PART 1 U.K.Extension of scope of charge
1U.K.Section 5 of CTA 2009 (territorial scope of charge to corporation tax) is amended as follows.
Commencement Information
I1Sch. 5 para. 1 in force at 6.4.2020, see Sch. 5 para. 35
2U.K.In subsection (2) (circumstances in which non-UK resident company is within the charge)—
(a)omit “or” at the end of paragraph (a), and
(b)after paragraph (b) insert “,
(c)it carries on a UK property business, or
(d)it has other UK property income.”
Commencement Information
I2Sch. 5 para. 2 in force at 6.4.2020, see Sch. 5 para. 35
3U.K.After subsection (3) insert—
“(3A)A non-UK resident company which carries on a UK property business is chargeable to corporation tax on income on all its profits that are—
(a)profits of that business, or
(b)profits arising from loan relationships or derivative contracts that the company is a party to for the purposes of that business.
(3B)A non-UK resident company which has other UK property income is chargeable to corporation tax on income on all its profits that—
(a)consist of that income, or
(b)are profits arising from loan relationships or derivative contracts that the company is a party to for the purposes of enabling it to generate that income.”
Commencement Information
I3Sch. 5 para. 3 in force at 6.4.2020, see Sch. 5 para. 35
4U.K.In subsection (4) for “(2A) and (3)” substitute “ and (2A) to (3B) ”.
Commencement Information
I4Sch. 5 para. 4 in force at 6.4.2020, see Sch. 5 para. 35
5U.K.At the end insert—
“(6)In this Part “other UK property income” means income dealt with by any of the following Chapters of Part 4—
(a)Chapter 7 (rent receivable in connection with a UK section 39(4) concern);
(b)Chapter 8 (rent receivable for UK electric-line wayleaves);
(c)Chapter 9 (post-cessation receipts arising from a UK property business).”
Commencement Information
I5Sch. 5 para. 5 in force at 6.4.2020, see Sch. 5 para. 35