Corporation Tax Act 2009
Part 1Introduction
A1Overview of the Corporation Tax Acts
1Overview of Act
Part 2Charge to corporation tax: basic provisions
Chapter 1The charge to corporation tax
Charge to tax on profits
2Charge to corporation tax
3Exclusion of charge to income tax
4Exclusion of charge to capital gains tax
General scheme of corporation tax
5Territorial scope of charge
6Profits accruing in fiduciary or representative capacity
7Profits accruing under trusts
8How tax is charged and assessed
Chapter 2Accounting periods
9Beginning of accounting period
10End of accounting period
11Companies with more than one accounting date
12Companies being wound up
Chapter 3Company residence
13Overview of Chapter
14Companies incorporated in the United Kingdom
15Continuation of residence established under common law
16SEs which transfer registered office to the United Kingdom
17SCEs which transfer registered office to the United Kingdom
18Companies treated as non-UK resident under double taxation arrangements
CHAPTER 3A UK RESIDENT COMPANIES: PROFITS OF FOREIGN PERMANENT ESTABLISHMENTS
Exemption
18AExemption for profits or losses of foreign permanent establishments
18BChargeable gains etc
18CCapital allowances etc
18CAIncome arising from immovable property
18CBProfits and losses from investment business
18DPayments subject to deduction
18EEmployee share acquisitions
18FEffect of election
Anti-diversion rule
18GAnti-diversion rule
18HWhat are “diverted profits”?
18HAModification of Chapter 3 of Part 9A of TIOPA 2010
18HBModification of Chapter 4 of Part 9A of TIOPA 2010
18HCModification of Chapter 5 of Part 9A of TIOPA 2010
18HDModification of Chapter 7 of Part 9A of TIOPA 2010
18HEModification of Chapter 9 of Part 9A of TIOPA 2010
18IExemptions from anti-diversion rule
18IAThe excluded territories exemption
18IBThe low profits exemption
18ICThe low profit margin exemption
18IDThe tax exemption
Companies with total opening negative amount
18JCompanies with total opening negative amount
18KTotal opening negative amount: “matching”
18LStreaming
18MStreamed opening negative amounts: “matching”
18NResidual opening negative amount: “matching”
18OTransfers of foreign permanent establishment business
Special cases
18PExclusions
18QInsurance companies
Interpretation
18RMeaning of “full treaty territory”
18SOther interpretation
Chapter 4Non-UK resident companies: chargeable profits
Chargeable profits
19Chargeable profits
20Profits attributable to permanent establishment: introduction
The separate enterprise principle
21The separate enterprise principle
22Transactions treated as being on arm's length terms
23Provision of goods or services for permanent establishment
24Application to insurance companies
The separate enterprise principle: application to non-UK resident banks
25Non-UK resident banks: introduction
26Transfer of financial assets
27Loans: attribution of financial assets and profits arising
28Borrowing: permanent establishment acting as agent or intermediary
Rules about deductions
29Allowable deductions
30Restriction on deductions: costs
31Restriction on deductions: payments in respect of intangible assets
32Restriction on deductions: interest or other financing costs
Chapter 5Supplementary
33Trade includes office
Part 3Trading income
Chapter 1Introduction
34Overview of Part
Chapter 2Income taxed as trade profits
Charge to tax on trade profits
35Charge to tax on trade profits
Trades and trade profits
36Farming and market gardening
37Commercial occupation of woodlands
38Commercial occupation of land other than woodlands
39Profits of mines, quarries and other concerns
40Credit unions
Starting and ceasing to trade
41Effect of company starting or ceasing to be within charge to corporation tax
Trading income and property income
42Tied premises
43Caravan sites where trade carried on
44Surplus business accommodation
45Payments for wayleaves
Chapter 3Trade profits: basic rules
46Generally accepted accounting practice
47Losses calculated on same basis as profits
48Receipts and expenses
49Items treated as receipts and expenses
50Animals kept for trade purposes
51Relationship between rules prohibiting and allowing deductions
52Apportionment etc of profits and losses to accounting period
Chapter 4Trade profits: rules restricting deductions
53Capital expenditure
54Expenses not wholly and exclusively for trade and unconnected losses
55Bad debts
56Car ... hire
57Car ... hire: supplementary
58Hiring cars (but not motor cycles) with low CO2 emissions before 1 April 2013
58AShort-term hiring in and long-term hiring out
58BConnected persons: application of section 56
59Patent royalties
60Expenditure on integral features
60ARental rebates
Chapter 5Trade profits: rules allowing deductions
Pre-trading expenses
61Pre-trading expenses
Tenants under taxed leases
62Tenants under taxed leases: introduction
63Tenants occupying land for purposes of trade treated as incurring expenses
64Limit on deductions if tenant entitled to mineral extraction allowance
65Tenants dealing with land as property employed for purposes of trade
66Restrictions on section 63 expenses: lease premium receipts
67Restrictions on section 63 expenses: lease of part of premises
Renewals
68Replacement and alteration of trade tools
Payments for restrictive undertakings
69Payments for restrictive undertakings
Seconded employees
70Employees seconded to charities and educational establishments
71Educational establishments
Contributions to agents' expenses
72Payroll deduction schemes: contributions to agents' expenses
Counselling and retraining expenses
73Counselling and other outplacement services
74Retraining courses
75Retraining courses: recovery of tax
Redundancy payments etc
76Redundancy payments and approved contractual payments
77Payments in respect of employment wholly in employer's trade
78Payments in respect of employment in more than one capacity
79Additional payments
80Application of section 79 in cases involving partnerships
81Payments made by the Government
Contributions to local enterprise organisations or urban regeneration companies
82Contributions to local enterprise organisations or urban regeneration companies
83Meaning of “local enterprise organisation”
84Approval of local enterprise agencies
85Supplementary provisions with respect to approvals
86Meaning of “urban regeneration company”
Scientific research
87Expenses of research and development
88Payments to research associations, universities etc
Expenses connected with patents, designs and trade marks
89Expenses connected with patents
90Expenses connected with designs or trade marks
Export Credits Guarantee Department
91Payments to Export Credits Guarantee Department
Levies under FISMA 2000
92Levies etc under FISMA 2000
Chapter 6Trade profits: receipts
Capital receipts
93Capital receipts
Debts released
94Debts incurred and later released
Amounts received following earlier cessation
95Acquisition of trade: receipts from transferor's trade
Reverse premiums
96Reverse premiums
97Excluded cases
98Tax treatment of reverse premiums
99Arrangements not at arm's length
100Connected persons and property arrangements
Other receipts
101Distribution of assets of mutual concerns
102Industrial development grants
103Sums recovered under insurance policies etc
104Repayments under FISMA 2000
CHAPTER 6ATrade profits: R&D expenditure credits
Claims for credits
104AR&D expenditure credits
104BRestriction on claiming relief under Part 13 and credit for same expenditure
SMEs: qualifying expenditure on sub-contracted R&D
104CQualifying expenditure on sub-contracted R&D
104DExpenditure on sub-contracted R&D undertaken in-house
104EExpenditure on sub-contracted R&D not undertaken in-house
SMEs: subsidised qualifying expenditure
104FSubsidised qualifying expenditure
104GSubsidised qualifying expenditure on in-house direct R&D
104HSubsidised qualifying expenditure on contracted out R&D
SMEs: capped R&D expenditure
104ICapped R&D expenditure
Large companies: qualifying R&D expenditure
104JQualifying expenditure on in-house direct R&D
104KQualifying expenditure on contracted out R&D
104LQualifying expenditure on contributions to independent R&D
Amount of credit
104MAmount of R&D expenditure credit
Payment of credit
104NPayment of R&D expenditure credit
104OAmounts deducted by way of tax adjustment
104PTotal expenditure on workers
104QTotal amount of company's PAYE and NIC liabilities
104RSurrender of credit to other group companies
104SRestrictions on payment of R&D expenditure credit
104T“Going concern”
Insurance companies
104UInsurance companies treated as large companies
104VEntitlement to credit: I minus E basis
Group companies
104WR&D expenditure of group companies
Anti-avoidance
104XArtificially inflated claims for credit
Interpretation
104YInterpretation
Chapter 7Trade profits: gifts to charities etc
Relief for certain gifts
105Gifts of trading stock to charities etc
106Meaning of “designated educational establishment”
107Gifts of medical supplies and equipment
Benefits associated with gifts
108Receipt of benefits by donor or connected person
Chapter 8Trade profits: herd basis rules
Introduction
109Election for application of herd basis rules
110Meaning of “animal”, “herd”, “production herd” etc
111Other interpretative provisions
The herd basis rules
112Initial cost of herd and value of herd
113Addition of animals to herd
114Replacement of animals in herd
115Amount of receipt if old animal slaughtered under disease control order
116Sale of animals from herd
117Sale of whole or substantial part of herd
118Acquisition of new herd begun within 5 years of sale
119Section 118: sale for reasons outside farmer's control
120Replacement of part sold begun within 5 years of sale
121Section 120: sale for reasons outside farmer's control
Elections
122Herd basis elections
123Five year gap in which no production herd kept
124Slaughter under disease control order
Preventing abuse of the herd basis rules
125Preventing abuse of the herd basis rules
Supplementary
126Information if election made
127Further assessment etc if herd basis rules apply
CHAPTER 8ACOMPENSATION FOR COMPULSORY SLAUGHTER OF ANIMALS
127AApplication of Chapter 8A
127BRight to make claim
127CBook value
127DEffect of claim for spreading of profits
127EAdjustment: cessation of trading
127FTime limits etc for spreading claim
127GInterpretation
Chapter 9Trade profits: other specific trades
Dealers in securities etc
128Taxation of amounts taken to reserves
129Conversion etc of securities held as circulating capital
Insurers
130 Insurers receiving distributions etc
Building societies
131Incidental costs of issuing qualifying shares
Industrial and provident societies
132Dividends etc granted by industrial and provident societies
Credit unions
133Annual payments paid by a credit union
Dealers in land etc
134Purchase or sale of woodlands
135Relief in respect of mineral royalties
136Lease premiums etc: reduction of receipts
Mineral exploration and access
137Mineral exploration and access
Companies liable to pool betting duty
138Payments by companies liable to pool betting duty
Intermediaries treated as making employment payments
139Deduction for deemed employment payment
140Special rules for partnerships
Managed service companies
141Deduction for deemed employment payments
Waste disposal
142Deduction for site preparation expenditure
143Allocation of site preparation expenditure
144Site preparation expenditure: supplementary
145Site restoration payments
Cemeteries and crematoria: interests in land
146Cemeteries and crematoria: introduction
147Deduction for capital expenditure
148Allocation of ancillary capital expenditure
149Exclusion of expenditure met by subsidies
Crematoria: niches, memorials and inscriptions
149ANiches, memorials and inscriptions: introduction
149BAllowable deductions: niches
149CAllowable deductions: memorials
149DAllowable deductions: inscriptions
149ECosts of the building
Sound recordings
150Revenue nature of expenditure
151Allocation of expenditure
152Interpretation of sections 150 and 151
Reserves of marketing authorities etc
153Reserves of marketing authorities and certain other statutory bodies
154Conditions to be met by reserve fund
155Interpretation of sections 153 and 154
Chapter 10Trade profits: changes in trading stock
Introduction
156Meaning of “trading stock”
Transfers of trading stock between trade and trader
157Trading stock appropriated by trader
158Trading stock supplied by trader
Other disposals and acquisitions not made in the course of trade
159Disposals not made in the course of trade
160Acquisitions not made in the course of trade
Relationship with transfer pricing rules
161Transfer pricing rules to take precedence
Chapter 11Trade profits: valuation of stock on cessation of trade
162Valuation of trading stock on cessation
163Meaning of “trading stock”
164Basis of valuation of trading stock
165Sale basis of valuation: sale to unconnected person
166Sale basis of valuation: sale to connected person
167Sale basis of valuation: election by connected persons
168Connected persons
169Cost to buyer of stock valued on sale basis of valuation
170Meaning of “sale” and related expressions
171Determination of questions
Chapter 12Deductions from profits: unremittable amounts
172Application of Chapter
173Relief for unremittable amounts
174Restrictions on relief
175Withdrawal of relief
Chapter 13Disposal and acquisition of know-how
176Meaning of “know-how” etc
177Disposal of know-how if trade continues to be carried on
178Disposal of know-how as part of disposal of all or part of a trade
179Seller controlled by buyer etc
Chapter 14Adjustment on change of basis
Adjustment on change of basis
180Application of Chapter
181Giving effect to positive and negative adjustments
182Calculation of the adjustment
Expenses previously brought into account
183No adjustment for certain expenses previously brought into account
Realising or writing off assets
184Cases where adjustment not required until assets realised or written off
Mark to market
185Change from realisation basis to mark to market
186Election for spreading if section 185 applies
187Transfer of insurance business
Chapter 15Post-cessation receipts
Charge to tax on post-cessation receipts
188Charge to tax on post-cessation receipts
189Extent of charge to tax
Meaning of “post-cessation receipts”
190Basic meaning of “post-cessation receipt”
191Other rules about what counts as post-cessation receipts
Sums treated as post-cessation receipts
192Debts paid after cessation
193Debts released after cessation
194Transfer of rights if transferee does not carry on trade
Sums that are not post-cessation receipts
195Transfer of trading stock
Deductions
196Allowable deductions
197Further rules about allowable deductions
Election to carry back
198Election to carry back
199Deductions already made are not displaced
200Election given effect in accounting period in which receipt is received
Chapter 16Priority rules
201Provisions which must be given priority over this Part
Part 4Property income
Chapter 1Introduction
202Overview of Part
Chapter 2Property businesses
Introduction
203Overview of Chapter
204Meaning of “property business”
Basic meaning of UK and overseas property business
205UK property business
206Overseas property business
Generating income from land
207Meaning of “generating income from land”
208Activities not for generating income from land
Chapter 3Profits of property businesses: basic rules
Charge to tax on profits of a property business
209Charge to tax on profits of a property business
Calculation of profits
210Profits of a property business: application of trading income rules
211Loan relationships and derivative contracts
212Items treated as receipts and expenses
213Certain amounts brought into account under Part 3
214Relationship between rules prohibiting and allowing deductions
Chapter 4Profits of property businesses: lease premiums etc
Introduction
215Overview of Chapter
216Meaning of “short-term lease”
Amounts treated as receipts: leases
217Lease premiums
218Amount treated as lease premium where work required
219Sums payable instead of rent
220Sums payable for surrender of lease
221Sums payable for variation or waiver of terms of lease
221ASums to which sections 217 to 221 do not apply
222Assignments for profit of lease granted at undervalue
223Provisions supplementary to section 222
Other amounts treated as receipts
224Sales with right to reconveyance
225Sale and leaseback transactions
226Provisions supplementary to sections 224 and 225
Additional calculation rule for reducing certain receipts
227Circumstances in which additional calculation rule applies
228The additional calculation rule
229The additional calculation rule: special cases
230Meaning of “unused amount” and “unreduced amount”
Deductions in relation to certain receipts
231Deductions for expenses under section 232
232Tenants under taxed leases treated as incurring expenses
233Restrictions on section 232 expenses: the additional calculation rule
234Restrictions on section 232 expenses: lease of part of premises
Limit on effect of additional calculation rule and deductions
235Limit on reductions and deductions
Certain administrative provisions
236Payment of tax by instalments
237Statement of accuracy for purposes of section 222
238Claim for repayment of tax payable by virtue of section 224
239Claim for repayment of tax payable by virtue of section 225
Determinations affecting liability of more than one person
240Appeals against proposed determinations
241Section 240: supplementary
242Determination by tribunal
Effective duration of lease
243Rules for determining effective duration of lease
244Applying the rules in section 243
245Information about effective duration of lease
Other interpretative provisions
246Provisions about premiums
247Interpretation
Chapter 5Profits of property businesses: other rules about receipts and deductions
Furnished accommodation: receipts and deductions
248Furnished lettings
Furnished accommodation: wear and tear allowance
248AWear and tear allowance: election
248BMeaning of “eligible” in relation to a dwelling-house
248CEffect of wear and tear allowance election
Treatment of receipts on acquisition of business
249Acquisition of business: receipts from transferor's UK property business
Reverse premiums as receipts
250Reverse premiums
Deductions for expenditure on energy-saving items
251Deduction for expenditure on energy-saving items
252Restrictions on relief
253Regulations
Deductions for expenditure on sea walls
254Deduction for expenditure on sea walls
255Transfer of interest in premises
256Ending of lease of premises
257Transfer involving person within the charge to income tax
Mineral royalties
258Relief in respect of mineral royalties
Apportionments on sale of land
259Nature of item apportioned on sale of estate or interest in land
Mutual business
260Mutual business
Adjustment on change of basis
261Adjustment on change of basis
262Giving effect to positive and negative adjustments
Integral features
263Expenditure on integral features
Chapter 6Commercial letting of furnished holiday accommodation
Introduction
264Overview of Chapter
Definition
265Meaning of “commercial letting of furnished holiday accommodation”
266Meaning of “relevant period” in sections 267 and 268
267Meaning of “qualifying holiday accommodation”
268Under-used holiday accommodation: averaging elections
268AUnder-used holiday accommodation: letting condition not met
Separate profit calculations
269Capital allowances and loss relief: UK property business
269ACapital allowances and loss relief: overseas property business
Chapter 7Rent receivable in connection with a UK section 39(4) concern
Charge to tax on rent receivable in connection with a UK section 39(4) concern
270Charge to tax on rent receivable in connection with a UK section 39(4) concern
