireland firm.

(9) Chapter 17—

(a) defines “excluded trade” and “excluded activity” (profits of which are not Northern Ireland profits), and

(b) contains power to make provision about the meaning of “back-office activities” (profits imputed to which may be Northern Ireland profits).]

Textual Amendments

F1 Pt. 8B inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1

F2 Words in s. 357H(5) inserted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 7 para. 2(2)(a)

F3 Words in s. 357H(5) substituted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 7 para. 2(2)(b)

F4 Words in s. 357H(7) inserted (with effect in accordance with Sch. 8 para. 18(1) of the amending Act) by Finance Act 2016 (c. 24), Sch. 8 para. 13

F5 Words in s. 357H(7) inserted (with effect in accordance with Sch. 6 para. 20 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 6 para. 16