Commentary on Sections Part 2: Charge to corporation tax: basic provisions Overview Section 6: Profits accruing in fiduciary or representative capacity
51.This section deals with profits accruing directly to the company where it is acting in a fiduciary or representative capacity, for example as a nominee. It is based on section 8(2) of ICTA.
52.In this case the charge under section 2 only applies where the company has a beneficial interest in the profits.
53.When a company goes into liquidation it ceases to be the beneficial owner of its assets. The exception in subsection (2) means that in this case the company’s profits remain within the charge to corporation tax.