Section 986 Treatment of receipts under Chapter

(1)

This section applies if a company is treated under this Chapter as receiving an amount.

(2)

If the company is carrying on a trade or property business in respect of which it is within the charge to corporation tax, the amount is treated as a receipt of that trade or business.

(3)

If the company has permanently ceased to carry on a trade or property business in respect of which it was within the charge to corporation tax, the amount is treated as a post-cessation receipt of that trade or business (see Chapter 15 of Part 3).

(4)

Otherwise, the amount is treated as a receipt chargeable under the charge to corporation tax on income.

Notes on Part 11

Modifications

C1: Pt. 11 applied by 2010 c. 8, s. 425(1) (as inserted (with effect in accordance with Sch. 5 para. 25(1)-(3) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 5 para. 1 (with Sch. 5 paras. 27, 32-34))