House of Commons Amendments

Session 2014 - 15
Internet Publications
Other Bills before Parliament

Consideration of Bill:
438

, continued

1217NA
Clawback of provisional relief

(1)
If a statement is made under section 1217N(2) but it subsequently

appears that the EEA expenditure condition will not be met on the

company’s ceasing to carry on the separate theatrical trade, the

company—

(a)
is not entitled to relief under any of the relieving provisions

for any period for which its entitlement depended on such a

statement, and

(b)
must amend its company tax return for any such period

accordingly.

(2)
When a company which has made a claim under section 1217H ceases

to carry on the separate theatrical trade, the company’s company tax

return for the period in which that cessation occurs must—

(a)
state that the company has ceased to carry on the separate

theatrical trade, and

(b)
be accompanied by a final statement of the amount of the core

expenditure on the theatrical production that is EEA

expenditure.

(3)
If that statement shows that the EEA expenditure condition is not

met—

(a)
the company is not entitled to relief under any of the relieving

provisions for any period,

(b)
the company is treated for corporation tax purposes as if

section 1217H(3)(a) (treatment as a separate trade) did not

apply in relation to the theatrical production for any period,

and

(c)
accordingly, sections 1217MA and 1217MB (provisions

about use of losses) do not apply in relation to the theatrical

production for any period.

(4)
Where subsection (3) applies, the company must amend its company

tax return for any period in which (or in any part of which) it was

treated as carrying on a separate trade relating to the theatrical

production.

(5)
Any amendment or assessment necessary to give effect to this section

may be made despite any limitation on the time within which an

amendment or assessment may normally be made.

(6)
In this section “the relieving provisions” has the same meaning as in

section 1217N.

Interpretation

1217O
Activities involved in developing, producing, running or closing a

production


The Treasury may by regulations amend section 1217GC (core

expenditure) or 1217IC (costs of production) for the purpose of

providing that activities of a specified description are, or are not, to be

regarded as activities involved in developing or (as the case may be)

producing, running or closing—

(a)
a theatrical production, or

(b)
a theatrical production of a specified description.

Consideration of Bill:
439

, continued

1217OA
“Company tax return”


In this Part “company tax return” has the same meaning as in Schedule

18 to FA 1998 (see paragraph 3(1) of that Schedule).

1217OB
Index


In this Part—

“commercial purpose condition” has the meaning given by section

1217GA;

“company tax return” has the meaning given by section 1217OA;

“core expenditure” has the meaning given by section 1217GC;

“costs”, in relation to a theatrical production, has the meaning given by

section 1217IC;

“EEA expenditure” has the meaning given by section 1217GB;

“EEA expenditure condition” has the meaning given by section 1217GB;

references to “income from a theatrical production” are to be read in

accordance with section 1217IB;

“production company” has the meaning given by section 1217FC;

“qualifying expenditure” has the meaning given by section 1217JA;

references to the “separate theatrical trade” are to be read in accordance

with section 1217I;

“theatrical production” has the meaning given by section 1217FA (read

with section 1217FB).”

Consequential amendments

ICTA

2    (1)
Section 826 of ICTA (interest on tax overpaid) is amended as follows.

      (2)
In subsection (1), after paragraph (fb) insert—

“(fc)
a payment of theatre tax credit falls to be made to a company;

or”.

      (3)
In subsection (3C), for “or video game tax credit” substitute “, video game tax

credit or theatre tax credit”.

      (4)
In subsection (8A)—

(a)
in paragraph (a) for “or (f)” substitute “(f), (fa), (fb) or (fc)”, and

(b)
in paragraph (b)(ii), after “video game tax credit” insert “or theatre tax

credit”.

      (5)
In subsection (8BA), after “video game tax credit” (in both places) insert “or

theatre tax credit”.

FA 1998

3
Schedule 18 to FA 1998 (company tax returns, assessments and related

matters) is amended as follows.

4
In paragraph 10 (other claims and elections to be included in return), in sub-

paragraph (4)—

(a)
before “claims” insert “certain”;

(b)
for “or 15B” substitute “, 15B or 15C”.

5    (1)
Paragraph 52 (recovery of excessive overpayments etc) is amended as follows.

Consideration of Bill:
440

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      (2)
In sub-paragraph (2), after paragraph (bf) insert—

“(bg)
theatre tax credit under Part 15C of that Act,”.

      (3)
In sub-paragraph (5)—

(a)
after paragraph (ah) insert—

“(ai)
an amount of theatre tax credit paid to a company

for an accounting period,”;

(b)
in the words after paragraph (b), after “(ah)” insert “, (ai)”.

6    (1)
Part 9D (certain claims for tax relief) is amended as follows.

      (2)
In paragraph 83S (introduction), after paragraph (c) insert—

“(d)
an additional deduction under Part 15C of CTA 2009,

(e)
a theatre tax credit under that Part of that Act.”

