Corporation Tax Act 2010 section 199

Payment attributed to earlier accounting period

Section 199 allows a company that is wholly owned by a charity to elect for a qualifying charitable payment to be treated as made in an earlier accounting period, rather than the period in which the payment actually occurs.

• This provision applies only to companies that are wholly owned by a charity and that make a qualifying payment.
• The company may claim for the payment (or part of it) to be treated as a qualifying charitable donation made in an accounting period falling wholly or partly within the 9 months ending on the date the payment is made.
• Once a valid claim is made, the payment is treated for corporation tax purposes as a qualifying charitable donation of that earlier accounting period, not any later period.
• The claim must be submitted within 2 years immediately following the accounting period in which the payment is made, unless an officer of His Majesty's Revenue and Customs allows a longer period.