Corporation Tax Act 2010 section 630

Company in administration: corporation tax rates

Section 630 sets out which corporation tax rate applies to profits of a company in administration during its final year and penultimate year, particularly where the rate has not yet been formally fixed at the time the administrator needs to assess the tax liability.

• If the main corporation tax rate has been fixed for the company's final year, that fixed rate is used; if only proposed but not yet fixed, the proposed rate applies instead.
• If no rate has been fixed or proposed for the final year, the rate that has been fixed or proposed for the penultimate year is used as a fallback.
• Where the company entered administration before its final year and the penultimate year's rate is only proposed (not yet fixed), that proposed rate applies to profits arising in the administration during the penultimate year.
• These rules enable administrators to finalise a company's corporation tax liability in advance of the anticipated dissolution date, even when rates have not yet been formally enacted by Parliament.