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Corporation Tax Act 2009

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Corporation Tax Act 2009 List of acts
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Crown Copyright Acknowledged
CONTENTS

Part 1 IntroductionIntroduction

1.Overview of Act

Part 2 Charge to corporation tax: basic provisionsCharge to corporation tax: basic provisions

Chapter 1 The charge to corporation tax

Charge to tax on profits

2.Charge to corporation tax

3.Exclusion of charge to income tax

4.Exclusion of charge to capital gains tax

General scheme of corporation tax

5.Territorial scope of charge

6.Profits accruing in fiduciary or representative capacity

7.Profits accruing under trusts

8.How tax is charged and assessed

Chapter 2 Accounting periods

9.Beginning of accounting period

10.End of accounting period

11.Companies with more than one accounting date

12.Companies being wound up

Chapter 3 Company residence

13.Overview of Chapter

14.Companies incorporated in the United Kingdom

15.Continuation of residence established under common law

16.SEs which transfer registered office to the United Kingdom

17.SCEs which transfer registered office to the United Kingdom

18.Companies treated as non-UK resident under double taxation arrangements

Chapter 4 Non-UK resident companies: chargeable profits

Chargeable profits

19.Chargeable profits

20.Profits attributable to permanent establishment: introduction

The separate enterprise principle

21.The separate enterprise principle

22.Transactions treated as being on arm's length terms

23.Provision of goods or services for permanent establishment

24.Application to insurance companies

The separate enterprise principle: application to non-UK resident banks

25.Non-UK resident banks: introduction

26.Transfer of financial assets

27.Loans: attribution of financial assets and profits arising

28.Borrowing: permanent establishment acting as agent or intermediary

Rules about deductions

29.Allowable deductions

30.Restriction on deductions: costs

31.Restriction on deductions: payments in respect of intangible assets

32.Restriction on deductions: interest or other financing costs

Chapter 5 Supplementary

33.Trade includes office

Part 3 Trading incomeTrading income

Chapter 1 Introduction

34.Overview of Part

Chapter 2 Income taxed as trade profits

Charge to tax on trade profits

35.Charge to tax on trade profits

Trades and trade profits

36.Farming and market gardening

37.Commercial occupation of woodlands

38.Commercial occupation of land other than woodlands

39.Profits of mines, quarries and other concerns

40.Credit unions

Starting and ceasing to trade

41.Effect of company starting or ceasing to be within charge to corporation tax

Trading income and property income

42.Tied premises

43.Caravan sites where trade carried on

44.Surplus business accommodation

45.Payments for wayleaves

Chapter 3 Trade profits: basic rules

46.Generally accepted accounting practice

47.Losses calculated on same basis as profits

48.Receipts and expenses

49.Items treated as receipts and expenses

50.Animals kept for trade purposes

51.Relationship between rules prohibiting and allowing deductions

52.Apportionment etc of profits and losses to accounting period

Chapter 4 Trade profits: rules restricting deductions

53.Capital expenditure

54.Expenses not wholly and exclusively for trade and unconnected losses

55.Bad debts

56.Car or motor cycle hire

57.Car or motor cycle hire: supplementary

58.Hiring cars (but not motor cycles) with low CO2 emissions before 1 April 2013

59.Patent royalties

60.Expenditure on integral features

Chapter 5 Trade profits: rules allowing deductions

Pre-trading expenses

61.Pre-trading expenses

Tenants under taxed leases

62.Tenants under taxed leases: introduction

63.Tenants occupying land for purposes of trade treated as incurring expenses

64.Limit on deductions if tenant entitled to mineral extraction allowance

65.Tenants dealing with land as property employed for purposes of trade

66.Restrictions on section 63 expenses: lease premium receipts

67.Restrictions on section 63 expenses: lease of part of premises

Renewals

68.Replacement and alteration of trade tools

Payments for restrictive undertakings

69.Payments for restrictive undertakings

Seconded employees

70.Employees seconded to charities and educational establishments

71.Educational establishments

Contributions to agents' expenses

72.Payroll deduction schemes: contributions to agents' expenses

Counselling and retraining expenses

73.Counselling and other outplacement services

74.Retraining courses

75.Retraining courses: recovery of tax

Redundancy payments etc

76.Redundancy payments and approved contractual payments

77.Payments in respect of employment wholly in employer's trade

78.Payments in respect of employment in more than one capacity

79.Additional payments

80.Application of section 79 in cases involving partnerships

81.Payments made by the Government

Contributions to local enterprise organisations or urban regeneration companies

82.Contributions to local enterprise organisations or urban regeneration companies

83.Meaning of “local enterprise organisation”

84.Approval of local enterprise agencies

85.Supplementary provisions with respect to approvals

86.Meaning of “urban regeneration company”

Scientific research

87.Expenses of research and development

88.Payments to research associations, universities etc

Expenses connected with patents, designs and trade marks

89.Expenses connected with patents

90.Expenses connected with designs or trade marks

Export Credits Guarantee Department

91.Payments to Export Credits Guarantee Department

Levies under FISMA 2000

92.Levies etc under FISMA 2000

Chapter 6 Trade profits: receipts

Capital receipts

93.Capital receipts

Debts released

94.Debts incurred and later released

Amounts received following earlier cessation

95.Acquisition of trade: receipts from transferor's trade

Reverse premiums

96.Reverse premiums

97.Excluded cases

98.Tax treatment of reverse premiums

99.Arrangements not at arm's length

100.Connected persons and property arrangements

Other receipts

101.Distribution of assets of mutual concerns

102.Industrial development grants

103.Sums recovered under insurance policies etc

104.Repayments under FISMA 2000

Chapter 7 Trade profits: gifts to charities etc

Relief for certain gifts

105.Gifts of trading stock to charities etc

106.Meaning of “designated educational establishment”

107.Gifts of medical supplies and equipment

Benefits associated with gifts

108.Receipt of benefits by donor or connected person

Chapter 8 Trade profits: herd basis rules

Introduction

109.Election for application of herd basis rules

110.Meaning of “animal”, “herd”, “production herd” etc

111.Other interpretative provisions

The herd basis rules

112.Initial cost of herd and value of herd

113.Addition of animals to herd

114.Replacement of animals in herd

115.Amount of receipt if old animal slaughtered under disease control order

116.Sale of animals from herd

117.Sale of whole or substantial part of herd

118.Acquisition of new herd begun within 5 years of sale

119.Section 118: sale for reasons outside farmer's control

120.Replacement of part sold begun within 5 years of sale

121.Section 120: sale for reasons outside farmer's control

Elections

122.Herd basis elections

123.Five year gap in which no production herd kept

124.Slaughter under disease control order

Preventing abuse of the herd basis rules

125.Preventing abuse of the herd basis rules

Supplementary

126.Information if election made

127.Further assessment etc if herd basis rules apply

Chapter 9 Trade profits: other specific trades

Dealers in securities etc

128.Taxation of amounts taken to reserves

129.Conversion etc of securities held as circulating capital

130.Traders receiving distributions etc

Building societies

131.Incidental costs of issuing qualifying shares

Industrial and provident societies

132.Dividends etc granted by industrial and provident societies

Credit unions

133.Annual payments paid by a credit union

Dealers in land etc

134.Purchase or sale of woodlands

135.Relief in respect of mineral royalties

136.Lease premiums etc: reduction of receipts

Mineral exploration and access

137.Mineral exploration and access

Companies liable to pool betting duty

138.Payments by companies liable to pool betting duty

Intermediaries treated as making employment payments

139.Deduction for deemed employment payment

140.Special rules for partnerships

Managed service companies

141.Deduction for deemed employment payments

Waste disposal

142.Deduction for site preparation expenditure

143.Allocation of site preparation expenditure

144.Site preparation expenditure: supplementary

145.Site restoration payments

Cemeteries and crematoria

146.Cemeteries and crematoria: introduction

147.Deduction for capital expenditure

148.Allocation of ancillary capital expenditure

149.Exclusion of expenditure met by subsidies

Sound recordings

150.Revenue nature of expenditure

151.Allocation of expenditure

152.Interpretation of sections 150 and 151

Reserves of marketing authorities etc

153.Reserves of marketing authorities and certain other statutory bodies

154.Conditions to be met by reserve fund

155.Interpretation of sections 153 and 154

Chapter 10 Trade profits: changes in trading stock

Introduction

156.Meaning of “trading stock”

Transfers of trading stock between trade and trader

157.Trading stock appropriated by trader

158.Trading stock supplied by trader

Other disposals and acquisitions not made in the course of trade

159.Disposals not made in the course of trade

160.Acquisitions not made in the course of trade

Relationship with transfer pricing rules

161.Transfer pricing rules to take precedence

Chapter 11 Trade profits: valuation of stock on cessation of trade

162.Valuation of trading stock on cessation

163.Meaning of “trading stock”

164.Basis of valuation of trading stock

165.Sale basis of valuation: sale to unconnected person

166.Sale basis of valuation: sale to connected person

167.Sale basis of valuation: election by connected persons

168.Connected persons

169.Cost to buyer of stock valued on sale basis of valuation

170.Meaning of “sale” and related expressions

171.Determination of questions

Chapter 12 Deductions from profits: unremittable amounts

172.Application of Chapter

173.Relief for unremittable amounts

174.Restrictions on relief

175.Withdrawal of relief

Chapter 13 Disposal and acquisition of know-how

176.Meaning of “know-how” etc

177.Disposal of know-how if trade continues to be carried on

178.Disposal of know-how as part of disposal of all or part of a trade

179.Seller controlled by buyer etc

Chapter 14 Adjustment on change of basis

Adjustment on change of basis

180.Application of Chapter

181.Giving effect to positive and negative adjustments

182.Calculation of the adjustment

Expenses previously brought into account

183.No adjustment for certain expenses previously brought into account

Realising or writing off assets

184.Cases where adjustment not required until assets realised or written off

Mark to market

185.Change from realisation basis to mark to market

186.Election for spreading if section 185 applies

187.Transfer of insurance business

Chapter 15 Post-cessation receipts

Charge to tax on post-cessation receipts

188.Charge to tax on post-cessation receipts

189.Extent of charge to tax

Meaning of “post-cessation receipts”

190.Basic meaning of “post-cessation receipt”

191.Other rules about what counts as post-cessation receipts

Sums treated as post-cessation receipts

192.Debts paid after cessation

193.Debts released after cessation

194.Transfer of rights if transferee does not carry on trade

Sums that are not post-cessation receipts

195.Transfer of trading stock

Deductions196.Allowable deductions

197.Further rules about allowable deductions

Election to carry back

198.Election to carry back

199.Deductions already made are not displaced

200.Election given effect in accounting period in which receipt is received

Chapter 16 Priority rules

201.Provisions which must be given priority over this Part

Part 4 Property incomeProperty income

Chapter 1

Introduction

202.Overview of Part

Chapter 2 Property businesses

Introduction

203.Overview of Chapter

204.Meaning of “property business”

Basic meaning of UK and overseas property business

205.UK property business

206.Overseas property business

Generating income from land

207.Meaning of “generating income from land”

208.Activities not for generating income from land

Chapter 3 Profits of property businesses: basic rules

Charge to tax on profits of a property business

209.Charge to tax on profits of a property business

Calculation of profits

210.Profits of a property business: application of trading income rules

211.Loan relationships and derivative contracts

212.Items treated as receipts and expenses

213.Certain amounts brought into account under Part 3

214.Relationship between rules prohibiting and allowing deductions

Chapter 4 Profits of property businesses: lease premiums etc

Introduction

215.Overview of Chapter

216.Meaning of “short-term lease”

Amounts treated as receipts: leases

217.Lease premiums

218.Amount treated as lease premium where work required

219.Sums payable instead of rent

220.Sums payable for surrender of lease

221.Sums payable for variation or waiver of terms of lease

222.Assignments for profit of lease granted at undervalue

223.Provisions supplementary to section 222

Other amounts treated as receipts

224.Sales with right to reconveyance

225.Sale and leaseback transactions

226.Provisions supplementary to sections 224 and 225

Additional calculation rule for reducing certain receipts

227.Circumstances in which additional calculation rule applies

228.The additional calculation rule

229.The additional calculation rule: special cases

230.Meaning of “unused amount” and “unreduced amount”

Deductions in relation to certain receipts

231.Deductions for expenses under section 232

232.Tenants under taxed leases treated as incurring expenses

233.Restrictions on section 232 expenses: the additional calculation rule

234.Restrictions on section 232 expenses: lease of part of premises

Limit on effect of additional calculation rule and deductions

235.Limit on reductions and deductions

Certain administrative provisions

236.Payment of tax by instalments

237.Statement of accuracy for purposes of section 222

238.Claim for repayment of tax payable by virtue of section 224

239.Claim for repayment of tax payable by virtue of section 225

Determinations affecting liability of more than one person

240.Appeals against proposed determinations

241.Section 240: supplementary

242.Determination by tribunal

Effective duration of lease

243.Rules for determining effective duration of lease

244.Applying the rules in section 243

245.Information about effective duration of lease

Other interpretative provisions

246.Provisions about premiums

247.Interpretation

Chapter 5 Profits of property businesses: other rules about receipts and deductions

Furnished accommodation: receipts and deductions

248.Furnished lettings

Treatment of receipts on acquisition of business

249.Acquisition of business: receipts from transferor's UK property business

Reverse premiums as receipts

250.Reverse premiums

Deductions for expenditure on energy-saving items

251.Deduction for expenditure on energy-saving items

252.Restrictions on relief

253.Regulations

Deductions for expenditure on sea walls

254.Deduction for expenditure on sea walls

255.Transfer of interest in premises

256.Ending of lease of premises

257.Transfer involving person within the charge to income tax

Mineral royalties

258.Relief in respect of mineral royalties

Apportionments on sale of land

259.Nature of item apportioned on sale of estate or interest in land

Mutual business

260.Mutual business

Adjustment on change of basis

261.Adjustment on change of basis

262.Giving effect to positive and negative adjustments

Integral features

263.Expenditure on integral features

Chapter 6 Commercial letting of furnished holiday accommodation

Introduction

264.Overview of Chapter

Definition

265.Meaning of “commercial letting of furnished holiday accommodation”

266.Meaning of “relevant period” in sections 267 and 268

267.Meaning of “qualifying holiday accommodation”

268.Under-used holiday accommodation: averaging elections

Separate profit calculations

269.Capital allowances and loss relief

Chapter 7 Rent 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

270.Charge to tax on rent receivable in connection with a UK section 39(4) concern

271.Meaning of “rent receivable in connection with a UK section 39(4) concern”

Management expenses of owner of mineral rights

272.Deduction for management expenses of owner of mineral rights

Mineral royalties

273.Relief in respect of mineral royalties

274.Meaning of “mineral lease or agreement” and “mineral royalties”

275.Extended meaning of “mineral royalties” etc in Northern Ireland

276.Power to determine what counts as “mineral royalties”

Chapter 8 Rent receivable for UK electric-line wayleaves

Charge to tax on rent receivable for UK electric-line wayleaves

277.Charge to tax on rent receivable for a UK electric-line wayleave

278.Meaning of “rent receivable for a UK electric-line wayleave”

279.Extent of charge to tax

Chapter 9 Post-cessation receipts

Charge to tax on post-cessation receipts

280.Charge to tax on post-cessation receipts

281.Extent of charge to tax

Meaning of “post-cessation receipts”

282.Basic meaning of “post-cessation receipt”

283.Other rules about what counts as a “post-cessation receipt”

284.Transfer of rights if transferee does not carry on UK property business

Deductions

285.Allowable deductions

Election to carry back

286.Election to carry back

Chapter 10 Supplementary

Priority rules

287.Provisions which must be given priority over this Part

288.Priority between Chapters within this Part

Other supplementary provisions

289.Effect of company starting or ceasing to be within charge to corporation tax

290.Overseas property businesses and overseas land: adaptation of rules

291.Meaning of “lease” and “premises”

