New Corporation Tax Act
As part of the Tax Law Rewrite project the Corporation Tax Bill received Royal Assent on 26 March 2009. The new Corporation Tax Act (CTA) applies to all accounting periods ending on or after 1 April 2009.
The CTA substantially completes the rewrite of the corporation tax code. It includes provisions relating to losses and gifts to charities, group relief, distributions, particular types of companies and activities, and avoidance. The Act has 1,330 sections and four schedules.
This new Act is part of an overall strategy undertaken by the Tax Law Rewrite project to make direct tax legislation more accessible. This Act should not amend key tax rules but there may be some minor amendments as part of the overall rewrite. The general intention being to assist in making the legislation easier to follow and within a clearer and more logical structure. The challenge will be how quickly can we all start using the references to the new Act rather than the old ones in ICTA 1988.