271Meaning of “rent receivable in connection with a UK section 39(4) concern”
Management expenses of owner of mineral rights
272Deduction for management expenses of owner of mineral rights
Mineral royalties
273Relief in respect of mineral royalties
274Meaning of “mineral lease or agreement” and “mineral royalties”
275Extended meaning of “mineral royalties” etc in Northern Ireland
276Power to determine what counts as “mineral royalties”
Chapter 8Rent receivable for UK electric-line wayleaves
Charge to tax on rent receivable for UK electric-line wayleaves
277Charge to tax on rent receivable for a UK electric-line wayleave
278Meaning of “rent receivable for a UK electric-line wayleave”
279Extent of charge to tax
Chapter 9Post-cessation receipts
Charge to tax on post-cessation receipts
280Charge to tax on post-cessation receipts
281Extent of charge to tax
Meaning of “post-cessation receipts”
282Basic meaning of “post-cessation receipt”
283Other rules about what counts as a “post-cessation receipt”
284Transfer of rights if transferee does not carry on UK property business
Deductions
285Allowable deductions
Election to carry back
286Election to carry back
Chapter 10Supplementary
Priority rules
287Provisions which must be given priority over this Part
288Priority between Chapters within this Part
Other supplementary provisions
289Effect of company starting or ceasing to be within charge to corporation tax
290Overseas property businesses and overseas land: adaptation of rules
291Meaning of “lease” and “premises”
Part 5Loan Relationships
Chapter 1Introduction
Introduction
292Overview of Part
293Construction of references to profits or losses from loan relationships
294Matters treated as loan relationships
How profits and deficits from loan relationships are dealt with
295General rule: profits arising from loan relationships chargeable as income
296Profits and deficits to be calculated using credits and debits given by this Part
297Trading credits and debits to be brought into account under Part 3
298Meaning of trade and purposes of trade
299Charge to tax on non-trading profits
300Method of bringing non-trading deficits into account
301Calculation of non-trading profits and deficits from loan relationships: non-trading credits and debits
Chapter 2Basic definitions
302“Loan relationship”, “creditor relationship”, “debtor relationship”
303“Money debt”
304“Related transaction”
305Payments, interest, rights and liabilities under a loan relationship
Chapter 3The credits and debits to be brought into account: general
Introduction
306Overview of Chapter
General principles about the bringing into account of credits and debits
307General principles about the bringing into account of credits and debits
Amounts recognised in determining a company's profit or loss
308Amounts recognised in determining a company's profit or loss
309Companies without GAAP-compliant accounts
310Power to make regulations about recognised amounts
311Amounts not fully recognised for accounting purposes: introduction
312Determination of credits and debits where amounts not fully recognised
Accounting bases
313Basis of accounting: “amortised cost basis”, “fair value accounting” and “fair value”
314Power to make regulations about changes from amortised cost basis
Adjustments on change of accounting policy
315Introduction to sections 316 to 319
316Change of accounting policy involving change of value
317Carrying value
318Change of accounting policy following cessation of loan relationship
319General power to make regulations about changes in accounting policy
Rules differing from generally accepted accounting practice
320Credits and debits treated as relating to capital expenditure
321Credits and debits recognised in equity
321ARestriction on debits resulting from release of loans to participators etc
322Release of debts: cases where credits not required to be brought into account
323Meaning of expressions relating to insolvency etc
324Restriction on debits resulting from revaluation
325Restriction on credits resulting from reversal of disallowed debits
326Writing off government investments
327Disallowance of imported losses etc
Exchange gains and losses
328Exchange gains and losses
328AArrangements that have a “one-way exchange effect”
328BMeaning of “relevant exchange gain” and “relevant exchange loss”
328CMeaning of “test day”
328DCounterfactual currency movement assumptions
328ECounterfactual currency movement assumptions: treatment of options
328FMeaning of “option”
328GMeaning of “relevant contingent contract” and “operative condition”
328HOther interpretative provisions
Pre-loan relationship, abortive and pre-trading expenses
329Pre-loan relationship and abortive expenses
330Debits in respect of pre-trading expenditure
Company ceasing to be party to loan relationship
331Company ceasing to be party to loan relationship
332Repo, stock lending and other transactions
Company moving abroad
333Company ceasing to be UK resident
334Non-UK resident company ceasing to hold loan relationship for UK permanent establishment
Chapter 4Continuity of treatment on transfers within groups or on reorganisations
Application of this Chapter
335Introduction to Chapter
336Transfers of loans on group transactions
337Transfers of loans on insurance business transfers
338Meaning of company replacing another as party to loan relationship
339Issues of new securities on certain cross-border reorganisations
Continuity of treatment: transfer of loan at notional carrying value
340Group transfers and transfers of insurance business: transfer at notional carrying value
341Transferor using fair value accounting
342Issues of new securities on reorganisations: disposal at notional carrying value
343Receiving company using fair value accounting
Transferee leaving group after replacing transferor as party to loan relationship
344Introduction
345Transferee leaving group otherwise than because of exempt distribution
346Transferee leaving group because of exempt distribution
Disapplication of Chapter where transferor party to avoidance
347Disapplication of Chapter where transferor party to avoidance
Chapter 5Connected companies relationships: introduction and general
348Introduction: meaning of “connected companies relationship”
349Application of amortised cost basis to connected companies relationships
350Companies beginning to be connected
351Companies ceasing to be connected
352Disregard of related transactions
Chapter 6Connected companies relationships: impairment losses and releases of debts
Introduction
353Introduction to Chapter
Exclusion of debits for impaired or released connected companies debts
354Exclusion of debits for impaired or released connected companies debts
355Cessation of connection
356Exception to section 354: swapping debt for equity
357Exception to section 354: insolvent creditors
Exclusion of credits for connected companies debts on release or reversal of impairments
358Exclusion of credits on release of connected companies debts: general
359Exclusion of credits on release of connected companies debts during creditor's insolvency
360Exclusion of credits on reversal of impairments of connected companies debts
Deemed debt releases on impaired debts becoming held by connected company
361Acquisition of creditor rights by connected company at undervalue
361AThe corporate rescue exception
361BThe debt-for-debt exception
361CThe equity-for-debt exception
362Parties becoming connected where creditor's rights subject to impairment adjustment etc
363Companies connected for sections 361 to 362
363AArrangements for avoiding section 361 or 362
Chapter 7Group relief claims involving impaired or released consortium debts
364Introduction to Chapter
365Reduction of impairment loss debits where group relief claimed
366Effect where credit for release brought into account on amortised cost basis
367Reduction of credits exceeding impairment losses
368Reduction of claims where there are earlier net consortium debits
369Carry forward of claims where there are no net consortium debits
370Group accounting periods
371Interpretation
Chapter 8Connected parties relationships: late interest
372Introduction to Chapter
373Late interest treated as not accruing until paid in some cases
374Connection between debtor and person standing in position of creditor
375Loans to close companies by participators etc
376Interpretation of section 375
377Party to loan relationship having major interest in other party
378Loans by trustees of occupational pension schemes
379Persons indirectly standing in the position of creditor
Chapter 9Partnerships involving companies
380Partnerships involving companies
381Determinations of credits and debits by company partners: general
382Company partners using fair value accounting
383Lending between partners and the partnership
384Treatment of exchange gains and losses
385Company partners' shares where firm owns deeply discounted securities
Chapter 10Insurance companies
Introduction
386Overview of Chapter
Treatment of deficit on basic life assurance and general annuity business
387Treatment of deficit on basic life assurance and general annuity business: introduction
388Basic rule: deficit set off against income and gains of deficit period
389Claim to carry back deficit
390Meaning of “available profits”
391Carry forward of surplus deficit to next accounting period
Exclusion of loan relationships of members of Lloyd's
392Exclusion of loan relationships of members of Lloyd's
...
393General rules for some debtor relationships
394Special rules for some debtor relationships
Chapter 11Other special kinds of company
Investment trusts' and venture capital trusts' creditor relationships
395Investment trusts: profits or losses of a capital nature
396Venture capital trusts: profits or losses of a capital nature
Credit unions
397Credit unions
Chapter 12Special rules for particular kinds of securities
Introduction
398Overview of Chapter
Index-linked gilt-edged securities
399 Basic rules
400 Adjustments for changes in index
400AAdjustments for changes in index: relevant hedging schemes
400BInterpretation of section 400A: economic profits and losses
400CMeaning of “associated with”
Other gilt-edged securities
401Gilt strips
402Market value of securities
403Meaning of “strip”
404Restriction on deductions etc relating to FOTRA securities
405Certain non-UK residents with interest on 3½% War Loan 1952 Or After
Deeply discounted securities: connected companies and close companies
406Introduction
407Postponement until redemption of debits for connected companies' deeply discounted securities
408Companies connected for section 407
409Postponement until redemption of debits for close companies' deeply discounted securities
410Exceptions to section 409
411Interpretation of section 409
412Persons indirectly standing in the position of creditor
Funding bonds
413Issue of funding bonds
414Redemption of funding bonds
Derivatives
415Loan relationships with embedded derivatives
416Election for application of sections 415 and 585
417Further provisions about elections under section 416
418Loan relationships involving connected debtor and creditor where debits exceed credits
418ACases involving host contract
419Section 418: supplementary
Options etc
420Assumptions where options etc apply
Chapter 13European cross-border transfers of business
Introduction
421Introduction to Chapter
Transfers of loan relationships at notional carrying value
422Transfer of loan relationship at notional carrying value
423Transferor using fair value accounting
424Reorganisations involving loan relationships
425Original holder using fair value accounting
Exception for tax avoidance cases
426Tax avoidance etc
427Procedure on application for clearance
428Decision on application for clearance
Transparent entities
429Disapplication of Chapter where transparent entities involved
Interpretation
430Interpretation
Chapter 14European cross-border mergers
Introduction
431Introduction to Chapter
432Meaning of “the transferee” and “transferor”
Transfers of loan relationships at notional carrying value
433Transfer of loan relationship at notional carrying value
434Transferor using fair value accounting
435Reorganisations involving loan relationships
436Original holder using fair value accounting
Exception for tax avoidance cases
437Tax avoidance etc
Transparent entities
438Disapplication of Chapter where transparent entities involved
Interpretation
439Interpretation
Chapter 15Tax avoidance
Introduction
440Overview of Chapter
Unallowable purposes and tax relief schemes
441Loan relationships for unallowable purposes
442Meaning of “unallowable purpose”
443Restriction of relief for interest where tax relief schemes involved
Transactions not at arm's length: general
444Transactions not at arm's length: general
445Disapplication of section 444 where Part 4 of TIOPA 2010 applies
446Bringing into account adjustments made under Part 4 of TIOPA 2010
Transactions not at arm's length: exchange gains and losses
447Exchange gains and losses on debtor relationships: loans disregarded under Part 4 of TIOPA 2010
448Exchange gains and losses on debtor relationships: equity notes where holder associated with issuer
449Exchange gains and losses on creditor relationships: no corresponding debtor relationship
450Meaning of “corresponding debtor relationship”
451Exception to section 449 where loan exceeds arm's length amount
452Exchange gains and losses where loan not on arm's length terms
Connected parties deriving benefit from creditor relationships
453Connected parties deriving benefit from creditor relationships
Tax advantages from resetting interest rates (“reset bonds”)
454Application of fair value accounting: reset bonds etc
Disposals for consideration not fully recognised by accounting practice
455Disposals for consideration not fully recognised by accounting practice
Derecognition
455ADebits arising from derecognition of creditor relationships
Chapter 16Non-trading deficits
456Introduction to Chapter
457Basic rule for deficits: carry forward to accounting periods after deficit period
458Claim to carry forward deficit to later accounting periods
459Claim to set off deficit against profits of deficit period or earlier periods
460Time limits and procedure for claims under section 459(1)
461Claim to set off deficit against other profits for the deficit period
462Claim to carry back deficit to earlier accounting periods
463Profits available for relief under section 462
Chapter 17Priority rules
464Priority of this Part for corporation tax purposes
465Exclusion of distributions except in tax avoidance cases
Chapter 18General and supplementary provisions
Changes in accounting standards
465APower to make regulations where accounting standards change
Connections between persons
466Companies connected for an accounting period
467Connections where partnerships are involved
468Connection between companies to be ignored in some circumstances
469Creditors who are financial traders
470Section 469: supplementary provisions
471Creditors who are insurance companies carrying on BLAGAB
472Meaning of “control”
473Meaning of “major interest”
474Treatment of connected companies and partnerships for section 473
475Meaning of expressions relating to exchange gains and losses
Other general definitions
476Other definitions
Part 6Relationships treated as loan relationships etc
Chapter 1Introduction
477Overview of Part
Chapter 2Relevant non-lending relationships
Introduction: meaning of “relevant non-lending relationship” etc
478Relevant non-lending relationships: introduction
479Relevant non-lending relationships not involving discounts
480Relevant non-lending relationships involving discounts
Application of Part 5 to relevant non-lending relationships
481Application of Part 5 to relevant non-lending relationships
482Miscellaneous rules about amounts to be brought into account because of this Chapter
Meaning of “money debt” and “interest” in this Chapter
483Exchange gains and losses: amounts treated as money debts
484Provision not at arm's length: meaning of “interest” and “money debt”
Exclusions
485Exclusion of debts where profits or losses within Part 7 or 8
486Exclusion of exchange gains and losses in respect of tax debts etc
Chapter 2ADisguised interest
486AOverview
486BDisguised interest to be regarded as profit from loan relationship
486CExclusion where return otherwise taxable
486DExclusion where arrangement has no tax avoidance purpose
486EExcluded shares
Chapter 2BTransferred income streams
486FIntroduction to Chapter
486GConsideration to be treated as loan relationship
Chapter 3OEICs, unit trusts and offshore funds
Introduction
487Overview of Chapter
488Meaning of “open-ended investment company” etc
489Meaning of “offshore fund” etc
Holdings in OEICs, unit trusts and offshore funds treated as creditor relationship rights
490Holdings in OEICs, unit trusts and offshore funds treated as creditor relationship rights
491Holding coming within section 490: opening valuations
492Disregard of investments made and liabilities incurred with avoidance intention etc
The qualifying investments test
493The qualifying investments test
494Meaning of “qualifying investments”
495Qualifying holdings
496Meaning of “hedging relationship”
Power to change investments that are qualifying investments
497Power to change investments that are qualifying investments
Chapter 4Building Societies
498Building society dividends and interest
Chapter 5Industrial and provident societies
499Industrial and provident society payments treated as interest under loan relationship
500Exclusion of interest where failure to make return
Chapter 6Alternative finance arrangements
Introduction
501Introduction to Chapter
502Meaning of “financial institution”
Arrangements that are alternative finance arrangements
503Purchase and resale arrangements
504Diminishing shared ownership arrangements
505Deposit arrangements
506Profit share agency arrangements
507Investment bond arrangements
508Provision not at arm's length: exclusion of arrangements from sections 503 to 507
Treatment as loan relationships
509Application of Part 5: general
510Application of Part 5 to particular alternative finance arrangements
Meaning of “alternative finance return”
511Purchase and resale arrangements
512Diminishing shared ownership arrangements
513Other arrangements
Treatment for other tax purposes
514Exclusion of alternative finance return from consideration for sale of assets
515Diminishing shared ownership arrangements not partnerships
516Treatment of principal under profit sharing agency arrangements
517Treatment of bond-holder under investment bond arrangements
518Investment bond arrangements: treatment as securities
519Investment bond arrangements: other provisions
520Provision not at arm's length: non-deductibility of relevant return
Power to extend this Chapter to other arrangements
521Power to extend this Chapter to other arrangements
Chapter 6AShares accounted for as liabilities
521AIntroduction to Chapter
521BApplication of Part 5 to certain shares as rights under creditor relationship
521CShares accounted for as liabilities
521DExcepted shares
521EUnallowable purpose
521FShares becoming or ceasing to be shares to which section 521B applies
Chapter 7Shares with guaranteed returns etc
...
522Introduction to Chapter
523Application of Part 5 to certain shares as rights under creditor relationship
...
524Shares subject to outstanding third party obligations
525Meaning of “interest-like investment”
...
526Non-qualifying shares
527The increasing value condition
528Regulations about income-producing assets
529The redemption return condition
530The redemption return condition: excepted shares
531The redemption return condition: unallowable purposes
532The associated transactions condition
533Power to change conditions for non-qualifying shares
...