Part 5 Loan RelationshipsLoan Relationships

Chapter 1 Introduction

Introduction

292.Overview of Part

293.Construction of references to profits or losses from loan relationships

294.Matters treated as loan relationships

How profits and deficits from loan relationships are dealt with

295.General rule: profits arising from loan relationships chargeable as income

296.Profits and deficits to be calculated using credits and debits given by this Part

297.Trading credits and debits to be brought into account under Part 3

298.Meaning of trade and purposes of trade

299.Charge to tax on non-trading profits

300.Method of bringing non-trading deficits into account

301.Calculation of non-trading profits and deficits from loan relationships: non-trading credits and debits

Chapter 2 Basic definitions

302.“Loan relationship”, “creditor relationship”, “debtor relationship”

303.“Money debt”

304.“Related transaction”

305.Payments, interest, rights and liabilities under a loan relationship

Chapter 3 The credits and debits to be brought into account: general

Introduction

306.Overview of Chapter

General principles about the bringing into account of credits and debits

307.General principles about the bringing into account of credits and debits

Amounts recognised in determining a company's profit or loss

308.Amounts recognised in determining a company's profit or loss

309.Companies without GAAP-compliant accounts

310.Power to make regulations about recognised amounts

311.Amounts not fully recognised for accounting purposes: introduction

312.Determination of credits and debits where amounts not fully recognised

Accounting bases

313.Basis of accounting: “amortised cost basis”, “fair value accounting” and “fair value”

314.Power to make regulations about changes from amortised cost basis

Adjustments on change of accounting policy

315.Introduction to sections

316 to 319316.Change of accounting policy involving change of value

317.Carrying value

318.Change of accounting policy following cessation of loan relationship

319.General power to make regulations about changes in accounting policy

Rules differing from generally accepted accounting practice

320.Credits and debits treated as relating to capital expenditure

321.Credits and debits recognised in equity

322.Release of debts: cases where credits not required to be brought into account

323.Meaning of expressions relating to insolvency etc

324.Restriction on debits resulting from revaluation

325.Restriction on credits resulting from reversal of disallowed debits

326.Writing off government investments

327.Disallowance of imported losses etc

Exchange gains and losses

328.Exchange gains and losses

Pre-loan relationship, abortive and pre-trading expenses

329.Pre-loan relationship and abortive expenses

330.Debits in respect of pre-trading expenditure

Company ceasing to be party to loan relationship

331.Company ceasing to be party to loan relationship

332.Repo, stock lending and other transactions

Company moving abroad

333.Company ceasing to be UK resident

334.Non-UK resident company ceasing to hold loan relationship for UK permanent establishment

Chapter 4 Continuity of treatment on transfers within groups or on reorganisations

Application of this Chapter

335.Introduction to Chapter

336.Transfers of loans on group transactions

337.Transfers of loans on insurance business transfers

338.Meaning of company replacing another as party to loan relationship

339.Issues of new securities on certain cross-border reorganisations

Continuity of treatment: transfer of loan at notional carrying value

340.Group transfers and transfers of insurance business: transfer at notional carrying value

341.Transferor using fair value accounting

342.Issues of new securities on reorganisations: disposal at notional carrying value

343.Receiving company using fair value accounting

Transferee leaving group after replacing transferor as party to loan relationship

344.Introduction

345.Transferee leaving group otherwise than because of exempt distribution

346.Transferee leaving group because of exempt distribution

Disapplication of Chapter where transferor party to avoidance

347.Disapplication of Chapter where transferor party to avoidance

Chapter 5 Connected companies relationships: introduction and general

348.Introduction: meaning of “connected companies relationship”

349.Application of amortised cost basis to connected companies relationships

350.Companies beginning to be connected

351.Companies ceasing to be connected

352.Disregard of related transactions

Chapter 6 Connected companies relationships: impairment losses and releases of debts

Introduction

353.Introduction to Chapter

Exclusion of debits for impaired or released connected companies debts

354.Exclusion of debits for impaired or released connected companies debts

355.Cessation of connection

356.Exception to section 354: swapping debt for equity

357.Exception to section 354: insolvent creditors

Exclusion of credits for connected companies debts on release or reversal of impairments

358.Exclusion of credits on release of connected companies debts: general

359.Exclusion of credits on release of connected companies debts during creditor's insolvency

360.Exclusion of credits on reversal of impairments of connected companies debts

Deemed debt releases on impaired debts becoming held by connected company

361.Acquisition of creditor rights by connected company at undervalue

362.Parties becoming connected where creditor's rights subject to impairment adjustment

363.Companies connected for sections 361 and 362

Chapter 7 Group relief claims involving impaired or released consortium debts

364.Introduction to Chapter365.Reduction of impairment loss debits where group relief claimed

366.Effect where credit for release brought into account on amortised cost basis

367.Reduction of credits exceeding impairment losses

368.Reduction of claims where there are earlier net consortium debits

369.Carry forward of claims where there are no net consortium debits

370.Group accounting periods

371.InterpretationChapter 8 Connected parties relationships: late interest

372.Introduction to Chapter

373.Late interest treated as not accruing until paid in some cases

374.Connection between debtor and person standing in position of creditor

375.Loans to close companies by participators etc

376.Interpretation of section 375

377.Party to loan relationship having major interest in other party

378.Loans by trustees of occupational pension schemes

379.Persons indirectly standing in the position of creditor

Chapter 9 Partnerships involving companies

380.Partnerships involving companies

381.Determinations of credits and debits by company partners: general

382.Company partners using fair value accounting

383.Lending between partners and the partnership

384.Treatment of exchange gains and losses

385.Company partners' shares where firm owns deeply discounted securities

Chapter 10 Insurance companies

Introduction

386.Overview of Chapter

Treatment of deficit on basic life assurance and general annuity business

387.Treatment of deficit on basic life assurance and general annuity business: introduction

388.Basic rule: deficit set off against income and gains of deficit period

389.Claim to carry back deficit

390.Meaning of “available profits”

391.Carry forward of surplus deficit to next accounting period

Exclusion of loan relationships of members of Lloyd's

392.Exclusion of loan relationships of members of Lloyd's

Determination of questions requiring apportionments

393.General rules for some debtor relationships

394.Special rules for some debtor relationships

Chapter 11 Other special kinds of company

Investment trusts' and venture capital trusts' creditor relationships

395.Investment trusts: profits or losses of a capital nature

396.Venture capital trusts: profits or losses of a capital nature

Credit unions

397.Credit unions

Chapter 12 Special rules for particular kinds of securities

Introduction

398.Overview of Chapter

Gilt-edged securities

399.Index-linked gilt-edged securities: basic rules

400.Index-linked gilt-edged securities: adjustments for changes in index

401.Gilt strips

402.Market value of securities

403.Meaning of “strip”

404.Restriction on deductions etc relating to FOTRA securities

405.Certain non-UK residents with interest on 3½% War Loan 1952 Or After

Deeply discounted securities: connected companies and close companies

406.Introduction

407.Postponement until redemption of debits for connected companies' deeply discounted securities

408.Companies connected for section 407

409.Postponement until redemption of debits for close companies' deeply discounted securities

410.Exceptions to section 409

411.Interpretation of section 409

412.Persons indirectly standing in the position of creditor

Funding bonds

413.Issue of funding bonds

414.Redemption of funding bonds

Derivatives

415.Loan relationships with embedded derivatives

416.Election for application of sections 415 and 585

417.Further provisions about elections under section 416

418.Loan relationships treated differently by connected debtor and creditor

419.Section 418: supplementary

Options etc

420.Assumptions where options etc apply

Chapter 13 European cross-border transfers of business

Introduction

421.Introduction to Chapter

Transfers of loan relationships at notional carrying value

422.Transfer of loan relationship at notional carrying value

423.Transferor using fair value accounting

424.Reorganisations involving loan relationships

425.Original holder using fair value accounting

Exception for tax avoidance cases

426.Tax avoidance etc

427.Procedure on application for clearance

428.Decision on application for clearance

Transparent entities

429.Disapplication of Chapter where transparent entities involved

Interpretation

430.Interpretation

Chapter 14 European cross-border mergers

Introduction

431.Introduction to Chapter

432.Meaning of “the transferee” and “transferor”

Transfers of loan relationships at notional carrying value

433.Transfer of loan relationship at notional carrying value

434.Transferor using fair value accounting

435.Reorganisations involving loan relationships

436.Original holder using fair value accounting

Exception for tax avoidance cases

437.Tax avoidance etc

Transparent entities

438.Disapplication of Chapter where transparent entities involved

Interpretation

439.Interpretation

Chapter 15 Tax avoidance

Introduction

440.Overview of Chapter

Unallowable purposes and tax relief schemes

441.Loan relationships for unallowable purposes

442.Meaning of “unallowable purpose”

443.Restriction of relief for interest where tax relief schemes involved

Transactions not at arm's length: general

444.Transactions not at arm's length: general

445.Disapplication of section 444 where Schedule 28AA to ICTA applies

446.Bringing into account adjustments made under Schedule 28AA to ICTA

Transactions not at arm's length: exchange gains and losses

447.Exchange gains and losses on debtor relationships: loans disregarded under Schedule 28AA to ICTA

448.Exchange gains and losses on debtor relationships: equity notes where holder associated with issuer

449.Exchange gains and losses on creditor relationships: no corresponding debtor relationship

450.Meaning of “corresponding debtor relationship”

451.Exception to section 449 where loan exceeds arm's length amount

452.Exchange gains and losses where loan not on arm's length terms

Connected parties deriving benefit from creditor relationships

453.Connected parties deriving benefit from creditor relationships

Tax advantages from resetting interest rates (“reset bonds”)

454.Application of fair value accounting: reset bonds etc

Disposals for consideration not fully recognised by accounting practice

455.Disposals for consideration not fully recognised by accounting practice

Chapter 16 Non-trading deficits

456.Introduction to Chapter

457.Basic rule for deficits: carry forward to accounting periods after deficit period

458.Claim to carry forward deficit to later accounting periods

459.Claim to set off deficit against profits of deficit period or earlier periods

460.Time limits and procedure for claims under section 459(1)

461.Claim to set off deficit against other profits for the deficit period

462.Claim to carry back deficit to earlier accounting periods

463.Profits available for relief under section 462

Chapter 17 Priority rules

464.Priority of this Part for corporation tax purposes

465.Exclusion of distributions except in tax avoidance cases

Chapter 18 General and supplementary provisions

Connections between persons

466.Companies connected for an accounting period

467.Connections where partnerships are involved

468.Connection between companies to be ignored in some circumstances

469.Creditors who are financial traders

470.Section 469: supplementary provisions

471.Creditors who are insurance companies carrying on BLAGAB

472.Meaning of “control”

473.Meaning of “major interest”

474.Treatment of connected companies and partnerships for section 473

475.Meaning of expressions relating to exchange gains and losses

Other general definitions

476.Other definitions

Part 6 Relationships treated as loan relationships etcRelationships treated as loan relationships etc

Chapter 1 Introduction

477.Overview of Part

Chapter 2 Relevant non-lending relationships

Introduction: meaning of “relevant non-lending relationship” etc

478.Relevant non-lending relationships: introduction

479.Relevant non-lending relationships not involving discounts

480.Relevant non-lending relationships involving discounts

Application of Part 5 to relevant non-lending relationships

481.Application of Part 5 to relevant non-lending relationships

482.Miscellaneous rules about amounts to be brought into account because of this Chapter

Meaning of “money debt” and “interest” in this Chapter

483.Exchange gains and losses: amounts treated as money debts

484.Provision not at arm's length: meaning of “interest” and “money debt”

Exclusions

485.Exclusion of debts where profits or losses within Part 7 or 8

486.Exclusion of exchange gains and losses in respect of tax debts etc

Chapter 3 OEICs, unit trusts and offshore funds

Introduction

487.Overview of Chapter

488.Meaning of “open-ended investment company” etc

489.Meaning of “offshore fund” etc

Holdings in OEICs, unit trusts and offshore funds treated as creditor relationship rights

490.Holdings in OEICs, unit trusts and offshore funds treated as creditor relationship rights

491.Holding coming within section490: opening valuations

492.Disregard of investments made and liabilities incurred with avoidance intention etc

The qualifying investments test

493.The qualifying investments test

494.Meaning of “qualifying investments”

495.Qualifying holdings

496.Meaning of “hedging relationship”

Power to change investments that are qualifying investments

497.Power to change investments that are qualifying investments

Chapter 4 Building Societies

498.Building society dividends and interest

Chapter 5 Industrial and provident societies

499.Industrial and provident society payments treated as interest under loan relationship

500.Exclusion of interest where failure to make return

Chapter 6 Alternative finance arrangements

Introduction

501.Introduction to Chapter

502.Meaning of “financial institution”

Arrangements that are alternative finance arrangements

503.Purchase and resale arrangements

504.Diminishing shared ownership arrangements

505.Deposit arrangements

506.Profit share agency arrangements

507.Investment bond arrangements

508.Provision not at arm's length: exclusion of arrangements from sections 503 to 507

Treatment as loan relationships

509.Application of Part 5: general

510.Application of Part 5 to particular alternative finance arrangements

Meaning of “alternative finance return”

511.Purchase and resale arrangements

512.Diminishing shared ownership arrangements

513.Other arrangements

Treatment for other tax purposes

514.Exclusion of alternative finance return from consideration for sale of assets

515.Diminishing shared ownership arrangements not partnerships

516.Treatment of principal under profit sharing agency arrangements

517.Treatment of bond-holder under investment bond arrangements

518.Investment bond arrangements: treatment as securities

519.Investment bond arrangements: other provisions

520.Provision not at arm's length: non-deductibility of relevant return

Power to extend this Chapter to other arrangements

521.Power to extend this Chapter to other arrangements

Chapter 7 Shares with guaranteed returns etc

Application of Part 5 to certain shares as rights under creditor relationship

522.Introduction to Chapter

523.Application of Part 5 to certain shares as rights under creditor relationship

Shares subject to outstanding third party obligations

524.Shares subject to outstanding third party obligations

525.Meaning of “interest-like investment”

Non-qualifying shares

526.Non-qualifying shares

527.The increasing value condition

528.Regulations about income-producing assets

529.The redemption return condition

530.The redemption return condition: excepted shares

531.The redemption return condition: unallowable purposes

532.The associated transactions condition

533.Power to change conditions for non-qualifying shares

Consequences of section 523 applying or ceasing to apply

534.Amounts to be brought into account where section 523 applies

535.Shares ceasing to be shares to which section 523 applies

Chapter 8 Returns from partnerships

536.Introduction to Chapter

537.Payments in return for capital contribution to partnership

538.Change of partnership shares

Chapter 9 Manufactured interest etc

539.Introduction to Chapter

540.Manufactured interest treated as interest under loan relationship

541.Debits for deemed interest under stock lending arrangements disallowed

Chapter 10 Repos

Introduction

542.Introduction to Chapter

Creditor repos and creditor quasi-repos

543.Meaning of creditor repo

544.Meaning of creditor quasi-repo

545.Ignoring effect on lender etc of sale of securities

546.Charge on lender for finance return in respect of the advance

547.Repo under arrangement designed to produce quasi-interest: tax avoidance

Debtor repos and debtor quasi-repos

548.Meaning of debtor repo

549.Meaning of debtor quasi-repo

550.Ignoring effect on borrower of sale of securities

551.Relief for borrower for finance charges in respect of the advance

General provisions

552.General provisions about arrangements

553.Persons buying or selling for others

554.Power to modify this Chapter

555.Cases where section 554 applies: non-standard repos

Interpretation

556.Meaning of securities and similar securities

557.Meaning of person receiving an asset

558.Interpretation of accounting expressions

559.Minor definitions

Chapter 11 Investment life insurance contracts

Introduction

560.Introduction to Chapter

561.Meaning of “investment life insurance contract”

