Corporation Tax Act 2009 section 103

Basic amounts

Section 103 provides transitional rules for calculating basic amounts when accounting periods straddle the changeover from the old ICTA rules to the CTA 2009 regime on 1 April 2009, ensuring that income deemed to have been received under the old legislation is properly carried forward into the new calculations.

• Where the calculation of assumed income entitlement requires reference to accounting periods ending before 1 April 2009, the "basic amounts" for those old periods are taken as the amounts deemed to have been paid as income under the former ICTA provisions rather than the new CTA 2009 definitions.
• For successive absolute interests held during old accounting periods, the basic amounts relating to any previous holder's interest include the amounts deemed paid as income under ICTA section 696.
• For limited interests held during old accounting periods that precede an absolute interest, the basic amounts include the amounts deemed paid as income to the holders of those limited interests under ICTA section 695.
• For UK estates, the deemed income amounts used in these transitional calculations are the amounts before any grossing up that would otherwise have applied under the old ICTA rules.