Section 661CA — Corporation Tax Act 2010: The income condition

The income condition 661CA 1 A club meets the income condition for the purposes of section 658 if the sum of—

a the receipts brought into account in calculating the club’s trading income (“trading receipts”),

and b the receipts brought into account in calculating the club’s property income (“property receipts”), does not exceed the relevant threshold.

2 For the purposes of subsection (1), any exemption under section 662 (exemption for UK trading income) or 663 (exemption for UK property income) is to be ignored.

3 For the purposes of subsection (1), if in an accounting period (“period A”) a club becomes, or ceases to be, registered then—

a the part of period A in which the club is registered is to be treated as a separate accounting period from the remainder of that period, and b the club’s trading receipts and property receipts for period A must be apportioned between those periods.

4 In this section— “property income” means income of a UK property business or an overseas property business, “the relevant threshold” means— £100,000 in the case of an accounting period which is 12 months, and a proportionally reduced amount in the case of a shorter accounting period, and “trading income” means profits which, if chargeable to corporation tax, would be chargeable under Chapter 2 of Part 3 of CTA 2009 and are— profits of a trade, or profits of an activity other than a trade, whether or not that trade or activity is carried on wholly or partly in the United Kingdom.