Investment life assurance contracts treated as creditor relationships

562.Contract to be loan relationship

563.Increased non-trading credits for BLAGAB and EEA taxed contracts

564.Section 563: interpretation

565.Relevant amount where the relevant company uses fair value accounting

Old accounting period contracts

566.Introduction

567.Gains on deemed surrenders to be brought into account on related transactions

568.Restriction on credits on old contracts: fair value accounting cases

569.Restriction on debits on old contracts: non-fair value accounting cases

Part 7 Derivative contractsDerivative contracts

Chapter 1 Introduction

Introduction

570.Overview of Part

How profits and losses from derivative contracts are dealt with

571.General rule: profits chargeable as income

572.Profits and losses to be calculated using credits and debits given by this Part

573.Trading credits and debits to be brought into account under Part 3

574.Non-trading credits and debits to be brought into account under Part 5

Chapter 2 Contracts to which this Part applies

Introduction

575.Overview of Chapter

Meaning of “derivative contract” and other basic definitions

576.“Derivative contract”

577.“Relevant contract”

578.Relevant contracts of a company and being party to such contracts

579.The accounting conditions

580.“Option”

581.“Future”

582.“Contract for differences”

583.“Underlying subject matter”

Cases where companies treated as parties to relevant contracts

584.Hybrid derivatives with embedded derivatives

585.Loan relationships with embedded derivatives

586.Other contracts with embedded derivatives

Other contracts etc treated as derivative contracts

587.Contract relating to holding in OEIC, unit trust or offshore fund

588.Associated transaction treated as derivative contract

Exclusions from derivative contracts

589.Contracts excluded because of underlying subject matter: general

590.Disregard of subordinate or small value underlying subject matter

591.Conditions A to E mentioned in section 589(5)

592.Embedded derivatives treated as meeting condition in section 591 etc

593.Contracts where part of underlying subject matter is excluded property

Chapter 3 Credits and debits to be brought into account: general

Introduction

594.Overview of Chapter

General principles

595.General principles about the bringing into account of credits and debits

596.Meaning of “related transaction”

Amounts recognised in determining a company's profit or loss

597.Amounts recognised in determining a company's profit or loss

598.Regulations about recognised amounts

599.Meaning of “amounts recognised for accounting purposes”

Application of fair value accounting

600.Contract which is or forms part of financial asset or liability

601.Contract relating to holding in OEIC, unit trust or offshore fund

602.Contract becoming one relating to holding in OEIC, unit trust or offshore fund

603.Associated transaction treated as derivative contract

Rules differing from generally accepted accounting practice

604.Credits and debits treated as relating to capital expenditure

605.Credits and debits recognised in equity

Miscellaneous

606.Exchange gains and losses

607.Pre-contract or abortive expenses

608.Company ceasing to be party to derivative contract

609.Company ceasing to be UK resident

610.Non-UK resident company ceasing to hold derivative contract for UK permanent establishment

611.Release under statutory insolvency arrangement of liability under derivative contract

Chapter 4 Further provision about credits and debits to be brought into account

Introduction

612.Overview of Chapter

Adjustments on change of accounting policy

613.Introduction to sections 614 and 615

614.Change of accounting policy involving change of value

615.Change of accounting policy after ceasing to be party to derivative contract

Certain embedded derivatives

616.Disapplication of fair value accounting

617.Election for section 616 not to apply

618.Elections under section 617: groups of companies

Partnerships involving companies

619.Partnerships involving companies

620.Determination of credits and debits by company partners

621.Company partners using fair value accounting

Miscellaneous

622.Contracts ceasing to be derivative contracts

623.Index-linked gilt-edged securities with embedded contracts for differences

Chapter 5 Continuity of treatment on transfers within groups

Introductory

624.Introduction to ChapterGroup member replacing another as party to derivative contract

625.Group member replacing another as party to derivative contract

626.Transactions to which section 625 applies

627.Meaning of company replacing another as party to derivative contract

Exceptions to section 625

628.Transferor using fair value accounting

629.Tax avoidance

Transferee leaving group after replacing transferor as party to derivative contract

630.Introduction to sections631 and 632

631.Transferee leaving group otherwise than because of exempt distribution

632.Transferee leaving group because of exempt distribution

Chapter 6 Special kinds of company

Mutual trading companies

633.Mutual trading companies

Insurance companies

634.Insurance companies

635.Creditor relationships: embedded derivatives which are options

636.Modifications of Chapter 5

Investment and venture capital trusts

637.Investment trusts: profits or losses of a capital nature

638.Venture capital trusts: profits or losses of a capital nature

Chapter 7 Chargeable gains arising in relation to derivative contracts

Introduction

639.Overview of Chapter

Some credits and debits not to be brought into account under Part 5

640.Credits and debits not to be brought into account under Part 5

Some derivative contracts to be taxed on a chargeable gains basis

641.Derivative contracts to be taxed on a chargeable gains basis

642.Exception from section 641

Derivative contracts to which sections 640 and 641 apply

643.Contracts relating to land or certain tangible movable property

644.Income to be left out of account in determining whether section 643 applies

645.Creditor relationships: embedded derivatives which are options

646.Exclusions from section 645

647.Meaning of certain expressions in section 645

648.Creditor relationships: embedded derivatives which are exactly tracking contracts for differences

649.Meaning of certain expressions in section 648

650.Property based total return swaps

Some credits and debits not to be brought into account under Part 3 or 5

651.Credits and debits not to be brought into account under Part 3 or Part 5

Issuers of securities with embedded derivatives: deemed options

652.Introduction to sections 653 to 655

653.Shares issued or transferred as a result of exercise of deemed option

654.Payment instead of disposal on exercise of deemed option

655.Ceasing to be party to debtor relationship when deemed option not exercised

Issuers of securities with embedded derivatives: deemed contracts for differences

656.Introduction to section 658

657.Meaning of “exactly tracking contract” in section 656

658.Chargeable gain or allowable loss treated as accruing

Interpretation

659.Meaning of “relevant credits” and “relevant debits”

Chapter 8 Further provision about chargeable gains and derivative contracts

Company ceasing to be party to certain contracts

660.Contract relating to holding in OEIC, unit trust or offshore fund

661.Contract which becomes derivative contract

Contracts ceasing to be derivative contracts

662.Contracts ceasing to be derivative contracts

Carry back of net losses on certain derivative contracts

663.Contracts to which section 641 applies

664.Meaning of certain expressions in section 663

Issuers of securities with embedded derivatives: equity instruments

665.Introduction to section 666

666.Allowable loss treated as accruing

Treatment of shares acquired in certain circumstances

667.Shares acquired on exercise of non-embedded option

668.Shares acquired on running of future to delivery

669.Meaning of G and L in sections 667 and 668

Treatment of net gains and losses on exercise of option

670.Treatment of net gains and losses on exercise of option

671.Meaning of G, L and CV in section 670

Treatment of net gains and losses on disposal of certain embedded derivatives

672.Treatment of net gains and losses on disposal of certain embedded derivatives

673.Meaning of G, L and CV in section 672

Chapter 9 European cross-border transfers of business

Introduction

674.Introduction to Chapter

Transfers of derivative contracts at notional carrying value

675.Transfer of derivative contract at notional carrying value

676.Transferor using fair value accounting

Exception for tax avoidance cases and clearances

677.Tax avoidance etc

678.Procedure on application for clearance

679.Decision on application for clearance

Transparent entities

680.Disapplication of Chapter where transparent entities involved

Interpretation

681.Interpretation

Chapter 10 European cross-border mergers

Introduction

682.Introduction to Chapter

683.Meaning of “the transferee” and “transferor”

Transfers of derivative contracts at notional carrying value

684.Transfer of derivative contract at notional carrying value

685.Transferor using fair value accounting

Exception for tax avoidance cases and clearances

686.Tax avoidance etc

Transparent entities

687.Disapplication of Chapter where transparent entities involved

Interpretation

688.Interpretation

Chapter 11 Tax avoidance

Introduction

689.Overview of Chapter

Unallowable purposes

690.Derivative contracts for unallowable purposes

691.Meaning of “unallowable purpose”

692.Allowance of accumulated net losses

Transactions not at arm's length

693.Bringing into account adjustments under Schedule 28AA to ICTA

694.Exchange gains and losses

695.Transfers of value to connected companies

Transactions with non-UK residents

696.Derivative contracts with non-UK residents

697.Exceptions to section 696

Disposals for consideration not fully recognised by accounting practice

698.Disposals for consideration not fully recognised by accounting practice

Chapter 12 Priority rules

699.Priority of this Part for corporation tax purposes

700.Relationship of this Part to Part 5: loan relationships

Chapter 13 General and supplementary provisions

Power to amend certain provisions

701.Power to amend some provisions

Other general definitions

702.“Carrying value”

703.“Chargeable asset”

704.“Creditor relationship” and “debtor relationship”

705.Expressions relating to exchange gains and losses

706.“Excluded body”

707.“Hedging relationship”

708.“Plain vanilla contract”

709.“Securities house”

710.Other definitions

Part 8 Intangible fixed assetsIntangible fixed assets

Chapter 1 Introduction

Introductory

711.Overview of Part

Basic definitions

712.“Intangible asset”

713.“Intangible fixed asset”

714.“Royalty”

Goodwill

715.Application of this Part to goodwill

Accounting rules and definitions

716.“Recognised” amounts and “GAAP-compliant accounts”

717.Companies without GAAP-compliant accounts

718.GAAP-compliant accounts: reference to consolidated group accounts

719.Accounting value

Chapter 2 Credits in respect of intangible fixed assets

720.Introduction

721.Receipts recognised as they accrue

722.Receipts in respect of royalties so far as not dealt with under section 721

723.Revaluation

724.Negative goodwill

725.Reversal of previous accounting loss

Chapter 3 Debits in respect of intangible fixed assets

726.Introduction

727.References to expenditure on an asset

728.Expenditure written off as it is incurred

729.Writing down on accounting basis

730.Writing down at fixed rate: election for fixed-rate basis

731.Writing down at fixed rate: calculation

732.Reversal of previous accounting gain

Chapter 4 Realisation of intangible fixed assets

733.Overview of Chapter

734.Meaning of “realisation”

735.Asset written down for tax purposes

736.Asset shown in balance sheet and not written down for tax purposes

737.Apportionment in case of part realisation

738.Asset not shown in balance sheet

739.Meaning of “proceeds of realisation”

740.Abortive expenditure on realisation

741.Meaning of “chargeable intangible asset” and “chargeable realisation gain”

Chapter 5 Calculation of tax written-down value

742.Asset written down on accounting basis

743.Asset written down at fixed rate

744.Effect of part realisation of asset

Chapter 6 How credits and debits are given effect

Introductory

745.Introduction

746.“Non-trading credits” and “non-trading debits”

Trading etc credits and debits

747.Assets held for purposes of trade

748.Assets held for purposes of property business

749.Assets held for purposes of mines, transport undertakings, etc

750.Assets held for purposes falling within more than one section

Non-trading credits and debits

751.Non-trading gains and losses

752.Charge to tax on non-trading gains on intangible fixed assets

753.Treatment of non-trading losses

Chapter 7 Roll-over relief in case of realisation and reinvestment

When the relief is given

754.The relief: the “old asset” and “other assets”

755.Conditions relating to the old asset and its realisation

756.Conditions relating to expenditure on other assets

757.Claim for relief

How the relief is given

758.How the relief is given: general

759.Determination of appropriate proportion of cost and adjusted cost

760.References to cost of asset where asset affected by change of accounting policy

761.Declaration of provisional entitlement to relief

762.Realisation and reacquisition

763.Disregard of deemed realisations and reacquisitions

Chapter 8 Groups of companies: introduction

Introductory

764.Meaning of “company”, “group” and “subsidiary”

Rules

765.General rule: a company and its 75% subsidiaries form a group

766.Only effective 51% subsidiaries of principal company to be members of group

767.Principal company cannot be 75% subsidiary of another company

768.Company cannot be member of more than one group

769.Continuity of identity of group

770.Continuity where group includes an SE

771.Meaning of “effective 51% subsidiary”

772.Equity holders and profits or assets available for distribution

773.Supplementary provisions

Chapter 9 Application of this Part to groups of companies

Introductory

774.Overview of Chapter

Transfers within a group treated as tax-neutral

775.Transfers within a group

776.Meaning of “tax-neutral” transfer

Roll-over relief under Chapter 7 (realisation and reinvestment)

777.Relief on realisation and reinvestment: application to group member

778.Relief on reinvestment: acquisition of group company: introduction

779.Rules that apply to cases within section 778(1)

Company ceasing to be member of group

780.Deemed realisation and reacquisition at market value

781.Character of credits and debits brought into account as a result of section 780

782.Certain transferees of businesses etc not treated as leaving group

783.Associated companies leaving group at the same time

784.Groups with a relevant connection

785.Principal company becoming member of another group

786.Character of credits and debits brought into account as a result of section 785

787.Company ceasing to be member of group because of exempt distribution

788.Provisions supplementing sections 780 to 787

789.Merger carried out for genuine commercial reasons

790.Provisions supplementing section 789

791.Application of roll-over relief in relation to degrouping charge

Reallocation of degrouping charge within group and recovery

792.Reallocation of charge within group

793.Further requirements about elections under section 792

794.Application of roll-over relief in relation to reallocated charge

795.Recovery of charge from another group company or controlling director

796.Interpretation of section 795

797.Recovery under section 795: procedure etc

798.Recovery under section 795: time limit

Disregard of payments between group members for reliefs

799.Disregard of payments between group members for reliefs

Chapter 10 Excluded assets

Introductory

800.Introduction

801.Right to dispose of or acquire excluded asset also excluded

802.Effect of partial exclusion

Assets wholly excluded from this Part

803.Non-commercial purposes etc

804.Assets for which capital allowances previously made

805.Rights over tangible assets

806.Financial assets

807.Rights in companies, trusts etc

808.Assets representing production expenditure on films

809.Oil licences

Assets excluded from this Part except as respects royalties

810.Mutual trade or business

811.Sound recordings

812.Master versions of films

813.Computer software treated as part of cost of related hardware

Assets excluded from this Part to the extent specified

814.Research and development

815.Election to exclude capital expenditure on software

816.Further provision about elections under section 815

Chapter 11 Transfer of business or trade

Introduction

817.Overview of Chapter

Tax-neutral transfers

818.Company reconstruction involving transfer of business

819.European cross-border transfers of business: introduction

820.Transfer of assets on European cross-border transfer of business

821.European cross-border mergers: introduction

822.Transfer of assets on European cross-border merger

823.Interpretation of sections 821 and 822

824.Transfer of business of building society to company

825.Application of sections 780 and 785 where transfer within section 824 occurs

826.Amalgamation of, or transfer of engagements by, certain societies

Transfer of assets to non-UK resident company

827.Claims to postpone charge on transfer

828.Relief on transfer

829.Charge on subsequent realisations

830.Exclusion from section 829 of group transfers

The genuine commercial transaction requirement and clearance

831.The genuine commercial transaction requirement and clearance

832.Procedure on application for clearance

833.Decision on application for clearance

Chapter 12 Related parties

Introductory

834.Overview 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

838.General rule

839.Rights and powers held jointly

840.Partnerships

Meaning of “participator” and “associate”

841.“Participator” and “associate”

Connected persons

842.Introduction

843.Who are connected persons

Chapter 13 Transactions between related parties

Introductory

844.Overview of Chapter

Transfers treated as being at market value

845.Transfer between company and related party treated as at market value

846.Transfers not at arm's length

847.Transfers involving other taxes

848.Tax-neutral transfers

849.Transfers involving gifts of business assets

Other rules

850.Part realisation involving related party acquisition: exclusion of roll-over relief