534Amounts to be brought into account where section 523 applies
535Shares ceasing to be shares to which section 523 applies
Chapter 8
536Introduction to Chapter
537Payments in return for capital contribution to partnership
538Change of partnership shares
Chapter 9Manufactured interest etc
539Introduction to Chapter
540Manufactured interest treated as interest under loan relationship
541Debits for deemed interest under stock lending arrangements disallowed
Chapter 10Repos
Introduction
542Introduction to Chapter
Creditor repos and creditor quasi-repos
543Meaning of creditor repo
544Meaning of creditor quasi-repo
545Ignoring effect on lender etc of sale of securities
546Charge on lender for finance return in respect of the advance
547Repo under arrangement designed to produce quasi-interest: tax avoidance
Debtor repos and debtor quasi-repos
548Meaning of debtor repo
549Meaning of debtor quasi-repo
550Ignoring effect on borrower of sale of securities
551Relief for borrower for finance charges in respect of the advance
General provisions
552General provisions about arrangements
553Persons buying or selling for others
554Power to modify this Chapter
555Cases where section 554 applies: non-standard repos
Interpretation
556Meaning of securities and similar securities
557Meaning of person receiving an asset
558Interpretation of accounting expressions
559Minor definitions
Chapter 11Investment life insurance contracts
Introduction
560Introduction to Chapter
561Meaning of “investment life insurance contract”
Investment life assurance contracts treated as creditor relationships
562Contract to be loan relationship
563Increased non-trading credits for BLAGAB and EEA taxed contracts
564Section 563: interpretation
565Relevant amount where the relevant company uses fair value accounting
Old accounting period contracts
566Introduction
567Gains on deemed surrenders to be brought into account on related transactions
568Restriction on credits on old contracts: fair value accounting cases
569Restriction on debits on old contracts: non-fair value accounting cases
Part 7Derivative contracts
Chapter 1Introduction
Introduction
570Overview of Part
How profits and losses from derivative contracts are dealt with
571General rule: profits chargeable as income
572Profits and losses to be calculated using credits and debits given by this Part
573Trading credits and debits to be brought into account under Part 3
574Non-trading credits and debits to be brought into account under Part 5
Chapter 2Contracts to which this Part applies
Introduction
575Overview of Chapter
Meaning of “derivative contract” and other basic definitions
576“Derivative contract”
577“Relevant contract”
578Relevant contracts of a company and being party to such contracts
579The accounting conditions
580“Option”
581“Future”
582“Contract for differences”
583“Underlying subject matter”
Cases where companies treated as parties to relevant contracts
584Hybrid derivatives with embedded derivatives
585Loan relationships with embedded derivatives
586Other contracts with embedded derivatives
Other contracts etc treated as derivative contracts
587Contract relating to holding in OEIC, unit trust or offshore fund
588Associated transaction treated as derivative contract
Exclusions from derivative contracts
589Contracts excluded because of underlying subject matter: general
590Disregard of subordinate or small value underlying subject matter
591Conditions A to E mentioned in section 589(5)
592Embedded derivatives treated as meeting condition in section 591 etc
593Contracts where part of underlying subject matter is excluded property
Chapter 3Credits and debits to be brought into account: general
Introduction
594Overview of Chapter
General principles
595General principles about the bringing into account of credits and debits
596Meaning of “related transaction”
Amounts recognised in determining a company's profit or loss
597Amounts recognised in determining a company's profit or loss
598Regulations about recognised amounts
599Meaning of “amounts recognised for accounting purposes”
599AAmounts not fully recognised for accounting purposes: introduction
599BDetermination of credits and debits where amounts not fully recognised
Application of fair value accounting
600Contract which is or forms part of financial asset or liability
601Contract relating to holding in OEIC, unit trust or offshore fund
602Contract becoming one relating to holding in OEIC, unit trust or offshore fund
603Associated transaction treated as derivative contract
Rules differing from generally accepted accounting practice
604Credits and debits treated as relating to capital expenditure
605Credits and debits recognised in equity
Exchange gains and losses
606Exchange gains and losses
606AArrangements that have a “one-way exchange effect”
606BMeaning of “relevant exchange gain” and “relevant exchange loss”
606CMeaning of “test day”
606DCounterfactual currency movement assumptions
606ECounterfactual currency movement assumptions: treatment of options
606FMeaning of “option”
606GMeaning of “relevant contingent contract” and “operative condition”
606HOther interpretative provisions
Miscellaneous
607Pre-contract or abortive expenses
608Company ceasing to be party to derivative contract
609Company ceasing to be UK resident
610Non-UK resident company ceasing to hold derivative contract for UK permanent establishment
611Release under statutory insolvency arrangement of liability under derivative contract
Chapter 4Further provision about credits and debits to be brought into account
Introduction
612Overview of Chapter
Adjustments on change of accounting policy
613Introduction to sections 614 and 615
614Change of accounting policy involving change of value
615Change of accounting policy after ceasing to be party to derivative contract
Certain embedded derivatives
616Disapplication of fair value accounting
617Election for section 616 not to apply
618Elections under section 617: groups of companies
Partnerships involving companies
619Partnerships involving companies
620Determination of credits and debits by company partners
621Company partners using fair value accounting
Miscellaneous
622Contracts ceasing to be derivative contracts
623Index-linked gilt-edged securities with embedded contracts for differences
Chapter 5Continuity of treatment on transfers within groups
Introductory
624Introduction to Chapter
Group member replacing another as party to derivative contract
625Group member replacing another as party to derivative contract
626Transactions to which section 625 applies
627Meaning of company replacing another as party to derivative contract
Exceptions to section 625
628Transferor using fair value accounting
629Tax avoidance
Transferee leaving group after replacing transferor as party to derivative contract
630Introduction to sections 631 and 632
631Transferee leaving group otherwise than because of exempt distribution
632Transferee leaving group because of exempt distribution
Chapter 6Special kinds of company
Mutual trading companies
633Mutual trading companies
Insurance companies
634Insurance companies
635Creditor relationships: embedded derivatives which are options
636Modifications of Chapter 5
Investment and venture capital trusts
637Investment trusts: profits or losses of a capital nature
638Venture capital trusts: profits or losses of a capital nature
Chapter 7Chargeable gains arising in relation to derivative contracts
Introduction
639Overview of Chapter
Some credits and debits not to be brought into account under Part 5
640Credits and debits not to be brought into account under Part 5
Some derivative contracts to be taxed on a chargeable gains basis
641Derivative contracts to be taxed on a chargeable gains basis
642Exception from section 641
Derivative contracts to which sections 640 and 641 apply
643Contracts relating to land or certain tangible movable property
644Income to be left out of account in determining whether section 643 applies
645Creditor relationships: embedded derivatives which are options
646Exclusions from section 645
647Meaning of certain expressions in section 645
648Creditor relationships: embedded derivatives which are exactly tracking contracts for differences
649Meaning of certain expressions in section 648
650Property based total return swaps
Some credits and debits not to be brought into account under Part 3 or 5
651Credits and debits not to be brought into account under Part 3 or Part 5
Issuers of securities with embedded derivatives: deemed options
652Introduction to sections 653 to 655
653Shares issued or transferred as a result of exercise of deemed option
654Payment instead of disposal on exercise of deemed option
655Ceasing to be party to debtor relationship when deemed option not exercised
Issuers of securities with embedded derivatives: deemed contracts for differences
656Introduction to section 658
657Meaning of “exactly tracking contract” in section 656
658Chargeable gain or allowable loss treated as accruing
Interpretation
659Meaning of “relevant credits” and “relevant debits”
Chapter 8Further provision about chargeable gains and derivative contracts
Company ceasing to be party to certain contracts
660Contract relating to holding in OEIC, unit trust or offshore fund
661Contract which becomes derivative contract
Contracts ceasing to be derivative contracts
662Contracts ceasing to be derivative contracts
Carry back of net losses on certain derivative contracts
663Contracts to which section 641 applies
664Meaning of certain expressions in section 663
Issuers of securities with embedded derivatives: equity instruments
665Introduction to section 666
666Allowable loss treated as accruing
Treatment of shares acquired in certain circumstances
667Shares acquired on exercise of non-embedded option
668Shares acquired on running of future to delivery
669Meaning of G and L in sections 667 and 668
Treatment of net gains and losses on exercise of option
670Treatment of net gains and losses on exercise of option
671Meaning of G, L and CV in section 670
Treatment of net gains and losses on disposal of certain embedded derivatives
672Treatment of net gains and losses on disposal of certain embedded derivatives
673Meaning of G, L and CV in section 672
Chapter 9European cross-border transfers of business
Introduction
674Introduction to Chapter
Transfers of derivative contracts at notional carrying value
675Transfer of derivative contract at notional carrying value
676Transferor using fair value accounting
Exception for tax avoidance cases and clearances
677Tax avoidance etc
678Procedure on application for clearance
679Decision on application for clearance
Transparent entities
680Disapplication of Chapter where transparent entities involved
Interpretation
681Interpretation
Chapter 10European cross-border mergers
Introduction
682Introduction to Chapter
683Meaning of “the transferee” and “transferor”
Transfers of derivative contracts at notional carrying value
684Transfer of derivative contract at notional carrying value
685Transferor using fair value accounting
Exception for tax avoidance cases and clearances
686Tax avoidance etc
Transparent entities
687Disapplication of Chapter where transparent entities involved
Interpretation
688Interpretation
Chapter 11Tax avoidance
Introduction
689Overview of Chapter
Unallowable purposes
690Derivative contracts for unallowable purposes
691Meaning of “unallowable purpose”
692Allowance of accumulated net losses
Transactions not at arm's length
693Bringing into account adjustments under Part 4 of TIOPA 2010
694Exchange gains and losses
695Transfers of value to connected companies
Transactions with non-UK residents
696Derivative contracts with non-UK residents
697Exceptions to section 696
Disposals for consideration not fully recognised by accounting practice
698Disposals for consideration not fully recognised by accounting practice
Derecognition
698ADebits arising from derecognition of derivative contracts
Chapter 12Priority rules
699Priority of this Part for corporation tax purposes
700Relationship of this Part to Part 5: loan relationships
Chapter 13General and supplementary provisions
Power to amend certain provisions
701Power to amend some provisions
Changes to accounting standards
701APower to make regulations where accounting standards change
Other general definitions
702“Carrying value”
703“Chargeable asset”
704“Creditor relationship” and “debtor relationship”
705Expressions relating to exchange gains and losses
706“Excluded body”
707“Hedging relationship”
708“Plain vanilla contract”
709“Securities house”
710Other definitions
Part 8Intangible fixed assets
Chapter 1Introduction
Introductory
711Overview of Part
Basic definitions
712“Intangible asset”
713“Intangible fixed asset”
714“Royalty”
Goodwill
715Application of this Part to goodwill
Accounting rules and definitions
716“Recognised” amounts and “GAAP-compliant accounts”
717Companies without GAAP-compliant accounts
718GAAP-compliant accounts: reference to consolidated group accounts
719Accounting value
Chapter 2Credits in respect of intangible fixed assets
720Introduction
721Receipts recognised as they accrue
722Receipts in respect of royalties so far as not dealt with under section 721
723Revaluation
724Negative goodwill
725Reversal of previous accounting loss
Chapter 3Debits in respect of intangible fixed assets
726Introduction
727References to expenditure on an asset
728Expenditure written off as it is incurred
729Writing down on accounting basis
730Writing down at fixed rate: election for fixed-rate basis
731Writing down at fixed rate: calculation
732Reversal of previous accounting gain
Chapter 4Realisation of intangible fixed assets
733Overview of Chapter
734Meaning of “realisation”
735Asset written down for tax purposes
736Asset shown in balance sheet and not written down for tax purposes
737Apportionment in case of part realisation
738Asset not shown in balance sheet
739Meaning of “proceeds of realisation”
740Abortive expenditure on realisation
741Meaning of “chargeable intangible asset” and “chargeable realisation gain”
Chapter 5Calculation of tax written-down value
742Asset written down on accounting basis
743Asset written down at fixed rate
744Effect of part realisation of asset
Chapter 6How credits and debits are given effect
Introductory
745Introduction
746“Non-trading credits” and “non-trading debits”
Trading etc credits and debits
747Assets held for purposes of trade
748Assets held for purposes of property business
749Assets held for purposes of mines, transport undertakings, etc
750Assets held for purposes falling within more than one section
Non-trading credits and debits
751Non-trading gains and losses
752Charge to tax on non-trading gains on intangible fixed assets
753Treatment of non-trading losses
Chapter 7Roll-over relief in case of realisation and reinvestment
When the relief is given
754The relief: the “old asset” and “other assets”
755Conditions relating to the old asset and its realisation
756Conditions relating to expenditure on other assets
757Claim for relief
How the relief is given
758How the relief is given: general
759Determination of appropriate proportion of cost and adjusted cost
760References to cost of asset where asset affected by change of accounting policy
761Declaration of provisional entitlement to relief
762Realisation and reacquisition
763Disregard of deemed realisations and reacquisitions
Chapter 8Groups of companies: introduction
Introductory
764Meaning of “company”, “group” and “subsidiary”
Rules
765General rule: a company and its 75% subsidiaries form a group
766Only effective 51% subsidiaries of principal company to be members of group
767Principal company cannot be 75% subsidiary of another company
768Company cannot be member of more than one group
769Continuity of identity of group
770Continuity where group includes an SE
771Meaning of “effective 51% subsidiary”
772Equity holders and profits or assets available for distribution
773Supplementary provisions
Chapter 9Application of this Part to groups of companies
Introductory
774Overview of Chapter
Transfers within a group treated as tax-neutral
775Transfers within a group
776Meaning of “tax-neutral” transfer
Roll-over relief under Chapter 7 (realisation and reinvestment)
777Relief on realisation and reinvestment: application to group member
778Relief on reinvestment: acquisition of group company: introduction
779Rules that apply to cases within section 778(1)
Company ceasing to be member of group
780Deemed realisation and reacquisition at market value
781Character of credits and debits brought into account as a result of section 780
782Certain transferees of businesses etc not treated as leaving group
783 Certain associated companies leaving group at the same time
784Groups with a relevant connection
785Principal company becoming member of another group
786Character of credits and debits brought into account as a result of section 785
787Company ceasing to be member of group because of exempt distribution
788Provisions supplementing sections 780 to 787
789Merger carried out for genuine commercial reasons
790Provisions supplementing section 789
791Application of roll-over relief in relation to degrouping charge
Reallocation of degrouping charge within group and recovery
792Reallocation of charge within group
793Further requirements about elections under section 792
794Application of roll-over relief in relation to reallocated charge
795Recovery of charge from another group company or controlling director
796Interpretation of section 795
797Recovery under section 795: procedure etc
798Recovery under section 795: time limit
Disregard of payments between group members for reliefs
799Disregard of payments between group members for reliefs
Chapter 10Excluded assets
Introductory
800Introduction
801Right to dispose of or acquire excluded asset also excluded
802Effect of partial exclusion
Assets wholly excluded from this Part
803Non-commercial purposes etc
804Assets for which capital allowances previously made
805Rights over tangible assets
806Financial assets
807Rights in companies, trusts etc
808Assets representing production expenditure on films
809Oil licences
Assets excluded from this Part except as respects royalties
810Mutual trade or business
811Sound recordings
812Master versions of films
813Computer software treated as part of cost of related hardware
Assets excluded from this Part to the extent specified
814Research and development
815Election to exclude capital expenditure on software
816Further provision about elections under section 815
Chapter 11Transfer of business or trade
Introduction
817Overview of Chapter
Tax-neutral transfers
818Company reconstruction involving transfer of business
819European cross-border transfers of business: introduction
820Transfer of assets on European cross-border transfer of business
821European cross-border mergers: introduction
822Transfer of assets on European cross-border merger
823Interpretation of sections 821 and 822
824Transfer of business of building society to company
825Application of sections 780 and 785 where transfer within section 824 occurs
826Amalgamation of, or transfer of engagements by, certain societies
Transfer of assets to non-UK resident company
827Claims to postpone charge on transfer
828Relief on transfer
829Charge on subsequent realisations
830Exclusion from section 829 of group transfers
The genuine commercial transaction requirement and clearance
831The genuine commercial transaction requirement and clearance
832Procedure on application for clearance
833Decision on application for clearance
Chapter 12Related parties
Introductory
834Overview of Chapter
Meaning of “related party”, “control” and “major interest”
835“Related party”
836“Control”
837“Major interest”
Rights and powers to be taken into account
838General rule
839Rights and powers held jointly
840Partnerships
Meaning of “participator” and “associate”
841“Participator” and “associate”
Connected persons
842Introduction
843Who are connected persons
Chapter 13Transactions between related parties
Introductory
844Overview of Chapter
Transfers treated as being at market value
845Transfer between company and related party treated as at market value
846Transfers not at arm's length
847Transfers involving other taxes
848Tax-neutral transfers
848AAssets held for purposes of exempt foreign permanent establishments
849Transfers involving gifts of business assets
849ADisincorporation relief: transfer values for post-FA 2002 goodwill
Other rules
850Part realisation involving related party acquisition: exclusion of roll-over relief
851Delayed payment of royalty by company to related party
Chapter 14Miscellaneous provisions
Grants and other contributions to expenditure
852Treatment of grants and other contributions to expenditure
853Grants to be left out of account for tax purposes
Finance leasing
854Finance leasing etc
855Further provision about regulations under section 854
Values to be used in special cases
856Assets acquired or realised together
857Deemed market value acquisition: adjustment where nil accounting value
Fungible assets
858Fungible assets
Assets ceasing to be or becoming chargeable intangible assets
859Asset ceasing to be chargeable intangible asset: deemed realisation at market value
860Asset ceasing to be chargeable intangible asset: postponement of gain
861Treatment of postponed gain on subsequent realisation
862Treatment of postponed gain in other cases
863Asset becoming chargeable intangible asset
Matters to be ignored
864Tax avoidance arrangements to be ignored
865Debits for expenditure not generally deductible for tax purposes
Delayed payments and bad debts
866Delayed payment of employees' remuneration
867Provisions supplementing section 866
868Delayed payment of pension contributions
869Bad debts etc
...
870Assumptions for calculating chargeable profits
Chapter 15Adjustments on change of accounting policy
Introductory
871Introduction to Chapter
Change of policy involving change of value
872Adjustments in respect of change
873Effect of application of section 872 in later period and subsequently
Change of policy involving disaggregation
874Original asset not subject to fixed-rate writing down
875Effect of application of section 874 in later period and subsequently
876Original asset subject to fixed-rate writing down
877Election for fixed-rate writing down in relation to resulting asset
Supplementary
878Exclusion of credits or debits brought into account under other provisions
879Subsequent events affecting asset subject to adjustment under this Chapter
Chapter 16Pre-FA 2002 assets etc
Introduction
880Overview of Chapter
881Meaning of “pre-FA 2002 assets”
General rule
882Application of this Part to assets created or acquired on or after 1 April 2002
When assets are treated as created or acquired
883Assets treated as created or acquired when expenditure incurred
884... goodwill: time of creation
885Assets representing non-qualifying expenditure: time of creation
886Assets representing production expenditure on films: time of creation
When expenditure treated as incurred
887General rule
888Cases where chargeable gains rule applies
889Cases where capital allowances general rule applies
Fungible assets
890Fungible assets: application of section 858
891Realisation and acquisition of fungible assets
Assets treated as pre-FA 2002 assets
892Certain assets acquired on transfer of business
893Assets whose value derives from pre-FA 2002 assets
894The preserved status conditions etc
895Assets acquired in connection with disposals of pre-FA 2002 assets
Application of Part to royalties and telecommunication rights
896Application to royalties
897Application to pre-FA 2002 assets consisting of telecommunication rights
Roll-over relief for disposals of pre-FA 2002 assets
898Relief where assets disposed of on or after 1 April 2002
899Relief where degrouping charge on asset arises on or after 1 April 2002
900Meaning of “chargeable asset within TCGA” in sections 898 and 899
Chapter 17Insurance companies
Effect of application of the I minus E basis: non-trading amounts
901Effect of application of the I - E basis: non-trading amounts
...
