Section 610 — Corporation Tax Act 2010: Discretionary payments by trustees to companies

Discretionary payments by trustees to companies 610 1 This section applies if—

a the trustees of a settlement make a payment to a company, b sections 494 and 495 of ITA 2007 (grossing up of trustees' discretionary payments etc) apply in relation to the payment, c the company is chargeable to corporation tax, and d the company is not excluded by subsection (2).

2 A company is excluded if it is—

a a charitable company ..., b an eligible body as defined in section 468, or c a scientific research association as defined in section 469.

3 If this section applies—

a none of the following applies in relation to the payment—

i section 967, ii section 968, and iii section 952 of ITA 2007 (set-off claims),

b the payment is to be ignored for the purpose of calculating the company's income for corporation tax purposes, and c no repayment is to be made of the amount treated under section 494 of ITA 2007 as income tax paid by the company in relation to the payment.

4 If the company is non-UK resident, this section applies only in relation to so much (if any) of the payment as is income of the company for corporation tax purposes. 5 “ Payment ” includes payment in money's worth.