Corporation Tax Act 2009
Sections and provisions with full text and the judgments that cite each one.
Section 18S — Other interpretation
Other interpretation 18S In this Chapter— “ company tax return ” has the same meaning as in Schedule 18 to FA 1998 (see paragraph 3(1)); “ double taxation arrangements ” means arrangements that have…
Section 19 — Chargeable profits
Chargeable profits 19 1 This section applies for the purposes of the charge to corporation tax on income if a non-UK resident company carries on a trade in the United Kingdom through a permanent…
Section 20 — Profits attributable to permanent establishment: introduction
Profits attributable to permanent establishment: introduction 20 1A Sections 21 and 24— a apply for the purpose of determining the amount of profits of a non-UK resident company that are attributable…
Section 21 — The separate enterprise principle
The separate enterprise principle 21 1 The profits of the non-UK resident company that are attributable to the permanent establishment are those that the establishment might be expected to make if it…
Section 22 — Transactions treated as being on arm's length terms
Transactions treated as being on arm's length terms 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 23 — Provision of goods or services for permanent establishment
Provision of goods or services for permanent establishment 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 24 — Application to insurance companies
Application to insurance companies 24 1 This section makes provision in a case where the non-UK resident company mentioned in subsection (1) of section 21 is an insurance company. 2 In accordance…
Section 25 — Non-UK resident banks: introduction
Non-UK resident banks: introduction 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 26 — Transfer of financial assets
Transfer of financial assets 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 27 — Loans: attribution of financial assets and profits arising
Loans: attribution of financial assets and profits arising 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 28 — Borrowing: permanent establishment acting as agent or intermediary
Borrowing: permanent establishment acting as agent or intermediary 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 29 — Allowable deductions
Allowable deductions 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 30 — Restriction on deductions: costs
Restriction on deductions: costs 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 31 — Restriction on deductions: payments in respect of intangible assets
Restriction on deductions: payments in respect of intangible assets 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 32 — Restriction on deductions: interest or other financing costs
Restriction on deductions: interest or other financing costs 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 33 — Trade includes office
Trade includes office 33 In this Part, except in so far as the context otherwise requires— a references to a trade include an office, and b references to carrying on a trade include holding an office.
Section 34 — Overview of Part
Overview of Part 34 1 This Part applies the charge to corporation tax on income to— a the profits of a trade (see Chapter 2), and b post-cessation receipts arising from a trade (see Chapter 15). 2…
Section 35 — Charge to tax on trade profits
Charge to tax on trade profits 35 The charge to corporation tax on income applies to the profits of a trade.
Section 36 — Farming and market gardening
Farming and market gardening 36 1 Farming or market gardening in the United Kingdom is treated for corporation tax purposes as the carrying on of a trade or part of a trade (whether or not the land…
Section 37 — Commercial occupation of woodlands
Commercial occupation of woodlands 37 1 The commercial occupation of woodlands in the United Kingdom is not a trade or part of a trade for any corporation tax purpose. 2 For this purpose the…
Section 38 — Commercial occupation of land other than woodlands
Commercial occupation of land other than woodlands 38 1 The commercial occupation of land in the United Kingdom is treated for corporation tax purposes as the carrying on of a trade or part of a…
Section 39 — Profits of mines, quarries and other concerns
Profits of mines, quarries and other concerns 39 1 Profits or losses arising out of land in the case of a concern to which this section applies are calculated as if the concern were a trade. 2 Any…
Section 40 — Credit unions
Credit unions 40 1 If a credit union— a makes loans to its members, or b invests its surplus funds (by placing them on deposit or otherwise), that is not treated, in calculating the credit union's…
Section 40A — Payments to company directors
Payments to company directors 40A 1 This section applies where— a a company (“the paying company”) makes a payment to, or for the benefit of, a director of the paying company in respect of the…
Section 40B — Professionals in practice: incidental income from an office or employment
Professionals in practice: incidental income from an office or employment 40B 1 This section applies where— a a payment is received by an individual who carries on a profession in partnership, b the…
Section 41 — Effect of company starting or ceasing to be within charge to corporation tax
Effect of company starting or ceasing to be within charge to corporation tax 41 1 This section applies if a company starts or ceases to be within the charge to corporation tax in respect of a trade.…
Section 42 — Tied premises
