C1C7C4C3C8C9C10C11C12C13C14Part 2 Plant and machinery allowances
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 10, 22 (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 9(2), 21(2) (with s. 38(2)); S.I. 2004/2575, art. 2(1) , Sch. 1
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 4 para. 4 ; S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 19
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 35
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 paras. 36, 37
Pt. 2 modified (21.7.2009) by Finance Act 2009 (c. 10), s. 24
Pt. 2 modified (17.7.2013) by Finance Act 2013 (c. 29), s. 73(7)-(11) (with s. 73(6))
Pt. 2 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 9(1)(a)
Pt. 2 modified (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), s. 7
C7C4C6C5C3C12C14Chapter 5 Allowances and charges
Pt. 2 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 para. 21(2) (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 para. 10 (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1
F1Effect of changes in Northern Ireland status of SME company or SME partnership
Ss. 66B-66E and cross-heading inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), Sch. 1 para. 7
66BSME company entering NI corporation tax regime
1
This section applies if—
a
in a chargeable period beginning after the commencement day (“the relevant period”) a company is F2an SME (Northern Ireland employer) company,
b
the company was neither F3an SME (Northern Ireland employer) company nor a NIRE company in the previous chargeable period, and
c
the company has not become F4an SME (Northern Ireland employer) company in the relevant period as a result of an election under section 357KB(2) of CTA 2010 (back-office activities of financial trades).
2
The fact that assets which continue to be used in the relevant period for the purposes of the trade actually carried on by the company are as a result of section 15(2ZA) treated as ceasing to be used for the purposes of a main rate activity and beginning to be used for the purposes of an NI rate activity does not give rise to a disposal event within 61(1)(e) or (f).
3
If during the relevant period the only qualifying activity carried on by the company is an NI rate activity, the amount of any unrelieved qualifying expenditure in any main pool or special rate pool falling to be carried forward to the relevant period is to be treated as relating to plant and machinery used for the purposes of the NI rate activity.
4
If during the relevant period the company carries on both an NI rate activity and a main rate activity—
a
the amount of any unrelieved qualifying expenditure in any main pool falling to be carried forward under section 59 to the relevant period is to be apportioned on a just and reasonable basis to become—
i
a main pool that is to be treated as relating to plant and machinery used for the purposes of the NI rate activity, and
ii
a main pool that is to be treated as relating to plant and machinery used for the purposes of the main rate activity, and
b
the amount of any unrelieved qualifying expenditure in any special rate pool falling to be carried forward under section 59 to the relevant period is to be apportioned on a just and reasonable basis to become—
i
a special rate pool that is to be treated as relating to plant and machinery used for the purposes of the NI rate activity, and
ii
a special rate pool that is to be treated as relating to plant and machinery used for the purposes of the main rate activity.
5
“Main rate activity” means the company's trade except so far as it is an NI rate activity.
6
“The commencement day” has the meaning given by section 5(4) of the Corporation Tax (Northern Ireland) Act 2015.
66CSME partnership entering NI corporation tax regime
For the purposes of the corporate partner calculation, section 66B applies in relation to a partnership as if—
a
references to a company were references to a partnership,
b
references to F7an SME (Northern Ireland employer) company were references to a Northern Ireland Chapter 6 firm,
c
the reference to a NIRE company were a reference to a Northern Ireland Chapter 7 firm,
d
the reference to section 357KB(2) of CTA 2010 were a reference to section 357WB(2) of that Act, and
e
the reference to section 15(2ZA) were a reference to section 15(2ZB).
66DSME company leaving NI corporation tax regime
1
This section applies if—
a
in a chargeable period beginning after the commencement day (“the relevant period”) a company is neither F5an SME (Northern Ireland employer) company nor a NIRE company,
b
the company was F6an SME (Northern Ireland employer) company in the previous chargeable period, and
c
during the relevant period the company carries on a qualifying activity.
2
The fact that assets which continue to be used in the relevant period for the purposes of the trade actually carried on are as a result of section 15(2ZA) treated as ceasing to be used for the purposes of an NI rate activity and beginning to be used for the purposes of the qualifying activity mentioned in subsection (1)(c) does not give rise to a disposal event within 61(1)(e) or (f).
3
Any unrelieved qualifying expenditure which—
a
relates to plant or machinery used for the purposes of an NI activity, and
b
falls to be carried forward to the relevant period,
is to be treated as relating to the qualifying activity that the company carries on in the relevant period.
4
“The commencement day” has the meaning given by section 5(4) of the Corporation Tax (Northern Ireland) Act 2015.
66ESME partnership leaving NI corporation tax regime
For the purposes of the corporate partner calculation, section 66D applies in relation to a partnership as if—
a
references to a company were references to a partnership,
b
references to F8an SME (Northern Ireland employer) company were references to a Northern Ireland Chapter 6 firm,
c
the reference to a NIRE company were a reference to a Northern Ireland Chapter 7 firm, and
d
the reference to section 15(2ZA) were a reference to section 15(2ZB).
Pt. 2 modified (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 10 para. 12 (with Sch. 10 para. 17(1)); S.I. 2003/120, art. 2, Sch. (with arts. 34) (as amended (20.2.2003) by S.I. 2003/333, art. 14)