902Excluded assets
903Elections to exclude capital expenditure on computer software
Miscellaneous
904Transfers of life assurance business: transfers of assets treated as tax-neutral
905Pre-FA 2002 assets: Lloyd's syndicate capacity
Chapter 18Priority rules
906Priority of this Part for corporation tax purposes
Part 9Intellectual property: know-how and patents
Chapter 1Introduction
907Overview of Part
Chapter 2Disposals of know-how
908Charge to tax on profits from disposals of know-how
909Exceptions to charge under section 908
910Profits charged under section 908
Chapter 3Sales of patent rights
Introductory
911Overview of Chapter
Charge to tax
912Charge to tax on profits from sales of patent rights
913Profits charged under section 912
Spreading of charge to tax
914UK resident companies: proceeds of sale not received in instalments
915UK resident companies: proceeds of sale received in instalments
916Non-UK resident companies: proceeds of sale not received in instalments
917Non-UK resident companies: proceeds of sale received in instalments
918Winding up of a body corporate
Miscellaneous
919Deduction of tax from payments to non-UK resident companies
920Adjustments where tax has been deducted
921Licences connected with patents
922Rights to acquire future patent rights
923Sums paid for Crown use etc treated as paid under licence
Chapter 4Relief from corporation tax on patent income
924Relief for expenses: patent income
925How relief is given under section 924
Chapter 5Supplementary
926Contributions to expenditure
927Contributions not made by public bodies nor eligible for tax relief
928Exchanges
929Apportionment where property sold together
930Questions about apportionments affecting two or more persons
931Meaning of “capital sums” etc
Part 9ACompany distributions
Chapter 1The charge to tax
931ACharge to tax on distributions received
Chapter 2Exemption of distributions received by small companies
931BExemption from charge to tax
931CMeaning of “qualifying territory”
931CAFurther exemption where distribution received from CFC
Chapter 3Exemption of distributions received by companies that are not small
931DExemption from charge to tax
Exempt classes
931EDistributions from controlled companies
931FDistributions in respect of non-redeemable ordinary shares
931GDistributions in respect of portfolio holdings
931H Distributions derived from transactions not designed to reduce tax
931IDividends in respect of shares accounted for as liabilities
Exempt classes: anti-avoidance
931JSchemes involving manipulation of controlled company rules
931KSchemes involving quasi-preference or quasi-redeemable shares
931LSchemes involving manipulation of portfolio holdings rule
931MSchemes in the nature of loan relationships
931NSchemes involving distributions for which deductions are given
931OSchemes involving payments for distributions
931PSchemes involving payments not on arm's length terms
931QSchemes involving diversion of trade income
Chapter 4Supplementary
Election that distribution should not be exempt
931RElection that distribution should not be exempt
Chargeable gains
931RAChargeable gains
Interpretation
931SMeaning of “small company”
931TMeaning of “payer”, “recipient” and “relevant person”
931UMeaning of “ordinary share” and “redeemable”
931VMeaning of “scheme” and “tax advantage scheme”
Boundary provisions
931WProvisions which must be given priority over this Part
Part 10Miscellaneous income
Chapter 1Introduction
932Overview of Part
Chapter 2Dividends of non-UK resident companies
933Charge to tax on dividends of non-UK resident companies
Chapter 3Beneficiaries' income from estates in administration
Introduction
934Charge to tax on estate income
935Absolute, limited and discretionary interests
936Meaning of “UK estate” and “foreign estate”
Types of estate income
937Absolute interests in residue
938Meaning of “the administration period”, “the final accounting period” and “the final tax year”
939Limited interests in residue
940Discretionary interests in residue
Income charged
941UK estates
942Foreign estates
Basic amount of estate income: general calculations rules
943Absolute interests
944Limited interests
945Discretionary interests
946Applicable rate for grossing up basic amounts of estate income
947Aggregate income of the estate
Further provisions for calculating estate income relating to absolute interests
948Assumed income entitlement
949Residuary income of the estate
950Shares of residuary income of estate
951Reduction in share of residuary income of estate
952Applicable rate for determining assumed income entitlement (UK estates)
Successive interests
953Introduction
954Successive absolute interests
955Assumed income entitlement of holder of absolute interest following limited interest
956Payments in respect of limited interests followed by absolute interests
957Holders of limited interests
958Basic amount of estate income: successive limited interests
959Apportionments
Relief where foreign estates have borne UK income tax
960Relief in respect of tax relating to absolute interests
961Relief in respect of tax relating to limited or discretionary interests
General
962Income from which basic amounts are treated as paid
963Income treated as bearing income tax
964Transfers of assets etc treated as payments
965Assessments, adjustments and claims after the administration period
966Power to obtain information from personal representatives and beneficiaries
967Statements relating to estate income
...
968Meaning of “personal representatives”
Chapter 4Income from holding an office
969Charge to tax on income from holding an office
970Rule restricting deductions for bad debts
Chapter 5Distributions from unauthorised unit trusts
971Overview of Chapter
972Charge to tax under this Chapter
973Amount of income treated as received
Chapter 6Sale of foreign dividend coupons
974Charge to tax under this Chapter
975Meaning of “foreign holdings” etc
Chapter 7Annual payments not otherwise charged
976Overview of Chapter
977Charge to tax on annual payments not otherwise charged
978Exemption for payments by persons liable to pool betting duty
Chapter 8Income not otherwise charged
979Charge to tax on income not otherwise charged
980Exemption for commercial occupation of woodlands in UK
981Exemption for gains on financial futures
Chapter 9Priority rules
982Provisions which must be given priority over this Part
Part 11Relief for particular employee share acquisition schemes
Chapter 1Share incentive plans
Introductory
983Overview of Chapter
984Chapter to form part of SIP code etc
Deductions and receipts: general
985References to a deduction being allowed to a company
986Treatment of receipts under Chapter
Deductions relating to setting up and running costs
987Deduction for costs of setting up an approved share incentive plan
988Deductions for running expenses of an approved share incentive plan
Deductions relating to payments used to acquire shares
989Deduction for contribution to plan trust
990Withdrawal of deduction under section 989
991Another deduction to be allowed if all acquired shares are awarded
992Award of shares to excluded employee
993Plan termination notice
Deductions relating to provision of certain types of shares
994Deduction for providing free or matching shares
995Deduction for additional expense in providing partnership shares
996Shares excluded from sections 994 and 995
997No deduction for expenses in providing dividend shares
Withdrawal of approval for a plan
998Withdrawal of deductions if approval for share incentive plan withdrawn
Chapter 2SAYE option schemes, company share option schemes and employee share options trusts
999Deduction for costs of setting up SAYE option scheme or CSOP scheme
1000Deduction for costs of setting up employee share ownership trust
Part 12Other relief for employee share acquisitions
Chapter 1Introduction
Introductory
1001Overview of Part
Interpretation
1002“Employment”
1003“Shares” etc
1004Groups, consortiums and commercial associations of companies
1005Other definitions
Chapter 2Relief if shares acquired by employee or other person
Introductory
1006Overview of Chapter
Requirements to be met for relief to be available
1007Basic requirements for relief under Chapter 2
1008Conditions relating to shares acquired
1009Conditions relating to employee's income tax position
Calculation of amount of relief
1010Calculation of relief if shares are neither restricted nor convertible
1011Calculation of relief if shares are restricted or convertible
1012Reduction in amount of relief
Giving of relief
1013How the relief is given
Chapter 3Relief if employee or other person obtains option to acquire shares
Introductory
1014Overview of Chapter
Requirements to be met for relief to be available
1015Basic requirements for relief under Chapter 3
1016Conditions relating to shares acquired
1017Condition relating to employee's income tax position
Calculation of amount of relief
1018Calculation of relief if shares are neither restricted nor convertible
1019Calculation of relief if shares are restricted or convertible
1020Reduction in amount of relief
Giving of relief
1021How the relief is given
Takeovers and transfers of businesses
1022Takeover of company whose shares are subject to option
1023Supplementary provision for purposes of section 1022
1024Transfer of qualifying business by group transfers
Chapter 4Additional relief in cases involving restricted shares
1025Additional relief available if shares acquired are restricted shares
1026Relief available on occurrence of chargeable event
1027Relief available on death of employee
1028Supplementary provision for purposes of sections 1026 and 1027
1029Transfer of qualifying business by group transfers
Chapter 5Additional relief in cases involving convertible securities
1030Application of Chapter
1031Additional relief available if shares acquired are convertible shares etc
1032Meaning of “chargeable event”
1033Relief available on occurrence of chargeable event
1034Relief available following death of employee
1035Supplementary provision for purposes of sections 1033 and 1034
1036Transfer of qualifying business by group transfers
Chapter 6Relationship between relief under this Part and other reliefs
1037Priority of Chapter 1 of Part 11
1038Exclusion of other deductions
1038AExclusion of deductions for share options: shares not acquired
Part 13Additional relief for expenditure on research and development
Chapter 1Introduction
Introductory
1039Overview of Part
1040Relief may be available under more than one Chapter of Part
1040AR&D expenditure credits
Interpretation
1041“Research and development”
1042“Relevant research and development”
Chapter 2Relief for SMEs: cost of R&D incurred by SME
Introductory
1043Overview of Chapter
Reliefs
1044Additional deduction in calculating profits of trade
1045Alternative treatment for pre-trading expenditure: deemed trading loss
Reliefs: further provision
1046Relief only available where company is going concern
1047Elections under section 1045
1048Treatment of deemed trading loss under section 1045
1049Restriction on consortium relief
Threshold
1050R&D threshold
Qualifying expenditure
1051Qualifying Chapter 2 expenditure
1052Qualifying expenditure on in-house direct R&D
1053Qualifying expenditure on contracted out R&D
Tax credit: entitlement and payment
1054Entitlement to and payment of tax credit
1055Meaning of “Chapter 2 surrenderable loss”
1056Amount of trading loss which is “unrelieved”
1057Tax credit only available where company is going concern
Amount of tax credit
1058Amount of tax credit
1059Total amount of company's PAYE and NIC liabilities
Supplementary
1060Payment of tax credit
1061Tax credit payment not income of company
1062Restriction on losses carried forward where tax credit claimed
Chapter 3Relief for SMEs: R&D sub-contracted to SME
Relief
1063Additional deduction in calculating profits of trade
Threshold
1064R&D threshold
Qualifying expenditure
1065Qualifying Chapter 3 expenditure
1066Expenditure on sub-contracted R&D undertaken in-house
1067Expenditure on sub-contracted R&D not undertaken in-house
Chapter 4Relief for SMEs: subsidised and capped expenditure on R&D
Relief
1068Additional deduction in calculating profits of trade
Threshold
1069R&D threshold
Qualifying expenditure
1070Qualifying Chapter 4 expenditure
1071Subsidised qualifying expenditure on in-house direct R&D
1072Subsidised qualifying expenditure on contracted out R&D
1073Capped R&D expenditure
Chapter 5Relief for large companies
Relief
1074Additional deduction in calculating profits of trade
Threshold
1075R&D threshold
Qualifying expenditure
1076Qualifying Chapter 5 expenditure
1077Qualifying expenditure on in-house direct R&D
1078Qualifying expenditure on contracted out R&D
1079Qualifying expenditure on contributions to independent R&D
Insurance companies
1080Entitlement to relief: I minus E basis
Chapter 6Chapters 2 to 5: further provision
1081Insurance companies treated as large companies
1082R&D expenditure of group companies
1083Refunds of expenditure treated as income chargeable to tax
1084Artificially inflated claims for relief or tax credit
Chapter 7Relief for large companies: vaccine research etc
Introductory
1085Overview of Chapter
1086Meaning of “qualifying R&D activity”
Reliefs
1087Deduction in calculating profits of trade
1088Declaration about effect of relief
1089SMEs: amount of deduction
1090Modification of section 1089 for larger SMEs
1091Amount of deduction
1092SMEs: deemed trading loss for pre-trading expenditure
1093Modification of section 1092 for larger SMEs
1094Relief only available to SME where company is going concern
Deemed trading loss: further provision
1095Elections under section 1092
1096Treatment of deemed trading loss under section 1092
Threshold
1097R&D threshold
Qualifying expenditure
1098Meaning of “qualifying Chapter 7 expenditure”
1099SMEs: qualifying expenditure “for” an accounting period
1100Qualifying expenditure “for” an accounting period
1101Qualifying expenditure on in-house direct R&D
1102Qualifying expenditure on contracted out R&D
Tax credit: entitlement and payment
1103Entitlement to and payment of tax credit
1104Meaning of “Chapter 7 surrenderable loss”
1105Amount of trading loss which is “unrelieved”
1106Tax credit only available where company is going concern
Amount of tax credit
1107Amount of tax credit
1108Total amount of company's PAYE and NIC liabilities
Supplementary
1109Payment of tax credit
1110Tax credit payment not income of company
1111Restriction on losses carried forward where tax credit claimed
Tax avoidance
1112Artificially inflated claims for relief
Chapter 8Cap on aid for R&D
1113Cap on R&D aid under Chapter 2 or 7
1114Total R&D aid
1115“The tax credits”
1116“The actual reduction in tax liability”
1117“The potential relief”
1118“The notional relief”
Chapter 9Supplementary
SMEs and large companies
1119“Small or medium-sized enterprise”
1120Qualifications to section 1119
1121“Larger SME”
1122“Large company”
Staffing costs
1123“Staffing costs”
1124Staffing costs: attributable expenditure
Software or consumable items
1125“Software or consumable items”
1126Software or consumable items: attributable expenditure
Qualifying expenditure on externally provided workers
1127“Qualifying expenditure on externally provided workers”
1128“Externally provided worker”
1129Qualifying expenditure on externally provided workers: connected persons
1130Election for connected persons treatment
1131Qualifying expenditure on externally provided workers: other cases
1132External workers: attributable expenditure
Sub-contractor payments
1133“Sub-contractor” and “sub-contractor payment”
1134Qualifying element of sub-contractor payment: connected persons
1135Election for connected persons treatment
1136Qualifying element of sub-contractor payment: other cases
Miscellaneous
1137Accounting periods: company not within charge to corporation tax
1138“Subsidised expenditure”
1139“Intellectual property”
1140“Relevant payments to the subjects of a clinical trial”
1141“Payment period”
1142“Qualifying body”
Part 14Remediation of contaminated or derelict land
Chapter 1Introduction
Introductory
1143Overview of Part
Basic definitions
1144“Qualifying land remediation expenditure”
1145Land “in a contaminated state”
1145ALand “in a derelict state”
1145BExclusion of nuclear sites
1146“Relevant contaminated land remediation”
1146A“Relevant derelict land remediation”
Chapter 2Reliefs for expenditure on contaminated or derelict land
1147Deduction for capital expenditure
1148Election under section 1147
1149Additional deduction for qualifying land remediation expenditure
1150No relief if company responsible for contamination or dereliction or polluter has interest
Chapter 3Land remediation tax credit
Entitlement and payment
1151Entitlement to and payment of tax credit
1152Meaning of “qualifying land remediation loss”
1153Amount of a loss which is “unrelieved”
Amount of tax credit
1154Amount of tax credit
Supplementary
1155Payment of tax credit
1156Tax credit payment not income of company
1157Exclusion for capital gains purposes of certain expenditure
1158Restriction on losses carried forward where tax credit claimed
Chapter 4Special provision for BLAGAB
...
1159Limitation on relief under Chapter 2
I minus E basis
1160Provision in respect of I minus E basis
Relief ...
