Finance Act 2008

Simplification of pooling etcU.K.

84U.K.TCGA 1992 is amended as follows.

85(1)Section 104 (share pooling: general interpretative provisions) is amended as follows.U.K.

(2)For subsections (2) and (2A) substitute—

“(2)For the purposes of corporation tax, subsection (1) does not apply to any securities acquired by a company before 1 April 1982.

(2A)See also sections 105 to 105B and—

(a)section 106A in the case of capital gains tax, or

(b)sections 107 to 114 in the case of corporation tax.”

(3)In subsection (3), omit “, 110A”.

(4)After that subsection insert—

“(3A)For the purposes of capital gains tax section 35(2) applies in relation to a section 104 holding as if the reference to an asset were to any of the securities constituting or forming part of the section 104 holding which were held by the person making the disposal on 31 March 1982.”

(5)In subsection (5), omit “, 110A”.

86U.K.In section 105 (disposal on or before day of acquisition), after subsection (2) insert—

“(3)None of the securities which, by virtue of this section, are identified with other securities shall be regarded as forming part of an existing section 104 holding or as constituting a section 104 holding.”

87(1)Section 106A (identification of securities: general rules for capital gains tax) is amended as follows.U.K.

(2)After subsection (5) insert—

“(5ZA)None of the securities which, by virtue of subsection (5) above, are identified with other securities shall be regarded as forming part of an existing section 104 holding or as constituting a section 104 holding.”

(3)In subsection (6), before “securities” (in each place) insert “ relevant ”.

(4)Omit subsection (7).

(5)Omit subsection (8).

(6)For subsection (10) substitute—

“(10)In this section—

• “securities” means any securities within the meaning of section 104 or any relevant securities, and

• “relevant securities” means—

  (a)

  securities within the meaning of Chapter 2 of Part 12 of ITA 2007 (accrued income profits),

  (b)

  qualifying corporate bonds, and

  (c)

  securities which are, or have at any time been, material interests in a non-qualifying offshore fund, within the meaning of Chapter 5 of Part 17 of the Taxes Act.”

(7)In the heading, omit “general rules for”.

88U.K.In the heading of section 107 (identification of securities etc: general rules), insert at the end “ for corporation tax ”.

89U.K.In the heading of section 108 (identification of relevant securities), insert at the end “ for corporation tax ”.

90(1)Section 109 (pre-April 1982 share pools) is amended as follows.U.K.

(2)In subsection (1), for “This” substitute “ For the purposes of corporation tax, this ”.

(3)In the heading, for “Pre-April” substitute “ Corporation tax: pre-April ”.

91U.K.For the heading of section 110 substitute “ Indexation for section 104 holdings for corporation tax ”.

92U.K.Omit section 110A (indexation for section 104 holdings: CGT).

93U.K.In the heading of section 112 (parallel pooling regulations), insert at the end “ : corporation tax ”.

94(1)Section 113 (calls on shares) is amended as follows.U.K.

(2)Before subsection (1) insert—

“(A1)This section has effect for the purposes of corporation tax.”

(3)In the heading, insert at the end “ : corporation tax ”.

95(1)Section 114 (consideration for options) is amended as follows.U.K.

(2)Before subsection (1) insert—

“(A1)This section has effect for the purposes of corporation tax.”

(3)In the heading, insert at the end “ : corporation tax ”.

96U.K.In FA 1998, omit—

(a)section 123(1) and (2), and

(b)section 125(2) and (3).

97U.K.Chapter 6 of Part 4 of ITA 2007 (losses on disposals of shares) is amended as follows.

98(1)Section 147 (limits on share loss relief) is amended as follows.U.K.

(2)In subsection (1)(b)—

(a)in sub-paragraph (i), omit “or a 1982 holding” and “or” at the end, and

(b)for sub-paragraph (ii) substitute—

“(ii)at a time earlier than the time of the disposal but after 5 April 2008 formed part of a section 104 holding, or

(iii)at a time earlier than that time and than 6 April 2008 formed part of an old section 104 holding or a 1982 holding, and”.

(3)In subsection (7)—

(a)in the definition of “section 104 holding”, after “1992” insert “ and “old section 104 holding” is a holding that was a section 104 holding within the meaning of that provision as it applied in relation to disposals before 6 April 2008 ”, and

(b)in the definition of “1982 holding”, insert at the end “ as it applied in relation to disposals before 6 April 2008 ”.

99(1)Section 148 (disposal of shares forming part of mixed holding) is amended as follows.U.K.

(2)In subsection (3)(a)(ii), omit “or a 1982 holding”.

(3)In subsection (5), omit “or 1982”.

(4)In subsection (9), for “and “1982 holding” have” substitute “ has ”.

100U.K.The amendments made by paragraphs 84 to 99 have effect in relation to disposals on or after 6 April 2008.