{
  "url": "https://openlegislation.uk/finance-act-1998/schedule-18/paragraph-8",
  "json_url": "https://openlegislation.uk/finance-act-1998/schedule-18/paragraph-8.json",
  "legislation": "ukpga/1998/36",
  "legislation_title": "Finance Act 1998",
  "legislation_url": "https://openlegislation.uk/finance-act-1998",
  "path": "schedule/18/paragraph/8",
  "kind": "paragraph",
  "number": "8",
  "heading": null,
  "text": "(1) The amount of tax payable for an accounting period is calculated as follows.\nFirst step\nCalculate the corporation tax chargeable on the company’s profits:\n1Take the amount of the company’s profits for that period on which corporation tax is chargeable (see section 4(1) and (2) of the Corporation Tax Act 2010).\n2Apply the rate or rates of corporation tax applicable to the company (other than the restitution payments rate).\nSecond step\nThen give effect to any reliefs or set-offs available against corporation tax chargeable on profits:\n1Any reduction under Part 3A or Chapter 3A of Part 8 of the Corporation Tax Act 2010 (marginal relief for companies with small profits).\n1AAny relief under Part V of Schedule 15 to the Finance Act 2000 (corporate venturing scheme: investment relief).\n1BAny relief under Part 7 of the Corporation Tax Act 2010 (community investment tax relief).\n2Any double taxation relief under under sections 2 and 6 of TIOPA 2010 or under section 18(1)(b) and (2) of that Act.\n3Any set off for advance corporation tax under section 239 of the Taxes Act 1988 or under regulations made under section 32 of this Act.\nThird step\nThen add any amounts assessable or chargeable as if they were corporation tax (reduced by any reliefs specific to those amounts):\n1Any amount due under section 455 or 464A of the Corporation Tax Act 2010 (tax on a loan, advance or benefit to a participator).\n1ZA Any sum chargeable under section 269DA of that Act (surcharge on banking companies).\n1AAny sum chargeable under section 330(1) of that Act (supplementary charge in respect of ring fence trades).\n2 Any sum charged at step 5 in section 371BC(1) of the Taxation (International and Other Provisions) Act 2010 (controlled foreign companies).\n3 Any amount of the bank levy chargeable by virtue of paragraph 50 or 51 of Schedule 19 to the Finance Act 2011 (the bank levy).\n4 Any amount of residential property developer tax chargeable by virtue of section 33 of the Finance Act 2022.\n5 Any amount chargeable by virtue of section 1 of the Energy (Oil and Gas) Profits Levy Act 2022.\nFourth step\nThen deduct any amounts to be set off against the company’s overall tax liability for that period:\n1Any amount to be set off under section 967 or 968 of the Corporation Tax Act 2010 (income tax borne by deduction).\n2Any amount to be set off under section 246N or 246Q of the Taxes Act 1988 (advance corporation tax paid in respect of foreign income dividend).\nFifth step\nCalculate the corporation tax chargeable on any profits of the company that are charged as restitution interest.\n1Find the amount in respect of which the company is chargeable for the period under the charge to corporation tax on income under Part 8C of CTA 2010.\n2Apply the restitution payments rate in accordance with section 357YK(1) of that Act.\nThe amount of tax payable for the accounting period is the sum of the amounts resulting from the first to fourth steps and this step.\n(1A) Sub-paragraph (1B) applies if an amount of the bank levy chargeable by virtue of paragraph 50 or 51 of Schedule 19 to the Finance Act 2011 (the bank levy) is added at the third step.\n(1B) Any deductions made at the fourth step are to be treated as made from all other amounts before being made from the amount of the bank levy.\n(2) Except as otherwise provided, references in this Schedule to the amount of tax payable by a company for an accounting period are to the amount shown in the company’s self-assessment as the amount payable.