851.Delayed payment of royalty by company to related party

Chapter 14 Miscellaneous provisions

Grants and other contributions to expenditure

852.Treatment of grants and other contributions to expenditure

853.Grants to be left out of account for tax purposes

Finance leasing

854.Finance leasing etc

855.Further provision about regulations under section 854

Values to be used in special cases

856.Assets acquired or realised together

857.Deemed market value acquisition: adjustment where nil accounting value

Fungible assets

858.Fungible assets

Assets ceasing to be or becoming chargeable intangible assets

859.Asset ceasing to be chargeable intangible asset: deemed realisation at market value

860.Asset ceasing to be chargeable intangible asset: postponement of gain

861.Treatment of postponed gain on subsequent realisation

862.Treatment of postponed gain in other cases

863.Asset becoming chargeable intangible asset

Matters to be ignored

864.Tax avoidance arrangements to be ignored

865.Debits for expenditure not generally deductible for tax purposes

Delayed payments and bad debts

866.Delayed payment of employees' remuneration

867.Provisions supplementing section 866

868.Delayed payment of pension contributions

869.Bad debts etc

Controlled foreign companies

870.Assumptions for calculating chargeable profits

Chapter 15 Adjustments on change of accounting policy

Introductory

871.Introduction to Chapter

Change of policy involving change of value

872.Adjustments in respect of change

873.Effect of application of section 872 in later period and subsequently

Change of policy involving disaggregation

874.Original asset not subject to fixed-rate writing down

875.Effect of application of section 874 in later period and subsequently

876.Original asset subject to fixed-rate writing down

877.Election for fixed-rate writing down in relation to resulting asset

Supplementary

878.Exclusion of credits or debits brought into account under other provisions

879.Subsequent events affecting asset subject to adjustment under this Chapter

Chapter 16 Pre-FA 2002 assets etc

Introduction

880.Overview of Chapter

881.Meaning of “pre-FA 2002 assets”

General rule

882.Application of this Part to assets created or acquired on or after 1 April 2002

When assets are treated as created or acquired

883.Assets treated as created or acquired when expenditure incurred

884.Internally-generated goodwill: time of creation

885.Certain other internally-generated assets: time of creation

886.Assets representing production expenditure on films: time of creation

When expenditure treated as incurred

887.General rule

888.Cases where chargeable gains rule applies

889.Cases where capital allowances general rule applies

Fungible assets

890.Fungible assets: application of section 858

891.Realisation and acquisition of fungible assets

Assets treated as pre-FA 2002 assets

892.Certain assets acquired on transfer of business

893.Assets whose value derives from pre-FA 2002 assets

894.The preserved status conditions etc

895.Assets acquired in connection with disposals of pre-FA 2002 assets

Application of Part to royalties and telecommunication rights

896.Application to royalties

897.Application to pre-FA 2002 assets consisting of telecommunication rights

Roll-over relief for disposals of pre-FA 2002 assets

898.Relief where assets disposed of on or after 1 April 2002

899.Relief where degrouping charge on asset arises on or after 1 April 2002

900.Meaning of “chargeable asset within TCGA” in sections 898 and 899

Chapter 17 Insurance companies

Effect of application of the I minus E basis: non-trading amounts

901.Effect of application of the I minus E basis: non-trading amounts

Excluded assets and computer software

902. Excluded assets

903.Elections to exclude capital expenditure on computer software

Miscellaneous

904.Transfers of life assurance business: transfers of assets treated as tax-neutral

905.Pre-FA 2002 assets: Lloyd's syndicate capacity

Chapter 18 Priority rules

906.Priority of this Part for corporation tax purposes

Part 9 Intellectual property: know-how and patentsIntellectual property: know-how and patents

Chapter 1 Introduction

907.Overview of Part

Chapter 2 Disposals of know-how

908.Charge to tax on profits from disposals of know-how

909.Exceptions to charge under section 908

910.Profits charged under section 908

Chapter 3 Sales of patent rights

Introductory

911.Overview of Chapter

Charge to tax

912.Charge to tax on profits from sales of patent rights

913.Profits charged under section 912

Spreading of charge to tax

914.UK resident companies: proceeds of sale not received in instalments

915.UK resident companies: proceeds of sale received in instalments

916.Non-UK resident companies: proceeds of sale not received in instalments

917.Non-UK resident companies: proceeds of sale received in instalments

918.Winding up of a body corporate

Miscellaneous

919.Deduction of tax from payments to non-UK resident companies

920.Adjustments where tax has been deducted

921.Licences connected with patents

922.Rights to acquire future patent rights

923.Sums paid for Crown use etc treated as paid under licence

Chapter 4 Relief from corporation tax on patent income

924.Relief for expenses: patent income

925.How relief is given under section 924

Chapter 5 Supplementary

926.Contributions to expenditure

927.Contributions not made by public bodies nor eligible for tax relief

928.Exchanges

929.Apportionment where property sold together

930.Questions about apportionments affecting two or more persons

931.Meaning of “capital sums” etc

Part 10 Miscellaneous incomeMiscellaneous income

Chapter 1 Introduction

932.Overview of Part

Chapter 2 Dividends of non-UK resident companies

933.Charge to tax on dividends of non-UK resident companies

Chapter 3 Beneficiaries' income from estates in administration

Introduction

934.Charge to tax on estate income

935.Absolute, limited and discretionary interests

936.Meaning of “UK estate” and “foreign estate”

Types of estate income

937.Absolute interests in residue

938.Meaning of “the administration period”, “the final accounting period” and “the final tax year”

939.Limited interests in residue

940.Discretionary interests in residue

Income charged

941.UK estates

942.Foreign estates

Basic amount of estate income: general calculations rules

943.Absolute interests

944.Limited interests

945.Discretionary interests

946.Applicable rate for grossing up basic amounts of estate income

947.Aggregate income of the estate

Further provisions for calculating estate income relating to absolute interests

948.Assumed income entitlement

949.Residuary income of the estate

950.Shares of residuary income of estate

951.Reduction in share of residuary income of estate

952.Applicable rate for determining assumed income entitlement (UK estates)

Successive interests

953.Introduction

954.Successive absolute interests

955.Assumed income entitlement of holder of absolute interest following limited interest

956.Payments in respect of limited interests followed by absolute interests

957.Holders of limited interests

958.Basic amount of estate income: successive limited interests

959.Apportionments

Relief where foreign estates have borne UK income tax

960.Relief in respect of tax relating to absolute interests

961.Relief in respect of tax relating to limited or discretionary interests

General

962.Income from which basic amounts are treated as paid

963.Income treated as bearing income tax

964.Transfers of assets etc treated as payments

965.Assessments, adjustments and claims after the administration period

966.Power to obtain information from personal representatives and beneficiaries

967.Statements relating to estate income

Supplementary

968.Meaning of “personal representatives”

Chapter 4 Income from holding an office

969.Charge to tax on income from holding an office

970.Rule restricting deductions for bad debts

Chapter 5 Distributions from unauthorised unit trusts

971.Overview of Chapter

972.Charge to tax under this Chapter

973.Amount of income treated as received

Chapter 6 Sale of foreign dividend coupons

974.Charge to tax under this Chapter

975.Meaning of “foreign holdings” etc

Chapter 7 Annual payments not otherwise charged

976.Overview of Chapter

977.Charge to tax on annual payments not otherwise charged

978.Exemption for payments by persons liable to pool betting duty

Chapter 8 Income not otherwise charged

979.Charge to tax on income not otherwise charged

980.Exemption for commercial occupation of woodlands in UK

981.Exemption for gains on financial futures

Chapter 9 Priority rules

982.Provisions which must be given priority over this Part

Part 11 Relief for particular employee share acquisition schemesRelief for particular employee share acquisition schemes

Chapter 1 Share incentive plans

Introductory

983.Overview of Chapter

984.Chapter to form part of SIP code etc

Deductions and receipts: general

985.References to a deduction being allowed to a company

986.Treatment of receipts under Chapter

Deductions relating to setting up and running costs

987.Deduction for costs of setting up an approved share incentive plan

988.Deductions for running expenses of an approved share incentive plan

Deductions relating to payments used to acquire shares

989.Deduction for contribution to plan trust

990.Withdrawal of deduction under section 989

991.Another deduction to be allowed if all acquired shares are awarded

992.Award of shares to excluded employee

993.Plan termination notice

Deductions relating to provision of certain types of shares

994.Deduction for providing free or matching shares

995.Deduction for additional expense in providing partnership shares

996.Shares excluded from sections 994 and 995

997.No deduction for expenses in providing dividend shares

Withdrawal of approval for a plan

998. Withdrawal of deductions if approval for share incentive plan withdrawn

Chapter 2 SAYE option schemes, company share option schemes and employee share options trusts

999.Deduction for costs of setting up SAYE option scheme or CSOP scheme

1000.Deduction for costs of setting up employee share ownership trust

Part 12 Other relief for employee share acquisitionsOther relief for employee share acquisitions

Chapter 1 Introduction

Introductory

1001.Overview of Part

Interpretation

1002.“Employment”

1003.“Shares” etc

1004.Groups, consortiums and commercial associations of companies

1005.Other definitions

Chapter 2 Relief if shares acquired by employee or other person

Introductory

1006.Overview of Chapter

Requirements to be met for relief to be available

1007.Basic requirements for relief under Chapter 2

1008.Conditions relating to shares acquired

1009.Conditions relating to employee's income tax position

Calculation of amount of relief

1010.Calculation of relief if shares are neither restricted nor convertible

1011.Calculation of relief if shares are restricted or convertible

1012.Reduction in amount of relief

Giving of relief

1013.How the relief is given

Chapter 3 Relief if employee or other person obtains option to acquire shares

Introductory

1014.Overview of Chapter

Requirements to be met for relief to be available

1015.Basic requirements for relief under Chapter 3

1016.Conditions relating to shares acquired

1017.Condition relating to employee's income tax position

Calculation of amount of relief

1018.Calculation of relief if shares are neither restricted nor convertible

1019.Calculation of relief if shares are restricted or convertible

1020.Reduction in amount of relief

Giving of relief

1021.How the relief is given

Takeovers and transfers of businesses

1022.Takeover of company whose shares are subject to option

1023.Supplementary provision for purposes of section 1022

1024.Transfer of qualifying business by group transfers

Chapter 4 Additional relief in cases involving restricted shares

1025.Additional relief available if shares acquired are restricted shares

1026.Relief available on occurrence of chargeable event

1027.Relief available on death of employee

1028.Supplementary provision for purposes of sections 1026 and 1027

1029.Transfer of qualifying business by group transfers

Chapter 5 Additional relief in cases involving convertible securities

1030.Application of Chapter

1031.Additional relief available if shares acquired are convertible shares etc

1032.Meaning of “chargeable event”

1033.Relief available on occurrence of chargeable event

1034.Relief available following death of employee

1035.Supplementary provision for purposes of sections 1033 and 1034

1036.Transfer of qualifying business by group transfers

Chapter 6 Relationship between relief under this Part and other reliefs

1037.Priority of Chapter 1 of Part 11

1038.Exclusion of other deductions

Part 13 Additional relief for expenditure on research and developmentAdditional relief for expenditure on research and development

Chapter 1 Introduction

Introductory

1039.Overview of Part

1040.Relief may be available under more than one Chapter of Part

Interpretation

1041.“Research and development”

1042.“Relevant research and development”

Chapter 2 Relief for SMEs: cost of R&D incurred by SME

Introductory

1043.Overview of Chapter

Reliefs

1044.Additional deduction in calculating profits of trade

1045.Alternative treatment for pre-trading expenditure: deemed trading loss

Reliefs: further provision

1046.Relief only available where company is going concern

1047.Elections under section 1045

1048.Treatment of deemed trading loss under section 1045

1049.Restriction on consortium relief

Threshold

1050.R&D threshold

Qualifying expenditure

1051.Qualifying Chapter 2 expenditure

1052.Qualifying expenditure on in-house direct R&D

1053.Qualifying expenditure on contracted out R&D

Tax credit: entitlement and payment

1054.Entitlement to and payment of tax credit

1055.Meaning of “Chapter 2 surrenderable loss”

1056.Amount of trading loss which is “unrelieved”

1057.Tax credit only available where company is going concern

Amount of tax credit

1058.Amount of tax credit

1059.Total amount of company's PAYE and NIC liabilities

Supplementary

1060.Payment of tax credit

1061.Tax credit payment not income of company

1062.Restriction on losses carried forward where tax credit claimed

Chapter 3 Relief for SMEs: R&D sub-contracted to SME

Relief

1063.Additional deduction in calculating profits of trade

Threshold

1064.R&D threshold

Qualifying expenditure

1065.Qualifying Chapter 3 expenditure

1066.Expenditure on sub-contracted R&D undertaken in-house

1067.Expenditure on sub-contracted R&D not undertaken in-house

Chapter 4 Relief for SMEs: subsidised and capped expenditure on R&D

Relief

1068.Additional deduction in calculating profits of trade

Threshold

1069.R&D threshold

Qualifying expenditure

1070.Qualifying Chapter 4 expenditure

1071.Subsidised qualifying expenditure on in-house direct R&D

1072.Subsidised qualifying expenditure on contracted out R&D

1073.Capped R&D expenditure

Chapter 5 Relief for large companies

Relief

1074.Additional deduction in calculating profits of trade

Threshold

1075.R&D threshold

Qualifying expenditure

1076.Qualifying Chapter 5 expenditure

1077.Qualifying expenditure on in-house direct R&D

1078.Qualifying expenditure on contracted out R&D

1079.Qualifying expenditure on contributions to independent R&D

Insurance companies

1080.Entitlement to relief: I minus E basis

Chapter 6 Chapters 2 to 5: further provision

1081.Insurance companies treated as large companies

1082.R&D expenditure of group companies

1083.Refunds of expenditure treated as income chargeable to tax

1084.Artificially inflated claims for relief or tax credit

Chapter 7 Relief for SMEs and large companies: vaccine research etc

Introductory

1085.Overview of Chapter

1086.Meaning of “qualifying R&D activity”

Reliefs

1087.Deduction in calculating profits of trade

1088.Large companies: declaration about effect of relief

1089.SMEs: amount of deduction

1090.Modification of section 1089 for larger SMEs

1091.Large companies: amount of deduction

1092.SMEs: deemed trading loss for pre-trading expenditure

1093.Modification of section 1092 for larger SMEs

1094.Relief only available to SME where company is going concern

Deemed trading loss: further provision

1095.Elections under section 1092

1096.Treatment of deemed trading loss under section 1092

Threshold

1097.R&D threshold

Qualifying expenditure

1098.Meaning of “qualifying Chapter 7 expenditure”

1099.SMEs: qualifying expenditure “for” an accounting period

1100.Large companies: qualifying expenditure “for” an accounting period

1101.Qualifying expenditure on in-house direct R&D

1102.Qualifying expenditure on contracted out R&D

Tax credit: entitlement and payment

1103.Entitlement to and payment of tax credit

1104.Meaning of “Chapter 7 surrenderable loss”

1105.Amount of trading loss which is “unrelieved”

1106.Tax credit only available where company is going concern

Amount of tax credit

1107.Amount of tax credit

1108.Total amount of company's PAYE and NIC liabilities

Supplementary

1109.Payment of tax credit

1110.Tax credit payment not income of company

1111.Restriction on losses carried forward where tax credit claimed

Tax avoidance

1112.Artificially inflated claims for relief or tax credit

Chapter 8 Cap on aid for R&D

1113.Cap on R&D aid under Chapter 2 or 7

1114.Total R&D aid

1115.“The tax credits”

1116.“The actual reduction in tax liability”

1117.“The potential relief”

1118.“The notional relief”

Chapter 9 Supplementary

SMEs and large companies

1119.“Small or medium-sized enterprise”