1161Relief in respect of I minus E basis: ... expenses payable
1162Additional relief
1163No relief if company responsible for contamination or dereliction or polluter has interest
BLAGAB company tax credits
1164Entitlement to tax credit
1165Meaning of “qualifying BLAGAB loss”
1166Amount of tax credit
1167Payment of tax credit etc
1168Restriction on carrying forward expenses payable where tax credit claimed
Chapter 5Tax avoidance
1169Artificially inflated claims for relief or tax credit
Chapter 6Supplementary
1170“Staffing costs”
1171Staffing costs attributable to relevant land remediation
1172Expenditure on materials
1173Expenditure incurred because of contamination or dereliction
1174Sub-contractor payments
1175Connected sub-contractors
1176“Qualifying expenditure on sub-contracted land remediation”: other cases
1177“Subsidised expenditure”
1178Persons having a “relevant connection” to a company
1178A“Major interest in land”
1179Other definitions
Part 15Film production
Chapter 1Introduction
Introductory
1180Overview of Part
Interpretation
1181“Film” etc
1182“Film production company”
1183“Film-making activities” etc
1184“Production expenditure”, “core expenditure” and “limited-budget film”
1185“UK expenditure” etc
1186“Qualifying co-production” and “co-producer”
1187“Company tax return”
Chapter 2Taxation of activities of film production company
Separate film trade
1188Activities of film production company treated as a separate trade
1189Calculation of profits or losses of separate film trade
Supplementary
1190Income from the film
1191Costs of the film
1192When costs are taken to be incurred
1193Pre-trading expenditure
1194Estimates
Chapter 3Film tax relief
Introductory
1195Availability and overview of film tax relief
Conditions of relief
1196Intended theatrical release
1197British film
1198UK expenditure
Additional deductions
1199Additional deduction for qualifying expenditure
1200Amount of additional deduction
Film tax credits
1201Film tax credit claimable if company has surrenderable loss
1202Surrendering of loss and amount of film tax credit
1203Payment in respect of film tax credit
Miscellaneous
1204No account to be taken of amount if unpaid
1205Artificially inflated claims for additional deduction or film tax credit
1206Confidentiality of information
1207Wrongful disclosure
Chapter 4Film losses
1208Application of sections 1209 and 1210
1209Restriction on use of losses while film in production
1210Use of losses in later periods
1211Terminal losses
Chapter 5Provisional entitlement to relief
1212Introduction
1213Certification as a British film
1214The UK expenditure condition
1215Film tax relief on basis that film is limited-budget film
1216Time limit for amendments and assessments
PART 15ATelevision production
CHAPTER 1Introduction
Introductory
1216AOverview of Part
Meaning of “television programme”, “relevant programme” etc
1216AA“Television programme”
1216AB“Relevant programme”
1216ACTypes of programme eligible to be relevant programmes
1216ADExcluded programmes
Other interpretation
1216AETelevision production company
1216AF“Television production activities” etc
1216AG“Production expenditure” and “core expenditure”
1216AH“UK expenditure” etc
1216AI“Qualifying co-production” and “co-producer”
1216AJ“Company tax return”
CHAPTER 2Taxation of activities of television production company
Separate programme trade
1216BActivities of television production company treated as a separate trade
1216BACalculation of profits or losses of separate programme trade
Supplementary
1216BBIncome from the relevant programme
1216BCCosts of the relevant programme
1216BDWhen costs are taken to be incurred
1216BEPre-trading expenditure
1216BFEstimates
CHAPTER 3Television tax relief
Introductory
1216CAvailability and overview of television tax relief
“Intended for broadcast”
1216CAIntended for broadcast
British programmes
1216CBBritish programme
1216CCApplications for certification
1216CDCertification and withdrawal of certification
UK expenditure
1216CEUK expenditure
Additional deductions
1216CFAdditional deduction for qualifying expenditure
1216CGAmount of additional deduction
Television tax credits
1216CHTelevision tax credit claimable if company has surrenderable loss
1216CISurrendering of loss and amount of television tax credit
1216CJPayment in respect of television tax credit
Miscellaneous
1216CKNo account to be taken of amount if unpaid
1216CLArtificially inflated claims for additional deduction or tax credit
1216CMConfidentiality of information
1216CNWrongful disclosure
CHAPTER 4Programme losses
1216DApplication of sections 1216DA and 1216DB
1216DARestriction on use of losses while programme in production
1216DBUse of losses in later periods
1216DCTerminal losses
CHAPTER 5Provisional entitlement to relief
1216EIntroduction
1216EACertification as a British programme
1216EBThe UK expenditure condition
1216ECTime limit for amendments and assessments
PART 15BVideo games development
CHAPTER 1Introduction
Introductory
1217AOverview of Part
Interpretation
1217AA“Video game” etc
1217ABVideo games development company
1217AC“Video game development activities” etc
1217AD“Core expenditure”
1217AE“UK expenditure” etc
1217AF“Company tax return”
CHAPTER 2Taxation of activities of video games development company
Separate video game trade
1217BActivities of video games development company treated as a separate trade
1217BACalculation of profits or losses of separate video game trade
Supplementary
1217BBIncome from the video game
1217BCCosts of the video game
1217BDWhen costs are taken to be incurred
1217BEEstimates
CHAPTER 3Video games tax relief
Introductory
1217CAvailability and overview of video games tax relief
“Intended for supply”
1217CAIntended for supply
British video games
1217CBBritish video game
1217CCApplications for certification
1217CDCertification and withdrawal of certification
UK expenditure
1217CEUK expenditure
Additional deductions
1217CFAdditional deduction for qualifying expenditure
1217CGAmount of additional deduction
Video game tax credits
1217CHVideo game tax credit claimable if company has surrenderable loss
1217CISurrendering of loss and amount of video game tax credit
1217CJPayment in respect of video game tax credit
Miscellaneous
1217CKNo account to be taken of amount if unpaid
1217CLArtificially inflated claims for additional deduction or tax credit
1217CMConfidentiality of information
1217CNWrongful disclosure
CHAPTER 4Video game losses
1217DApplication of sections 1217DA and 1217DB
1217DARestriction on use of losses while video game in development
1217DBUse of losses in later periods
1217DCTerminal losses
CHAPTER 5Provisional entitlement to relief
1217EIntroduction
1217EACertification as a British video game
1217EBThe UK expenditure condition
1217ECTime limit for amendments and assessments
Part 16Companies with investment business
Chapter 1Introduction
1217Overview of Part
1218“Company with investment business” and “investment business”
Chapter 2Management expenses
Relief for expenses of management
1219Expenses of management of a company's investment business
1220Meaning of “unallowable purpose”
1221Amounts treated as expenses of management
1222Income from a source not charged to tax
1223Carrying forward expenses of management and other amounts
1223AException for basic life assurance and general annuity business
Accounting period to which expenses are referable
1224Accounting period to which expenses are referable
1225Accounts conforming with GAAP
1226Accounts not conforming with GAAP
1227Accounts not drawn up
Claw back of relief
1228Credits that reverse debits
1229Claw back of relief
1230Meaning of “reversal amount”
1231Absence of accounts
Chapter 3Amounts treated as expenses of management
Preliminary
1232Chapter applies to amounts not otherwise relieved
Excess capital allowances
1233Excess capital allowances
Payments for restrictive undertakings
1234Payments for restrictive undertakings
Seconded employees
1235Employees seconded to charities and educational establishments
Contributions to agents' expenses
1236Payroll deduction schemes
Counselling and retraining expenses
1237Counselling and other outplacement services
1238Retraining courses
Redundancy payments etc
1239Redundancy payments and approved contractual payments
1240Payments in respect of employment wholly in employer's business
1241Payments in respect of employment in more than one capacity
1242Additional payments
1243Payments made by the Government
Contributions to local enterprise organisations or urban regeneration companies
1244Contributions to local enterprise organisations or urban regeneration companies
Export Credits Guarantee Department
1245Payments to Export Credits Guarantee Department
Levies under FISMA 2000
1246Levies under FISMA 2000
Chapter 4Rules restricting deductions
1247Introduction
1248Expenses in connection with arrangements for securing a tax advantage
1249Unpaid remuneration
1250Unpaid remuneration: supplementary
1251Car ... hire
Chapter 5Companies with investment business: receipts
1252Industrial development grants
1253Contributions to local enterprise organisations or urban regeneration companies: disqualifying benefits
1254Repayments under FISMA 2000
Chapter 6Supplementary
1255Meaning of some accounting terms
Part 17Partnerships
Introduction
1256Overview of Part
1257General provisions
1258Assessment of firms
Calculation of partners' shares
1259Calculation of firm's profits and losses
1260Section 1259: supplementary
1261Accounting periods of firms
1262Allocation of firm's profits or losses between partners
1263Profit-making period in which some partners have losses
1264Loss-making period in which some partners have profits
1265Apportionment of profit share between partner's accounting periods
Firms with a foreign element
1266Resident partners and double taxation agreements
Adjustment on change of basis
1267Various rules for trades and property businesses
1268Election for spreading under Chapter 14 of Part 3
1269Interpretation of sections 1267 and 1268
Miscellaneous
1270Special provisions about farming and property income
1271Sale of patent rights: effect of partnership changes
1272Sale of patent rights: effect of later cessation of trade
1273Limited liability partnerships
Part 18Unremittable income
1274Unremittable income: introduction
1275Claim for relief for unremittable income
1276Withdrawal of relief
1277Income charged on withdrawal of relief after source ceases
1278Valuing unremittable income
Part 19General exemptions
Profits from FOTRA securities
1279Exemption of profits from securities free of tax to residents abroad (“FOTRA securities”)
1280Section 1279: supplementary provision
Income from savings certificates
1281Income from savings certificates
1282Income from Ulster Savings Certificates
Miscellaneous
1283Interest from tax reserve certificates
1284Housing grants
1285UK company distributions
1286VAT repayment supplements
1287Incentives to use electronic communications
Part 20General calculation rules
Chapter 1Restriction of deductions
Unpaid remuneration
1288Unpaid remuneration
1289Unpaid remuneration: supplementary
Employee benefit contributions
1290Employee benefit contributions
1291Making of “employee benefit contributions”
1292Provision of qualifying benefits
1293Timing and amount of certain qualifying benefits
1294Provision or payment out of employee benefit contributions
1295Profits calculated before end of 9 month period
1296Interpretation of sections 1290 to 1296
1297Basic life assurance and general annuity business
Business entertainment and gifts
1298Business entertainment and gifts
1299Business entertainment: exceptions
1300Business gifts: exceptions
Miscellaneous
1301Restriction of deductions for annual payments
1301ARestriction of deductions for interest
1301BQualifying charitable donations
1302Social security contributions
1303Penalties, interest and VAT surcharges
1304Crime-related payments
1305Dividends and other distributions
Chapter 2Other general rules
Miscellaneous profits and losses
1306Losses calculated on same basis as miscellaneous income
1307Apportionment etc of miscellaneous profits and losses to accounting period
Expenditure on research and development
1308Expenditure brought into account in determining value of intangible asset
Visiting performers
1309Payments treated as made to visiting performers
Part 21Other general provisions
Orders and regulations
1310Orders and regulations
...
1311Apportionment to different periods
Interpretation
1312Abbreviated references to Acts
1313Activities in UK sector of continental shelf
1314Meaning of “caravan”
1315Claims and elections
1316Meaning of “connected” persons and “control”
1317Meaning of “farming” and related expressions
1318Meaning of grossing up
1319Other definitions
1320Interpretation: Scotland
1321Interpretation: Northern Ireland
Final provisions
1322Minor and consequential amendments
1323Power to make consequential provision
1324Power to undo changes
1325Transitional provisions and savings
1326Repeals and revocations
1327Index of defined expressions
1328Extent
1329Commencement
1330Short title
SCHEDULES
SCHEDULE 1Minor and consequential amendments
Part 1Income and Corporation Taxes Act 1988
1The Income and Corporation Taxes Act 1988 (c. 1) is...
2(1) Amend section 6 (the charge to corporation tax and...
3Omit section 8 (general scheme of corporation tax).
4(1) Amend section 9 (computation of income: application of income...
5In section 11 (companies not resident in United Kingdom) omit...
6Omit section 11AA (determination of profits attributable to permanent establishment)....
7Omit section 12(1) to (7ZA) and (9) (basis of, and...
8Omit section 15 (Schedule A).
9Omit section 18 (Schedule D).
10Omit section 21A (computation of amount chargeable under Schedule A)....
11Omit section 21B (application of other rules applicable to Case...
12Omit section 21C (the Schedule A charge and mutual business)....
13(1) Amend section 24 (construction of Part 2) as follows....
14Omit section 30 (expenditure on making sea walls).
15Omit sections 31ZA to 31ZC (deductions for expenditure on energy-saving...
16Omit sections 34 to 39 (premiums, leases at undervalue etc)....
17Omit section 40 (tax treatment of receipts and outgoings on...
18(1) Amend section 42 (appeals against determinations under sections 34...
19Omit section 46 (savings certificates and tax reserve certificates).
20Omit section 53 (farming and other commercial occupation of land...
21Omit section 55 (mines, quarries and other concerns).
22(1) Amend section 56 (transactions in deposits with and without...
23Omit section 70 (basis of assessment etc).
24Omit section 70A (Case V income from land outside UK)....
25Omit section 72 (apportionments etc for purposes of Cases I,...
26Omit section 74 (general rules as to deductions not allowable)....
27Omit section 75 (expenses of management: companies with investment business)....
28Omit section 75A (accounting period to which expenses of management...
29Omit section 75B (amounts reversing expenses of management deducted: charge...
30(1) Amend section 76 (expenses of insurance companies) as follows....
31After section 76 insert— Payments for restrictive undertakings Payments for...
32After section 76ZA insert— Seconded employees Employees seconded to charities...
33After section 76ZB insert— Counselling and retraining expenses Counselling and...
34After section 76ZC insert— Retraining courses (1) This section applies if— (a) a company carrying on...
35After section 76ZD insert— Retraining courses: recovery of tax (1) This section applies if— (a) an employer's liability to...
36After section 76ZE insert— Redundancy payments etc Redundancy payments and...
37After section 76ZF insert— Payments in respect of employment wholly...
38After section 76ZG insert— Payments in respect of employment in...
39After section 76ZH insert— Additional payments (1) This section applies if the employer's business, or part...
40After section 76ZI insert— Payments by the Government (1) This section applies if— (a) a redundancy payment or...
41After section 76ZJ insert— Contributions to local enterprise organisations or...
42After section 76ZK insert— Unpaid remuneration Unpaid remuneration (1) This section applies if— (a) an amount is charged...
43After section 76ZL insert— Unpaid remuneration: supplementary (1) For the purposes of section 76ZL an amount charged...
44After section 76ZM insert— Car or motor cycle hire Car...
45Income and Corporation Taxes Act 1988
46Omit section 76A (levies and repayments under FISMA 2000).
47Omit section 76B (levies and repayments under the FISMA 2000:...
48Omit section 79 (contributions to local enterprise agencies).
49Omit section 79A (contributions to training and enterprise councils and...
50Omit section 79B (contributions to urban regeneration companies).
51Omit section 82A (expenditure on research and development).
52Omit section 82B (payments to research associations, universities etc).
53Omit section 83 (patent fees etc and expenses).
54Omit section 83A (gifts in kind to charities etc).
55Omit section 84 (gifts to educational establishments).
56(1) Amend section 84A (costs of establishing share option or...
57Omit section 85 (payments to trustees of approved profit sharing...
58Omit section 85A (costs of establishing employee share ownership trust:...
59Omit section 85B (which introduces Schedule 4AA).
60Omit section 86 (employees seconded to charities and educational establishments)....
61Omit section 86A (charitable donations: contributions to agent's expenses).
62Omit sections 87 and 87A (taxable premiums etc).
63Omit section 88 (payments to Export Credits Guarantee Department).
64Omit section 88D (restriction of deductions in respect of certain...
65Omit section 89 (debts proving to be irrecoverable after discontinuance...
66Omit section 90 (additional payments to redundant employees).
67Omit section 91 (cemeteries).
68Omit section 91A (waste disposal: restoration payments).
69Omit sections 91B and 91BA (waste disposal: preparation expenditure).
70Omit section 91C (mineral exploration and access).
71Omit section 92 (regional development grants).
72Omit section 93 (other grants under Industrial Development Act 1982...
73Omit section 94 (debts deducted and subsequently released).
74Omit section 95 (taxation of dealers in respect of distributions...
75In section 95ZA(1) (taxation of UK distributions received by insurance...
76Omit section 97 (treatment of farm animals etc).
77Omit section 98 (tied premises: receipts and expenses treated as...
78Omit section 99 (dealers in land).
79Omit section 100 (valuation of trading stock at discontinuance of...
80Omit section 101 (valuation of work in progress at discontinuance...
81Omit section 102 (provisions supplementary to sections 100 and 101)....
82Omit sections 103 to 106 (Case VI charges on receipts)....
83Omit section 110 (interpretation etc).
84Omit section 111(1) (treatment of partnerships).
85Omit sections 114 and 115 (special rules for computing profits...
86Income and Corporation Taxes Act 1988
87Omit section 118ZA (treatment of limited liability partnerships).
88Omit section 119 (rent etc payable in connection with mines,...
89Omit section 120 (rent etc payable in respect of electric...
90Omit section 121 (management expenses of owner of mineral rights)....
91Omit section 122 (relief in respect of mineral royalties).
92Omit section 125 (annual payments for dividends or non-taxable consideration)....
93Omit section 128(2) and (3) (commodity and financial futures etc:...
94(1) Amend section 130 (meaning of “company with investment business”...
95In section 187(10) (interpretation of sections 185 and 186) for...
96Omit section 208 (UK company distributions not generally chargeable to...
97Income and Corporation Taxes Act 1988
98Income and Corporation Taxes Act 1988
99Income and Corporation Taxes Act 1988
100Income and Corporation Taxes Act 1988
101Income and Corporation Taxes Act 1988
102Income and Corporation Taxes Act 1988
103Omit section 337 (company beginning or ceasing to carry on...
104(1) Amend section 337A (computation of company's profits or income:...
105Income and Corporation Taxes Act 1988
106Income and Corporation Taxes Act 1988
107Income and Corporation Taxes Act 1988
108Income and Corporation Taxes Act 1988
109Income and Corporation Taxes Act 1988
110Income and Corporation Taxes Act 1988
111Income and Corporation Taxes Act 1988
112Income and Corporation Taxes Act 1988
113Income and Corporation Taxes Act 1988
114In section 398(b) for “Schedule D” substitute “ Part 5...
115Income and Corporation Taxes Act 1988
116Income and Corporation Taxes Act 1988
117Omit section 401 (relief for pre-trading expenditure).
118Income and Corporation Taxes Act 1988
119Income and Corporation Taxes Act 1988
120Income and Corporation Taxes Act 1988
121Income and Corporation Taxes Act 1988
122Income and Corporation Taxes Act 1988
123Income and Corporation Taxes Act 1988
124Income and Corporation Taxes Act 1988
125In section 414(1)(b) (close companies) omit “within the meaning of...
126(1) Amend section 431 (interpretation of provisions relating to insurance...
127(1) Amend section 431G (company carrying on life assurance business)...
128In section 431H(3) (company carrying on life assurance business and...
129(1) Amend section 432YA (long-term business other than life assurance...
130(1) Amend section 432A (apportionment of income and gains) as...
131(1) Amend section 432AA (Schedule A business or overseas property...
132(1) Amend section 432AB (losses from Schedule A business or...
133In section 434(1) (franked investment income etc ) for “provisions...
134(1) Amend section 434A (computation of losses and limitation of...
135(1) Amend section 436A (gross roll-up business: separate charge on...
136In section 440(6) (transfers of assets etc ) for “in...
137In section 440A(7) (securities) for “in accordance with Case I...
138(1) Amend section 440B (modifications where tax charged under Case...
139(1) Amend section 440C (modifications for change of tax basis)...
140In section 442(2) (overseas business of UK companies) for “of...
141In section 442A(1) (taxation of investment return where risk reinsured)...
142(1) Amend section 444AZA (transfers of life assurance business: Case...
143(1) Amend section 444AZB (transfers of life assurance business: Case...
144In section 444ABD(1A) (transferor's period of account including transfer)—
145(1) Amend section 444AEA (transfer schemes: anti-avoidance rule) as follows....
146(1) Amend section 444AEB (Case I advantage: transferor) as follows....
