Finance Act, 1995

Amendment of section 162 (surcharge on undistributed income of service companies) of Corporation Tax Act, 1976.

55.—(1) Section 162 (as amended by section 48 of the Finance Act, 1990 ) of the Corporation Tax Act, 1976 , is hereby amended in subsection (4)—

(a) by the substitution in paragraph (a) of “one-half” for “four-fifths”, and

(b) by the substitution in paragraph (b) of “one-half” for “one-fifth”.

(2) This section shall have effect as respects accounting periods ending on or after the 1st day of April, 1995:

Provided that for the purposes of this section where an accounting period begins before the 1st day of April, 1995, and ends on or after that day, it shall be divided into two parts, one beginning on the day on which the accounting period begins and ending on the 31st day of March, 1995, and the other beginning on the 1st day of April, 1995, and ending on the day on which the accounting period ends, and both of the parts shall be treated as if they were separate accounting periods.