Explanatory Notes

Introduction

Corporation Tax Act

18.The Act contains provisions relating to:

• losses, gifts to charities and various reliefs available to companies such as group relief;

• distributions;

• particular types of companies and activities;

• avoidance; and

• definitions;

and completes the rewrite of most of the corporation tax provisions. The Corporation Tax Act 2009 and this Act take the place of ICTA as the main corporation tax Acts.

19.The Act has 1185 sections and four Schedules. The sections are arranged as follows:

• Part 1: Overview

• Part 2: Calculation of liability in respect of profits

• Part 3: Companies with small profits

• Part 4: Loss relief

• Part 5: Group relief

• Part 6: Charitable donations relief

• Part 7: Community investment tax relief

• Part 8: Oil activities

• Part 9: Leasing plant or machinery

• Part 10: Close companies

• Part 11: Charitable companies etc

• Part 12: Real Estate Investment Trusts

• Part 13: Other special types of company etc

• Part 14: Change in company ownership

• Part 15: Transactions in securities

• Part 16: Factoring of income etc

• Part 17: Manufactured payments and repos

• Part 18: Transactions in land

• Part 19: Sale and lease–back etc

• Part 20: Tax avoidance involving leasing plant or machinery

• Part 21: Leasing arrangements: finance leases and loans

• Part 22: Miscellaneous provisions

• Part 23: Company distributions

• Part 24: Corporation Tax Acts definitions etc

• Part 25: Definitions for purposes of Act and final provisions

20.The Schedules are:

• Schedule 1: Minor and consequential amendments

• Schedule 2: Transitionals and savings etc

• Schedule 3: Repeals and revocations

• Schedule 4: Index of defined expressions