Income Tax (Trading and Other Income) Act 2005 section 318

Transfer involving company within the charge to corporation tax

Section 318 deals with how the rules on transferring entitlement to sea wall expenditure deductions work when one party pays income tax and the other pays corporation tax.

• When a property interest is transferred between an income tax payer and a corporation tax payer, the sea wall deduction rules in section 316 apply only to determine the income tax payer's entitlement
• Section 316 establishes whether the income tax payer qualifies for a deduction under section 315 for sea wall expenditure, and if so, how much that deduction is
• Any references to deduction entitlement or amounts are disregarded in relation to the corporation tax paying company
• A corporation tax paying company's entitlement to deductions for sea wall expenditure is dealt with separately under sections 255 to 257 of the Corporation Tax Act 2009