Section 3 Exclusion of charge to income tax

United Kingdom

C1(1)

The provisions of the Income Tax Acts relating to the charge to income tax do not apply to income of a company if—

(a)

the company is UK resident, or

F1(b)

the company is not UK resident F2and it is chargeable to corporation tax in respect of the income, or would be so chargeable but F3is not as a result of—

(i)

an exemption, or

(ii)

the application of sections 1142 to 1144 of CTA 2010 (circumstances in which a company is not regarded as having a permanent establishment).

(2)

Subsection (1) does not apply to income accruing to a company in a fiduciary or representative capacity.

Annotations

Textual amendments

F1: S. 3(1)(b) substituted (with effect in accordance with s. 81 of the amending Act) by Finance Act 2016 (c. 24), s. 76(6) (and also with effect in accordance with Finance (No. 2) Act 2017 (c. 32), s. 39(1)(2))
F2: Words in s. 3(1)(b) substituted (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 11, 35 (with Sch. 5 para. 36)
F3: Words in s. 3(1)(b) substituted (for chargeable periods beginning on or after 1.1.2026) by Finance Act 2026 (c. 11), Sch. 7 paras. 9(1), 30

Modifications

C1: S. 3(1) excluded (22.7.2020) by Finance Act 2020 (c. 14), Sch. 16 para. 5(6)