Session 2014 - 15
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Other Bills before Parliament


 
 

Consideration of Bill:                               

489

 

Finance Bill, continued

 
 

“relevant

section

 
 

offshore service

356L(3)”

 
 

(in Part 8ZA)

  
 

Commencement etc

 

6          

This Schedule is to be treated as having come into force on 1 April 2014 (“the

 

commencement date”).

 

7          

Section 356L of CTA 2010 has effect in relation to activities carried out on or

 

after the commencement date.

 

8    (1)  

If, on the commencement date, a company was carrying on a trade that

 

consisted of, or included, carrying out oil contractor activities, an accounting

 

period ends (if it would not otherwise do so) with 31 March 2014.

 

      (2)  

Sub-paragraph (3) applies if—

 

(a)    

but for sub-paragraph (1), a company would have had an accounting

 

period that began before the commencement date and ended on or after

 

that date (“the split accounting period”), and

 

(b)    

the company’s accounting period beginning with 1 April 2014 ends

 

when the split accounting period would have ended but for that sub-

 

paragraph.

 

      (3)  

For the purposes of Chapter 4 of Part 22 of CTA 2010 (surrender of tax refund

 

within group)—

 

(a)    

the company is to be treated as having the split accounting period,

 

(b)    

any tax refund due to the company for—

 

(i)    

the accounting period ending with 31 March 2014, or

 

(ii)    

the accounting period beginning with 1 April 2014,

 

    

is to be treated as if it were a tax refund due to the company for the

 

split accounting period, and

 

(c)    

if the company surrenders a tax refund that is so treated (or part of such

 

a refund), the references in section 964(6) of CTA 2010 to the date on

 

which corporation tax became due and payable are to be treated as

 

references to the date on which corporation tax would have become

 

due and payable had the company had the split accounting period.

 

9    (1)  

A company may be given relief under section 45 of CTA 2010 (carry forward

 

of trade loss against subsequent trade profits) for a loss made in an accounting

 

period ending before the commencement date against profits of a ring fence

 

trade so far as (and only so far as) the loss would have been a loss of the ring

 

fence trade had section 356L of that Act had effect in relation to activities

 

carried out before the commencement date and Part 8ZA therefore applied.

 

      (2)  

In sub-paragraph (1) “ring fence trade” means oil contractor activities that

 

constitute a separate trade (whether by virtue of section 356M of that Act or

 

otherwise).”

 



 
 

Consideration of Bill:                               

490

 

Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

NS2

 

To move the following Schedule—

 

“General Block Exemption Regulation

 

1          

CAA 2001 is amended as follows.

 

2    (1)  

Section 45DB (exclusions from allowances under section 45DA) is amended

 

as follows.

 

      (2)  

In subsection (3)(a), for “a firm in difficulty for the purposes of the Community

 

Guidelines on State Aid for Rescuing and Restructuring Firms in Difficulty

 

(2004/C 244/02)” substitute “an undertaking in difficulty for the purposes of

 

the General Block Exemption Regulation”.

 

      (3)  

In subsection (4)(a), for “Council Regulation (EC) No 104/2000” substitute

 

“Regulation (EU) No 1379/2013 of the European Parliament and of the

 

Council”.

 

      (4)  

In subsection (11), in the definition of “General Block Exemption Regulation”,

 

for “(EC) No 800/2008” substitute “(EU) No 651/2014”.

 

      (5)  

In subsection (12), for paragraph (c) substitute—

 

“(c)    

Regulation (EU) No 1379/2013 of the European Parliament

 

and of the Council,”.

 

3          

In section 45K (expenditure on plant and machinery for use in designated

 

assisted areas), after subsection (8) insert—

 

“(8A)    

Condition C is met by virtue of subsection (8)(c) only if the amount of

 

the expenditure exceeds the amount by which the relevant plant or

 

machinery is depreciated in the period of 3 years ending immediately

 

before the beginning of the chargeable period in which the expenditure

 

is incurred.

 

(8B)    

“Relevant plant or machinery” means the plant or machinery being

 

used at the end of the period of 3 years mentioned in subsection (8A)

 

for the purposes of the product, process or service mentioned in

 

subsection (8)(c).”

 

4    (1)  

Section 45M (exemptions from allowances under section 45K) is amended as

 

follows.

 

      (2)  

In subsection (1), for “(6) or (7)” substitute “(7) or (7A)”.

