Session 2014 - 15
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Other Bills before Parliament


 
 

Consideration of Bill:                               

475

 

Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

NC2

 

To move the following Clause—

 

“Determination of beneficial entitlement for purposes of group relief

 

(1)    

CTA 2010 is amended as follows.

 

(2)    

In section 169 (interpretation of provisions to determine proportion of beneficial

 

entitlement)—

 

(a)    

in subsection (2), for the definition of “arrangements” substitute—

 

““arrangements”—

 

(a)    

means arrangements of any kind (whether or not in

 

writing), but

 

(b)    

does not include a condition or requirement imposed by,

 

or agreed with, a Minister of the Crown, the Scottish

 

Ministers, a Northern Ireland department or a statutory

 

body,”, and

 

(b)    

after that subsection insert—

 

“(3)    

In subsection (2) “statutory body” means a body (other than a

 

company as defined by section 1(1) of the Companies Act 2006)

 

established by or under a statutory provision for the purpose of

 

carrying out functions conferred on it by or under a statutory

 

provision, except that the Treasury may, by order, specify that a

 

body is or is not to be a statutory body for this purpose.”

 

(3)    

In section 188 (other definitions for Part 5), in subsection (1), in the definition of

 

“company” for “section 156(2A)” substitute “sections 156(2A) and 169(3)”.

 

(4)    

The amendments made by this section have effect in relation to accounting

 

periods ending on or after 1 January 2015.”

 


 

Mr Chancellor of the Exchequer

 

NC3

 

To move the following Clause—

 

“General Block Exemption Regulation

 

Schedule (General Block Exemption Regulation) makes provision in relation to

 

Commission Regulation (EU) No 651/2014 (General block exemption

 

Regulation).”

 



 
 

Consideration of Bill:                               

476

 

Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

NC4

 

To move the following Clause—

 

“Co-operative societies etc

 

Schedule (Taxation of co-operative societies etc) makes provision about the tax

 

treatment of co-operative, community benefit and industrial and provident

 

societies and credit unions.”

 


 

Mr Chancellor of the Exchequer

 

NC5

 

To move the following Clause—

 

“Tax relief for theatrical production

 

Schedule (Tax relief for theatrical production) contains provision about relief in

 

respect of theatrical productions.”

 


 

Mr Chancellor of the Exchequer

 

NC6

 

To move the following Clause—

 

“Exclusion of incentivised electricity or heat generation activities

 

(1)    

ITA 2007 is amended as follows.

 

(2)    

In section 192 (EIS: meaning of “excluded activities”)—

 

(a)    

in subsection (1), omit the “and” at the end of paragraph (ka) and after

 

that paragraph insert—

 

“(kb)    

the subsidised generation of heat or subsidised

 

production of gas or fuel, and”, and

 

(b)    

in subsection (2), omit the “and” at the end of paragraph (f) and after

 

paragraph (g) insert “, and

 

(h)    

section 198B (subsidised generation of heat and

 

subsidised production of gas or fuel).”

 

(3)    

In section 198A (excluded activities: subsidised generation or export of

 

electricity)—

 

(a)    

for subsection (3) substitute—

 

“(3)    

The generation of electricity is “subsidised” if—

 

(a)    

a person receives a FIT subsidy in respect of the

 

electricity generated,

 

(b)    

a renewables obligation certificate is issued in

 

connection with the generation of the electricity, or

 

(c)    

a scheme established in a territory outside the United

 

Kingdom, and corresponding to that set out in a

 

renewables obligation order under section 32 of the


 
 

Consideration of Bill:                               

477

 

Finance Bill, continued

 
 

Electricity Act 1989, operates to incentivise the

 

generation of the electricity.”,

 

(b)    

in subsection (6), omit the “or” after paragraph (c) and after paragraph (d)

 

insert “, or

 

(e)    

an SCE formed in accordance with Council Regulation

 

(EC) No 1435/2003 on the Statute for a European

 

Cooperative Society.”, and

 

(c)    

in subsection (9), at the end insert—

 

““renewables obligation certificate” means a certificate issued

 

under section 32B of the Electricity Act 1989 or Article 54 of the

 

Energy (Northern Ireland) Order 2003.”

 

(4)    

After that section insert—

 

“198B

Excluded activities: subsidised generation of heat and subsidised

 

production of gas or fuel

 

(1)    

This section supplements section 192(1)(kb).

 

(2)    

The generation of heat, or production of gas or fuel, is “subsidised” if a

 

payment is made, or another incentive is given, under—

 

(a)    

a scheme established by regulations under section 100 of the

 

Energy Act 2008 or section 113 of the Energy Act 2011

 

(renewable heat incentives), or

 

(b)    

a similar scheme established in a territory outside the United

 

Kingdom,

 

    

in respect of the heat generated, or gas or fuel produced.

 

(3)    

But the generation of heat, or production of gas or fuel, is not to be taken

 

to fall within section 192(1)(kb) if Condition A or B is met.

 

(4)    

Condition A is that the generation or production is carried on by—

 

(a)    

a community interest company,

 

(b)    

a co-operative society,

 

(c)    

a community benefit society,

 

(d)    

a NI industrial and provident society, or

 

(e)    

an SCE formed in accordance with Council Regulation (EC) No

 

1435/2003 on the Statute for a European Cooperative Society.