1120.Qualifications to section 1119

1121.“Larger SME”

1122.“Large company”

Staffing costs

1123.“Staffing costs”

1124.Staffing costs: attributable expenditure

Software or consumable items

1125.“Software or consumable items”

1126.Software or consumable items: attributable expenditure

Qualifying expenditure on externally provided workers

1127.“Qualifying expenditure on externally provided workers”

1128.“Externally provided worker”

1129.Qualifying expenditure on externally provided workers: connected persons

1130.Election for connected persons treatment

1131.Qualifying expenditure on externally provided workers: other cases

1132.External workers: attributable expenditure

Sub-contractor payments

1133.“Sub-contractor” and “sub-contractor payment”

1134.Qualifying element of sub-contractor payment: connected persons

1135.Election for connected persons treatment

1136.Qualifying element of sub-contractor payment: other cases

Miscellaneous

1137.Accounting 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 14 Remediation of contaminated landRemediation of contaminated land

Chapter 1 Introduction

Introductory

1143.Overview of Part

Basic definitions

1144.“Qualifying land remediation expenditure”

1145.Land “in a contaminated state”

1146.“Relevant land remediation”

Chapter 2 Reliefs for expenditure on contaminated land

1147.Deduction for capital expenditure

1148.Election under section 1147

1149.Additional deduction for qualifying land remediation expenditure

1150.No relief if company responsible for contamination

Chapter 3 Land remediation tax credit

Entitlement and payment

1151.Entitlement to and payment of tax credit

1152.Meaning of “qualifying land remediation loss”

1153.Amount of a loss which is “unrelieved”

Amount of tax credit

1154.Amount of tax credit

Supplementary

1155.Payment of tax credit

1156.Tax credit payment not income of company

1157.Exclusion for capital gains purposes of certain expenditure

1158.Restriction on losses carried forward where tax credit claimed

Chapter 4 Special provision for life assurance business

General

1159.Limitation on relief under Chapter 2

I minus E basis

1160.Provision in respect of I minus E basis

Relief for qualifying Chapter 4 expenditure

1161.Relief in respect of I minus E basis: enhanced expenses payable

1162.Meaning of “qualifying Chapter 4 expenditure”

1163.No relief if company responsible for contamination

Life assurance company tax credits

1164.Entitlement to tax credit

1165.Meaning of “qualifying life assurance business loss”

1166.Amount of tax credit

1167.Payment of tax credit etc

1168.Restriction on carrying forward expenses payable where tax credit claimed

Chapter 5 Tax avoidance

1169.Artificially inflated claims for relief or tax credit

Chapter 6 Supplementary

1170.“Staffing costs”

1171.Staffing costs attributable to relevant land remediation

1172.Expenditure on materials

1173.Expenditure incurred because of contamination

1174.Sub-contractor payments

1175.“Qualifying expenditure on sub-contracted land remediation”: connected persons

1176.“Qualifying expenditure on sub-contracted land remediation”: other cases

1177.“Subsidised expenditure”

1178.Persons having a “relevant connection” to a company

1179.Other definitions

Part 15 Film productionFilm production

Chapter 1 Introduction

Introductory

1180.Overview 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 2 Taxation of activities of film production company

Separate film trade

1188.Activities of film production company treated as a separate trade

1189.Calculation of profits or losses of separate film trade

Supplementary

1190.Income from the film

1191.Costs of the film

1192.When costs are taken to be incurred

1193.Pre-trading expenditure1194.Estimates

Chapter 3 Film tax relief

Introductory

1195.Availability and overview of film tax relief

Conditions of relief

1196.Intended theatrical release

1197.British film

1198.UK expenditure

Additional deductions

1199.Additional deduction for qualifying expenditure

1200.Amount of additional deduction

Film tax credits

1201.Film tax credit claimable if company has surrenderable loss

1202.Surrendering of loss and amount of film tax credit

1203.Payment in respect of film tax credit

Miscellaneous

1204.No account to be taken of amount if unpaid

1205.Artificially inflated claims for additional deduction or film tax credit

1206.Confidentiality of information

1207.Wrongful disclosure

Chapter 4 Film losses

1208.Application of sections1209 and 1210

1209.Restriction on use of losses while film in production

1210.Use of losses in later periods

1211.Terminal losses

Chapter 5 Provisional entitlement to relief

1212.Introduction

1213.Certification as a British film

1214.The UK expenditure condition

1215.Film tax relief on basis that film is limited-budget film

1216.Time limit for amendments and assessments

Part 16 Companies with investment businessCompanies with investment business

Chapter 1 Introduction

1217.Overview of Part1218.“Company with investment business” and “investment business”

Chapter 2 Management expenses

Relief for expenses of management

1219.Expenses of management of a company's investment business

1220.Meaning of “unallowable purpose”

1221.Amounts treated as expenses of management

1222.Income from a source not charged to tax

1223.Carrying forward expenses of management and other amounts

Accounting period to which expenses are referable

1224.Accounting period to which expenses are referable

1225.Accounts conforming with GAAP

1226.Accounts not conforming with GAAP

1227.Accounts not drawn up

Claw back of relief

1228.Credits that reverse debits

1229.Claw back of relief

1230.Meaning of “reversal amount”

1231.Absence of accounts

Chapter 3 Amounts treated as expenses of management

Preliminary

1232.Chapter applies to amounts not otherwise relieved

Excess capital allowances

1233.Excess capital allowances

Payments for restrictive undertakings

1234.Payments for restrictive undertakings

Seconded employees

1235.Employees seconded to charities and educational establishments

Contributions to agents' expenses

1236.Payroll deduction schemes

Counselling and retraining expenses

1237.Counselling and other outplacement services

1238.Retraining courses

Redundancy payments etc

1239.Redundancy payments and approved contractual payments

1240.Payments in respect of employment wholly in employer's business

1241.Payments in respect of employment in more than one capacity

1242.Additional payments

1243.Payments made by the Government

Contributions to local enterprise organisations or urban regeneration companies

1244.Contributions to local enterprise organisations or urban regeneration companies

Export Credits Guarantee Department

1245.Payments to Export Credits Guarantee Department

Levies under FISMA 2000

1246.Levies under FISMA 2000

Chapter 4 Rules restricting deductions

1247.Introduction

1248.Expenses in connection with arrangements for securing a tax advantage

1249.Unpaid remuneration

1250.Unpaid remuneration: supplementary

1251.Car or motor cycle hire

Chapter 5 Companies with investment business: receipts

1252.Industrial development grants

1253.Contributions to local enterprise organisations or urban regeneration companies: disqualifying benefits

1254.Repayments under FISMA 2000

Chapter 6 Supplementary

1255.Meaning of some accounting terms

Part 17 PartnershipsPartnerships

Introduction

1256.Overview of Part

1257.General provisions

1258.Assessment of firms

Calculation of partners' shares

1259.Calculation of firm's profits and losses

1260.Section 1259: supplementary

1261.Accounting periods of firms

1262.Allocation of firm's profits or losses between partners

1263.Profit-making period in which some partners have losses

1264.Loss-making period in which some partners have profits

1265.Apportionment of profit share between partner's accounting periods

Firms with a foreign element

1266.Resident partners and double taxation agreements

Adjustment on change of basis

1267.Various rules for trades and property businesses

1268.Election for spreading under Chapter 14 of Part 3

1269.Interpretation of clauses 1267 and 1268

Miscellaneous

1270.Special provisions about farming and property income

1271.Sale of patent rights: effect of partnership changes

1272.Sale of patent rights: effect of later cessation of trade

1273.Limited liability partnerships

Part 18 Unremittable incomeUnremittable income

1274.Unremittable income: introduction

1275.Claim for relief for unremittable income

1276.Withdrawal of relief

1277.Income charged on withdrawal of relief after source ceases

1278.Valuing unremittable income

Part 19 General exemptionsGeneral exemptions

Profits from FOTRA securities

1279.Exemption of profits from securities free of tax to residents abroad (“FOTRA securities”)

1280.Section 1279: supplementary provision

Income from savings certificates

1281.Income from savings certificates

1282.Income from Ulster Savings Certificates

Miscellaneous

1283.Interest from tax reserve certificates

1284.Housing grants

1285.UK company distributions

1286.VAT repayment supplements

1287.Incentives to use electronic communications

Part 20 General calculation rulesGeneral calculation rules

Chapter 1 Restriction of deductions

Unpaid remuneration

1288.Unpaid remuneration

1289.Unpaid remuneration: supplementary

Employee benefit contributions

1290.Employee benefit contributions

1291.Making of “employee benefit contributions”

1292.Provision of qualifying benefits

1293.Timing and amount of certain qualifying benefits

1294.Provision or payment out of employee benefit contributions

1295.Profits calculated before end of 9 month period

1296.Interpretation of sections 1290 to 1296

1297.Life assurance business

Business entertainment and gifts

1298.Business entertainment and gifts1299.Business entertainment: exceptions1300.Business gifts: exceptions

Miscellaneous

1301.Restriction of deductions for annual payments

1302.Social security contributions

1303.Penalties, interest and VAT surcharges

1304.Crime-related payments

1305.Dividends and other distributions

Chapter 2 Other general rules

Miscellaneous profits and losses

1306.Losses calculated on same basis as miscellaneous income

1307.Apportionment etc of miscellaneous profits and losses to accounting period

Expenditure on research and development

1308.Expenditure brought into account in determining value of intangible asset

Visiting performers

1309.Payments treated as made to visiting performers

Part 21 Other general provisionsOther general provisions

Orders and regulations

1310.Orders and regulations

Apportionment to different periods

1311.Apportionment to different periods

Interpretation

1312.Abbreviated references to Acts

1313.Activities in UK sector of continental shelf

1314.Meaning of “caravan”

1315.Claims and elections

1316.Meaning of “connected” persons and “control”

1317.Meaning of “farming” and related expressions

1318.Meaning of grossing up

1319.Other definitions

1320.Interpretation: Scotland

1321.Interpretation: Northern Ireland

Final provisions

1322.Minor and consequential amendments1323.Power to make consequential provision1324.Power to undo changes1325.Transitional provisions and savings1326.Repeals and revocations1327.Index of defined expressions1328.Extent1329.Commencement1330.Short title

SCHEDULES

SCHEDULE 1 Minor and consequential amendments

Part 1 Income and Corporation Taxes Act 1988Income and Corporation Taxes Act 1988

1.The Income and Corporation Taxes Act 1988 (c. 1) is...

2.(1) Amend section 6 (the charge to corporation tax and...

3.Omit section 8 (general scheme of corporation tax).

4.(1) Amend section 9 (computation of income: application of income...

5.In section 11 (companies not resident in United Kingdom) omit...

6.Omit section 11AA (determination of profits attributable to permanent establishment)....

7.Omit section 12(1) to (7ZA) and (9) (basis of, and...

8.Omit section 15 (Schedule A).

9.Omit section 18 (Schedule D).

10.Omit section 21A (computation of amount chargeable under Schedule A)....

11.Omit section 21B (application of other rules applicable to Case...

12.Omit section 21C (the Schedule A charge and mutual business)....

13.(1) Amend section 24 (construction of Part 2) as follows....

14.Omit section 30 (expenditure on making sea walls).

15.Omit sections 31ZA to 31ZC (deductions for expenditure on energy-saving...

16.Omit sections 34 to 39 (premiums, leases at undervalue etc)....

17.Omit section 40 (tax treatment of receipts and outgoings on...

18.(1) Amend section 42 (appeals against determinations under sections 34...

19.Omit section 46 (savings certificates and tax reserve certificates).

20.Omit section 53 (farming and other commercial occupation of land...

21.Omit section 55 (mines, quarries and other concerns).

22.(1) Amend section 56 (transactions in deposits with and without...

23.Omit section 70 (basis of assessment etc).

24.Omit section 70A (Case V income from land outside UK)....

25.Omit section 72 (apportionments etc for purposes of Cases I,...

26.Omit section 74 (general rules as to deductions not allowable)....

27.Omit section 75 (expenses of management: companies with investment business)....

28.Omit section 75A (accounting period to which expenses of management...

29.Omit section 75B (amounts reversing expenses of management deducted: charge...

30.(1) Amend section 76 (expenses of insurance companies) as follows....

31.After section 76 insert— Payments for restrictive undertakings Payments for...

32.After section 76ZA insert— Seconded employees Employees seconded to charities...

33.After section 76ZB insert— Counselling and retraining expenses Counselling and...

34.After section 76ZC insert— Retraining courses (1) This section applies if— (a) a company carrying on...

35.After section 76ZD insert— Retraining courses: recovery of tax (1) This section applies if— (a) an employer's liability to...

36.After section 76ZE insert— Redundancy payments etc Redundancy payments and...

37.After section 76ZF insert— Payments in respect of employment wholly...

38.After section 76ZG insert— Payments in respect of employment in...

39.After section 76ZH insert— Additional payments (1) This section applies if the employer's business, or part...

40.After section 76ZI insert— Payments by the Government (1) This section applies if— (a) a redundancy payment or...

41.After section 76ZJ insert— Contributions to local enterprise organisations or...

42.After section 76ZK insert— Unpaid remuneration Unpaid remuneration (1) This section applies if— (a) an amount is charged...

43.After section 76ZL insert— Unpaid remuneration: supplementary (1) For the purposes of section 76ZL an amount charged...

44.After section 76ZM insert— Car or motor cycle hire Car...

45.After section 76ZN insert— Hiring cars (but not motor cycles)...

46.Omit section 76A (levies and repayments under FISMA 2000).

47.Omit section 76B (levies and repayments under the FISMA 2000:...

48.Omit section 79 (contributions to local enterprise agencies).

49.Omit section 79A (contributions to training and enterprise councils and...

50.Omit section 79B (contributions to urban regeneration companies).

51.Omit section 82A (expenditure on research and development).

52.Omit section 82B (payments to research associations, universities etc).

53.Omit section 83 (patent fees etc and expenses).

54.Omit section 83A (gifts in kind to charities etc).

55.Omit section 84 (gifts to educational establishments).

56.(1) Amend section 84A (costs of establishing share option or...

57.Omit section 85 (payments to trustees of approved profit sharing...

58.Omit section 85A (costs of establishing employee share ownership trust:...

59.Omit section 85B (which introduces Schedule 4AA).

60.Omit section 86 (employees seconded to charities and educational establishments)....

61.Omit section 86A (charitable donations: contributions to agent's expenses).

62.Omit sections 87 and 87A (taxable premiums etc).

63.Omit section 88 (payments to Export Credits Guarantee Department).

64.Omit section 88D (restriction of deductions in respect of certain...

65.Omit section 89 (debts proving to be irrecoverable after discontinuance...

66.Omit section 90 (additional payments to redundant employees).

67.Omit section 91 (cemeteries).

68.Omit section 91A (waste disposal: restoration payments).

69.Omit sections 91B and 91BA (waste disposal: preparation expenditure).

70.Omit section 91C (mineral exploration and access).

71.Omit section 92 (regional development grants).

72.Omit section 93 (other grants under Industrial Development Act 1982...

73.Omit section 94 (debts deducted and subsequently released).

74.Omit section 95 (taxation of dealers in respect of distributions...

75.In section 95ZA(1) (taxation of UK distributions received by insurance...

76.Omit section 97 (treatment of farm animals etc).

77.Omit section 98 (tied premises: receipts and expenses treated as...

78.Omit section 99 (dealers in land).

79.Omit section 100 (valuation of trading stock at discontinuance of...

80.Omit section 101 (valuation of work in progress at discontinuance...

81.Omit section 102 (provisions supplementary to sections 100 and 101)....

82.Omit sections 103 to 106 (Case VI charges on receipts)....

83.Omit section 110 (interpretation etc).

84.Omit section 111(1) (treatment of partnerships).

85.Omit sections 114 and 115 (special rules for computing profits...

