Corporation Tax Act 2010 section 624

Power to make regulations about the taxation of securitisation companies

Section 624 gives the Treasury broad powers to make regulations governing how securitisation companies are taxed for corporation tax purposes.

• The Treasury may make regulations that apply, modify or disapply any provision of the Taxes Acts in relation to securitisation companies, including specifying how profits are to be calculated and what amounts are brought into account for corporation tax.
• The regulations may operate on an elective basis, so that they apply only if a company opts in, or they apply by default unless a company opts out.
• Once a company becomes subject to the regulations, it must remain subject to them for all subsequent periods of account, and must continue to meet any conditions imposed by the regulations in order to retain the benefit of the special tax treatment.
• If a company fails to meet a specified condition, the consequences may include recalculating its profits for earlier periods on the basis that the regulations never applied.