Section 981 — Corporation Tax Act 2010: Exemption for trade unions and eligible employers' associations

Exemption for trade unions and eligible employers' associations 981 1 No liability to corporation tax arises in respect of qualifying income or gains of a trade union or eligible employers' association if conditions A and B are met.

2 Condition A is that the trade union or employers' association is prevented by its rules or by Act of Parliament from assuring to any person a sum exceeding—

a £4,000 by way of gross sum, or b £825 by way of annuity.

3 Condition B is that the trade union or employers' association makes a claim for exemption under this section.

4 The following are to be ignored in determining whether condition A is met—

a an annuity contract which constitutes a registered pension scheme, and b an annuity contract which is issued or held in connection with a registered pension scheme other than an occupational pension scheme (within the meaning of section 150(5) of FA 2004).

5 The Treasury may by order—

a amend the sum for the time being specified in subsection (2)(a) or (b) so as to increase it, and b make provision about the income or gains in relation to which an amendment under paragraph (a) has effect.