Section 663 — Corporation Tax Act 2010: Exemption for UK property income

Exemption for UK property income 663 1 A club which is a registered club throughout an accounting period may make a claim for its UK property income for that period to be exempt from corporation tax if conditions A and B are met.

2 Condition A is that the receipts which would (but for this section) be brought into account in calculating the club's UK property income for that period do not exceed the relevant threshold.

3 Condition B is that the whole of its UK property income for that period is applied for qualifying purposes.

4 If a club is a registered club for only part of an accounting period, this section has effect as if—

a that part were a separate accounting period, and b the club's UK property income and receipts for that separate accounting period were proportionately reduced.

5 In this section “ the relevant threshold ” means—

a £30,000 in the case of an accounting period which is 12 months, and b a proportionately reduced figure in the case of a shorter accounting period. 5A The Treasury may by order amend the figure for the time being specified as the relevant threshold in subsection (5)(a). 5B A statutory instrument containing an order under subsection (5A) that amends that figure so as to substitute a lower figure may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.

6 In this section “ UK property income ” means income of a UK property business which would (but for this section) be chargeable under Chapter 3 of Part 4 of CTA 2009.