 

(5)    

Condition B is that the plant used for the generation of the heat, or

 

production of the gas or fuel, relies wholly or mainly on anaerobic

 

digestion.

 

(6)    

Section 198A(9) (definitions) applies for the purposes of this section as

 

for the purposes of section 198A.”

 

(5)    

In section 303 (VCTs: meaning of “excluded activities”)—

 

(a)    

in subsection (1), omit the “and” at the end of paragraph (ka) and after

 

that paragraph insert—

 

“(kb)    

the subsidised generation of heat or subsidised

 

production of gas or fuel, and”, and

 

(b)    

in subsection (2), omit the “and” at the end of paragraph (f) and after

 

paragraph (g) insert “, and

 

(h)    

section 309B (subsidised generation of heat and

 

subsidised production of gas and fuel).”

 

(6)    

In section 309A (excluded activities: subsidised generation or export of

 

electricity)—


 
 

Consideration of Bill:                               

478

 

Finance Bill, continued

 
 

(a)    

for subsection (3) substitute—

 

“(3)    

The generation of electricity is “subsidised” if—

 

(a)    

a person receives a FIT subsidy in respect of the

 

electricity generated,

 

(b)    

a renewables obligation certificate is issued in

 

connection with the generation of the electricity, or

 

(c)    

a scheme established in a territory outside the United

 

Kingdom, and corresponding to that set out in a

 

renewables obligation order under section 32 of the

 

Electricity Act 1989, operates to incentivise the

 

generation of the electricity.”,

 

(b)    

in subsection (6), omit the “or” after paragraph (c) and after paragraph (d)

 

insert “, or

 

(e)    

an SCE formed in accordance with Council Regulation

 

(EC) No 1435/2003 on the Statute for a European

 

Cooperative Society.”, and

 

(c)    

in subsection (9), at the end insert—

 

““renewables obligation certificate” means a certificate issued

 

under section 32B of the Electricity Act 1989 or Article 54 of the

 

Energy (Northern Ireland) Order 2003.”

 

(7)    

After that section insert—

 

“309B

Excluded activities: subsidised generation of heat and subsidised

 

production of gas or fuel

 

(1)    

This section supplements section 303(1)(kb).

 

(2)    

The generation of heat, or production of gas or fuel, is “subsidised” if a

 

payment is made, or another incentive is given, under—

 

(a)    

a scheme established by regulations under section 100 of the

 

Energy Act 2008 or section 113 of the Energy Act 2011

 

(renewable heat incentives), or

 

(b)    

a similar scheme established in a territory outside the United

 

Kingdom,

 

    

in respect of the heat generated or gas or fuel produced.

 

(3)    

But the generation of heat, or production of gas or fuel, is not to be taken

 

to fall within section 303(1)(kb) if Condition A or B is met.

 

(4)    

Condition A is that the generation or production is carried on by—

 

(a)    

a community interest company,

 

(b)    

a co-operative society,

 

(c)    

a community benefit society,

 

(d)    

a NI industrial and provident society, or

 

(e)    

an SCE formed in accordance with Council Regulation (EC) No

 

1435/2003 on the Statute for a European Cooperative Society.

 

(5)    

Condition B is that the plant used for the generation of the heat, or

 

production of the gas or fuel, relies wholly or mainly on anaerobic

 

digestion.

 

(6)    

Section 309A(9) (definitions) applies for the purposes of this section as

 

for the purposes of section 309A.”

 

(8)    

The amendments made by subsections (2) to (4) have effect in relation to shares

 

issued on or after the day on which this Act is passed.


 
 

Consideration of Bill:                               

479

 

Finance Bill, continued

 
 

(9)    

The amendments made by subsections (5) to (7) have effect in relation to a

 

relevant holding issued on or after the day on which this Act is passed.”

 


 

Mr Chancellor of the Exchequer

 

NS1

 

To move the following Schedule—

 

“Oil contractors: ring-fence trade etc

 

CTA 2010

 

1          

CTA 2010 is amended as follows.

 

2          

In section 1 (overview of Act), in subsection (3), after paragraph (a) insert—

 

“(aa)    

oil contractor activities (see Part 8ZA),

 

(ab)    

profits arising from the exploitation of patents etc (see Part

 

8A),”.

 

3          

In Chapter 4 of Part 8 (oil activities: calculation of profits), after section 285

 

insert—

 

“Hire of relevant assets

 

285A  

Restriction on hire etc of relevant assets to be brought into account

 

(1)    

This section applies if—

 

(a)    

oil contractor activities are, or are to be, carried out, and

 

(b)    

a company that carries on a ring fence trade makes, or is to

 

make, one or more payments under a lease of a relevant asset,

 

or part of a relevant asset, which is, or is to be, provided,

 

operated or used in the relevant offshore service in question.

 

(2)    

The total amount that may be brought into account in respect of the

 

payments for the purposes of calculating the company’s ring fence

 

profits in an accounting period is limited to the hire cap.

