Taxes Consolidation Act 1997 section 448

Relief from corporation tax

Section 448 sets out the mechanism for reducing the corporation tax payable on income from the sale of manufactured goods, working in combination with the standard corporation tax rate of the day to deliver an effective 10% rate on qualifying manufacturing income.

• Defines "relevant corporation tax" as the corporation tax chargeable for the accounting period, stripped of the tax on chargeable gains and a list of other specified items.
• Reduces the corporation tax referable to income from the sale of manufactured goods by a fraction that varies for each financial year from 1998 to 2003 onwards, calibrated to leave an effective 10% rate.
• Sets out how to identify the income from the sale of those goods, how charges, losses and group relief are deducted, and how customs duties and VAT are treated in the receipts figure.
• Requires the relief to be claimed before the assessment becomes final, and allows the Minister for Finance to substitute a lower fraction for qualifying companies in the IFSC and at Shannon Airport.