      (3)
The heading of that Part becomes “Claims for tax relief under Part 15,

15A, 15B or 15C of the Corporation Tax Act 2009”.

CAA 2001

7
In Schedule A1 to CAA 2001 (first-year tax credits), in paragraph 11(4), omit

the “and” at the end of paragraph (d) and after paragraph (e) insert “, and

(f)
section 1217K of that Act (theatre tax credits).”

FA 2007

8
In Schedule 24 to FA 2007 (penalties for errors), in paragraph 28(fa) (meaning

of “corporation tax credit”), omit the “or” at the end of sub-paragraph (ivb) and

after that sub-paragraph insert—

“(ivc)
a theatre tax credit under section 1217K of that

Act, or”.

CTA 2009

9
In section 104BA of CTA 2009 (R&D expenditure credits: restrictions on

claiming other tax reliefs), after subsection (3) insert—

“(4)
For provision prohibiting an R&D expenditure credit being given

under this Chapter and relief being given under section 1217H or

1217K (theatrical productions: additional deduction or theatre tax

credit), see section 1217JA(2).”

10
In Part 8 of CTA 2009 (intangible fixed assets), in Chapter 10 (excluded

assets), before section 809 insert—

“808C
Assets representing expenditure incurred in course of separate

theatrical trade

(1)
This Part does not apply to an intangible fixed asset held by a theatrical

production company so far as the asset represents expenditure on a

theatrical production that is treated under Part 15C as expenditure of a

separate trade (see particularly sections 1217H and 1217IE).

(2)
In this section—

“theatrical production” has the same meaning as in Part 15C (see section

1217FA);

“theatrical production company” means a company which, for the

purposes of that Part, is the production company in relation to a

theatrical production (see section 1217FC).”

Consideration of Bill:
441

, continued

11
In section 1040ZA of CTA 2009 (additional relief for expenditure on research

and development), after subsection (3) insert—

“(4)
For provision prohibiting relief being given under this Part and under

section 1217H or 1217K (theatrical productions: additional deduction

or theatre tax credit), see section 1217JA(2).”

12
In section 1310 of CTA 2009 (orders and regulations), in subsection (4), after

paragraph (ej) insert—

“(ek)
section 1217GB(4) (EEA expenditure condition),

(el)
section 1217J(4) (amount of additional deduction),

(em)
section 1217O (activities involved in developing, producing,

running or closing a production),”.

13
In Schedule 4 to CTA 2009 (index of defined expressions) at the appropriate

place insert—

“commercial purpose
section 1217OB”;

condition (in Part 15C)

“company tax return (in
section 1217OA”;

Part 15C)

“core expenditure (in Part
section 1217GC”;

15C)

“costs of a theatrical
section 1217IC”;

production (in Part 15C)

“EEA expenditure (in Part
section 1217GB”;

15C)

“EEA expenditure
section 1217OB”;

condition (in Part 15C)

“income from a theatrical
section 1217IC”;

production (in Part 15C)

“production company (in
section 1217FC”;

Part 15C)

“qualifying expenditure (in
section 1217JA”;

Part 15C)

“the separate theatrical
section 1217OB”;

trade (in Part 15C)

“theatrical production (in
section 1217FA”.

Part 15C)

FA 2009

14
In Schedule 54A to FA 2009 (which is prospectively inserted by F(No. 3)A

2010 and contains provision about the recovery of certain amounts of interest

paid by HMRC), in paragraph 2—

(a)
in sub-paragraph (2), omit the “or” at the end of paragraph (f) and after

paragraph (g) insert “, or

(h)
a payment of theatre tax credit under section

1217K of CTA 2009 for an accounting period.”;

Consideration of Bill:
442

, continued

(b)
in sub-paragraph (4), for “(e)” substitute “(h)”.

CTA 2010

15  (1)
Section 357CG of CTA 2010 (profits arising from the exploitation of patents

etc: adjustments in calculating profits of trade) is amended as follows.

      (2)
In subsection (3), omit the “and” at the end of paragraph (c) and after

paragraph (d) insert “, and

(e)
the amount of any additional deduction for the accounting

period obtained by the company under Part 15C of CTA 2009

in respect of qualifying expenditure on a theatrical

production.”

      (3)
In subsection (6)—

(a)
in the definition of “qualifying expenditure”, omit the “and” at the end

of paragraph (a) and after paragraph (b) insert “, and

(c)
in relation to a company that is the

production company (as defined in section

1217FC of that Act) in relation to a

theatrical production, has the same

meaning as in Part 15C of that Act,”;

(b)
omit the “and” at the end of the definition of “television production

company” and after that definition insert—

““theatrical production” has the same meaning as in Part 15C of

CTA 2009 (see section 1217FA of that Act), and”.

