Taxation (International and Other Provisions) Act 2010

[F1 371UD Relief against sum charged U.K.

(1) Subsection (2) applies if (apart from subsection (2)) a chargeable company in relation to a CFC's accounting period is entitled, or on the making of a claim would be entitled, to a deduction in respect of a relevant allowance for the relevant corporation tax accounting period.

(2) The company may make a claim under this subsection for relief in respect of the relevant allowance [F2 (but see subsection (9))] .

(3) If the company makes a claim, the relief is given by setting off the relevant sum against the sum charged on the company at step 5 in section 371BC(1).

(4) “The relevant sum” is the sum equal to corporation tax at the appropriate rate on so much of the relevant allowance as is specified in the claim.

[F3 (4A) But if, in a case within subsection (7)(b)(i) or (vi), the relevant allowance is a loss that is for the purposes of Part 8B of CTA 2010 (trading profits taxable at the Northern Ireland rate) a Northern Ireland loss, “the relevant sum” is the sum equal to the appropriate Northern Ireland rate on so much of that relevant allowance as is specified in the claim.]

(5) So much of the relevant allowance as is specified in the claim is to be taken for the purposes of the Tax Acts as having been allowed as a deduction in accordance with the appropriate provision of those Acts.

(6) No other relief is available against a sum charged on a company at step 5 in section 371BC(1).

(7) In this section—

(a) “the appropriate rate” and “the relevant corporation tax accounting period” have the meaning given by section 371BC(3),

[F4 (aa) the appropriate Northern Ireland rate” means—

(i) the Northern Ireland rate of corporation tax for the relevant corporation tax accounting period, or

(ii) if different Northern Ireland rates apply in different parts of the relevant corporation tax accounting period, the average rate over the whole of the relevant corporation tax accounting period,] and

(b) “relevant allowance” means—

(i) any loss to which section 37 or 62(1) to (3) of CTA 2010 applies,

(ii) any qualifying charitable donation,

(iii) any expenses of management to which section 1219(1) of CTA 2009 applies,

(iv) any adjusted BLAGAB management expenses for the purposes of section 73 of FA 2012,

(v) any excess to which section 260(3) of CAA 2001 applies,

(vi) any amount available to the company by way of group relief, or

(vii) any non-trading deficit on the company's loan relationships.

(8) But, in relation to a sum charged on a company by virtue of section 371BH(2), in this section—

(a) “the appropriate rate” means the rate given by section 371BH(3)(a), and

(b) “relevant allowance” means any adjusted BLAGAB management expenses for the purposes of section 73 of FA 2012.]

[F5 (9) A company which is a banking company (within the meaning of Part 7A of CTA 2010) for the relevant corporation tax accounting period may not make a claim under subsection (2) in respect of a relevant allowance consisting of—

(a) a pre-2015 carried-forward non-trading deficit (within the meaning of Chapter 3 of Part 7A of that Act), or

(b) pre-2015 carried-forward management expenses (within the meaning of that Chapter).]

Textual Amendments

F1 Pt. 9A inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 20 para. 1 (with ss. 56-58)

F2 Words in s. 371UD(2) inserted (with effect in accordance with Sch. 2 para. 8 of the amending Act) by Finance Act 2015 (c. 11), Sch. 2 para. 6(2)

F3 S. 371UD(4A) inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), Sch. 2 para. 3(2)

F4 S. 371UD(7)(aa) inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), Sch. 2 para. 3(3)

F5 S. 371UD(9) inserted (with effect in accordance with Sch. 2 para. 8 of the amending Act) by Finance Act 2015 (c. 11), Sch. 2 para. 6(3)