CTG secures charity exemption to new 45% tax on restitution interest
CTG held discussions with officials from HM Treasury and HMRC to ensure that the treatment of charities is consistent in respect of new rules in force from October 2015 under which a special 45% rate of corporation tax is to be applied to payments made by HMRC of certain awards of restitution interest.
The conclusion of those discussions is that a charitable company will be able to claim exemption from corporation tax on restitution interest that it may receive in its own right. We are very pleased with this outcome.
Following the Autumn Statement announcement CTG had recognised the possible unintended consequences for charities and submitted a policy paper to HMRC requesting a meeting to resolve this issue.
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