|
| |
| |
(b) | the amount (“C”) which is equal to 5% of the invested amount |
| |
in respect of the former investment for tax year X, |
| |
| “A” is to be reduced by multiplying it by the fraction—![equation: over[char[B],char[C]]](missing.gif) |
| |
(3G) | If the amount of CITR attributable to the former investment in |
| |
respect of a tax year has been reduced before the CITR is obtained, |
| 5 |
the amount referred to in subsection (3F) as B is to be treated for the |
| |
purposes of that subsection as the amount it would have been |
| |
| |
(3H) | Subsection (3G) does not apply to a reduction by virtue of section 358 |
| |
(attribution: bonus shares).” |
| 10 |
(3) | Omit subsections (5) to (7). |
| |
6 | The amendments made by paragraphs 1 to 5 above have effect in relation to |
| |
investments made on or after 6 April 2013. |
| |
Corporation tax: carry forward of relief |
| |
7 | Part 7 of CTA 2010 (community investment tax relief) is amended as follows. |
| 15 |
8 (1) | Section 220 (form and amount of CITR) is amended as follows. |
| |
(2) | For subsection (3) substitute— |
| |
“(3) | The amount of that reduction for the relevant accounting period is |
| |
5% of the invested amount in respect of the investment for the |
| |
| 20 |
(3) | In subsection (4) for “this purpose” substitute “the purposes of this section |
| |
| |
9 | After section 220 insert— |
| |
“220A | Carry forward of CITR |
| |
(1) | This section applies if— |
| 25 |
(a) | the investor is entitled to a reduction in its liability for |
| |
corporation tax for a relevant accounting period under |
| |
section 220 in respect of the investment, but |
| |
(b) | the amount of the reduction is not fully deducted at Step 2 for |
| |
that relevant accounting period. |
| 30 |
(2) | The amount (“the excess amount”) not deducted is treated as follows. |
| |
(3) | For each subsequent relevant accounting period for which the |
| |
| |
(a) | is entitled to a reduction in its liability for corporation tax |
| |
under section 220 in respect of the investment, and |
| 35 |
(b) | makes a claim under this subsection, |
| |
| the investor is also entitled to a reduction in its liability for |
| |
corporation tax under this subsection. |
| |
(4) | The amount of the reduction under subsection (3) for any relevant |
| |
accounting period is the excess amount so far as it has not been |
| 40 |
| |
| |
|
| |
| |
deducted at Step 2 for any earlier relevant accounting period by |
| |
virtue of that subsection. |
| |
(5) | In this section “Step 2” means the second step in paragraph 8(1) of |
| |
Schedule 18 to FA 1998 (calculation of tax payable).” |
| |
10 | In section 240 (attribution of CITR) after subsection (4) insert— |
| 5 |
“(4A) | In the case of CITR under section 220A, in subsection (4)(a) the |
| |
reference to the period is to be read as a reference to the period |
| |
mentioned in section 220A(1)(a).” |
| |
11 (1) | Section 244 (disposal of securities or shares during 5 year period) is |
| |
| 10 |
(2) | For subsection (3) substitute— |
| |
“(3) | Subsections (3A) to (3H) apply if— |
| |
(a) | the disposal is a qualifying disposal, and |
| |
(b) | the investor has made a claim under section 220 in respect of |
| |
the former investment for an accounting period (“period X”). |
| 15 |
(3A) | Subsection (3B) applies if the total of the following CITR does not |
| |
| |
(a) | any CITR attributable to the former investment in respect of |
| |
period X given under section 220, and |
| |
(b) | any CITR attributable to the former investment in respect of |
| 20 |
later accounting periods given under section 220A where |
| |
period X is the accounting period mentioned in section |
| |
| |
(3B) | All CITR falling within subsection (3A)(a) or (b) must be withdrawn. |
| |
(3C) | If the total of the CITR falling within subsection (3A)(a) or (b) exceeds |
| 25 |
A, that total must be reduced by A. |
| |
(3D) | For the purposes of subsection (3C) CITR given in a later accounting |
| |
period must be reduced before CITR given in an earlier accounting |
| |
| |
(3E) | For the purposes of subsections (3A) and (3C) “A” is an amount equal |
| 30 |
to 5% of the amount or value of the consideration (if any) which the |
| |
investor receives for the former investment. |
| |
| |
(a) | the total of the CITR falling within subsection (3A)(a) or (b) |
| |
| 35 |
(b) | the amount (“C”) which is equal to 5% of the invested amount |
| |
in respect of the former investment for period X, |
| |
| “A” is to be reduced by multiplying it by the fraction— |
| |
(3G) | If the amount of CITR attributable to the former investment in |
