# Income Tax (Trading and Other Income) Act 2005, Section 318: Transfer involving company within the charge to corporation tax

Extent: E+W+S+N.I.

(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 sections 255 to 257 of CTA 2009 (corresponding corporation tax provision).

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Source: https://www.legislation.gov.uk/ukpga/2005/5/section/318 (the official version)
Page: https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/section-318
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.