86.(1) Amend section 116 (arrangements for transferring relief) as follows....

87.Omit section 118ZA (treatment of limited liability partnerships).

88.Omit section 119 (rent etc payable in connection with mines,...

89.Omit section 120 (rent etc payable in respect of electric...

90.Omit section 121 (management expenses of owner of mineral rights)....

91.Omit section 122 (relief in respect of mineral royalties).

92.Omit section 125 (annual payments for dividends or non-taxable consideration)....

93.Omit section 128(2) and (3) (commodity and financial futures etc:...

94.(1) Amend section 130 (meaning of “company with investment business”...

95.In section 187(10) (interpretation of sections 185 and 186) for...

96.Omit section 208 (UK company distributions not generally chargeable to...

97.(1) Amend section 209 (meaning of distribution) as follows.

98.In section 212(3) (interest etc paid in respect of certain...

99.(1) Amend section 214 (chargeable payments connected with exempt distributions)...

100.In Chapter 3 of Part 6 (matters which are not...

101.In section 231AA(3) (no tax credit for borrower under stock...

102.In section 231AB(2) (no tax credit for original owner under...

103.Omit section 337 (company beginning or ceasing to carry on...

104.(1) Amend section 337A (computation of company's profits or income:...

105.(1) Amend section 342 (tax on companies in liquidation) as...

106.(1) Amend section 342A (tax on companies in administration) as...

107.In section 343(2) (company reconstructions without change of ownership)—

108.(1) Amend section 392A (Schedule A losses) as follows.

109.In section 392B(2) (losses from overseas property business) for “Schedule...

110.In section 393(8)(a) (losses other than terminal losses) for “Case...

111.In section 393A(3) (losses: set off against profits of the...

112.(1) Amend section 396 (Case VI losses) as follows.

113.(1) Amend section 397 (restriction on relief in case of...

114.In section 398(b) for “Schedule D” substitute “ Part 5...

115.(1) Amend section 399 (dealings in commodity futures etc: withdrawal...

116.(1) Amend section 400 (write-off of government investment) as follows....

117.Omit section 401 (relief for pre-trading expenditure).

118.(1) Amend section 403 (amounts which may be surrendered by...

119.In section 403ZC(1) (amounts eligible for group relief: non-trading deficit...

120.(1) Amend section 403ZD (other amounts available by way of...

121.In section 403ZE(1)(b)(ii) (computation of gross profits) for “75(9) or...

122.(1) Amend section 404 (limitation of group relief in relation...

123.In section 407 (relationship between group relief and other relief)—...

124.After section 411 insert— No relief where deduction of relevant...

125.In 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)...

128.In 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...

133.In section 434(1) (franked investment income etc) for “provisions applicable...

134.(1) Amend section 434A (computation of losses and limitation of...

135.(1) Amend section 436A (gross roll-up business: separate charge on...

136.In section 440(6) (transfers of assets etc) for “in accordance...

137.In 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)...

140.In section 442(2) (overseas business of UK companies) for “of...

141.In 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...

144.In 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)...

152.In section 444AF(5) (demutualisation surplus: life assurance business)—

153.In section 444AH (modification of section 444AG etc for Case...

154.In section 444AK(3) (mutual surplus: gross roll-up business) for “provisions...

155.In section 444BA(1) (equalisation reserves for general business) for “Case...

156.In section 444BB(2) (modification of section 444BA for mutual or...

157.Omit section 469(4A) to (5) and (6) (other unit trusts)....

158.Omit section 472A (trading profits etc from securities: taxation of...

159.Omit section 473 (conversion etc of securities held as circulating...

160.In section 475 (tax-free Treasury securities: exclusion of interest on...

161.In section 477A (building societies: loan relationships), omit subsections (3)(a)...

162.Omit section 477B (incidental costs of issuing qualifying shares).

163.(1) Amend section 486 (industrial and provident societies and co-operative...

164.Omit section 487 (credit unions).

165.Omit section 491 (distribution of assets of body corporate carrying...

166.In section 492(3A) (treatment of oil extraction activities etc for...

167.(1) Amend section 494 (loan relationships etc) as follows.

168.(1) Amend section 494AA (sale and lease-back) as follows.

169.In section 494A(1) (computation of amount available for surrender by...

170.(1) Amend section 500 (deduction of PRT in computing income...

171.In section 501A(5) (supplementary charge in respect of ring fence...

172.In section 503(1)(a) (letting of furnished holiday accommodation treated as...

173.Omit section 504 (meaning of “commercial letting of furnished holiday...

174.(1) Amend section 505 (charitable companies: general) as follows.

175.(1) Amend section 506C (sections 506A and 506B: supplemental) as...

176.Omit section 509 (reserves of marketing boards etc).

177.In section 510A(6A) (European Economic Interest Groupings) for “Chapter 2...

178.For section 518(2) (harbour reorganisation schemes) substitute—

179.Omit section 524 (taxation of receipts from sale of patent...

180.Omit section 525 (capital sums: winding up or partnership change)....

181.Omit section 526 (relief for expenses).

182.Omit section 528 (manner of making allowances and charges).

183.Omit section 531 (provisions supplementary to section 530).

184.Omit section 532 (application of Capital Allowances Act).

185.Omit section 533 (interpretation of sections 520 to 532).

186.Omit section 556 (activity treated as trade etc and attribution...

187.Omit section 558(5) and (6) (visiting performers: supplementary provisions).

188.In section 568(1) (deductions from profits of contributions paid under...

189.In section 570(4) (payments under certified schemes which are not...

190.(1) Amend section 571 (cancellation of certificates) as follows.

191.Omit section 577 (business entertaining expenses).

192.Omit section 577A (expenditure involving crime).

193.Omit section 578 (housing grants).

194.Omit sections 578A and 578B (expenditure on car hire).

195.Omit sections 579 and 580 (statutory redundancy payments).

196.Omit section 582 (funding bonds issued in respect of interest...

197.Omit section 584 (relief for unremittable overseas income).

198.Omit sections 586 and 587 (disallowance of deductions for war...

199.In section 587B(2)(b) (gifts of shares, securities and real property...

200.Omit section 588 (training courses for employees).

201.Omit section 589A (counselling services for employees).

202.Omit section 589B(5) (interpretation of section 589A).

203.Omit section 617 (social security benefits and contributions).

204.Omit section 695 (limited interests in residue).

205.Omit section 696 (absolute interests in residue).

206.Omit section 697 (supplementary provisions as to absolute interests in...

207.Omit section 698 (special provisions as to certain interests in...

208.Omit section 699A (untaxed sums comprised in the income of...

209.In section 700 (adjustments and information)— (a) omit subsections (1)...

210.Omit section 701 (interpretation).

211.Omit section 702 (application to Scotland).

212.In section 703(3) (cancellation of corporation tax advantage) omit the...

213.In section 709(2) (meaning of “corporation tax advantage” and other...

214.In section 730(6) (transfers of rights to receive distributions in...

215.In section 736B(2) (deemed manufactured payments in the case of...

216.In section 736C(9) (deemed interest: cash collateral under stock lending...

217.In section 747(1B) (controlled foreign companies: company residence for purposes...

218.In 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...

221.(1) Amend section 768B (change in ownership of company with...

222.(1) Amend section 768C (deductions: asset transferred within group) as...

223.(1) Amend section 768D (change in ownership of company carrying...

224.(1) Amend section 768E (change in ownership of company with...

225.In section 774(1) (transactions between dealing company and associated company)...

226.In section 774B(5) (disregard of intended effects of arrangement involving...

227.(1) Amend section 774D (disregard of intended effects of arrangement...

228.In section 774E (sections 774B and 774D: exceptions)—

229.In section 774G(7) (sections 774A to 774D: minor definitions etc)...

230.(1) Amend section 775A (transfers of rights to receive annual...

231.(1) Amend section 776 (transactions in land: taxation of capital...

232.(1) Amend section 779 (sale and lease-back: limitation on tax...

233.In section 780(3A) (sale and lease-back: taxation of consideration received)...

234.(1) Amend section 781 (assets leased to traders and others)...

235.In section 782(9) (leased assets: special cases) omit the words...

236.In section 785 (definitions for purposes of sections 781 to...

237.In section 785ZA(3) (restrictions on use of losses: leasing partnerships)...

238.In section 785ZB(8) (section 785ZA: definitions)— (a) in paragraph (a)...

239.In section 785C(4)(a) (section 785B: interpretation) for “under Schedule A”...

240.In 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...

243.In section 788(7) (relief by agreement with other territories) omit...

244.In section 790(11) (unilateral relief) omit the words from “,...

245.In 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...

248.In section 797B (foreign items giving rise to a non-trading...

249.(1) Amend section 798A (section 797: trade income) as follows....

250.In section 804A(1) (life assurance companies with overseas branches etc:...

251.(1) Amend section 804C (insurance companies: allocation of expenses etc...

252.In section 806A(2) (eligible unrelieved foreign tax on dividends: introductory)...

253.(1) Amend section 806B (amounts that are eligible unrelieved foreign...

254.In section 806K(2)(bb) (application of foreign dividend provisions to branches...

255.In section 806L(5) (carry forward or carry back of unrelieved...

256.(1) Amend section 807A (disposals and acquisitions of company loan...

257.After section 807A insert— European cross-border transfers of business Introduction...

258.After section 807B insert— Tax treated as chargeable in respect...

259.After section 807C insert— European cross-border mergers Introduction to section...

260.After section 807D insert— Tax treated as chargeable in respect...

261.After section 807E insert— Transparent entities involved in cross-border transfers...

262.After section 807F insert— Tax treated as chargeable in respect...

263.In section 811(3) (deduction for foreign tax where no credit...

264.In section 815AZA (UK residents and foreign enterprises) for subsection...

265.Omit section 817 (deductions not to be allowed in computing...

266.In section 821(1)(a) (under-deductions from payments made before passing of...

267.(1) Amend section 826 (interest on tax overpaid) as follows....

268.Omit section 827 (VAT penalties etc).

269.(1) Amend section 828 (orders and regulations made by the...

270.Omit section 830(2) to (4) (territorial sea and designated areas)....

271.In section 831(3) (interpretation of ICTA) before the definition of...

272.(1) Amend section 832 (interpretation of the Corporation Tax Acts)...

273.(1) Amend section 834 (interpretation of the Corporation Tax Acts)...

274.After section 834 insert— Miscellaneous charges (list for the purposes...

275.After section 834A insert— Meaning of “UK property business” and...

276.After section 834B insert— Total profits (1) In the Corporation Tax Acts references to total profits,...

277.(1) Amend section 842 (investment trusts) as follows.

278.Omit Schedule A1 (determination of profits attributable to permanent establishment:...

279.Omit Schedule 4AA (share incentive plans: corporation tax deductions).

280.Omit Schedule 5 (treatment of farm animals etc for purposes...

281.In paragraph 13(3) of Schedule 18A (group relief: overseas losses...

282.(1) Amend Schedule 19ABA (modification of life assurance provisions of...

283.In 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...

288.In 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 2 Other enactmentsOther enactments

Finance Act 1950 (c. 15)

293.The Finance Act 1950 is amended as follows.

294.In section 39(3) (treatment for taxation purposes of enemy debts...

Taxes Management Act 1970 (c. 9)

295.The Taxes Management Act 1970 is amended as follows.

296.In section 12(5) (information about chargeable gains) for “section 100(2)...

297.Omit section 12AE (choice between different Cases of Schedule D)....

298.In section 17 (interest paid or credited by banks, building...

299.In section 18 (interest paid without deduction of income tax)...

300.(1) Amend section 19 (information for purposes of charge on...

301.Omit section 31(3) (appeals: right of appeal).

302.In section 42(7) (procedure for making claims etc)—

303.In section 46B(5) (questions to be determined by Special Commissioners),...

304.In section 71(1) (bodies of persons) omit the words from...

305.In 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.

308.After section 109 insert— Residence of companies Chapter 3 of Part 2 of CTA 2009 (rules for...

309.In section 118 (interpretation) at the appropriate place insert— “CTA...

310.In Schedule 3 (rules for assigning proceedings to General Commissioners),...

Finance Act 1973 (c. 51)

311.The Finance Act 1973 is amended as follows.

312.In paragraph 2(a) of Schedule 15 (territorial extension of charge...

Oil Taxation Act 1975 (c. 22)

313.The Oil Taxation Act 1975 is amended as follows.

314.In section 3(2) (allowance of expenditure (other than expenditure on...

Inheritance Tax Act 1984 (c. 51)

315.The Inheritance Tax Act 1984 is amended as follows.

316.(1) Amend section 91 (administration period) as follows.

317.In section 94(2)(a) (charge on participators) for “section 208 of...

Films Act 1985 (c. 21)

318.The Films Act 1985 is amended as follows.

319.In paragraph 1(1) of Schedule 1 (certification of British films...

Airports Act 1986 (c. 31)

320.The Airports Act 1986 is amended as follows.

321.In section 77(3) (corporation tax) for “Chapter II of Part...

Finance Act 1986 (c. 41)

322.The Finance Act 1986 is amended as follows.

323.In section 78(7)(d) (loan capital) after “2005” insert “ or...

324.In section 79 (loan capital: new provisions)—

325.In section 99(9A) (interpretation) after “2005” insert “ or section...

Gas Act 1986 (c. 44)

326.The Gas Act 1986 is amended as follows.

327.In section 60(3) (tax provisions) for “Chapter II of Part...

British Steel Act 1988 (c. 35)

328.The British Steel Act 1988 is amended as follows.

329.In section 11(7) (corporation tax) for “Chapter II of Part...

Finance Act 1988 (c. 39)

330.The Finance Act 1988 is amended as follows.

331.Omit section 65 (commercial woodlands).

332.Omit section 66 (company residence).

333.Omit section 66A (residence of SE or SCE).

334.Omit section 73(2) to (4) (consideration for certain restrictive undertakings)....

335.Omit Schedule 6 (commercial woodlands).

336.Omit Schedule 7 (exceptions to the rule in section 66(1))....

337.In paragraph 3 of Schedule 12 (building societies: change of...

Finance Act 1989 (c. 26)

338.The Finance Act 1989 is amended as follows.

339.Omit section 43 (Schedule D: computation (unpaid remuneration)).

340.Omit section 44 (companies with investment business and insurance companies:...341.In section 82(1) (calculation of profits: bonuses etc) for the...

342.In section 82D(2) (treatment of profits: life assurance_adjustment consequent on...3

43.In 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...

346.In 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...

350.In 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)

352.The Finance Act 1990 is amended as follows.

353.Omit section 126(2) and (3) (pools payments for football ground...

354.In Schedule 14 (amendments correcting errors in ICTA) omit paragraph...

Finance Act 1991 (c. 31)

355.The Finance Act 1991 is amended as follows.

356.For section 65(5) (reimbursement by defaulter in respect of certain...

357.Omit section 121(2) and (3) (pools payments to support games...

Taxation of Chargeable Gains Act 1992 (c. 12)

358.The Taxation of Chargeable Gains Act 1992 is amended as...

359.In section 1(2) (the charge to tax) for “section 6...

360.In section 10B (non-resident company with United Kingdom permanent establishment)...

361.In section 33A (value shifting: modification of sections 30 to...

362.In section 40(4) (interest charged to capital) after “relationships)” insert...

363.In section 41(4) (restriction of losses by reference to capital...

364.In 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....

367.After section 116 insert— Holding beginning or ceasing to fall...

368.In section 117(6D) (meaning of “qualifying corporate bond”) after “section...

369.In section 143(1) (commodity and financial futures and qualifying options)—...

370.After section 151D insert— Exchange gains and losses from loan...

371.In section 156(4) (assets of Class 1)—

372.After section 156 insert— Intangible fixed assets: roll-over relief (1) This section applies if a company is entitled to...

