Corporation Tax Act 2009 section 153

Reserves of marketing authorities and certain other statutory bodies

Section 153 sets out the tax treatment of payments into and withdrawals from reserve funds maintained by statutory bodies whose purpose is to market or stabilise the price of agricultural products.

• Statutory bodies established to market or stabilise the price of agricultural products may deduct from their trading profits any sums they are required to pay into a qualifying reserve fund under an approved scheme or arrangement
• Any sums withdrawn from the reserve fund are treated as taxable trading receipts, unless they fall within one of three specified exceptions
• The three exceptions are: amounts paid to a Minister or government department, amounts distributed to producers of the agricultural product, and amounts refunded to persons who pay a levy or duty
• The approved scheme or arrangement must be one approved by, or made with, a Minister or government department, and the reserve fund must meet the conditions specified in section 154