Section 318 Transfer involving company within the charge to corporation tax

United Kingdom

(1)

This section explains how section 316 works if—

(a)

the transferor is a person within the charge to income tax and the transferee is a company within the charge to corporation tax, or

(b)

the transferor is a company within the charge to corporation tax and the transferee is a person within the charge to income tax.

(2)

Section 316 applies only for the purpose of determining—

(a)

whether the person within the charge to income tax is entitled to a deduction (or part of a deduction) under section 315, and

(b)

the amount of any such deduction.

(3)

Accordingly, any reference to—

(a)

whether a person is entitled to a deduction (or part of a deduction) under section 315, or

(b)

the amount of any such deduction,

is ignored if the person is a company within the charge to corporation tax.

(4)

For any entitlement of a company within the charge to corporation tax to a deduction for any of the expenditure, see F1sections 255 to 257 of CTA 2009 (corresponding corporation tax provision).

Annotations

Textual amendments

F1: Words in s. 318(4) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 628 (with Sch. 2 Pts. 1, 2)