Taxes Management Act 1970 section Sch 3ZC para 2

Qualifying corporation tax

Section Sch 3ZC paragraph 2 defines what qualifying corporation tax is and how to calculate the amount a company is liable to pay for an accounting period.

• Qualifying corporation tax arises when a company's total corporation tax liability (CT1) exceeds the amount it would owe if gains, credits, losses or debits from qualifying transactions were stripped out (CT2)
• CT2 is set to zero if the company would have no corporation tax liability once qualifying transactions are excluded
• The amount of qualifying corporation tax is simply the difference between CT1 and CT2
• This qualifying corporation tax amount may be deferred under a CT payment plan as provided for elsewhere in the Schedule