147(1) Amend section 444AEC (Case I advantage: transferee) as follows....
148(1) Amend section 444AECA (parts of transfer scheme arrangements: anti-avoidance...
149(1) Amend section 444AECB (parts of transfer scheme arrangements: Case...
150(1) Amend section 444AECC (parts of transfer scheme arrangements: Case...
151(1) Amend section 444AED (clearance: no avoidance or group advantage)...
152In section 444AF(5) (demutualisation surplus: life assurance business)—
153In section 444AH (modification of section 444AG etc for Case...
154In section 444AK(3) (mutual surplus: gross roll-up business) for “provisions...
155In section 444BA(1) (equalisation reserves for general business) for “Case...
156In section 444BB(2) (modification of section 444BA for mutual or...
157Omit section 469(4A) to (5) and (6) (other unit trusts)....
158Omit section 472A (trading profits etc from securities: taxation of...
159Omit section 473 (conversion etc of securities held as circulating...
160In section 475 (tax-free Treasury securities: exclusion of interest on...
161In section 477A (building societies: loan relationships), omit subsections (3)(a)...
162Omit section 477B (incidental costs of issuing qualifying shares).
163(1) Amend section 486 (industrial and provident societies and co-operative...
164Omit section 487 (credit unions).
165Omit section 491 (distribution of assets of body corporate carrying...
166Income and Corporation Taxes Act 1988
167Income and Corporation Taxes Act 1988
168Income and Corporation Taxes Act 1988
169Income and Corporation Taxes Act 1988
170Income and Corporation Taxes Act 1988
171Income and Corporation Taxes Act 1988
172In section 503(1)(a) (letting of furnished holiday accommodation treated as...
173Omit section 504 (meaning of “commercial letting of furnished holiday...
174Income and Corporation Taxes Act 1988
175Income and Corporation Taxes Act 1988
176Omit section 509 (reserves of marketing boards etc).
177Income and Corporation Taxes Act 1988
178For section 518(2) (harbour reorganisation schemes) substitute—
179Omit section 524 (taxation of receipts from sale of patent...
180Omit section 525 (capital sums: winding up or partnership change)....
181Omit section 526 (relief for expenses).
182Omit section 528 (manner of making allowances and charges).
183Omit section 531 (provisions supplementary to section 530).
184Omit section 532 (application of Capital Allowances Act).
185Omit section 533 (interpretation of sections 520 to 532).
186Omit section 556 (activity treated as trade etc and attribution...
187Omit section 558(5) and (6) (visiting performers: supplementary provisions).
188In section 568(1) (deductions from profits of contributions paid under...
189In section 570(4) (payments under certified schemes which are not...
190(1) Amend section 571 (cancellation of certificates) as follows.
191Omit section 577 (business entertaining expenses).
192Omit section 577A (expenditure involving crime).
193Omit section 578 (housing grants).
194Omit sections 578A and 578B (expenditure on car hire).
195Omit sections 579 and 580 (statutory redundancy payments).
196Omit section 582 (funding bonds issued in respect of interest...
197Omit section 584 (relief for unremittable overseas income).
198Omit sections 586 and 587 (disallowance of deductions for war...
199In section 587B(2)(b) (gifts of shares, securities and real property...
200Omit section 588 (training courses for employees).
201Omit section 589A (counselling services for employees).
202Omit section 589B(5) (interpretation of section 589A).
203Omit section 617 (social security benefits and contributions).
204Omit section 695 (limited interests in residue).
205Omit section 696 (absolute interests in residue).
206Omit section 697 (supplementary provisions as to absolute interests in...
207Omit section 698 (special provisions as to certain interests in...
208Omit section 699A (untaxed sums comprised in the income of...
209In section 700 (adjustments and information)— (a) omit subsections (1)...
210Omit section 701 (interpretation).
211Omit section 702 (application to Scotland).
212In section 703(3) (cancellation of corporation tax advantage) omit the...
213In section 709(2) (meaning of “corporation tax advantage” and other...
214Income and Corporation Taxes Act 1988
215Income and Corporation Taxes Act 1988
216In section 736C(9) (deemed interest: cash collateral under stock lending...
217In section 747(1B) (controlled foreign companies: company residence for purposes...
218In section 751(3) (controlled foreign companies: accounting periods) for “subsections...
219(1) Amend section 755A (treatment of chargeable profits and creditable...
220(1) Amend section 761 (charge to income tax or corporation...
221Income and Corporation Taxes Act 1988
222Income and Corporation Taxes Act 1988
223Income and Corporation Taxes Act 1988
224Income and Corporation Taxes Act 1988
225In section 774(1) (transactions between dealing company and associated company)...
226Income and Corporation Taxes Act 1988
227Income and Corporation Taxes Act 1988
228Income and Corporation Taxes Act 1988
229Income and Corporation Taxes Act 1988
230Income and Corporation Taxes Act 1988
231(1) Amend section 776 (transactions in land: taxation of capital...
232(1) Amend section 779 (sale and lease-back: limitation on tax...
233In section 780(3A) (sale and lease-back: taxation of consideration received)...
234(1) Amend section 781 (assets leased to traders and others)...
235In section 782(9) (leased assets: special cases) omit the words...
236In section 785 (definitions for purposes of sections 781 to...
237In section 785ZA(3) (restrictions on use of losses: leasing partnerships)...
238In section 785ZB(8) (section 785ZA: definitions)— (a) in paragraph (a)...
239In section 785C(4)(a) (section 785B: interpretation) for “under Schedule A”...
240In section 785D(3) (section 785B: lease of plant and machinery...
241(1) Amend section 786 (transactions associated with loans or credit)...
242(1) Amend section 787 (restriction of relief for payments of...
243In section 788(7) (relief by agreement with other territories) omit...
244In section 790(11) (unilateral relief) omit the words from “,...
245In section 795(4) (computation of income subject to foreign tax)—...
246(1) Amend section 797 (limits on credit: corporation tax) as...
247(1) Amend section 797A (foreign tax on items giving rise...
248Income and Corporation Taxes Act 1988
249Income and Corporation Taxes Act 1988
250Income and Corporation Taxes Act 1988
251Income and Corporation Taxes Act 1988
252Income and Corporation Taxes Act 1988
253Income and Corporation Taxes Act 1988
254Income and Corporation Taxes Act 1988
255Income and Corporation Taxes Act 1988
256Income and Corporation Taxes Act 1988
257Income and Corporation Taxes Act 1988
258Income and Corporation Taxes Act 1988
259Income and Corporation Taxes Act 1988
260Income and Corporation Taxes Act 1988
261Income and Corporation Taxes Act 1988
262Income and Corporation Taxes Act 1988
263Income and Corporation Taxes Act 1988
264Income and Corporation Taxes Act 1988
265Omit section 817 (deductions not to be allowed in computing...
266In section 821(1)(a) (under-deductions from payments made before passing of...
267(1) Amend section 826 (interest on tax overpaid) as follows....
268Omit section 827 (VAT penalties etc).
269(1) Amend section 828 (orders and regulations made by the...
270Omit section 830(2) to (4) (territorial sea and designated areas)....
271In section 831(3) (interpretation of ICTA) before the definition of...
272Income and Corporation Taxes Act 1988
273Income and Corporation Taxes Act 1988
274Income and Corporation Taxes Act 1988
275Income and Corporation Taxes Act 1988
276Income and Corporation Taxes Act 1988
277Income and Corporation Taxes Act 1988
278Omit Schedule A1 (determination of profits attributable to permanent establishment:...
279Omit Schedule 4AA (share incentive plans: corporation tax deductions).
280Omit Schedule 5 (treatment of farm animals etc for purposes...
281In paragraph 13(3) of Schedule 18A (group relief: overseas losses...
282(1) Amend Schedule 19ABA (modification of life assurance provisions of...
283In paragraph 6(6)(b) of Schedule 19B (petroleum extraction activities: exploration...
284(1) Amend Schedule 19C (petroleum extraction activities: ring fence expenditure...
285(1) Amend Schedule 23A (manufactured dividends and interest) as follows....
286(1) Amend Schedule 24 (assumptions for calculating chargeable profits, creditable...
287(1) Amend Schedule 25 (cases where section 747(3) does not...
288In Schedule 26 (reliefs against liability for tax in respect...
289(1) Amend Schedule 27 (distributing funds) as follows.
290(1) Amend Schedule 28A (change in ownership of company with...
291(1) Amend Schedule 28AA (provision not at arm's length) as...
292(1) Amend Schedule 30 (transitional provisions and savings) as follows....
Part 2Other enactments
Finance Act 1950 (c. 15)
293The Finance Act 1950 is amended as follows.
294In section 39(3) (treatment for taxation purposes of enemy debts...
Taxes Management Act 1970 (c. 9)
295The Taxes Management Act 1970 is amended as follows.
296In section 12(5) (information about chargeable gains) for “section 100(2)...
297Omit section 12AE (choice between different Cases of Schedule D)....
298In section 17 (interest paid or credited by banks, building...
299In section 18 (interest paid without deduction of income tax)...
300(1) Amend section 19 (information for purposes of charge on...
301Omit section 31(3) (appeals: right of appeal).
302In section 42(7) (procedure for making claims etc)—
303In section 46B(5) (questions to be determined by Special Commissioners),...
304In section 71(1) (bodies of persons) omit the words from...
305In section 87A(4A)(b) (interest on overdue corporation tax etc) for...
306(1) Amend section 90 (disallowance of relief for interest on...
307(1) Amend section 98 (special returns, etc) as follows.
308After section 109 insert— Residence of companies Chapter 3 of Part 2 of CTA 2009 (rules for...
309In section 118 (interpretation) at the appropriate place insert— “CTA...
310In Schedule 3 (rules for assigning proceedings to General Commissioners),...
Finance Act 1973 (c. 51)
311The Finance Act 1973 is amended as follows.
312In paragraph 2(a) of Schedule 15 (territorial extension of charge...
Oil Taxation Act 1975 (c. 22)
313The Oil Taxation Act 1975 is amended as follows.
314In section 3(2) (allowance of expenditure (other than expenditure on...
Inheritance Tax Act 1984 (c. 51)
315The Inheritance Tax Act 1984 is amended as follows.
316(1) Amend section 91 (administration period) as follows.
317In section 94(2)(a) (charge on participators) for “section 208 of...
Films Act 1985 (c. 21)
318The Films Act 1985 is amended as follows.
319In paragraph 1(1) of Schedule 1 (certification of British films...
Airports Act 1986 (c. 31)
320The Airports Act 1986 is amended as follows.
321In section 77(3) (corporation tax) for “Chapter II of Part...
Finance Act 1986 (c. 41)
322The Finance Act 1986 is amended as follows.
323In section 78(7)(d) (loan capital) after “2005” insert “ or...
324In section 79 (loan capital: new provisions)—
325In section 99(9A) (interpretation) after “2005” insert “ or section...
Gas Act 1986 (c. 44)
326The Gas Act 1986 is amended as follows.
327In section 60(3) (tax provisions) for “Chapter II of Part...
British Steel Act 1988 (c. 35)
328The British Steel Act 1988 is amended as follows.
329In section 11(7) (corporation tax) for “Chapter II of Part...
Finance Act 1988 (c. 39)
330The Finance Act 1988 is amended as follows.
331Omit section 65 (commercial woodlands).
332Omit section 66 (company residence).
333Omit section 66A (residence of SE or SCE).
334Omit section 73(2) to (4) (consideration for certain restrictive undertakings)....
335Omit Schedule 6 (commercial woodlands).
336Omit Schedule 7 (exceptions to the rule in section 66(1))....
337In paragraph 3 of Schedule 12 (building societies: change of...
Finance Act 1989 (c. 26)
338The Finance Act 1989 is amended as follows.
339Omit section 43 (Schedule D: computation (unpaid remuneration)).
340Omit section 44 (companies with investment business and insurance companies:...
341In section 82(1) (calculation of profits: bonuses etc ) for...
342In section 82D(2) (treatment of profits: life assurance_adjustment consequent on...
343In section 82E(7) (section 82D: treatment of transferors under insurance...
344(1) Amend section 83 (receipts to be taken into account)...
345(1) Amend section 83YC (FAFTS: charge in relevant period of...
346In section 83YD(3)(a) (FAFTS: deduction in subsequent periods of account)...
347(1) Amend section 83YF (financial reinsurance arrangements: further provision) as...
348(1) Amend section 85 (charge of certain receipts of basic...
349(1) Amend section 85A (excess adjusted Case I profits) as...
350In section 88(3)(b) (corporation tax: policy holders' share of profits)...
351(1) Amend section 89 (policy holders' share of profits) as...
Finance Act 1990 (c. 29)
352The Finance Act 1990 is amended as follows.
353Omit section 126(2) and (3) (pools payments for football ground...
354In Schedule 14 (amendments correcting errors in ICTA) omit paragraph...
Finance Act 1991 (c. 31)
355The Finance Act 1991 is amended as follows.
356For section 65(5) (reimbursement by defaulter in respect of certain...
357Omit section 121(2) and (3) (pools payments to support games...
Taxation of Chargeable Gains Act 1992 (c. 12)
358The Taxation of Chargeable Gains Act 1992 is amended as...
359In section 1(2) (the charge to tax) for “section 6...
360In section 10B (non-resident company with United Kingdom permanent establishment)...
361In section 33A (value shifting: modification of sections 30 to...
362In section 40(4) (interest charged to capital) after “relationships)” insert...
363In section 41(4) (restriction of losses by reference to capital...
364In section 48(4) (consideration due after time of disposal) for...
365(1) Amend section 59 (partnerships) as follows.
366(1) Amend section 116 (reorganisations, conversions and reconstructions) as follows....
367After section 116 insert— Holding beginning or ceasing to fall...
368In section 117(6D) (meaning of “qualifying corporate bond”) after “section...
369In section 143(1) (commodity and financial futures and qualifying options)—...
370After section 151D insert— Exchange gains and losses from loan...
371In section 156(4) (assets of Class 1)—
372After section 156 insert— Intangible fixed assets: roll-over relief (1) This section applies if a company is entitled to...
373In section 158(2) (activities other than trades, and interpretation) omit...
374In section 161(3)(a) (appropriations to and from stock) for “under...
375In section 170(9)(c) (interpretation of sections 171 to 181) omit...
376In section 171(3A) (transfers within a group: general provisions) for...
377Omit section 201(2) (relationship between section 201 of TCGA 1992...
378For section 203(1) substitute— (1) Sections 274 to 276 of...
379(1) Amend section 210A (ring-fencing of losses) as follows.
380(1) Amend section 241 (furnished holiday lettings) as follows.
381In section 251(8) (general provisions) omit— (a) paragraph (a), and...
382In section 253(3) (relief for loans to traders) for “Chapter...
383In section 275B (section 275A: supplementary provisions) for subsection (3)...
384After section 286 insert— Residence of companies Chapter 3 of Part 2 of CTA 2009 (rules for...
385In section 288(1) (interpretation)— (a) at the appropriate place insert—...
386In Schedule 7AC (exemptions for disposals by companies with substantial...
387In Schedule 7D (approved share schemes and share incentives), in...
388(1) Amend Schedule 8 (leases) as follows.
Finance (No. 2) Act 1992 (c. 48)
389The Finance ( No. 2) Act 1992 is amended as...
390(1) Amend paragraph 3 of Schedule 12 (banks etc in...
Finance Act 1994 (c. 9)
391The Finance Act 1994 is amended as follows.
392(1) Amend section 219 (Lloyd's underwriters: taxation of profits) as...
393In section 220(3) (accounting period in which certain profits or...
394In section 225(4) (stop-loss and quota share insurance) in the...
395In section 226(3) (provisions which are not to apply) for...
396In section 229(1)(ca) (regulations) for sub-paragraph (ii) substitute—
397Omit sections 249 and 250 (certain companies treated as non-resident)....
398In paragraph 20(1) of Schedule 24 (provisions relating to the...
Finance Act 1995 (c. 4)
399The Finance Act 1995 is amended as follows.
400In section 126(7A) (UK representatives of non-residents) omit paragraph (b)...
401In section 127(1) (persons not treated as UK representatives)—
Finance Act 1996 (c. 8)
402The Finance Act 1996 is amended as follows.
403Omit section 80 (taxation of loan relationships).
404Omit section 81 (meaning of “loan relationship” etc).
405Omit section 82 (methods of bringing amounts into account).
406Omit section 83 (non-trading deficit on loan relationships).
407Omit section 84 (debits and credits brought into account).
408Omit section 84A (exchange gains and losses from loan relationships)....
409Omit section 85A (computation in accordance with generally accepted accounting...
410Omit section 85B (amounts recognised in determining a company's profit...
411Omit section 85C (amounts not fully recognised for accounting purposes)....
412Omit section 87 (accounting method where parties have a connection)....
413Omit section 87A (meaning of “control” in section 87).
414Omit section 88 (exemption from section 87 in certain cases)....
415Omit section 88A (accounting method where rate of interest is...
416Omit section 90A (change of accounting basis applicable to assets...
417Omit section 91A (shares subject to outstanding third party obligations)....
418Omit section 91B (non-qualifying shares).
419Omit section 91C (Condition 1 for section 91B(6)(b)).
420Omit section 91D (Condition 2 for section 91B(6)(b)).
421Omit section 91E (Condition 3 for section 91B(6)(b)).
422Omit section 91F (power to add, vary or remove Conditions...
423Omit section 91G (shares beginning or ceasing to be subject...
424Omit section 91H (payments in return for capital contribution).
425Omit section 91I (change of partnership shares).
426Omit section 93C (creditor relationships and benefit derived by connected...
427Omit section 94 (indexed gilt-edged securities).
428Omit section 94A (loan relationships with embedded derivatives).
429Omit section 94B (loan relationships treated differently by connected debtor...
430Omit section 95 (gilt strips).
431Omit section 96 (special rules for certain other gilts).
432Omit section 97 (manufactured interest).
433Omit section 98 (collective investment schemes).
434Omit section 99 (insurance companies).
