Corporation Tax Act 2010 section 391

Relevant company's income for condition B in section 387

Section 391 explains how a company's income should be calculated and apportioned when determining whether condition B of section 387 is met, which is relevant to whether a company is carrying on a business of leasing plant or machinery.

• The company's income must be calculated in accordance with corporation tax principles
• Where income needs to be attributed to the 12-month period ending on the relevant day, it should normally be apportioned on a time basis
• If a time-based apportionment would produce unjust or unreasonable results for any person, a just and reasonable basis must be used instead
• The proportion of income derived from plant or machinery falling within section 387(7) must always be determined on a just and reasonable basis