 

      (3)  

In subsection (3)(a), for “a firm in difficulty for the purposes of the Community

 

Guidelines on State Aid for Rescuing and Restructuring Firms in Difficulty

 

(2004/C 244/02)” substitute “an undertaking in difficulty for the purposes of

 

the General Block Exemption Regulation”.

 

      (4)  

In subsection (4)—

 

(a)    

in paragraph (a), for “Council Regulation (EC) No 104/2000”

 

substitute “Regulation (EU) No 1379/2013 of the European

 

Parliament and of the Council”, and

 

(b)    

after paragraph (b) insert—

 

“(ba)    

in the transport sector or related infrastructure,

 

(bb)    

relating to energy generation, distribution or

 

infrastructure,

 

(bc)    

relating to the development of broadband networks,”.

 

      (5)  

After that subsection insert—


 
 

Consideration of Bill:                               

491

 

Finance Bill, continued

 
 

“(4A)    

Expressions used in subsection (4)(b), (ba), (bb) or (bc) and in the

 

General Block Exemption Regulation have the same meaning as in

 

that Regulation.”

 

      (6)  

Omit subsection (6).

 

      (7)  

After subsection (7) insert—

 

“(7A)    

Expenditure is within this subsection if—

 

(a)    

the area by reference to which the condition in section

 

45K(1)(a) is met is not an area which falls within Article

 

107(3)(a) of the Treaty on the Functioning of the European

 

Union,

 

(b)    

the condition in section 45K(8)(a) is not met in relation to the

 

expenditure, and

 

(c)    

at the time the expenditure is incurred the company is not an

 

SME for the purposes of the General Block Exemption

 

Regulation.”

 

      (8)  

In subsection (12)—

 

(a)    

in the first definition, for the words from ““coal” to “have” substitute

 

“has”, and

 

(b)    

in the definition of “General Block Exemption Regulation”, for “(EC)

 

No 800/2008” substitute “(EU) No 651/2014”.

 

      (9)  

In subsection (15), for paragraph (c) substitute—

 

“(c)    

Regulation (EU) No 1379/2013 of the European Parliament

 

and of the Council,”.

 

5    (1)  

Section 45N (effect of plant or machinery subsequently being primarily for use

 

outside designated assisted areas) is amended as follows.

 

      (2)  

In subsection (1)—

 

(a)    

for “designated assisted area within the meaning of section 45K”

 

substitute “relevant area”, and

 

(b)    

for “such a designated assisted” substitute “a relevant”.

 

      (3)  

After subsection (3) insert—

 

“(3A)    

“Relevant area” means—

 

(a)    

in relation to expenditure which would be within subsection

 

(7A) of section 45M if paragraph (a) of that subsection were

 

omitted, a designated assisted area within the meaning of

 

section 45K which falls within Article 107(3)(a) of the Treaty

 

on the Functioning of the European Union, and

 

(b)    

in relation to any other expenditure, a designated assisted area

 

within the meaning of section 45K.”

 

6          

In section 212T(6) (cap on first-year allowances: zero-emission goods

 

vehicles), in the definition of “undertaking”, for “(EC) No 800/2008”

 

substitute “(EU) No 651/2014”.

 

7          

In section 212U(5) (cap on first-year allowances: expenditure on plant and

 

machinery for use in designated assisted areas), in the definition of “single

 

investment project”, for “(EC) No 800/2008” substitute “(EU) No 651/2014”.”

 

8          

The amendments made by this Schedule have effect in relation to expenditure

 

incurred on or after the day on which this Act is passed.”

 



 
 

Consideration of Bill:                               

492

 

Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

NS3

 

To move the following Schedule—

 

“Taxation of co-operative societies etc

 

Taxation of Chargeable Gains Act 1992 (c. 12)

 

1          

In section 217D of TCGA 1992 (disposal of assets on union, amalgamation or

 

transfer of engagements), in subsection (3), after paragraph (a) insert—

 

“(aa)    

a society registered as a credit union under the Credit Unions

 

(Northern Ireland) Order 1985 (S.I. 1985/1205 (N.I. 12)),”.

 

Co-operative and Community Benefit Societies Act 2014 (c. 14)

 

2          

Schedule 4 to the Co-operative and Community Benefit Societies Act 2014

 

(consequential amendments) is amended as follows.