435Omit section 100 (money debts etc not arising from the...
436Omit section 101 (financial instruments).
437Omit section 103 (interpretation of Chapter).
438In section 154 (FOTRA securities), omit subsections (2), (3), (5),...
439In section 203(9) (modification of the Agriculture Act 1993) for...
440Omit Schedule 8 (loan relationships: claims etc relating to deficits)....
441Omit Schedule 9 (loan relationships: special computational provisions).
442Omit Schedule 10 (loan relationships: collective investment schemes).
443Omit Schedule 11 (loan relationships: special provisions for insurers).
444(1) Amend Schedule 15 (loan relationships: savings and transitional provisions)...
Broadcasting Act 1996 (c. 55)
445The Broadcasting Act 1996 is amended as follows.
446(1) Amend Schedule 7 (transfer schemes relating to BBC transmission...
Finance Act 1997 (c. 16)
447The Finance Act 1997 is amended as follows.
448In Schedule 12 (leasing arrangements: finance leases and loans), in...
Finance (No. 2) Act 1997 (c. 58)
449The Finance (No. 2) Act 1997 is amended as follows....
450Omit section 40 (carry-back of loan relationship deficits).
Finance Act 1998 (c. 36)
451The Finance Act 1998 is amended as follows.
452Omit section 42 (computation of profits of trade, profession or...
453In section 46 (minor and consequential provisions about computations) omit...
454(1) Amend Schedule 18 (company tax returns, assessments and related...
Finance Act 1999 (c. 16)
455The Finance Act 1999 is amended as follows.
456Omit section 54 (tax treatment of reverse premiums).
457Omit section 63 (treatment of transfer fees under existing contracts)....
458(1) Amend section 81 (acquisitions disregarded under insurance companies concession)...
459Omit Schedule 6 (tax treatment of receipts by way of...
Commonwealth Development Corporation Act 1999 (c. 20)
460The Commonwealth Development Corporation Act 1999 is amended as follows....
461(1) Amend paragraph 6 of Schedule 3 (tax) as follows....
Finance Act 2000 (c. 17)
462The Finance Act 2000 is amended as follows.
463(1) Amend section 46 (exemption for small trades etc) as...
464Omit section 50 (phasing out of relief for payments to...
465Omit section 69(1) (which introduces Schedule 20).
466Omit section 143(2) (power to provide incentives to use electronic...
467In Schedule 12 (provision of services through an intermediary) omit...
468In Schedule 15 (the corporate venturing scheme) in paragraph 60(1)...
469Omit Schedule 20 (tax relief for expenditure on research and...
470(1) Amend Schedule 22 (tonnage tax) as follows.
Transport Act 2000 (c. 38)
471The Transport Act 2000 is amended as follows.
472(1) Amend Schedule 7 (transfer schemes: tax) as follows.
473(1) Amend Schedule 26 (transfers: tax) as follows.
Capital Allowances Act 2001 (c. 2)
474The Capital Allowances Act 2001 is amended as follows.
475In section 2(4) (general means of giving effect to capital...
476In section 15(1)(f) (qualifying activities) for “section 55(2) of ICTA”...
477In section 16 (ordinary property business) omit “, or a...
478(1) Amend section 17 (furnished holiday lettings) as follows.
479(1) Amend section 18 (managing investments of a company with...
480In section 28(2B)(a) (thermal insulation of buildings) for “section 31ZA...
481In section 38 (production animals etc) for paragraphs (a) and...
482(1) Amend section 63 (cases in which disposal value is...
483In section 105(3)(a) (“profits chargeable to tax”) for “section 830(4)...
484(1) Amend section 106 (the designated period) as follows.
485(1) Amend section 108 (effect of disposal to connected person...
486(1) Amend section 112 (excess allowances: connected persons) as follows....
487(1) Amend section 115 (prohibited allowances: connected persons) as follows....
488(1) Amend section 122 (short-term leasing by buyer, lessee, etc)...
489(1) Amend section 125 (other qualifying purposes) as follows.
490In section 252 (mines, transport undertakings etc) for “section 55(2)...
491(1) Amend section 253 (companies with investment business) as follows....
492(1) Amend section 256 (different giving effect rules for different...
493In section 257(2)(a) (supplementary) for “Case I” substitute “ life...
494In section 260(8) (special leasing: corporation tax (excess allowance)) for...
495(1) Amend section 263 (qualifying activities carried on in partnership)...
496(1) Amend section 265 (successions: general) as follows.
497In section 282 (buildings outside the United Kingdom) for the...
498In section 291(3)(a) (supplementary provisions with respect to elections) for...
499In section 326(1) (interpretation of section 325), in the definition...
500In section 331(1)(b) (meaning of “capital value”) for sub-paragraph (i)...
501(1) Amend section 353 (lessors and licensors) as follows.
502(1) Amend section 354 (buildings temporarily out of use) as...
503In section 390(1) (interpretation of section 389), in the definition...
504(1) Amend section 392 (UK property business and Schedule A...
505In section 393B(4) (meaning of “qualifying expenditure”) omit “or Schedule...
506In section 393J(3)(a) (entitlement to writing-down allowances) for “section 38(1)...
507(1) Amend section 393T (giving effect to allowances and charges)...
508(1) Amend section 406 (reduction where premium relief previously allowed)...
509In section 454(1)(c) (qualifying expenditure) for “section 531(3)(a) of ICTA”...
510In section 455(4) (excluded expenditure) for “section 531(2) of ICTA”...
511In section 462(3) (disposal values) for “section 531(2) of ICTA”...
512In section 481(5)(b) (anti-avoidance: limit on qualifying expenditure) for “section...
513In section 483(c) (meaning of “income from patents”) for “section...
514In section 488(3)(a) (balancing allowances) for “section 18 of ITTOIA...
515(1) Amend section 529 (giving effect to allowances and charges)...
516In section 536(5)(a)(v) (contributions not made by public bodies and...
517In section 545(4) (investment assets) for “Case I of Schedule...
518(1) Amend section 558 (effect of partnership changes) as follows....
519(1) Amend section 559 (effect of successions) as follows.
520(1) Amend section 577 (other definitions) as follows.
521(1) Amend Schedule A1 (first-year tax credits) as follows.
522(1) Amend Schedule 1 (abbreviations and defined expressions) as follows....
Finance Act 2001 (c. 9)
523The Finance Act 2001 is amended as follows.
524Omit section 70(1) and (2) (which introduces Schedule 22).
525Omit Schedule 22 (remediation of contaminated land).
Finance Act 2002 (c. 23)
526The Finance Act 2002 is amended as follows.
527Omit section 53 (which introduces Schedule 12 to that Act)....
528Omit section 54 (which introduces Schedules 13 and 14 to...
529Omit section 55 (gifts of medical supplies and equipment).
530Omit section 64 (adjustment on change of basis).
531(1) Amend section 65 (postponement of change to mark to...
532Omit section 71 (accounting method where rate of interest etc...
533In section 81(3)(b) (transitional provision) for “Chapter 2 of Part...
534In section 83 (derivative contracts) omit subsections (1)(a) and (2)....
535Omit section 84(1) (gains and losses from intangible fixed assets...
536Omit Schedule 12 (tax relief for expenditure on research and...
537Omit Schedule 13 (tax relief for expenditure on vaccine research...
538In Schedule 16 (community investment tax relief) in paragraph 27(4)...
539(1) Amend Schedule 18 (relief for community amateur sports clubs)...
540Omit Schedule 22 (computation of profits: adjustment on change of...
541(1) Amend Schedule 23 (exchange gains and losses from loan...
542In Schedule 25 (loan relationships) omit paragraphs 61 to 64....
543Omit Schedule 26 (derivative contracts).
544(1) Schedule 28 (derivative contracts: transitional provisions etc) is amended...
545Omit Schedule 29 (gains and losses of a company from...
Proceeds of Crime Act 2002 (c. 29)
546The Proceeds of Crime Act 2002 is amended as follows....
547(1) Amend Schedule 10 (tax) as follows.
Income Tax (Earnings and Pensions) Act 2003 (c. 1)
548The Income Tax (Earnings and Pensions) Act 2003 is amended...
549In section 61(1) (interpretation) in the definition of “business” for...
550In section 178(d) (exception for loans where interest qualifies for...
551In section 180(5)(d) (threshold for benefit of loan to be...
552(1) Amend section 357 (business entertainment and gifts: exception where...
553In section 420(1)(h) (meaning of securities etc) at the end...
554(1) Amend section 515 (which refers to other provisions which...
555In section 702(5B) (which sets out what shares are corporation...
556In Schedule 1 (abbreviations and defined expressions)—
557In Schedule 2 (approved share incentive plans), in paragraph 85(1)(c),...
Finance Act 2003 (c. 14)
558The Finance Act 2003 is amended as follows.
559Omit section 141 (corporation tax for employee share acquisitions).
560Omit section 143 (restriction of deductions for employee benefit contributions)....
561In section 148 (meaning of “permanent establishment”)—
562(1) Amend section 150 (non-resident companies: assessment, collection and recovery...
563In section 152(2) (non-resident companies: transactions carried out through broker,...
564After section 177(4) (currency contracts and currency options) insert—
565In section 195(9)(b) (companies acquiring their own shares) for the...
566Omit Schedule 23 (corporation tax relief for employee share acquisitions)....
567Omit Schedule 24 (restriction of deductions for employee benefit contributions)....
568In paragraph 5A(2) of Schedule 26 (non-resident companies: transactions through...
Finance Act 2004 (c. 12)
569The Finance Act 2004 is amended as follows.
570In section 71 (collection and recovery of sums to be...
571Other enactments
572(1) Amend section 131 (companies in partnership) as follows.
573(1) Amend section 196 (relief for employers in respect of...
574In section 196A(4) (power to restrict relief)—
575In section 197(10) (spreading of relief)— (a) in paragraph (a),...
576In section 199A(10) (indirect contributions)— (a) in paragraph (a) for...
577In section 200 (no other relief for employers in respect...
578(1) Amend section 246 (restriction of deduction for non-contributory provision)...
579In section 246A(4) (case where no relief for provision by...
580In section 280(1) (abbreviations and general index)—
581(1) Amend Schedule 26 (offshore funds) as follows.
Energy Act 2004 (c. 20)
582The Energy Act 2004 is amended as follows.
583(1) Amend section 27 (tax exemption for NDA activities) as...
584(1) Amend section 28 (taxation of activities of the Nuclear...
585In section 44(2) (extinguishment of BNFL losses for tax purposes)—...
586(1) Amend Schedule 9 (taxation provisions relating to nuclear transfer...
Income Tax (Trading and Other Income) Act 2005 (c. 5)
587The Income Tax (Trading and Other Income) Act 2005 is...
588In section 22(2)(b) (payments for wayleaves) for “would otherwise be...
589(1) Amend section 48 (car or motor cycle hire) as...
590In section 49(2)(b) (car or motor cycle hire: supplementary) after...
591In section 60(6) (tenants under taxed leases: introduction) after “288”...
592(1) Amend section 64 (restriction on section 61 expenses: lease...
593In section 65(1)(a) (restrictions on section 61 expenses: lease of...
594In the title of section 66 (corporation tax receipts treated...
595(1) Amend section 67 (restrictions on section 61 expenses: corporation...
596(1) Amend section 71 (educational establishments) as follows.
597Omit section 79(2) (additional payments: change in persons carrying on...
598After section 79 insert— Additional payments: change in the persons...
599In section 80(2) (payments made by the Government) for “79”...
600In section 88(6)(b) (payments to research associations, universities etc) before...
601(1) Amend section 155 (levies and repayments under FISMA 2000)...
602In section 158(1)(d) (lease premiums etc: reduction of receipts) for...
603In section 170(3)(b) (deduction for capital expenditure) for “section 91(1)(b)...
604In section 171(2)(d) (allocation of ancillary capital expenditure) for “section...
605In section 175(2) (basis of valuation of trading stock)—
606In section 176(1)(a) (sale basis of valuation: sale to unconnected...
607In section 177(1)(a) (sale basis of valuation: sale to connected...
608In section 178(1)(a) (sale basis of valuation: election by connected...
609(1) Amend section 180 (cost to buyer of stock valued...
610In section 184(1) (basis of valuation of work in progress)—...
611In section 194(7) (disposal of know-how as part of disposal...
612In section 246(2) (basic meaning of “post-cessation receipt”) for the...
613In section 249(3) (debts released after cessation) for the words...
614In section 276(3) (introduction to Chapter 4 of Part 3)...
615In section 279(3) for “or of” substitute “ of or...
616In the title of section 281 (sums payable for variation...
617(1) Amend section 287 (circumstances in which additional calculation rule...
618(1) Amend section 288 (the additional calculation rule) as follows....
619(1) Amend section 290 (meaning of “unused amount” and “unreduced...
620(1) Amend section 293 (restrictions on section 292 expenses: the...
621For section 294(1)(c) (restriction on section 292 expenses: lease of...
622For section 295(2)(b) (limit on reductions and deductions) substitute—
623In section 296(1)(a) (corporation tax receipts treated as taxed receipts)...
624In section 298 (taking account of deductions for rent as...
625In section 299(1)(b) (payment of tax by instalments) for “term”...
626(1) Amend section 303 (rules for determining effective duration of...
627(1) Amend section 304 (applying the rules in section 303)...
628In section 318(4) for “section 30 of ICTA” substitute “...
629(1) Amend section 356 (application to Schedule A businesses) as...
630In section 413(4) (person liable) for paragraph (b) substitute—
631In section 419(2) (loans and advances to persons who die)...
632In section 466(3) (person liable: personal representatives) for “section 701(8)...
633In section 496(7) (modification of section 494: qualifying endowment policies...
634In section 671 (successive absolute interests)— (a) at the end...
635After section 749 insert— Interest on tax overpaid No liability to income tax arises in respect of interest...
636In section 754(1) (redemption of funding bonds) for “section 582(1)...
637(1) Amend section 839 (annual payments payable out of relevant...
638In section 847(2) (partnerships: general provisions), in the words before...
639In section 849 (calculation of firm's profits or losses) after...
640For section 850 (allocation of firm's profits or losses between...
641(1) Amend section 860 (adjustment income) as follows.
642For section 861 (sale of patent rights: effect of partnership...
643(1) Amend section 862 (sale of patent rights: effect of...
644Omit section 881 (disapplication of corporation tax: section 9 of...
645(1) Amend Schedule 1 (consequential amendments) as follows.
646(1) Amend Schedule 2 (transitionals and savings etc) as follows....
647(1) Amend Schedule 4 (abbreviations and defined expressions) as follows....
Finance Act 2005 (c. 7)
648The Finance Act 2005 is amended as follows.
649In section 47A(6) (alternative finance arrangements: diminishing shared ownership) for...
650In section 48A (alternative finance arrangements: alternative finance bond: introduction)...
651In section 48B (alternative finance arrangements: alternative finance investment bond:...
652In section 49(2) (alternative finance arrangements: deposit) for “profit share...
653In section 49A (alternative finance arrangements: profit share agency)—
654Omit section 50 (treatment of alternative finance arrangements: companies).
655In section 51 (treatment of alternative finance arrangements: persons other...
656In section 52 (provision not at arm's length)—
657Omit section 54 (return not to be treated as distribution)....
658In section 54A (treatment of section 47, 49 and 49A...
659In section 55 (further provisions) omit “, corporation tax”.
660In section 56 (application of Chapter)— (a) in subsections (2)...
661In section 57 (interpretation of Chapter)— (a) in the definition...
662In section 83(8) (application of accounting standards to securitisation companies)...
663In section 105 (interpretation) after the definition of “CAA 2001”...
664(1) Amend Schedule 2 (alternative finance arrangements: further provisions) as...
665In Schedule 4 (accounting practice and related matters) omit paragraphs...
Railways Act 2005 (c. 14)
666The Railways Act 2005 is amended as follows.
667(1) Amend Schedule 10 (taxation provisions relating to transfer schemes)...
Finance (No. 2) Act 2005 (c. 22)
668The Finance (No. 2) Act 2005 is amended as follows....
669In section 18 (section 17(3): specific powers) for subsection (2)(c)...
670(1) Amend section 26 (receipts cases) as follows.
671In section 27(2) (rule as to qualifying payment) for the...
672In section 71 (interpretation) after the definition of “CAA 2001”...
673In Schedule 6 (accounting practice and related matters)—
674In Schedule 7 (avoidance involving financial arrangements) in paragraph 14—...
Finance Act 2006 (c. 25)
675The Finance Act 2006 is amended as follows.
676Omit sections 31 to 41 (provisions about films, in particular...
677In section 42(2) (film tax relief: further provisions) omit—
678Omit sections 43 to 45 (film losses).
679At the end of each of sections 46 and 47...
680Omit sections 48 to 50 (sound recordings).
681Omit section 52 (films: application of provisions to certain films...
682Omit section 53(2) (films and sound recordings: commencement etc).
683In section 97 (beneficial loans to employees)—
684In section 104(1) (property rental business)— (a) in paragraph (a)—...
685In section 112 (entry charge) for subsection (1) substitute—
686In section 115(4) (profit: financing-cost ratio)— (a) in paragraph (a)...
687In section 117(3)(b) (cancellation of tax advantage) omit “under Case...
688(1) Amend section 120 (calculation of profits) as follows.
689(1) Amend section 121 (distributions: liability to tax) as follows....
690In section 136(2) (availability of group reliefs) for paragraphs (d)...
691In section 139(2) (manufactured dividends), in the provision substituted for...
692In section 179 (interpretation) after the definition of “CAA 2001”...
693Omit Schedule 4 (taxation of activities of film production company)....
694In Schedule 5 (film tax relief: further provisions)—
695(1) Amend Schedule 10 (sale etc of lessor companies etc...
696(1) Amend Schedule 15 (accountancy change: spreading of adjustment), Part...
697(1) Amend Schedule 16 (real estate investment trusts: excluded business...
698(1) Amend Schedule 17 (group real estate investment trusts: modifications)...
