Section 662 Exemption for UK trading income
United Kingdom
A club which is a registered club throughout an accounting period may make a claim for its UK trading income for that period to be exempt from corporation tax if conditions A and B are met.
Condition A is that the receipts which would (but for this section) be brought into account in calculating the club's UK trading income for that period do not exceed the relevant threshold.
Condition B is that the whole of its UK trading income for that period is applied for qualifying purposes.
If a club is a registered club for only part of an accounting period, this section has effect as if—
that part were a separate accounting period, and
the club's UK trading income and receipts for that separate accounting period were proportionately reduced.
In this section “the relevant threshold” means—
F1£50,000 in the case of an accounting period which is 12 months, and
a proportionately reduced figure in the case of a shorter accounting period.
The Treasury may by order amend the figure for the time being specified as the relevant threshold in subsection (5)(a).
A statutory instrument containing an order under subsection (5A) that amends that figure so as to substitute a lower figure may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.
In this section “UK trading income” means profits that (apart from this section) are chargeable under Chapter 2 of Part 3 of CTA 2009 and are—
profits of a trade carried on wholly or partly in the United Kingdom, or
profits of an activity other than a trade.
Annotations
Textual amendments
- F1
Word in s. 662(5)(a) substituted (1.4.2015) (with effect in accordance with art. 1(2)(3) of the amending S.I.) by The Community Amateur Sports Clubs (Exemptions) Order 2014 (S.I. 2014/3327), arts. 1(1), 2
- F2
S. 662(5A)(5B) inserted (1.4.2010) by Finance Act 2013 (c. 29), Sch. 21 paras. 6, 9 (with Sch. 21 para. 10); S.I. 2015/674, art. 2