 

3          

In paragraph 47 (which amends section 140E of TCGA 1992)—

 

(a)    

in sub-paragraph (2), after “Co-operative and Community Benefit

 

Societies Act 2014” insert “or a society registered or treated as

 

registered under the Industrial and Provident Societies Act (Northern

 

Ireland) 1969”, and

 

(b)    

in sub-paragraph (3), after “Co-operative and Community Benefit

 

Societies Act 2014” insert “, a society registered or treated as

 

registered under the Industrial and Provident Societies Act (Northern

 

Ireland) 1969”.

 

4          

In paragraph 48 (which amends section 140F of TCGA 1992) after “Co-

 

operative and Community Benefit Societies Act 2014” insert “or a society

 

registered or treated as registered under the Industrial and Provident Societies

 

Act (Northern Ireland) 1969”.

 

5          

In paragraph 49 (which amends section 140G of TCGA 1992) after “Co-

 

operative and Community Benefit Societies Act 2014” insert “or a society

 

registered or treated as registered under the Industrial and Provident Societies

 

Act (Northern Ireland) 1969”.

 

6          

In paragraph 50 (which amends section 170 of TCGA 1992)—

 

(a)    

in sub-paragraph (2), for “within the meaning of the Co-operative and

 

Community Benefits Societies Act 2014” substitute “(see section

 

1119 of that Act)”, and

 

(b)    

in sub-paragraph (3), for “within the meaning of the Co-operative and

 

Community Benefits Societies Act 2014” substitute “(see section

 

1119 of CTA 2010)”.

 

7          

In paragraph 53 (which amends Schedule 7AC of TCGA 1992) for “within the

 

meaning of the Co-operative and Community Benefits Societies Act 2014”

 

substitute “(see section 1119 of that Act)”.

 

8          

In paragraph 82 (which amends paragraph 28 of Schedule 2 to ITEPA 2003),

 

in the sub-paragraph (5) substituted by sub-paragraph (3)—

 

(a)    

omit the “or” following paragraph (b), and

 

(b)    

at the end of paragraph (c) insert “, or

 

(d)    

an SCE formed in accordance with Council

 

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

 

European Cooperative Society.”.

 

9          

In paragraph 94 (which amends section 379 of ITTOIA 2005), in the definition

 

of “registered society” inserted by sub-paragraph (4)—

 

(a)    

omit the “or” following paragraph (a), and


 
 

Consideration of Bill:                               

493

 

Finance Bill, continued

 
 

(b)    

after paragraph (b) insert—

 

“(c)    

a society registered as a credit union under the Credit

 

Unions (Northern Ireland) Order 1985 (S.I. 1985/

 

1205 (N.I. 12)), or

 

(d)    

an SCE formed in accordance with Council

 

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

 

European Cooperative Society,”.

 

10         

In paragraph 105 (which amends section 151 of ITA 2007), in the definition of

 

“registered society” inserted by sub-paragraph (3)—

 

(a)    

omit the “or” following paragraph (a), and

 

(b)    

at the end of paragraph (b) insert “or

 

(c)    

an SCE formed in accordance with Council

 

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

 

European Cooperative Society,”.

 

11         

In paragraph 110 (which amends section 887 of ITA 2007), in the subsection

 

(5) substituted by sub-paragraph (5)—

 

(a)    

omit the “or” following paragraph (a), and

 

(b)    

after paragraph (b) insert—

 

“(c)    

a society registered as a credit union under the Credit

 

Unions (Northern Ireland) Order 1985 (S.I. 1985/

 

1205 (N.I. 12)), or

 

(d)    

an SCE formed in accordance with Council

 

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

 

European Cooperative Society.”.

 

12         

In paragraph 158 (which amends section 90 of CTA 2010), in the definition of

 

“registered society” inserted by sub-paragraph (3)—

 

(a)    

omit the “or” following paragraph (a), and

 

(b)    

at the end of paragraph (b) insert “or

 

(c)    

an SCE formed in accordance with Council

 

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

 

European Cooperative Society,”.

 

13         

In paragraph 168 (which amends section 1119 of CTA 2010), in the definition

 

of “registered society” inserted by sub-paragraph (3), for paragraph (c) and the

 

“or” before it substitute—

 

“(c)    

a society registered as a credit union under the Credit Unions

 

(Northern Ireland) Order 1985 (S.I. 1985/1205 (N.I. 12)), or

 

(d)    

an SCE formed in accordance with Council Regulation (EC)

 

No 1435/2003 on the Statute for a European Cooperative

 

Society,”.

