Taxes Consolidation Act 1997 section 697S

Taxable profits for purposes of temporary solidarity contribution

Section 697S sets out the rules for calculating the taxable profits of an energy company for the purposes of the temporary solidarity contribution.

• Taxable profits are the total profits from relevant activities computed under section 76(3), reduced by charges on income relating to relevant activities and by capital expenditure on tangible assets brought into use in 2018 to 2023 in the course of relevant activities.
• Where a tangible asset ceases to be used in relevant activities within five years of first being brought into use, the capital expenditure deduction is clawed back and taxable profits are recalculated accordingly.
• No account is taken of pre-2018 trading losses, post-2023 trading losses, group relief amounts within the 2018–2023 period, or temporary solidarity contribution incurred under the Act of 2023.
• Where an accounting period does not coincide with the calendar year, taxable profits are apportioned on a time basis and aggregated to determine the taxable profits for the calendar year.