Taxes Consolidation Act 1997 section 697U

Deductibility of temporary solidarity contribution for corporation tax

Section 697U provides that the temporary solidarity contribution paid by an energy company is deductible against its trading profits for corporation tax purposes.

• An energy company may deduct the amount of temporary solidarity contribution incurred when computing its Case I trading profits for corporation tax.
• The deduction is taken in the accounting period in which the contribution is incurred.
• No deduction is available under this section if the same amount has already been allowed as a deduction under any other provision of the Tax Acts.
• The section prevents double counting by ensuring the contribution can only be relieved once.