Commencement

16  (1)
Any power to make regulations conferred on the Treasury by virtue of this

Schedule comes into force on the day on which this Act is passed.

      (2)
So far as not already brought into force by sub-paragraph (1), the amendments

made by this Schedule come into force in accordance with provision contained

in an order made by the Treasury.

      (3)
An order under sub-paragraph (2) may make different provision for different

purposes.

17  (1)
The amendments made by this Schedule have effect in relation to accounting

periods beginning on or after 1 September 2014.

      (2)
Sub-paragraph (3) applies where a company has an accounting period

beginning before 1 September 2014 and ending on or after that date (“the

straddling period”).

      (3)
For the purposes of Part 15C of CTA 2009—

(a)
so much of the straddling period as falls before 1 September 2014, and

so much of that period as falls on or after that date, are treated as

separate accounting periods, and

(b)
any amounts brought into account for the purposes of calculating for

corporation tax purposes the profits of a trade for the straddling period

are apportioned to the two separate accounting periods on such basis

as is just and reasonable.”

Consideration of Bill:
443

, continued

Mr Chancellor of the Exchequer

Clause  61,  page  52,  line  12,  leave out “(EC) No 800/2008” and insert “(EU) No

651/2014”

Mr Chancellor of the Exchequer

Clause  61,  page  52,  line  41,  at end insert—

“( )
In the application of section 360L of CAA 2001 in relation to expenditure

incurred before the day on which this Act is passed, the definition of “General

Block Exemption Regulation” in subsection (6) of that section is to be treated as

referring to Commission Regulation (EC) No 800/2008.”

Mr Chancellor of the Exchequer

Clause  73,  page  61,  line  18,  leave out “as follows” and insert “in accordance with

subsections (2) to (10)”

Mr Chancellor of the Exchequer

Clause  73,  page  62,  line  9,  at end insert—

“( )
Accordingly, in section 1 of the Air Passenger Duty (Setting of Rate) Act

(Northern Ireland) 2012 (setting of rate of air passenger duty)—

(a)
in subsection (1)—

(i)
omit “(3)(a) and (b), (4)(a) and (b),”, and

(ii)
for “(5A)(a), (b) and (c)” substitute “(5A)(c)”, and

(b)
omit subsections (2) to (5), (8) and (9).”

Mr Chancellor of the Exchequer

Clause  207,  page  138,  line  23,  at end insert—

“(2A)
The grounds on which an appeal under subsection (1) may be made include in

particular—

(a)
that Condition A, B or D in section 197was not met in relation to the

follower notice,

(b)
that the judicial ruling specified in the notice is not one which is relevant

to the chosen arrangements,

(c)
that the notice was not given within the period specified in subsection (6)

of that section, or

(d)
that it was reasonable in all the circumstances for P not to have taken the

necessary corrective action (see section 201(4)) in respect of the denied

advantage.”

Consideration of Bill:
444

, continued

Mr Chancellor of the Exchequer

Clause  207,  page  138,  line  43,  at end insert—

“(8A)
The cancellation under subsection (7) of HMRC’s decision on the ground

specified in subsection (2A)(d) does not affect the validity of the follower notice,

or of any accelerated payment notice or partner payment notice under Chapter 3

related to the follower notice.”

Mr Chancellor of the Exchequer

Clause  291,  page  199,  leave out lines 23 to 29

Mr Chancellor of the Exchequer

Schedule  6,  page  273,  line  29,  at end insert—

“139A (1)
Section 94A of ITTOIA 2005 (costs of setting up SAYE option scheme or

CSOP scheme) is amended as follows.

      (2)
In subsection (1)—

(a)
in paragraph (a) omit “that is approved by an officer of Revenue and

Customs”, and

(b)
omit paragraph (b) and the “and” before it.

      (3)
In subsection (2)—

(a)
at the beginning of paragraph (a) insert “Schedule 3”,

(b)
at the beginning of paragraph (b) insert “Schedule 4”, and

(c)
omit the final sentence.

      (4)
In subsection (4) for “approval is given” (in both places) substitute “relevant

date falls”.

      (5)
After subsection (4) insert—

“(4A)
In subsection (4) “the relevant date”—

(a)
in relation to a Schedule 3 SAYE option scheme, has the

meaning given in paragraph 40A(6) of Schedule 3 to ITEPA

2003, and

(b)
in relation to a Schedule 4 CSOP scheme, has the meaning

given in paragraph 28A(6) of Schedule 4 to ITEPA 2003.””

Mr Chancellor of the Exchequer

Schedule  6,  page  276,  line  42,  after “under” insert “section 94A of ITTOIA 2005

or”

Mr Chancellor of the Exchequer

Schedule  6,  page  294,  line  48,  leave out “paragraph 141” and insert “paragraphs

139A and 141”



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