Corporation Tax Act 2009 section 6

Profits accruing in fiduciary or representative capacity

Section 6 establishes that a company acting in a fiduciary or representative capacity, such as a nominee or trustee, is not subject to corporation tax on the profits it holds on behalf of others, except to the extent of its own beneficial interest in those profits.

• A company is not chargeable to corporation tax on profits it receives in a fiduciary or representative capacity (for example, as a nominee or trustee)
• Corporation tax only applies to any beneficial interest the company itself holds in those profits
• When a company enters liquidation, it ceases to be the beneficial owner of its assets, but its profits during winding up remain subject to corporation tax
• The winding-up exception ensures that the corporation tax charge is not lost simply because the company's ownership status changes during liquidation