 

14         

In paragraph 171 (which amends section 118 of TIOPA 2010)—

 

(a)    

in sub-paragraph (2), after “Co-operative and Community Benefit

 

Societies Act 2014” insert “or a society registered or treated as

 

registered under the Industrial and Provident Societies Act (Northern

 

Ireland) 1969”, and

 

(b)    

in sub-paragraph (3), after “Co-operative and Community Benefit

 

Societies Act 2014” insert “, a society registered or treated as

 

registered under the Industrial and Provident Societies Act (Northern

 

Ireland) 1969”.


 
 

Consideration of Bill:                               

494

 

Finance Bill, continued

 
 

Commencement

 

15         

The amendments made by this Schedule come into force on 1 August 2014.”

 


 

Mr Chancellor of the Exchequer

 

NS4

 

To move the following Schedule—

 

“Tax relief for theatrical production

 

Amendments of CTA 2009

 

1          

Before Part 16 of CTA 2009 insert—

 

theatrical productions

 

Introduction

 

1217F

 Overview

 

(1)    

This Part contains provision about tax relief for production companies

 

in respect of their theatrical productions.

 

(2)    

Sections 1217FA to 1217FC define “production company” and

 

“theatrical production”.

 

(3)    

Section 1217G sets out the conditions a production company must

 

meet to qualify for relief in relation to its theatrical production.

 

(4)    

Section 1217H provides for relief by way of additional deductions in

 

respect of certain expenditure (and section 1217J is about the amount

 

of the additional deduction).

 

(5)    

This Part also contains provision—

 

(a)    

for a company that claims relief to be treated as carrying on a

 

separate trade relating to the theatrical production (see section

 

1217H(3)), and

 

(b)    

about the calculation of the profits and losses of that trade (see

 

sections 1217I to 1217IF).

 

(6)    

Sections 1217K to 1217KC—

 

(a)    

provide for relief by way of payments (called “theatre tax

 

credits”) to be made on the company’s surrender of certain

 

losses of that trade, and

 

(b)    

set out an upper limit on relief, in connection with State aid

 

legislation.

 

(7)    

Sections 1217LA and 1217LB are about certain cases involving tax

 

avoidance arrangements or arrangements entered into otherwise than

 

for genuine commercial reasons.


 
 

Consideration of Bill:                               

495

 

Finance Bill, continued

 
 

(8)    

Sections 1217M to 1217MC contain provision about the use of losses

 

of the separate trade (including provision about relief for terminal

 

losses).

 

(9)    

Sections 1217N and 1217NA are concerned with the provisional

 

nature of relief given for periods preceding the period in which the

 

company ceases to carry on the separate theatrical trade.

 

1217FA 

 “Theatrical production”

 

(1)    

In this Part “theatrical production” means a dramatic production or a

 

ballet (and any ballet is therefore a theatrical production, whether or

 

not it is also a dramatic production).

 

    

But see section 1217FB.

 

(2)    

“Dramatic production” means a production of a play, opera, musical,

 

or other dramatic piece (whether or not involving improvisation) in

 

relation to which the following conditions are met—

 

(a)    

the actors, singers, dancers or other performers are to give

 

their performances wholly or mainly through the playing of

 

roles,

 

(b)    

each performance in the proposed run of performances is to be

 

live, and

 

(c)    

the presentation of live performances is the main object, or

 

one of the main objects, of the company’s activities in relation

 

to the production.

 

(3)    

“Dramatic piece” may also include, for example, a show that is to be

 

performed by a circus.

 

(4)    

For the purposes of this section a performance is “live” if it is to an

 

audience before whom the performers are actually present.

 

1217FB 

 Productions not regarded as theatrical

 

(1)    

A dramatic production or ballet is not regarded as a theatrical

 

production if—

 

(a)    

the main purpose, or one of the main purposes, for which it is

 

made is to advertise or promote any goods or services,

 

(b)    

the performances are to consist of or include a competition or

 

contest,

 

(c)    

a wild animal is to be used in any performance,

 

(d)    

the production is of a sexual nature (see subsection (3)), or

 

(e)    

the making of a relevant recording is the main object, or one

 

of the main objects, of the company’s activities in relation to

 

the production.

 

(2)    

For the purposes of subsection (1)(c) an animal is used in a

 

performance if the animal performs, or is shown, in the course of the

 

performance.

 

(3)    

A production is of a sexual nature for the purposes of subsection (1)(d)

 

if the performances are to include any content the nature of which is

 

such that, ignoring financial gain, it would be reasonable to assume the

 

content to be included solely or principally for the purpose of sexually

 

stimulating any member of the audience (whether by verbal or other

 

means).


 
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