Taxes Consolidation Act 1997 section 454

Restriction of certain charges on income

Section 454 restricted the way in which charges on income paid for the purpose of the 10% tax rate could be deducted, but this section ceased to have effect from 1 January 2003.

• Applied to companies carrying on a trade that included the manufacture of goods qualifying for manufacturing relief.
• Charges on income (typically certain interest payments) referable to the 10% rate could not be deducted against total profits in the normal way.
• Instead, those charges were ring-fenced and could only be set against the company's 10%-taxed income.
• The section was repealed with effect from 1 January 2003 by section 90(3) of the Finance Act 2001, in line with the phasing out of manufacturing relief.