Corporation Tax Act 2010 section 967

Deductions from payments received by UK resident companies

Section 967 deals with how income tax that has been deducted at source from payments received by a UK resident company can be set off against that company's corporation tax liability.

• Where a UK resident company receives a payment from which income tax has been withheld, that income tax can be offset against the company's corporation tax for the accounting period in which the payment is recognised
• Payments received by another person on behalf of or in trust for the company count as received by the company, but payments the company receives on behalf of or in trust for someone else do not
• The set-off does not apply to payments that are exempt from tax, including certain charitable gift aid income, exempt investment income, and income of community amateur sports clubs
• The set-off is subject to any other provisions of the Corporation Tax Acts that may limit or modify its application