373.In section 158(2) (activities other than trades, and interpretation) omit...

374.In section 161(3)(a) (appropriations to and from stock) for “under...

375.In section 170(9)(c) (interpretation of sections 171 to 181) omit...

376.In section 171(3A) (transfers within a group: general provisions) for...

377.Omit section 201(2) (relationship between section 201 of TCGA 1992...

378.For 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.

381.In section 251(8) (general provisions) omit— (a) paragraph (a), and...

382.In section 253(3) (relief for loans to traders) for “Chapter...

383.In section 275B (section 275A: supplementary provisions) for subsection (3)...

384.After section 286 insert— Residence of companies Chapter 3 of Part 2 of CTA 2009 (rules for...

385.In section 288(1) (interpretation)— (a) at the appropriate place insert—...

386.In Schedule 7AC (exemptions for disposals by companies with substantial...

387.In Schedule 7D (approved share schemes and share incentives), in...

388.(1) Amend Schedule 8 (leases) as follows.

Finance (No. 2) Act 1992 (c. 48)

389.The Finance (No. 2) Act 1992 is amended as follows....

390.(1) Amend paragraph 3 of Schedule 12 (banks etc in...

Finance Act 1994 (c. 9)

391.The Finance Act 1994 is amended as follows.

392.(1) Amend section 219 (Lloyd's underwriters: taxation of profits) as...

393.In section 220(3) (accounting period in which certain profits or...

394.In section 225(4) (stop-loss and quota share insurance) in the...

395.In section 226(3) (provisions which are not to apply) for...

396.In section 229(1)(ca) (regulations) for sub-paragraph (ii) substitute—

397.Omit sections 249 and 250 (certain companies treated as non-resident)....

398.In paragraph 20(1) of Schedule 24 (provisions relating to the...

Finance Act 1995 (c. 4)

399.The Finance Act 1995 is amended as follows.

400.In section 126(7A) (UK representatives of non-residents) omit paragraph (b)...

401.In section 127(1) (persons not treated as UK representatives)—

Finance Act 1996 (c. 8)

402.The Finance Act 1996 is amended as follows.

403.Omit section 80 (taxation of loan relationships).

404.Omit section 81 (meaning of “loan relationship” etc).

405.Omit section 82 (methods of bringing amounts into account).

406.Omit section 83 (non-trading deficit on loan relationships).

407.Omit section 84 (debits and credits brought into account).

408.Omit section 84A (exchange gains and losses from loan relationships)....

409.Omit section 85A (computation in accordance with generally accepted accounting...

410.Omit section 85B (amounts recognised in determining a company's profit...

411.Omit section 85C (amounts not fully recognised for accounting purposes)....

412.Omit section 87 (accounting method where parties have a connection)....

413.Omit section 87A (meaning of “control” in section 87).

414.Omit section 88 (exemption from section 87 in certain cases)....

415.Omit section 88A (accounting method where rate of interest is...

416.Omit section 90A (change of accounting basis applicable to assets...

417.Omit section 91A (shares subject to outstanding third party obligations)....

418.Omit section 91B (non-qualifying shares).

419.Omit section 91C (Condition 1 for section 91B(6)(b)).

420.Omit section 91D (Condition 2 for section 91B(6)(b)).

421.Omit section 91E (Condition 3 for section 91B(6)(b)).

422.Omit section 91F (power to add, vary or remove Conditions...

423.Omit section 91G (shares beginning or ceasing to be subject...

424.Omit section 91H (payments in return for capital contribution).

425.Omit section 91I (change of partnership shares).

426.Omit section 93C (creditor relationships and benefit derived by connected...

427.Omit section 94 (indexed gilt-edged securities).

428.Omit section 94A (loan relationships with embedded derivatives).

429.Omit section 94B (loan relationships treated differently by connected debtor...

430.Omit section 95 (gilt strips).

431.Omit section 96 (special rules for certain other gilts).

432.Omit section 97 (manufactured interest).

433.Omit section 98 (collective investment schemes).

434.Omit section 99 (insurance companies).

435.Omit section 100 (money debts etc not arising from the...

436.Omit section 101 (financial instruments).

437.Omit section 103 (interpretation of Chapter).

438.In section 154 (FOTRA securities), omit subsections (2), (3), (5),...

439.In section 203(9) (modification of the Agriculture Act 1993) for...

440.Omit Schedule 8 (loan relationships: claims etc relating to deficits)....

441.Omit Schedule 9 (loan relationships: special computational provisions).

442.Omit Schedule 10 (loan relationships: collective investment schemes).

443.Omit Schedule 11 (loan relationships: special provisions for insurers).

444.(1) Amend Schedule 15 (loan relationships: savings and transitional provisions)...

Broadcasting Act 1996 (c. 55)

445.The Broadcasting Act 1996 is amended as follows.

446.(1) Amend Schedule 7 (transfer schemes relating to BBC transmission...

Finance Act 1997 (c. 16)

447.The Finance Act 1997 is amended as follows.

448.In Schedule 12 (leasing arrangements: finance leases and loans), in...

Finance (No. 2) Act 1997 (c. 58)

449.The Finance (No. 2) Act 1997 is amended as follows....

450.Omit section 40 (carry-back of loan relationship deficits).

Finance Act 1998 (c. 36)

451.The Finance Act 1998 is amended as follows.

452.Omit section 42 (computation of profits of trade, profession or...

453.In 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)

455.The Finance Act 1999 is amended as follows.

456.Omit section 54 (tax treatment of reverse premiums).

457.Omit section 63 (treatment of transfer fees under existing contracts)....

458.(1) Amend section 81 (acquisitions disregarded under insurance companies concession)...

459.Omit Schedule 6 (tax treatment of receipts by way of...

Commonwealth Development Corporation Act 1999 (c. 20)

460.The 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)

462.The Finance Act 2000 is amended as follows.

463.(1) Amend section 46 (exemption for small trades etc) as...

464.Omit section 50 (phasing out of relief for payments to...

465.Omit section 69(1) (which introduces Schedule 20).

466.Omit section 143(2) (power to provide incentives to use electronic...

467.In Schedule 12 (provision of services through an intermediary) omit...

468.In Schedule 15 (the corporate venturing scheme) in paragraph 60(1)...

469.Omit Schedule 20 (tax relief for expenditure on research and...

470.(1) Amend Schedule 22 (tonnage tax) as follows.

Transport Act 2000 (c. 38)

471.The 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)

474.The Capital Allowances Act 2001 is amended as follows.

475.In section 2(4) (general means of giving effect to capital...

476.In section 15(1)(f) (qualifying activities) for “section 55(2) of ICTA”...

477.In 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...

480.In section 28(2B)(a) (thermal insulation of buildings) for “section 31ZA...

481.In section 38 (production animals etc) for paragraphs (a) and...

482.(1) Amend section 63 (cases in which disposal value is...

483.In 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.

490.In 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...

493.In section 257(2)(a) (supplementary) for “Case I” substitute “ life...

494.In 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.

497.In section 282 (buildings outside the United Kingdom) for the...

498.In section 291(3)(a) (supplementary provisions with respect to elections) for...

499.In section 326(1) (interpretation of section 325), in the definition...

500.In 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...

503.In section 390(1) (interpretation of section 389), in the definition...

504.(1) Amend section 392 (UK property business and Schedule A...

505.In section 393B(4) (meaning of “qualifying expenditure”) omit “or Schedule...

506.In 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)...

509.In section 454(1)(c) (qualifying expenditure) for “section 531(3)(a) of ICTA”...

510.In section 455(4) (excluded expenditure) for “section 531(2) of ICTA”...

511.In section 462(3) (disposal values) for “section 531(2) of ICTA”...

512.In section 481(5)(b) (anti-avoidance: limit on qualifying expenditure) for “section...

513.In section 483(c) (meaning of “income from patents”) for “section...

514.In section 488(3)(a) (balancing allowances) for “section 18 of ITTOIA...

515.(1) Amend section 529 (giving effect to allowances and charges)...

516.In section 536(5)(a)(v) (contributions not made by public bodies and...

517.In 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)

523.The Finance Act 2001 is amended as follows.

524.Omit section 70(1) and (2) (which introduces Schedule 22).

525.Omit Schedule 22 (remediation of contaminated land).

Finance Act 2002 (c. 23)

526.The Finance Act 2002 is amended as follows.

527.Omit section 53 (which introduces Schedule 12 to that Act)....

528.Omit section 54 (which introduces Schedules 13 and 14 to...

529.Omit section 55 (gifts of medical supplies and equipment).

530.Omit section 64 (adjustment on change of basis).

531.(1) Amend section 65 (postponement of change to mark to...

532.Omit section 71 (accounting method where rate of interest etc...

533.In section 81(3)(b) (transitional provision) for “Chapter 2 of Part...

534.In section 83 (derivative contracts) omit subsections (1)(a) and (2)....

535.Omit section 84(1) (gains and losses from intangible fixed assets...

536.Omit Schedule 12 (tax relief for expenditure on research and...

537.Omit Schedule 13 (tax relief for expenditure on vaccine research...

538.In Schedule 16 (community investment tax relief) in paragraph 27(4)...

539.(1) Amend Schedule 18 (relief for community amateur sports clubs)...

540.Omit Schedule 22 (computation of profits: adjustment on change of...

541.(1) Amend Schedule 23 (exchange gains and losses from loan...

542.In Schedule 25 (loan relationships) omit paragraphs 61 to 64....

543.Omit Schedule 26 (derivative contracts). 544.(1) Schedule 28 (derivative contracts: transitional provisions etc) is amended...

545.Omit Schedule 29 (gains and losses of a company from...

Proceeds of Crime Act 2002 (c. 29)

546.The 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)

548.The Income Tax (Earnings and Pensions) Act 2003 is amended...

549.In section 61(1) (interpretation) in the definition of “business” for...

550.In section 178(d) (exception for loans where interest qualifies for...

551.In section 180(5)(d) (threshold for benefit of loan to be...

552.(1) Amend section 357 (business entertainment and gifts: exception where...

553.In section 420(1)(h) (meaning of securities etc) at the end...

554.(1) Amend section 515 (which refers to other provisions which...

555.In section 702(5B) (which sets out what shares are corporation...

556.In Schedule 1 (abbreviations and defined expressions)—

557.In Schedule 2 (approved share incentive plans), in paragraph 85(1)(c),...

Finance Act 2003 (c. 14)

558.The Finance Act 2003 is amended as follows.

559.Omit section 141 (corporation tax for employee share acquisitions).

560.Omit section 143 (restriction of deductions for employee benefit contributions)....

561.In section 148 (meaning of “permanent establishment”)—

562.(1) Amend section 150 (non-resident companies: assessment, collection and recovery...

563.In section 152(2) (non-resident companies: transactions carried out through broker,...

564.After section 177(4) (currency contracts and currency options) insert—

565.In section 195(9)(b) (companies acquiring their own shares) for the...

566.Omit Schedule 23 (corporation tax relief for employee share acquisitions)....

567.Omit Schedule 24 (restriction of deductions for employee benefit contributions)....

568.In paragraph 5A(2) of Schedule 26 (non-resident companies: transactions through...

Finance Act 2004 (c. 12)

569.The Finance Act 2004 is amended as follows.

570.In section 71 (collection and recovery of sums to be...

571.In section 83(4) (giving through the self-assessment return)—

572.(1) Amend section 131 (companies in partnership) as follows.

573.(1) Amend section 196 (relief for employers in respect of...

574.In section 196A(4) (power to restrict relief)—

575.In section 197(10) (spreading of relief)— (a) in paragraph (a),...

576.In section 199A(10) (indirect contributions)— (a) in paragraph (a) for...

577.In section 200 (no other relief for employers in respect...

578.(1) Amend section 246 (restriction of deduction for non-contributory provision)...

579.In section 246A(4) (case where no relief for provision by...

580.In section280(1) (abbreviations and general index)—

581.(1) Amend Schedule 26 (offshore funds) as follows.

Energy Act 2004 (c. 20)

582.The 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...

585.In 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)

587.The Income Tax (Trading and Other Income) Act 2005 is...

588.In section 22(2)(b) (payments for wayleaves) for “would otherwise be...

589.(1) Amend section 48 (car or motor cycle hire) as...

590.In section 49(2)(b) (car or motor cycle hire: supplementary) after...

591.In section 60(6) (tenants under taxed leases: introduction) after “288”...

592.(1) Amend section 64 (restriction on section 61 expenses: lease...

593.In section 65(1)(a) (restrictions on section 61 expenses: lease of...

594.In 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.

597.Omit section 79(2) (additional payments: change in persons carrying on...

598.After section 79 insert— Additional payments: change in the persons...

599.In section 80(2) (payments made by the Government) for “79”...

600.In section 88(6)(b) (payments to research associations, universities etc) before...

601.(1) Amend section 155 (levies and repayments under FISMA 2000)...

602.In section 158(1)(d) (lease premiums etc: reduction of receipts) for...

603.In section 170(3)(b) (deduction for capital expenditure) for “section 91(1)(b)...

604.In section 171(2)(d) (allocation of ancillary capital expenditure) for “section...

605.In section 175(2) (basis of valuation of trading stock)—

606.In section 176(1)(a) (sale basis of valuation: sale to unconnected...

607.In section 177(1)(a) (sale basis of valuation: sale to connected...

608.In section 178(1)(a) (sale basis of valuation: election by connected...

609.(1) Amend section 180 (cost to buyer of stock valued...

610.In section 184(1) (basis of valuation of work in progress)—...

611.In section 194(7) (disposal of know-how as part of disposal...

612.In section 246(2) (basic meaning of “post-cessation receipt”) for the...

613.In section 249(3) (debts released after cessation) for the words...

614.In section 276(3) (introduction to Chapter 4 of Part 3)...

615.In section 279(3) for “or of” substitute “ of or...

616.In 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...

621.For section 294(1)(c) (restriction on section 292 expenses: lease of...

622.For section 295(2)(b) (limit on reductions and deductions) substitute—

623.In section 296(1)(a) (corporation tax receipts treated as taxed receipts)...

624.In section 298 (taking account of deductions for rent as...

625.In 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)...

628.In section 318(4) for “section 30 of ICTA” substitute “...

629.(1) Amend section 356 (application to Schedule A businesses) as...

630.In section 413(4) (person liable) for paragraph (b) substitute—

631.In section 419(2) (loans and advances to persons who die)...

632.In section 466(3) (person liable: personal representatives) for “section 701(8)...

633.In section 496(7) (modification of section 494: qualifying endowment policies...

634.In section 671 (successive absolute interests)— (a) at the end...

635.After section 749 insert— Interest on tax overpaid No liability to income tax arises in respect of interest...

636.In section 754(1) (redemption of funding bonds) for “section 582(1)...

637.(1) Amend section 839 (annual payments payable out of relevant...

638.In section 847(2) (partnerships: general provisions), in the words before...

639.In section 849 (calculation of firm's profits or losses) after...

640.For section 850 (allocation of firm's profits or losses between...

641.(1) Amend section 860 (adjustment income) as follows.

642.For section 861 (sale of patent rights: effect of partnership...

643.(1) Amend section 862 (sale of patent rights: effect of...

644.Omit 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)

648.The Finance Act 2005 is amended as follows.

649.In section 47A(6) (alternative finance arrangements: diminishing shared ownership) for...

650.In section 48A (alternative finance arrangements: alternative finance bond: introduction)...

651.In section 48B (alternative finance arrangements: alternative finance investment bond:...

652.In section 49(2) (alternative finance arrangements: deposit) for “profit share...

653.In section 49A (alternative finance arrangements: profit share agency)—

654.Omit section 50 (treatment of alternative finance arrangements: companies). 655.In section 51 (treatment of alternative finance arrangements: persons other...

656.In section 52 (provision not at arm's length)— 657.Omit section 54 (return not to be treated as distribution)....

