Section 986 | Treatment of receipts under Chapter

(1)This section applies if a company is treated under this Chapter as receiving an amount.

(2)If the company is carrying on a trade or property business in respect of which it is within the charge to corporation tax, the amount is treated as a receipt of that trade or business.

(3)If the company has permanently ceased to carry on a trade or property business in respect of which it was within the charge to corporation tax, the amount is treated as a post-cessation receipt of that trade or business (see Chapter 15 of Part 3).

(4)Otherwise, the amount is treated as a receipt chargeable under the charge to corporation tax on income.