Income Tax Act 2007 (c. 3)
699The Income Tax Act 2007 is amended as follows.
700For section 5 substitute— Income tax and companies Section 3 of CTA 2009 disapplies the provisions of the...
701In section 276(3) (conditions relating to income) for “paragraph 14(3)...
702In section 489(6) (the “applicable period” in relation to shares)...
703In section 550(a) (meaning of “relievable gift”) for “section 83A...
704In section 557(1)(b)(ii) (substantial donor transactions: supplementary) after “2005” insert...
705(1) Amend section 835 (residence rules for trustees and companies)...
706After section 835 insert— Residence of companies Chapter 3 of Part 2 of CTA 2009 (rules for...
707In section 899(4)(b) (meaning of “qualifying annual payment”) for “charged...
708In section 904 (annual payments for dividends or non-taxable consideration)...
709(1) Amend section 910 (proceeds of a sale of patent...
710In section 934(4) (non-UK resident companies) for “section 11(2) of...
711In section 937(5)(c) (partnerships)— (a) for “section 11(2) of ICTA”...
712In section 939(1)(b) (duty to retain bonds where issue treated...
713(1) Amend section 941 (deemed payments to unit holders and...
714In section 948(2) (meaning of “accounting period”) for the words...
715In section 965(2) (overview of sections 966 to 970) for...
716(1) Amend section 971 (income tax in respect of non-resident...
717In section 976(6) (arrangements for payments of interest less tax...
718In section 980(2) (derivative contracts: exception from duties to deduct)...
719In section 989 (definitions) omit the definition of “Schedule A...
720In section 1017 (abbreviated references to Acts) after the definition...
721In Schedule 4 (index of defined expressions) omit the entry...
Finance Act 2007 (c. 11)
722The Finance Act 2007 is amended as follows.
723In section 113 (interpretation) after the definition of “CRCA 2005”...
724In Schedule 3 (managed service companies) omit paragraph 10.
725(1) Amend Schedule 7 (insurance business: gross roll-up business etc)...
726(1) Amend Schedule 13 (sale and repurchase of securities) as...
727In paragraph 28(fa) of Schedule 24 (penalties for errors)—
Finance Act 2008 (c. 9)
728The Finance Act 2008 is amended as follows.
729Omit section 29 (cap on R&D aid).
730Omit section 36(1) (company gains from investment life insurance contracts...
731In section 77(6), in the words after paragraph (b) for...
732In section 154(6) (stamp duty and stamp duty reserve tax:...
733In section 165(1) (interpretation) after the definition of “CRCA 2005”...
734In Schedule 10 (cap on R&D aid), omit paragraphs 1...
735Omit Schedule 13 (company gains from investment life insurance contracts)....
736In Schedule 15 (changes in trading stock), omit Part 2....
737In Schedule 25 (first-year tax credits)— (a) in paragraph 14(6)(b)...
Crossrail Act 2008 (c. 18)
738The Crossrail Act 2008 is amended as follows.
739(1) Amend Schedule 13 (transfer schemes: tax provisions) as follows....
SCHEDULE 2Transitionals and savings
Part 1General provisions
Continuity of the law: general
1The repeal of provisions and their enactment in a rewritten...
2Paragraph 1 does not apply to any change made by...
3Any subordinate legislation or other thing which—
4(1) Any reference (express or implied) in this Act, another...
5(1) Any reference (express or implied) in any enactment, instrument...
6Paragraphs 1 to 5 have effect instead of section 17(2)...
7Paragraphs 4 and 5 apply only so far as the...
General saving for old transitional provisions and savings
8(1) The repeal by this Act of a transitional or...
Interpretation
9(1) In this Part— “enactment” includes subordinate legislation (within the...
Part 2Changes in the law
10(1) This paragraph applies if, in the case of any...
Part 3Charge to corporation tax on income
Effect of repeal of section 9(1) of ICTA on relevance of case law
11The repeal by this Act of section 9(1) of ICTA...
Part 4Accounting periods
Companies in administration
12Section 10(1)(i) and (j), (2), (3) and (4) apply only...
Part 5Company residence: exceptions to section 14
13(1) Subject to sub-paragraph (2), section 14 does not apply...
14(1) Subject to sub-paragraph (2), section 14 does not apply...
15(1) In paragraph 13— “general consent” means a consent under...
Part 6Trading income
Hiring cars with low CO emissions before 1 April 2013
16Section 58 does not apply to expenditure which is incurred...
17In relation to expenditure incurred on the hiring of a...
Tenants under taxed leases
18(1) This paragraph relates to the operation of sections 62...
19(1) This paragraph provides for the application of section 63...
20(1) This paragraph provides for the application of section 63...
Local enterprise agencies
21To the extent that any function of the Scottish Ministers...
Expenses connected with patents, designs and trade marks
22(1) This paragraph applies if— (a) fees have been incurred,...
Payments to Export Credits Guarantee Department
23(1) This paragraph applies if— (a) a sum is payable,...
Reverse premiums
24(1) Sections 98 and 99 do not apply to a...
Sums recovered under insurance policies etc
25Section 103 does not apply if— (a) a company carrying...
Meaning of “designated educational establishment”
26To the extent that the power of the Welsh Ministers...
27The reference in section 106(1)(a) to regulations made for England...
Dealers in securities etc
28The repeal by this Act of section 473(2B) of ICTA...
Purchase or sale of woodlands
29Section 134 does not apply if the purchase mentioned in...
Waste disposal
30If the predecessor ceased to carry on the trade carried...
31If the trade carried on by the trader was started...
32Section 144(3) does not apply for the purposes of sections...
Reserves of marketing authorities etc
33In section 153(5) “approved scheme or arrangement” includes a scheme...
Adjustment on change of basis
34Chapter 14 of Part 3 applies to a change of...
Part 7Property income
Lease premiums
35Section 217 does not apply in relation to a lease...
Lease premiums: sums payable instead of rent
36Section 219 does not apply in relation to a lease...
Lease premiums: sums payable for surrender of lease
37Section 220 does not apply in relation to a lease...
Lease premiums: assignments for profit of lease granted at undervalue
38Section 222 does not apply in relation to a lease...
Lease premiums: pre-commencement receipts under ICTA treated as taxed receipts
39(1) This paragraph relates to the operation of sections 227...
Lease premiums: taking account of reductions under section 37(2) or (3) of ICTA
40(1) This paragraph applies if— (a) in calculating the amount...
Lease premiums: taking account of deductions for rent as a result of section 37(4) or 87(2) of ICTA
41(1) Sub-paragraph (2) applies if— (a) in calculating the profits...
Lease premiums: time limits for claims for repayment of tax
42(1) Until the Treasury by order appoints a day under...
Lease premiums: rules for determining effective duration of lease
43(1) In relation to a lease granted after 24 August...
44The amendments made by paragraph 626 of Schedule 1 (amendments...
45(1) In relation to a lease granted after 12 June...
46(1) In relation to a lease granted before 13 June...
47The amendments made by paragraphs 498 and 506 of Schedule...
Lease premiums: meaning of “premium”
48(1) In relation to a lease granted after 12 June...
Reverse premiums
49(1) Section 250 does not apply to a reverse premium—...
Deductions for expenditure on energy-saving items
50Sections 251 to 253 do not apply to expenditure incurred...
Adjustment on change of basis
51(1) Sections 261 and 262 apply to a change of...
Meaning of “mineral royalties”
52The definition of “mineral royalties” in section 274(2) does not...
Part 8Loan relationships
Interpretation
53Except as provided in this Part of this Schedule, expressions...
Opening and closing values determined under Schedule 15 to the Finance Act 1996
54So far as immediately before the commencement of this Act...
References to Part 5 to include Schedule 15 to FA 1996
55Except where the context indicates otherwise, references to Part 5...
Exemption for interest on tax overpaid for accounting periods ending before 1 July 1999
56No liability to corporation tax arises in respect of interest...
Regulations under section 81 of FA 2002
57The repeal by this Act of any provision in Schedule...
Continuity on transfers: transferees becoming party to loan relationship before 9 April 2003
58(1) In determining whether Chapter 4 of Part 5 (continuity...
Deeply discounted securities held before 1 October 2002
59(1) This sub-paragraph applies if— (a) the condition in paragraph...
60(1) This paragraph applies if— (a) an authorised unit trust...
Restriction on bringing into account credits resulting from reversal of debits disallowed in a period of account beginning before 1 January 2005
61(1) No credit is to be brought into account for...
Disregard of pre-2005 disallowed debits
62(1) This paragraph applies if in a period of account...
Bringing into account losses on overseas sovereign debt etc
63(1) This paragraph applies if at the end of the...
Saving for old elections for treating loan relationships with embedded derivatives as two assets
64(1) The repeal by this Act of paragraph 7 of...
Deeply discounted securities of close companies: discounts for accounting periods beginning before 1 April 2007
65(1) This paragraph applies as regards a debtor relationship entered...
Repo, stock lending and other transactions before 1 October 2007: disapplication of section 332
66Section 332 (repo, stock lending and other transactions) does not...
Avoidance relying on continuity of treatment provisions: transactions before 16 May 2008
67Section 347 (disapplication of Chapter 4 of Part 5 where...
Disposals for consideration not fully recognised by accounting practice: disposals before 16 May 2008
68Section 455 (disposals for consideration not fully recognised by accounting...
5½% Treasury Stock 2008-2012 not redeemed before 6 April 2009
69(1) This paragraph applies if any loan relationship of a...
References to Companies Act 2006
70Until section 658 of the Companies Act 2006 (c. 46)...
Prospective repeal of provisions concerning exchange gains and losses from loan relationships
71(1) The following provisions (which rewrite provisions prospectively repealed by...
Part 9Relationships treated as loan relationships
Relevant non-lending relationships: discounts accruing and profits arising before 16 March 2005
72(1) None of the following is to be brought into...
Relevant non-lending relationships: discounts on disposals before 22 March 2006
72A(1) Section 480 (relevant non-lending relationships involving discounts) applies with...
Alternative finance arrangements entered into before certain dates
73(1) Chapter 6 of Part 6 (alternative finance arrangements) does...
...
74(1) Chapter 6 of Part 6 (alternative finance arrangements) does...
...
75(1) Chapter 6 of Part 6 (alternative finance arrangements) only...
Shares with guaranteed returns: redeemable shares where public issue before 22 March 2006
76In relation to any case where the public issue (within...
Shares with guaranteed returns: income-producing assets for the increasing value condition
77In relation to any time before 16 May 2008, section...
Repo transactions and stock lending arrangements before 1 October 2007
78(1) Chapter 10 of Part 6 (repos) does not apply...
Part 10Derivative contracts
Interpretation
79Expressions used in this Part of this Schedule and in...
Extended meaning of reference in section 591(6)(b)
80The reference in section 591(6)(b) (condition E) to the provisions...
Disapplication of section 645
81Section 645 (creditor relationships: embedded derivatives which are options) does...
Existing assets representing creditor relationships: options
82(1) This paragraph applies if section 645 would apply to...
83(1) This paragraph applies for the purposes of paragraph 82....
84(1) This paragraph applies if— (a) there has been a...
Disapplication of section 648
85Section 648 (creditor relationships: embedded derivatives which are exactly tracking...
Existing assets representing creditor relationships: contracts for differences
86(1) This paragraph applies if section 648 would apply to...
87(1) This paragraph applies if— (a) there has been a...
Disapplication of section 658
88(1) Section 658 (chargeable gain or allowable loss treated as...
Disapplication of section 661
89Section 661 (contract which becomes derivative contract) does not apply...
Disapplication of section 666
90Section 666 (allowable loss treated as accruing) does not apply...
Contracts which became derivative contracts on 16 March 2005
91(1) This paragraph applies in relation to a company if...
Contracts which became derivative contracts on 28 July 2005
92(1) This paragraph applies in relation to a company if...
Plain vanilla contracts which became derivative contracts before 30 December 2006
93(1) This paragraph applies if— (a) a company is a...
Issuers of securities with embedded derivatives: deemed options
94(1) This paragraph applies if the company mentioned in section...
Contract becoming derivative contract on 12 March 2008
95(1) This paragraph applies if a company was, immediately before...
Avoidance relying on continuity of treatment provisions: transactions before 16 May 2008
96Section 629 (disapplication of section 625 where transferor party to...
Disposals for consideration not fully recognised by accounting practice: disposals before 16 May 2008
97Section 698 (disposals for consideration not fully recognised by accounting...
References to Companies Act 2006
98Until section 658 of the Companies Act 2006 (c. 46)...
Repeal of provisions concerning exchange gains and losses from derivative contracts
99(1) The following provisions of this Act (which rewrite provisions...
Part 11Intangible fixed assets
Transactions between related parties
100(1) Sub-paragraphs (2) and (3) apply in relation to any...
Continuity: formation of an SE before 1 April 2005
101Section 770 (continuity where group includes an SE) does not...
References to Companies Act 2006
102Until section 658 of the Companies Act 2006 (c. 46)...
Part 12Beneficiaries' income from estates in administration
Basic amounts
103(1) Sub-paragraph (2) applies if any previous accounting period to...
Income treated as bearing income tax
104(1) A sum treated as part of the aggregate income...
Part 13Relief for share incentive plans
Deduction for contribution to plan trust
105Section 989(1)(a) does not apply in relation to a payment...
Award of shares to excluded employee
106(1) This paragraph applies if an amount is received by...
Part 14Other relief for employee share acquisitions
Accounting periods beginning before 1 January 2003
107(1) Relief is not available under Part 12 in relation...
Restricted shares not to include shares acquired before 16 April 2003
108In Part 12 “restricted shares” does not include shares acquired...
Shares acquired before 16 April 2003 that are subject to forfeiture
109(1) Relief under Part 12 is not available in relation...
Meaning of “employment” for times before 16 April 2003
110In relation to any time before 16 April 2003, Part...
Relief under Chapters 4 and 5 of Part 12
111(1) This paragraph applies for the purposes of Chapters 4...
Part 15Research and development
Rates of relief
112(1) In relation to expenditure incurred before 1 August 2008,...
R&D threshold in section 1050: qualifying Chapter 3 and 4 expenditure
113(1) The references in section 1050(3)(b) and (c) to qualifying...
Chapters 3 to 5 of Part 13: expenditure incurred before 1 April 2002
114(1) Chapters 3 to 5 of Part 13 do not...
Chapter 7 of Part 13: expenditure incurred before 22 April 2003
115(1) Chapter 7 of Part 13 (relief for SMEs and...
Cap on R&D aid under Chapter 2 or 7 of Part 13
116For the purposes of any calculation in accordance with section...
Chapter 7 of Part 13: qualifying expenditure on contracted out R&D
117(1) Section 1135(4) (time limit for notice of election for...
Small or medium-sized enterprises
118(1) In relation to expenditure incurred before 1 August 2008,...
Staffing costs
119(1) In its application to expenditure incurred—
120In its application to expenditure incurred before 1 August 2008,...
121(1) In relation to expenditure incurred before 27 September 2003,...
Expenditure on software or consumable items
122(1) In relation to expenditure incurred before 1 April 2004,...
Qualifying expenditure on externally provided workers
123(1) In relation to expenditure incurred before 27 September 2003,...
Qualifying expenditure on relevant payments to subjects of clinical trials
124(1) In relation to expenditure incurred before 1 August 2008,...
Part 16Remediation of contaminated land
Part 14: expenditure incurred before 11 May 2001
125(1) Part 14 does not apply to expenditure incurred before...
Staffing costs
126(1) In its application to expenditure incurred—
Part 17Film production
Interpretation
127The provisions of sections 1181 to 1187 apply for the...
Chapters 2 and 3 of Part 15 to apply only to films that commence principal photography on or after 1 January 2007
128Chapters 2 and 3 of Part 15 apply only in...
129The references in section 1206 to the functions of the...
Application of Part 15 etc to films that commenced principal photography before 1 January 2007 but were not completed before that date
130(1) The Treasury may make provision by regulations for the...
131(1) In accordance with Part 1 of this Schedule, the...
Prohibition on double counting
132(1) Expenditure is not to be taken into account for...
Part 18Management expenses
Unpaid remuneration
133(1) This paragraph applies for the purposes of section 1249....
Part 19Unremittable income
Unremittable income that arose in an accounting period ending before 1 April 2009
134(1) A claim may be made under section 1275 (claim...
Withdrawal of relief: income that arose in an accounting period ending before 1 October 1993
135Section 1277 (income charged on withdrawal of relief after source...
Part 20General exemptions
Ulster savings certificates
136In the case of certificates acquired before 27 July 1981,...
Part 21Other provisions
Training courses for employees
137(1) This paragraph applies if, without the repeal by this...
138In the Table in section 98 of TMA 1970 (special...
139(1) This paragraph applies if— (a) at any time during...
Unpaid remuneration
140(1) This paragraph applies for the purposes of—
Employee benefit contributions
141Section 1290 does not apply to deductions that would otherwise...
Interest on overdue corporation tax etc
142(1) The repeal by this Act of section 90(1)(b) of...
Miscellaneous profits and losses: apportionment to accounting periods ending before 1 April 2009
143(1) This paragraph applies if— (a) a relevant period of...
Purchase and sale of securities: references to setting up and commencement etc of a trade
144In section 731 of ICTA, as that section has effect...
References to Companies Act 2006
145Until section 658 of the Companies Act 2006 (c. 46)...
Charges to tax under Case VI of Schedule D in subordinate legislation
146(1) This paragraph applies if— (a) a provision of the...
147(1) This paragraph applies if immediately before 1 April 2009...
SCHEDULE 3Repeals and revocations
Part 1Repeals and revocations on 1 April 2009
Part 2Prospective repeals
SCHEDULE 4Index of defined expressions

Corporation Tax Act 2009

2009 c. 4

An Act to restate, with minor changes, certain enactments relating to corporation tax; and for connected purposes.

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—C1C2C3

Annotations:
Modifications etc. (not altering text)
C2

Act applied in part (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 853(3) (with Sch. 2)