658.In section 54A (treatment of section 47, 49 and 49A...

659.In section 55 (further provisions) omit “, corporation tax”. 660.In section 56 (application of Chapter)— (a) in subsections (2)...

661.In section 57 (interpretation of Chapter)— (a) in the definition...

662.In section 83(8) (application of accounting standards to securitisation companies)...

663.In section 105 (interpretation) after the definition of “CAA 2001”...

664.(1) Amend Schedule 2 (alternative finance arrangements: further provisions) as...

665.In Schedule 4 (accounting practice and related matters) omit paragraphs...

Railways Act 2005 (c. 14)

666.The 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)

668.The Finance (No. 2) Act 2005 is amended as follows....

669.In section 18 (section 17(3): specific powers) for subsection (2)(c)...

670.(1) Amend section 26 (receipts cases) as follows.

671.In section 27(2) (rule as to qualifying payment) for the...

672.In section 71 (interpretation) after the definition of “CAA 2001”...

673.In Schedule 6 (accounting practice and related matters)—

674.In Schedule 7 (avoidance involving financial arrangements) in paragraph 14—...

Finance Act 2006 (c. 25)

675.The Finance Act 2006 is amended as follows.

676.Omit sections 31 to 41 (provisions about films, in particular...

677.In section 42(2) (film tax relief: further provisions) omit—

678.Omit sections 43 to 45 (film losses).

679.At the end of each of sections 46 and 47...

680.Omit sections 48 to 50 (sound recordings).

681.Omit section 52 (films: application of provisions to certain films...

682.Omit section 53(2) (films and sound recordings: commencement etc).

683.In section 97 (beneficial loans to employees)—

684.In section 104(1) (property rental business)— (a) in paragraph (a)—...

685.In section 112 (entry charge) for subsection (1) substitute—

686.In section 115(4) (profit: financing-cost ratio)— (a) in paragraph (a)...

687.In 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....

690.In section 136(2) (availability of group reliefs) for paragraphs (d)...

691.In section 139(2) (manufactured dividends), in the provision substituted for...

692.In section 179 (interpretation) after the definition of “CAA 2001”...

693.Omit Schedule 4 (taxation of activities of film production company)....

694.In 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)

699.The Income Tax Act 2007 is amended as follows.

700.For section 5 substitute— Income tax and companies Section 3 of CTA 2009 disapplies the provisions of the...

701.In section 276(3) (conditions relating to income) for “paragraph 14(3)...

702.In section 489(6) (the “applicable period” in relation to shares)...

703.In section 550(a) (meaning of “relievable gift”) for “section 83A...

704.In section 557(1)(b)(ii) (substantial donor transactions: supplementary) after “2005” insert...

705.(1) Amend section 835 (residence rules for trustees and companies)...

706.After section 835 insert— Residence of companies Chapter 3 of Part 2 of CTA 2009 (rules for...

707.In section 899(4)(b) (meaning of “qualifying annual payment”) for “charged...

708.In section 904 (annual payments for dividends or non-taxable consideration)...

709.(1) Amend section 910 (proceeds of a sale of patent...

710.In section 934(4) (non-UK resident companies) for “section 11(2) of...

711.In section 937(5)(c) (partnerships)— (a) for “section 11(2) of ICTA”...

712.In section 939(1)(b) (duty to retain bonds where issue treated...

713.(1) Amend section 941 (deemed payments to unit holders and...

714.In section 948(2) (meaning of “accounting period”) for the words...

715.In section 965(2) (overview of sections 966 to 970) for...

716.(1) Amend section 971 (income tax in respect of non-resident...

717.In section 976(6) (arrangements for payments of interest less tax...

718.In section 980(2) (derivative contracts: exception from duties to deduct)...

719.In section 989 (definitions) omit the definition of “Schedule A...

720.In section 1017 (abbreviated references to Acts) after the definition...

721.In Schedule 4 (index of defined expressions) omit the entry...

Finance Act 2007 (c. 11)

722.The Finance Act 2007 is amended as follows.

723.In section 113 (interpretation) after the definition of “CRCA 2005”...

724.In 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...

727.In paragraph 28(fa) of Schedule 24 (penalties for errors)—

Finance Act 2008 (c. 9)

728.The Finance Act 2008 is amended as follows.

729.Omit section 29 (cap on R&D aid).

730.Omit section 36(1) (company gains from investment life insurance contracts...

731.In section 77(6), in the words after paragraph (b) for...

732.In section 154(6) (stamp duty and stamp duty reserve tax:...

733.In section 165(1) (interpretation) after the definition of “CRCA 2005”...

734.In Schedule 10 (cap on R&D aid), omit paragraphs 1...

735.Omit Schedule 13 (company gains from investment life insurance contracts)....

736.In Schedule 15 (changes in trading stock), omit Part 2....

737.In Schedule 25 (first-year tax credits)— (a) in paragraph 14(6)(b)...

Crossrail Act 2008 (c. 18)

738.The Crossrail Act 2008 is amended as follows.

739.(1) Amend Schedule 13 (transfer schemes: tax provisions) as follows....

SCHEDULE 2Transitionals and savings

Part 1 General provisionsGeneral provisions

Continuity of the law: general

1.The repeal of provisions and their enactment in a rewritten...

2.Paragraph 1 does not apply to any change made by...

3.Any 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...

6.Paragraphs 1 to 5 have effect instead of section 17(2)...

7.Paragraphs 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 2 Changes in the lawChanges in the law

10.(1) This paragraph applies if, in the case of any...

Part 3 Charge to corporation tax on incomeCharge to corporation tax on income

Effect of repeal of section 9(1) of ICTA on relevance of case law

11.The repeal by this Act of section 9(1) of ICTA...

Part 4 Accounting periodsAccounting periods

Companies in administration

12.Section 10(1)(i) and (j), (2), (3) and (4) apply only...

Part 5 Company residence: exceptions to section 14Company 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 6 Trading incomeTrading income

Hiring cars with low CO2 emissions before 1 April 2013

16.Section 58 does not apply to expenditure which is incurred...

17.In 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

21.To 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

25.Section 103 does not apply if— (a) a company carrying...

Meaning of “designated educational establishment”

26.To the extent that the power of the Welsh Ministers...

27.The reference in section 106(1)(a) to regulations made for England...

Dealers in securities etc

28.The repeal by this Act of section 473(2B) of ICTA...

Purchase or sale of woodlands

29.Section 134 does not apply if the purchase mentioned in...

Waste disposal

30.If the predecessor ceased to carry on the trade carried...

31.If the trade carried on by the trader was started...

32.Section 144(3) does not apply for the purposes of sections...

Reserves of marketing authorities etc

33.In section 153(5) “approved scheme or arrangement” includes a scheme...

Adjustment on change of basis

34.Chapter 14 of Part 3 applies to a change of...

Part 7 Property incomeProperty income

Lease premiums

35.Section 217 does not apply in relation to a lease...

Lease premiums: sums payable instead of rent

36.Section 219 does not apply in relation to a lease...

Lease premiums: sums payable for surrender of lease

37.Section 220 does not apply in relation to a lease...

Lease premiums: assignments for profit of lease granted at undervalue

38.Section 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...

44.The 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...

47.The 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

50.Sections 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”

52.The definition of “mineral royalties” in section 274(2) does not...

Part 8 Loan relationshipsLoan relationshipsInterpretation

53.Except as provided in this Part of this Schedule, expressions...

Opening and closing values determined under Schedule 15 to the Finance Act 1996

54.So far as immediately before the commencement of this Act...

References to Part 5 to include Schedule 15 to FA 1996

55.Except where the context indicates otherwise, references to Part 5...

Exemption for interest on tax overpaid for accounting periods ending before 1 July 1999

56.No liability to corporation tax arises in respect of interest...

Regulations under section 81 of FA 2002

57.The 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

66.Section 332 (repo, stock lending and other transactions) does not...

Avoidance relying on continuity of treatment provisions: transactions before 16 May 2008

67.Section 347 (disapplication of Chapter 4 of Part 5 where...

Disposals for consideration not fully recognised by accounting practice: disposals before 16 May 2008

68.Section 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

70.Until 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 9 Relationships treated as loan relationships Relationships 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...

Alternative finance arrangements entered into before 6 April 2005

73.(1) Chapter 6 of Part 6 (alternative finance arrangements) only...

Profit share agency arrangements entered into before 1 April 2006

74.(1) Chapter 6 of Part 6 (alternative finance arrangements) only...

Investment bond arrangements entered into before 1 April 2007

75.(1) Chapter 6 of Part 6 (alternative finance arrangements) only...

Shares with guaranteed returns: redeemable shares where public issue before 22 March 2006

76.In relation to any case where the public issue (within...

Shares with guaranteed returns: income-producing assets for the increasing value condition

77.In 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 10 Derivative contractsDerivative contracts

Interpretation

79.Expressions used in this Part of this Schedule and in...

Extended meaning of reference in section 591(6)(b)

80.The reference in section 591(6)(b) (condition E) to the provisions...

Disapplication of section 645

81.Section 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

85.Section 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

89.Section 661 (contract which becomes derivative contract) does not apply...

Disapplication of section 666

90.Section 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

96.Section 629 (disapplication of section 625 where transferor party to...

Disposals for consideration not fully recognised by accounting practice: disposals before 16 May 2008

97.Section 698 (disposals for consideration not fully recognised by accounting...

References to Companies Act 2006

98.Until 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 11 Intangible fixed assetsIntangible 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

101.Section 770 (continuity where group includes an SE) does not...

References to Companies Act 2006

102.Until section 658 of the Companies Act 2006 (c. 46)...

Part 12 Beneficiaries' income from estates in administrationBeneficiaries' 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 13 Relief for share incentive plansRelief for share incentive plans

Deduction for contribution to plan trust

105.Section 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 14 Other relief for employee share acquisitionsOther 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

108.In 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

110.In 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 15 Research and developmentResearch 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

116.For 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—

120.In 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 16 Remediation of contaminated landRemediation 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 17 Film productionFilm production

Interpretation

127.The 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

128.Chapters 2 and 3 of Part 15 apply only in...

129.The references in section 1206 to the functions of the...Application of

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 18 Management expensesManagement expenses

Unpaid remuneration

133.(1) This paragraph applies for the purposes of section 1249....

Part 19 Unremittable income

Unremittable incomeUnremittable 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

135.Section 1277 (income charged on withdrawal of relief after source...

Part 20 General exemptionsGeneral exemptions

Ulster savings certificates

136.In the case of certificates acquired before 27 July 1981,...

Part 21 Other provisions Other provisions

Training courses for employees

137.(1) This paragraph applies if, without the repeal by this...

138.In 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

141.Section 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

144.In section 731 of ICTA, as that section has effect...

References to Companies Act 2006

145.Until 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 3 Repeals and revocations

Part 1 Repeals and revocations on 1 April 2009Repeals and revocations on 1 April 2009

Part 2 Prospective repealsProspective repeals

SCHEDULE 4Index of defined expressions

 

Part 1

Introduction

1 Overview of Act

(1)Part 2 of this Act contains basic provisions about the charge to corporation tax including—

(a)the imposition of the charge to corporation tax on the income and chargeable gains of companies (referred to collectively as “profits”), (see section 2),

(b)the exclusion of income and chargeable gains subject to corporation tax from income tax and capital gains tax (see sections 3 and 4),

(c)provision about the territorial scope of the charge to corporation tax (see section 5 and Chapter 4),

(d)provision about how corporation tax is charged and assessed, in particular its charging and assessment by reference to accounting periods (see section 8),

(e)provision about accounting periods (see Chapter 2), and

(f)rules for determining the residence of companies (see Chapter 3).

(2)Under section 2(4) the charge to corporation tax on income has effect in accordance with the provisions of the Corporation Tax Acts that deal with its application, the main provisions of this Act that do so being—

(a)Part 3 (trading income),

(b)Part 4 (property income),

(c)Parts 5 and 6 (profits arising from loan relationships),

(d)Part 7 (profits arising from derivative contracts),

(e)Part 8 (gains in respect of intangible fixed assets),

(f)Part 9 (profits arising from disposals of know-how and sales of patent rights), and

(g)Part 10 (miscellaneous income).

(3)Part 7 also applies the charge to corporation tax on chargeable gains to certain profits arising from derivative contracts.

(4)Parts 5 to 8 also deal with how deficits or losses arising from, or in respect of, the matters to which they relate are brought into account for corporation tax purposes.

(5)The following Parts provide relief for particular types of expenditure—

(a)Part 11 (relief for particular employee share acquisition schemes),

(b)Part 12 (other relief for employee share acquisitions),

(c)Part 13 (additional relief for expenditure on research and development),

(d)Part 14 (remediation of contaminated land), and

(e)Part 15 (film production).

(6)The following Parts contain special rules for particular cases—

(a)Part 15 (film production),

(b)Part 16 (companies with investment business),

(c)Part 17 (partnerships), and

(d)Part 18 (unremittable income).

(7)The following Parts contain provisions of general application—

(a)Part 19 (general exemptions),

(b)Part 20 (general calculation rules), and

(c)Part 21 (other general provisions, including definitions for the purposes of the Act).

(8)For abbreviations and defined expressions used in this Act, see section 1312 and Schedule 4.

Part 2

Charge to corporation tax: basic provisions

Chapter 1

The charge to corporation tax

Charge to tax on profits

2 Charge to corporation tax

(1)Corporation tax is charged on profits of companies for any financial year for which an Act so provides.

(2)In this Part “profits” means income and chargeable gains, except in so far as the context otherwise requires.

(3)In this Act “the charge to corporation tax on income” means the charge under subsection (1) so far as relating to income.

(4)The charge to corporation tax on income has effect in accordance with the provisions of the Corporation Tax Acts that deal with its application.

3 Exclusion of charge to income tax

1)The provisions of the Income Tax Acts relating to the charge to income tax do not apply to income of a company if—

(a)the company is UK resident, or

(b)the company is not UK resident and the income is within its chargeable profits as defined by section 19.

(2)Subsection (1) does not apply to income accruing to a company in a fiduciary or representative capacity.

4 Exclusion of charge to capital gains tax

Capital gains tax is not charged on gains accruing to a company in respect of which the company is chargeable to corporation tax, or would be so chargeable but for an exemption.

General scheme of corporation tax

5 Territorial scope of charge

(1)A UK resident company is chargeable to corporation tax on all its profits wherever arising.

(2)A non-UK resident company is within the charge to corporation tax only if it carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom.

(3)A non-UK resident company which carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom is chargeable to corporation tax on all its profits wherever arising that are chargeable profits as defined in section 19 (profits attributable to its permanent establishment in the United Kingdom).

(4)Subsections (1) and (3) are subject to any exceptions provided for by the Corporation Tax Acts.

6 Profits accruing in fiduciary or representative capacity

(1)A company is not chargeable to corporation tax on profits which accrue to it in a fiduciary or representative capacity except as respects its own beneficial interest (if any) in the profits.

(2)The exception under subsection (1) from chargeability does not apply to profits arising in the winding up of the company.

7 Profits accruing under trusts

Profits that accrue for the benefit of a company under a trust are treated for the purposes of the charge to corporation tax under section 2(1) as accruing directly to the company.

8 How tax is charged and assessed

(1)Corporation tax for a financial year is charged on profits arising in the year.

(2)Corporation tax is calculated and chargeable, and assessments to corporation tax are made, by reference to accounting periods.

(3)Corporation tax which is assessed and charged for an accounting period of a company is assessed and charged on the full amount of profits arising in the accounting period.

(4)Subsection (3) is subject to any contrary provision in the Corporation Tax Acts.

(5)If a company's accounting period falls within more than one financial year, the amount of the profits arising in the accounting period that is chargeable to corporation tax must be apportioned between the financial years in which the accounting period falls.

 
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