House of Commons Amendments

Session 2014 - 15
Internet Publications
Other Bills before Parliament

Notices of Amendments: 23 June 2014
259

Finance Bill, continued

claimant company’s contractor’s ring fence profits except so far as the

claim relates to losses incurred by the surrendering company that arose

from oil contractor activities.

(2)
In section 105 (restriction on surrender of losses etc within section

99(1)(d) to (g)) the references to the surrendering company’s gross

profits of the surrender period do not include the company’s relevant

contractor’s ring fence profits for that period.

(3)
The company’s “relevant contractor’s ring fence profits” for that

period are—

(a)
if for that period there are no qualifying charitable donations

made by the company that are allowable under Part 6

(charitable donations relief), the company’s contractor’s ring

fence profits for that period, or

(b)
otherwise, so much of the contractor’s ring fence profits of the

company for that period as exceeds the amount of the

qualifying charitable donations made by the company that are

allowable under section 189 for that period.

(4)
In this section “claimant company” and “surrendering company” are

to be read in accordance with Part 5 (group relief) (see section 188).

356NG
Capital allowances

A capital allowance may not to any extent be given effect under

section 259 or 260 of CAA 2001 (special leasing) by deduction from

the contractor’s ring fence profits.”

5
In Schedule 4 (index of defined expressions), insert the following entries at the

appropriate places—

“associated
section 356LB”

person (in Part

8ZA)

“contractor (in
section

Part 8ZA)
356L(2)”

“contractor’s
section 356LD”

ring fence

profits (in Part

8ZA)

“exploration or
section

exploitation
356L(4)”

activities (in

Part 8ZA)

Notices of Amendments: 23 June 2014
260

Finance Bill, continued

“lease (in Part
section 356LC”

8ZA)

“oil contractor
section

activities (in
356L(2)”

Part 8ZA)

“relevant asset
section 356LA”

(in Part 8ZA)

“relevant
section

offshore area
356L(5)”

(in Part 8ZA)

“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

Notices of Amendments: 23 June 2014
261

Finance Bill, continued

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).”

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

15

Schedule  9,  page  328,  line  20,  after “charity,” insert—

“( )
an accredited social impact contractor (see section 257JD),”

Mr Chancellor of the Exchequer

16

Schedule  9,  page  330,  line  33,  after “Part” insert “(except section 257JD)”

Mr Chancellor of the Exchequer

17

Schedule  9,  page  330,  line  34,  at end insert—

Notices of Amendments: 23 June 2014
262

Finance Bill, continued

“257JD
Accreditation as a social impact contractor

(1)
In this Part “accredited social impact contractor” means a company

limited by shares that is accredited under this section as a social impact

contractor.

(2)
Applications for accreditation as a social impact contractor must be

made to a Minister of the Crown in the form and manner specified by

a Minister of the Crown.

(3)
A Minister of the Crown is to accredit a company if, but only if, that

Minister is satisfied that—

(a)
the company has entered into a social impact contract (see

section 257JE),

(b)
the company is, and at all times since its incorporation has

been, established—

(i)
for the purpose of entering into and carrying out a

social impact contract, or for that purpose and

purposes incidental to it, but

(ii)
for no other purpose, and

(c)
the activities of the company in carrying out that contract will

not consist wholly, or as to a substantial part, in excluded

activities (see section 257MQ).

(4)
If a Minister of the Crown is satisfied that the condition in subsection

(3)(b) or (c) has ceased to be met in relation to a company that is an

accredited social impact contractor, that Minister is to withdraw the

company’s accreditation with effect from the time the condition

ceased to be met or a later time.

257JE
Meaning of “social impact contract”

(1)
In this Part “social impact contract” means a contract that meets such

criteria as may be specified in regulations made by the Treasury.

(2)
The criteria which may be specified under subsection (1) include, in

particular, criteria as to a party to the contract other than the company

seeking accreditation.

(3)
Criteria may be specified in regulations under subsection (1) by

reference to material published by, or on behalf of, a Minister of the

Crown after the making of the regulations (as well as by reference to

material published before the making of the regulations).

(4)
Regulations under subsection (1) may make different provision for

different cases or circumstances or in relation to different areas.

257JF
Accreditations: supplementary provisions

(1)
An accreditation must be made so as to be conditional on compliance

with—

(a)
any requirements imposed by or under regulations, and

(b)
any other requirements considered appropriate by the

Minister of the Crown who is accrediting the company

concerned.

(2)
The requirements that may be imposed by virtue of subsection (1)

include requirements relating to the provision of information.

