Taxes Consolidation Act 1997 section 243B

Relief for certain charges on income on a value basis

Section 243B provides relief on a value basis for relevant trading charges on income that exceed the amounts otherwise deductible against a company's income in an accounting period.

• Where relevant trading charges on income exceed the amounts allowed as deductions under section 243A, the company may claim value basis relief for the excess.
• Relief is given by reducing the relevant corporation tax by the excess charges multiplied by the standard corporation tax rate (currently 12.5%).
• Relevant corporation tax is the corporation tax chargeable before adjustments for tax withheld on certain payments, loss relief under sections 396B and 420B, and surcharges on undistributed income.
• For carry-forward purposes, the amount of charges treated as relieved is calculated by grossing up the tax reduction at the standard corporation tax rate.