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in Sch. 18 para. 8(1) inserted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 297(4)(a) (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in Sch. 18 para. 8 inserted (with effect in accordance with s. 38(9)-(12) of the amending Act) by Finance (No. 2) Act 2015 (c. 33), s. 38(5)(a)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in Sch. 18 para. 8(1) substituted (with effect in accordance with Sch. 1 para. 34 of the amending Act) by Finance Act 2021 (c. 26), Sch. 1 para. 12"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Words in Sch. 18 para. 8(1) inserted (28.7.2000 with application as mentioned in s. 63(4) of the amending Act) by 2000 c. 17, s. 63(2), Sch. 16 para. 5(2)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Words in Sch. 18 para. 8(1) inserted (24.7.2002 with effect as mentioned in s. 57(4)(c) of the amending Act) by 2002 c. 23, s. 57, Sch. 17 para. 5"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Words in Sch. 18 para. 8(1) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 297(4)(c) (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "Words in Sch. 18 para. 8(1) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 54(2)(a) (with Sch. 9 paras. 1-9, 22)"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "Words in Sch. 18 para. 8(1) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 54(2)(b) (with Sch. 9 paras. 1-9, 22)"
    },
    {
      "type": "F",
      "label": "F9",
      "text": "Words in Sch. 18 para. 8(1) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 297(4)(d) (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F10",
      "text": "Words in Sch. 18 para. 8(1) inserted (retrospective to 20.3.2013) by Finance Act 2013 (c. 29), Sch. 30 para. 13(3)(a)(5)"
    },
    {
      "type": "F",
      "label": "F11",
      "text": "Words in Sch. 18 para. 8(1) substituted (retrospective to 20.3.2013) by Finance Act 2013 (c. 29), Sch. 30 para. 13(3)(b)(5)"
    },
    {
      "type": "F",
      "label": "F12",
      "text": "Words in Sch. 18 para. 8(1) inserted (with effect in accordance with Sch. 3 Pt. 3 of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 3 para. 3(3)"
    },
    {
      "type": "F",
      "label": "F13",
      "text": "Words in Sch. 18 para. 8(1) inserted (24.7.2002) by 2002 c. 23, s. 92(4)"
    },
    {
      "type": "F",
      "label": "F14",
      "text": "Words in Sch. 18 para. 8(1) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 297(4)(e) (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F15",
      "text": "Words in Sch. 18 para. 8(1) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 20 para. 17(3) (with Sch. 20 para. 50(9))"
    },
    {
      "type": "F",
      "label": "F16",
      "text": "Words in Sch. 18 para. 8(1) inserted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 19 para. 63(2)"
    },
    {
      "type": "F",
      "label": "F17",
      "text": "Words in Sch. 18 para. 8(1) inserted (in relation to accounting periods beginning on or after 1.4.2022) by Finance Act 2022 (c. 3), s. 51(1), Sch. 8 para. 2(4)"
    },
    {
      "type": "F",
      "label": "F18",
      "text": "Words in Sch. 18 para. 8(1) inserted (14.7.2022) by Energy (Oil and Gas) Profits Levy Act 2022 (c. 40), Sch. 2 para. 2(4) (with ss. 15(1), 16(1))"
    },
    {
      "type": "F",
      "label": "F19",
      "text": "Words in Sch. 18 para. 8(1) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 297(4)(g) (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F20",
      "text": "Words in Sch. 18 para. 8(1) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 297(4)(h) (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F21",
      "text": "Words in Sch. 18 para. 8 inserted (with effect in accordance with s. 38(9)-(12) of the amending Act) by Finance (No. 2) Act 2015 (c. 33), s. 38(5)(b)"
    },
    {
      "type": "F",
      "label": "F22",
      "text": "Sch. 18 para. 8(1A)(1B) inserted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 19 para. 63(3)"
    }
  ],
  "outstanding_effects": [
    {
      "type": "omitted",
      "affecting": "ukpga/2024/3",
      "affecting_title": "Finance Act 2024"
    },
    {
      "type": "omitted",
      "affecting": "ukpga/2024/3",
      "affecting_title": "Finance Act 2024"
    },
    {
      "type": "omitted",
      "affecting": "ukpga/2024/3",
      "affecting_title": "Finance Act 2024"
    }
  ],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/1998/36/schedule/18/paragraph/8",
    "retrieved_at": "2026-10-29T09:22:30.566925+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}