Section 488 — Corporation Tax Act 2010: Exemption for certain miscellaneous income

Exemption for certain miscellaneous income 488 1 The income mentioned in subsection (3) is not taken into account in calculating total profits if—

a it is income of a charitable company, or b it is required, under an Act (including an Act of the Scottish Parliament), court judgment, charter, trust deed or will, to be applied to charitable purposes only.

2 Subsection (1) applies so far as the income is applied to charitable purposes only.

3 The income referred to in subsection (1) is—

a non-trading gains on intangible fixed assets, b annual payments charged to tax under Chapter 7 of Part 10 of CTA 2009, and c qualifying income from intangible fixed assets.

4 The exemption under subsection (1) requires a claim.

5 In this section— “ intangible fixed asset ” has the same meaning as in Part 8 of CTA 2009 (see section 713 of that Act), “ non-trading credit ” has the meaning given by section 301 of CTA 2009, “ non-trading gain ” has the meaning given by section 751 of CTA 2009, “ pre-FA 2002 asset ” has the meaning given by sections 881 and 892 to 895 of CTA 2009, and “ qualifying income from intangible fixed assets ” means income which—

is in respect of intangible fixed assets which are pre-FA 2002 assets, is of a kind which, if the intangible fixed assets were not pre-FA 2002 assets, would fall to be brought into account under Chapter 6 of Part 8 of CTA 2009 as non-trading credits, and does not fall within subsection (3)(a) or (b).