# Taxes Management Act 1970, Paragraph 2

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

(1) For the purposes of this Schedule a company is liable to pay qualifying corporation tax for an accounting period if CT1 is greater than CT2 where—
CT1 is the corporation tax which the company is liable to pay for the accounting period, and
CT2 is the corporation tax which the company would be liable to pay for the accounting period if any gains, credits, losses or debits arising in respect of qualifying transactions of the company were ignored.
(CT2 will be zero if the company would not be liable to pay any corporation tax for the period).
(2) The amount of qualifying corporation tax which the company is liable to pay is the difference between CT1 and CT2.

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Source: https://www.legislation.gov.uk/ukpga/1970/9/schedule/3ZC/paragraph/2 (the official version)
Page: https://openlegislation.uk/taxes-management-act-1970/schedule-3ZC/paragraph-2
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.