Notices of Amendments: 23 June 2014
263

Finance Bill, continued

(3)
Regulations may—

(a)
make further provision about applications for accreditation,

(b)
make provision for the variation of an accreditation (including

its provisions as to its duration),

(c)
make provision which, in a case where a company is or has

been an accredited social impact contractor, imposes or

authorises the imposition of requirements on the company, or

on any other party to the social impact contract concerned, to

provide information,

(d)
make provision about the consequences of a failure to comply

with any requirement of an accreditation imposed by virtue of

subsection (1) or with any requirement imposed by virtue of

paragraph (c), including in particular—

(i)
provision for the withdrawal of the accreditation

concerned with effect from the time of the failure or a

later time, and

(ii)
provision for the imposition of penalties,

(e)
make provision for publication of information about an

accreditation or accredited social impact contractor, and

(f)
make provision for reviews of, or for appeals to the tribunal

against, any of the following—

(i)
a refusal to grant or vary an accreditation,

(ii)
the imposition of a requirement under subsection

(1)(b),

(iii)
the withdrawal of an accreditation (whether under

section 257JD(4) or by virtue of provision made

under paragraph (d)(i)), and

(iv)
the imposition or amount of a penalty imposed by

virtue of provision made under paragraph (d)(ii).

(4)
Regulations under subsection (1) or (3) may—

(a)
make provision for the making of decisions by a Minister of

the Crown as to any matter required to be decided for the

purposes of the regulations,

(b)
be framed by reference to material published by, or on behalf

of, a Minister of the Crown after the making of the regulations

(as well as by reference to material published before the

making of the regulations),

(c)
make different provision for different cases or circumstances

or in relation to different areas, and

(d)
contain incidental, supplemental, consequential and

transitional provision and savings.

(5)
In this section—

“accreditation” means accreditation under section 257JD, and

“regulations” means regulations made by the Treasury.

257JG
Period of accreditation as a social impact contractor

(1)
An accreditation under section 257JD has effect for a period—

(a)
beginning with the day specified in the accreditation, and

(b)
of a length specified in, or determined in accordance with, the

accreditation.

Notices of Amendments: 23 June 2014
264

Finance Bill, continued

(2)
The day specified under subsection (1)(a) in an accreditation may not

be earlier than 6 April 2014 but subject to that—

(a)
may be, or be earlier than, the day it is decided to grant the

accreditation (and in particular may be, or be earlier than, the

day the application for the accreditation is made), and

(b)
may be earlier than the day section 257JD comes into force.

(3)
This section has effect subject to sections 257JD(4) and 257JF(3)(d)(i)

(withdrawal of accreditations).

257JH
Functions of Ministers of the Crown under sections 257JD to 257JG

(1)
A Minister of the Crown may delegate any function given to a Minister

of the Crown by or under sections 257JD to 257JG other than a power

of the Treasury to make regulations.

(2)
In those sections and this section “Minister of Crown” has the meaning

given by section 8(1) of the Ministers of the Crown Act 1975.”

Mr Chancellor of the Exchequer

18

Schedule  9,  page  331,  line  1,  at end insert—

“( )
Subsection (1)(b) is subject to the provisions in sections 257LB and

257MJ to 257MN which provide for conditions set out in those

sections not to apply where the social enterprise is an accredited social

impact contractor.”

Mr Chancellor of the Exchequer

19

Schedule  9,  page  334,  line  44,  at end insert—

“( )
Subsections (2) to (4) do not apply if the social enterprise is an

accredited social impact contractor.”

Mr Chancellor of the Exchequer

20

Schedule  9,  page  335,  line  12,  after “257MJ(2)(c)” insert “or is a parent company

that is an accredited social impact contractor”

Mr Chancellor of the Exchequer

21

Schedule  9,  page  339,  line  23,  at end insert—

“257M
The continuing to be a social enterprise requirement

The social enterprise must be a social enterprise throughout the shorter

applicable period.”

Mr Chancellor of the Exchequer

22

Schedule  9,  page  343,  line  11,  after “period” insert “, but this does not apply if the

social enterprise is an accredited social impact contractor”

Notices of Amendments: 23 June 2014
265

Finance Bill, continued

Mr Chancellor of the Exchequer

23

Schedule  9,  page  343,  line  15,  after “business” insert “—

(i)
”

Mr Chancellor of the Exchequer

24

Schedule  9,  page  343,  line  17,  leave out “non-qualifying” and insert “non-trade

activities, and

(ii)
does not consist wholly, or as to a substantial part, in the

carrying-on of excluded”

Mr Chancellor of the Exchequer

25

Schedule  9,  page  344,  line  14,  at end insert “, and

“non-trade activities” means activities which are neither of the

following—

(c)
activities carried on in the course of a trade, and

(d)
activities carried on in the course of preparing to carry on a

trade.”

Mr Chancellor of the Exchequer

26

Schedule  9,  page  345,  line  26,  at end insert—

“( )
This section does not apply if the social enterprise is an accredited

social impact contractor.”

Mr Chancellor of the Exchequer

27

Schedule  9,  page  346,  line  19,  at end insert—

“( )
If the social enterprise is an accredited social impact contractor, the

preceding provisions of this section apply with the following

modifications—

(a)
in subsection (1), for “28 months” substitute “24 months”,

(b)
in that subsection, for “the funded purpose” substitute “the

carrying out of the social impact contract concerned”, and

(c)
omit subsections (2), (3), (5) and (6).”

Mr Chancellor of the Exchequer

28

Schedule  9,  page  347,  line  7,  at end insert—

“( )
This section does not apply if the social enterprise is an accredited

social impact contractor.”

Mr Chancellor of the Exchequer

29

Schedule  9,  page  347,  line  20,  at end insert “257JD,”



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