Corporation Tax Act 2010 section 494

Attributing income to the non-exempt amount

Section 494 explains how a charitable company's income is attributed to its non-exempt amount for an accounting period, ensuring the entire non-exempt amount is used up through attributable income, attributable gains, or a combination of both.

• The section applies when a charitable company has a non-exempt amount for an accounting period
• Attributable income can be attributed to the non-exempt amount, but only to the extent the non-exempt amount has not already been used up
• The non-exempt amount can be used up by attributing income under this section, by attributing chargeable gains under TCGA 1992 section 256C, or by a combination of both
• The entire non-exempt amount must ultimately be fully used up — none of it can remain unallocated