Corporation Tax Act 2009 section 1309

Payments treated as made to visiting performers

Section 1309 deals with how payments or transfers made to a company are treated for corporation tax purposes when they relate to visiting entertainers or sportspeople and are redirected to the performer under income tax rules.

• Where a payment intended for a visiting performer is routed through a company, the income tax rules may treat that payment as made directly to the performer rather than to the company.
• When this redirection applies, the company is treated for corporation tax purposes as if it never received the payment or transfer, so the amount is excluded from the company's taxable income.
• The Treasury may make regulations specifying circumstances in which this exclusion does not apply, meaning the company would then need to account for the payment in its corporation tax computation.
• Regulations may also provide that any corporation tax liability that would otherwise arise on the payment is disapplied in whole or in part, and may set out different rules for different types of cases.