Corporation Tax Act 2009 section 154

Conditions to be met by reserve fund

Section 154 sets out the three conditions that a reserve fund must satisfy in order for the relief available under section 153 (which allows certain statutory marketing bodies to deduct payments into a reserve fund when calculating trading profits) to apply.

• No sum may be withdrawn from the reserve fund without the authority or consent of a government Minister or department.
• Where the body has received repayable money from a Minister or department in connection with guaranteed price arrangements or trading arrangements, sums in the fund must be used to repay that money.
• The fund must be reviewed by a Minister at regular intervals, and any amount exceeding what is reasonably required by the body must be withdrawn.
• The repayment requirement and the review intervals must both be imposed by or under the same scheme or arrangement referred to in section 153(2).