| |
respect of an accounting period has been reduced before the CITR is |
| 40 |
obtained, the amount referred to in subsection (3F) as B is to be |
| |
treated for the purposes of that subsection as the amount it would |
| |
have been without the reduction. |
| |
| |
| |
|
| |
| |
(3H) | Subsection (3G) does not apply to a reduction by virtue of section 241 |
| |
(attribution: bonus shares).” |
| |
(3) | Omit subsections (5) to (7). |
| |
12 | The amendments made by paragraphs 7 to 11 above have effect in relation |
| |
to investments made in accounting periods beginning on or after 1 April |
| 5 |
| |
Corporation tax: limit on State aid |
| |
13 (1) | In Part 7 of CTA 2010 (community investment tax relief) after section 220A |
| |
(as inserted by paragraph 9 above) insert— |
| |
| 10 |
(1) | The reductions that may be made in the amount of the investor’s |
| |
liability for corporation tax under section 220 or 220A for an |
| |
accounting period (“the current accounting period”) are limited as |
| |
| |
(2) | The sum of the following amounts must not exceed €200,000— |
| 15 |
(a) | so far as it represents aid granted to the investor, the total |
| |
amount of reductions made in the amount of the investor’s |
| |
liability for corporation tax under section 220 or 220A— |
| |
(i) | for the current accounting period, or |
| |
(ii) | any earlier accounting period which ends during the |
| 20 |
relevant 3-year period, and |
| |
(b) | the total of any de minimis aid granted to the investor during |
| |
the relevant 3-year period which does not fall within |
| |
| |
(3) | In subsection (2) “the relevant 3-year period” means the period of 3 |
| 25 |
years ending at the end of the current accounting period. |
| |
(4) | Subsection (2) is to be read as if it were contained in Article 2 of |
| |
Commission Regulation (EC) No. 1998/2006 (de minimis aid).” |
| |
(2) | The amendment made by this paragraph has effect for the purpose of |
| |
limiting CITR in respect of investments made on or after 1 April 2013. |
| 30 |
(3) | CITR in respect of investments made before that date is to be ignored for the |
| |
purposes of section 220B(2) of CTA 2010. |
| |
| |
| |
| |
| 35 |
1 | ITTOIA 2005 is amended as follows. |
| |
2 | In section 61 (tenants occupying land for purposes of trade treated as |
| |
| |
| |
|
| |
| |
incurring expenses) after subsection (5) insert— |
| |
“(5A) | No expense is to be determined under this section by reference to the |
| |
taxed receipt if section 292(4B) or (4C) applies.” |
| |
3 | In section 292 (tenants under taxed leases treated as incurring expenses) |
| |
after subsection (4) insert— |
| 5 |
“(4A) | No expense is to be determined under this section by reference to the |
| |
taxed receipt if subsection (4B) or (4C) applies. |
| |
(4B) | This subsection applies if there would have been no taxed receipt but |
| |
for the application of Rule 1 in section 303 in determining the |
| |
effective duration of the lease. |
| 10 |
(4C) | This subsection applies if there would have been no taxed receipt but |
| |
for the application of Rule 1 in section 243 of CTA 2009 in |
| |
determining the effective duration of the lease for the purposes of |
| |
Chapter 4 of Part 4 of that Act.” |
| |
4 | The amendments made by paragraphs 2 and 3 above have effect in relation |
| 15 |
to leases granted on or after 6 April 2013. |
| |
| |
5 | CTA 2009 is amended as follows. |
| |
6 | In section 63 (tenants occupying land for purposes of trade treated as |
| |
incurring expenses) after subsection (5) insert— |
| 20 |
“(5A) | No expense is to be determined under this section by reference to the |
| |
taxed receipt if section 232(4B) or (4C) applies.” |
| |
7 | In section 232 (tenants under taxed leases treated as incurring expenses) |
| |
after subsection (4) insert— |
| |
“(4A) | No expense is to be determined under this section by reference to the |
| 25 |
taxed receipt if subsection (4B) or (4C) applies. |
| |
(4B) | This subsection applies if there would have been no taxed receipt but |
| |
for the application of Rule 1 in section 243 in determining the |
| |
effective duration of the lease. |
| |
(4C) | This subsection applies if there would have been no taxed receipt but |
| 30 |
for the application of Rule 1 in section 303 of ITTOIA 2005 in |
| |
determining the effective duration of the lease for the purposes of |
| |
Chapter 4 of Part 3 of that Act.” |
| |
8 | The amendments made by paragraphs 6 and 7 above have effect in relation |
| |
to leases granted on or after 1 April 2013. |
| 35 |
| |
| |
|