Tied premises 42 1 This section applies if — a in the course of carrying on a trade a company (“the trader”) supplies, or is concerned in the supply of, goods sold or used on premises occupied by…
Section 43 — Caravan sites where trade carried on
Caravan sites where trade carried on 43 1 This section applies if— a a company (“the trader”) carries on material activities connected with the operation of a caravan site, b the activities are, or…
Section 44 — Surplus business accommodation
Surplus business accommodation 44 1 This section applies if— a a company (“the trader”) carrying on a trade obtains receipts from a letting of business accommodation that is temporarily surplus to…
Section 45 — Payments for wayleaves
Payments for wayleaves 45 1 This section applies if— a a company (“the trader”) carries on a trade on some or all of the land to which a wayleave relates, b rent is receivable, or expenses are…
Section 46 — Generally accepted accounting practice
Generally accepted accounting practice 46 1 The profits of a trade must be calculated in accordance with generally accepted accounting practice, subject to any adjustment required or authorised by…
Section 47 — Losses calculated on same basis as profits
Losses calculated on same basis as profits 47 1 The same rules apply for corporation tax purposes in calculating losses of a trade as apply in calculating profits. 2 This is subject to any express…
Section 48 — Receipts and expenses
Receipts and expenses 48 1 In the Corporation Tax Acts, in the context of the calculation of the profits of a trade, references to receipts and expenses are to any items brought into account as…
Section 49 — Items treated as receipts and expenses
Items treated as receipts and expenses 49 The rules for calculating the profits of a trade need to be read with— a the provisions of CAA 2001 which treat allowances as expenses of a trade, b the…
Section 49A — Money's worth
Money's worth 49A 1 Subsection (2) applies— a for the purpose of bringing into account an amount arising in respect of a transaction involving money's worth entered into in the course of a trade, and…
Section 50 — Animals kept for trade purposes
Animals kept for trade purposes 50 1 Animals or other living creatures kept for the purposes of a trade are treated as trading stock if they are not kept wholly or mainly— a for the work they do in…
Section 51 — Relationship between rules prohibiting and allowing deductions
Relationship between rules prohibiting and allowing deductions 51 1 Any relevant permissive rule in this Part— a has priority over any relevant prohibitive rule, but b is subject to— i section 56…
Section 52 — Apportionment etc of profits and losses to accounting period
Apportionment etc of profits and losses to accounting period 52 1 This section applies if a period of account of a trade does not coincide with an accounting period. 2 Any of the following steps may…
Section 53 — Capital expenditure
Capital expenditure 53 1 In calculating the profits of a trade, no deduction is allowed for items of a capital nature. 2 Subsection (1) is subject to provision to the contrary in the Corporation Tax…
Section 54 — Expenses not wholly and exclusively for trade and unconnected losses
Expenses not wholly and exclusively for trade and unconnected losses 54 1 In calculating the profits of a trade, no deduction is allowed for— a expenses not incurred wholly and exclusively for the…
Section 55 — Bad debts
Bad debts 55 1 This section applies to non-money debts to which neither Part 7 (derivative contracts) nor Part 8 (intangible fixed assets) applies. 2 In calculating the profits of a company's trade,…
Section 56 — Car ... hire
Car ... hire 56 1 Subsection (2) applies if, in calculating the profits of a trade, a deduction is allowed for expenses incurred on the hiring of a car which is not—— a a car that is first registered…
Section 57 — Car ... hire: supplementary
Car ... hire: supplementary 57 1 In section 56 “ car ” means a mechanically propelled road vehicle other than ... ...— za a motor cycle (within the meaning of section 185(1) of the Road Traffic Act…
Section 58 — Hiring cars (but not motor cycles) with low CO 2 emissions before 1 April 2013
Hiring cars (but not motor cycles) with low CO 2 emissions before 1 April 2013 58 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 58A — Short-term hiring in and long-term hiring out
Short-term hiring in and long-term hiring out 58A 1 Section 56 does not apply to expenses incurred by a company (“the taxpayer”) on the hiring of a car if condition A or B is met. 2 Condition A is…
Section 58B — Connected persons: application of section 56
Connected persons: application of section 56 58B 1 This section applies where connected persons incur expenses on the hiring of the same car for the same period and— a section 56 would (but for this…
Section 59 — Patent royalties
Patent royalties 59 In calculating the profits of a trade, no deduction is allowed for royalties or other sums paid for the use of patents.
Section 60 — Expenditure on integral features
Expenditure on integral features 60 Section 33A(3) of CAA 2001 provides that no deduction is allowed in respect of certain expenditure on an integral feature of a building or structure (within the…
Section 60A — Rental rebates
Rental rebates 60A 1 Where plant or machinery (“ the asset ”) is leased and a rental rebate is payable by the lessor, the amount of the deduction allowable in respect of the rebate is limited to— a…
Section 61 — Pre-trading expenses
Pre-trading expenses 61 1 This section applies if a company incurs expenses for the purposes of a trade before (but not more than 7 years before) the date on which the company starts to carry on the…