 

(3)    

The “hire cap” is an amount equal to the relevant percentage of TC for

 

the accounting period, subject to subsection (4).

 

(4)    

If payments in relation to which subsection (2) or section 356N(2)

 

(restriction on hire for oil contractors under Part 8ZA) applies are also

 

made, or to be made, by one or more other companies in respect of the

 

relevant asset or part, the “hire cap” is to be such proportion of the

 

amount mentioned in subsection (3) as is just and reasonable, having

 

regard (in particular) to the amounts of the payments made, or to be

 

made, by each company.

 

(5)    

The “relevant percentage” and TC are to be determined in accordance

 

with section 356N(5) to (16).

 

(6)    

To the extent that, by virtue of this section, payments within

 

subsection (1)(b) cannot be brought into account for the purposes of

 

calculating the company’s ring fence profits in an accounting period,

 

the payments may be—

 

(a)    

allowed as a deduction from the company’s total profits for

 

the accounting period, or


 
 

Consideration of Bill:                               

480

 

Finance Bill, continued

 
 

(b)    

treated as a surrenderable amount of the company for the

 

accounting period for the purposes of Part 5 (group relief) (see

 

section 99(7)) as if they were a trading loss,

 

    

but this is subject to subsection (7).

 

(7)    

No deduction may be made by virtue of subsection (6) from total

 

profits so far as they are ring fence profits or contractor’s ring fence

 

profits.

 

(8)    

If the company or an associated person enters into arrangements the

 

main purpose or one of the main purposes of which is to secure that

 

subsection (2) does not apply in relation to one or more payments to

 

any extent, that subsection applies in relation to the payments to the

 

extent that it would not otherwise do so.

 

(9)    

In subsection (8) “arrangements” includes any agreement,

 

understanding, scheme, transaction or series of transactions (whether

 

or not legally enforceable).

 

(10)    

In this section—

 

“associated person” has the meaning given by section 356LB;

 

“contractor’s ring fence profits” has the meaning given by section

 

356LD;

 

“oil contractor activities” and “relevant offshore service” have the

 

meaning given by section 356L;

 

“relevant asset” has the meaning given by section 356LA;

 

“lease” has the meaning given by section 868.”

 

4          

After Part 8 (oil activities) insert—

 

Oil contractors

 

Introduction

 

356K  

Overview of Part

 

(1)    

This Part is about the corporation tax treatment of oil contractor

 

activities.

 

(2)    

Chapter 2 contains basic definitions used in this Part.

 

(3)    

Chapter 3 treats oil contractor activities as a separate trade.

 

(4)    

Chapter 4 makes provision about the calculation of profits from oil

 

contractor activities.

 

(5)    

For the meaning of oil contractor activities, see section 356L.


 
 

Consideration of Bill:                               

481

 

Finance Bill, continued

 
 

Basic definitions

 

356L  

“Oil contractor activities” etc

 

(1)    

The definitions in this section have effect for the purposes of this Part.

 

(2)    

“Oil contractor activities” means activities carried on by a company

 

(“the contractor”), which are not oil-related activities (within the

 

meaning of section 274), but are—

 

(a)    

exploration or exploitation activities in, or in connection with,

 

which the contractor provides, operates or uses a relevant

 

asset (see section 356LA) in a relevant offshore service, or

 

(b)    

otherwise carried on in, or in connection with, the provision

 

by the contractor of a relevant offshore service.

 

(3)    

The contractor provides a “relevant offshore service” if the contractor

 

provides, operates or uses a relevant asset in, or in connection with, the

 

carrying on of exploration or exploitation activities in a relevant

 

offshore area by the contractor or any other associated person.

 

(4)    

“Exploration or exploitation activities” means activities carried on in

 

connection with the exploration or exploitation of the seabed and

 

subsoil and their natural resources.

 

(5)    

“Relevant offshore area” means—

 

(a)    

the territorial sea of the United Kingdom;

 

(b)    

the areas designated by Order in Council under section 1(7) of

 

the Continental Shelf Act 1964.

 

356LA

“Relevant asset”

 

(1)    

In this Part “relevant asset” means an asset within subsection (2) in

 

respect of which conditions A and B are met.

 

(2)    

An asset is within this subsection if it is a structure that—

 

(a)    

can be moved from place to place (whether or not under its

 

own power) without major dismantling or modification, and

 

(b)    

can be used to—

 

(i)    

drill for the purposes of searching for, or extracting,

 

oil, or

 

(ii)    

provide accommodation for individuals who work on

 

or from another structure used in a relevant offshore

 

area for, or in connection with, exploration or

 

exploitation activities (“offshore workers”).

 

(3)    

But an asset is not within subsection (2)(b)(ii) if it is reasonable to

 

suppose that its use to provide accommodation for offshore workers is

 

unlikely to be more than incidental to another use, or other uses, to

 

which the asset is likely to be put.

 

(4)    

In subsection (2)—

 

“oil” means any substance capable of being won under the authority of a

 

licence granted under Part 1 of the Petroleum Act 1998 or the

 

Petroleum (Production) Act (Northern Ireland) 1964;

 

“structure” includes a ship or other vessel.


 
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