PIM1106 - Use of trading income rules: application of trading income rules: CT

Section 210 of the Corporation Tax Act 2009 (CTA09)

Subsection (1) of S210 CTA09 provides that for corporation tax purposes the profits of a property business are calculated in the same way as the profits of a trade.

Subsection (2) applies specific rules in Part 3 of CTA09 to property businesses, which concern calculation of profits. They are:

In Chapter 3 (basic rules)	Category	Manual
Section 46	Generally accepted accounting practice
Section 47	Losses calculated on same basis as profits	BIM31000 onwards
Section 48	Receipts and expenses	BIM31000 onwards
Section 49A	Money’s worth	BIM40051
Section 52	apportionment etc of profits and losses to accounting period

In Chapter 4 (rules restricting deductions)	Category	Manual
Section 53	Capital expenditure	BIM35000 onwards
Section 54	Expenses not wholly and exclusively for trade and unconnected losses	BIM37000 onwards
Section 55	Bad debts	BIM42700 onwards
Sections 56 to 58B	Car hire	BIM47714 onwards
Section 59	Patent royalties	BIM45965

In Chapter 5 (rules allowing deductions)	Category	Manual
Section 61	Pre-trading expenses	BIM46350 onwards
Section 69	Payments for restrictive undertakings	BIM47005
Sections 70 and 71	Seconded employees	BIM47115 - BIM47120
Section 72	Payroll deduction schemes: contributions to agents' expenses	BIM45195
Sections 73 to 75	Counselling and retraining expenses	BIM47217 – BIM47218
Sections 76 to 81	Redundancy payments etc.	BIM47200 onwards
Sections 82 to 86	Contributions to local enterprise organisations or urban regeneration companies	BIM47610
Sections 87 and 88	Scientific research	BIM45950 onwards
Sections 89 and 90	Expenses connected with patents, designs and trade marks	BIM45950 onwards
Section 91	Payments to Export Credits Guarantee Department	BIM45580
Section 92	Levies under the Financial Services and Markets Act 2000
Section 92A	Deductions in relation to salaried members of limited liability partnerships

In Chapter 6 (receipts)	Category	Manual
Section 93	Capital receipts	BIM35002
Section 94	Debts incurred and later released	BIM40265
Section 101	Distribution of assets of mutual concerns	BIM24550 onwards
Section 102	Industrial development grants	BIM40465
Section 103	Sums recovered under insurance policies etc.	BIM40750 onwards
Section 104	Repayments under the Financial Services and Markets Act 2000

In Chapter 7 (gifts to charities etc.)	Category	Manual
Section 108	Receipt by donor or connected person of benefit attributable to certain gifts	BIM45180

In Chapter 9 (other specific trades)	Category	Manual
Section 131	incidental costs of issuing qualifying shares (building societies)
Section 133	annual payments paid by a credit union

In Chapter 12 (deductions from profits)	Category	Manual
Sections 172 to 175	Unremittable amounts	BIM42750

Many other corporation tax calculation rules apply equally to property businesses, including (but not exclusively) the following:

CTA09 Reference	Category	Manual
Sections 280-286	Cessation of a UK property business	PIM3000
Section 289	Commencement and cessation of an overseas property business
Sections 1149-1150	Expenditure on remediation of contaminated land	CIRD60000onwards
Section 1238	Retraining courses	BIM47080
Section 1239	Redundancy payments and approved contractual payments	BIM47200 onwards
Section 1288	Unpaid remuneration
Section 1298	Business entertainment and gifts	BIM45000 onwards
Section 1304	Crime-related payments	BIM43100 onwards