House of Commons Amendments

Session 2014 - 15
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Other Bills before Parliament

Notices of Amendments: 25 June 2014
291

Finance Bill, continued

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.”;

(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”.

Part 3

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

Notices of Amendments: 25 June 2014
292

Finance Bill, continued

(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.”

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

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—

Notices of Amendments: 25 June 2014
293

Finance Bill, continued

(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)—

(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—

Notices of Amendments: 25 June 2014
294

Finance Bill, continued

““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.

(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

44

Schedule  33,  page  559,  line  35,  leave out “(see sections 236J to 236L)” and insert

“at the time of the disposal and continues to meet that requirement for the remainder of

the tax year in which that time falls (see sections 236J to 236L and subsection (4A) of this

section)”

Mr Chancellor of the Exchequer

45

Schedule  33,  page  560,  line  1,  leave out “but does meet it at the end of that year”

and insert “but—

(i)
it meets that requirement at the end of that tax year, and

Notices of Amendments: 25 June 2014
295

Finance Bill, continued

(ii)
if it met the requirement at an earlier time in that tax year

(whether before or after the time of the disposal) it continued to

meet it throughout the remainder of that tax year,”

Mr Chancellor of the Exchequer

46

Schedule  33,  page  560,  line  7,  at end insert—

“(4A)
For the purposes of subsection (4)(b)—

(a)
unless the settlement met the all-employee benefit requirement by virtue

of section 236L (cases in which all-employee benefit requirement treated

as met) at the time of the disposal, that section does not apply for the

purposes of determining whether the settlement continues to meet that

requirement after the disposal, and

(b)
if, at the time of the disposal, the settlement met that requirement by

virtue of section 236L and later continues to meet it otherwise than by

virtue of that section, it may not again meet the requirement by virtue of

that section.”

Mr Chancellor of the Exchequer

47

Schedule  33,  page  560,  line  19,  at end insert—

“(7)
Section 236NA makes provision about events which prevent a claim being made

under this section and circumstances in which a claim is revoked.”

Mr Chancellor of the Exchequer

48

Schedule  33,  page  563,  line  46,  leave out “is treated as meeting that requirement”

and insert “at any time is treated as meeting that requirement at that time”

Mr Chancellor of the Exchequer

49

Schedule  33,  page  564,  line  9,  leave out “day of the disposal mentioned in section

236H(1)” and insert “time in question”

Mr Chancellor of the Exchequer

50

Schedule  33,  page  566,  line  10,  at end insert—

“(A1)
The limited participation requirement is met if Conditions A and B are met.”

Mr Chancellor of the Exchequer

51

Schedule  33,  page  566,  line  11,  leave out “The limited participation requirement is

met if” and insert “Condition A is that”

Mr Chancellor of the Exchequer

52

Schedule  33,  page  566,  line  15,  at end insert—

“(1A)
Condition B is that the participator fraction does not exceed 2/5 at any time in the

period beginning with that disposal and ending at the end of the tax year in which

it occurs.”

Notices of Amendments: 25 June 2014
296

Finance Bill, continued

Mr Chancellor of the Exchequer

53

Schedule  33,  page  566,  line  18,  after “(1)(b)” insert “and (1A)”

Mr Chancellor of the Exchequer

54

Schedule  33,  page  567,  line  7,  at end insert—

“236NA
No section 236H relief if disqualifying event in next tax year

(1)
This section applies where—

(a)
a disposal is made in circumstances where paragraphs (a) and

(b) of section 236H(1) are satisfied, and

(b)
one or more disqualifying events occur in relation to the

disposal in the tax year following the tax year in which the

disposal occurs.

(2)
A “disqualifying event” occurs in relation to the disposal if and

when—

(a)
C ceases to meet the trading requirement,

(b)
the settlement ceases to meet the all-employee benefit

requirement,

(c)
the settlement ceases to meet the controlling interest

requirement,

(d)
the participator fraction exceeds 2/5, or

(e)
the trustees act in a way which the trusts, as required by the

all-employee benefit requirement, do not permit.

(3)
No claim for relief under section 236H may be made in respect of the

disposal on or after the day on which the disqualifying event (or, if

more than one, the first of them) occurs.

(4)
Any claim for relief under section 236H made in respect of the

disposal before that day is revoked, and the chargeable gains and

allowable losses of any person for any chargeable period are to be

calculated as if that claim had never been made.

(5)
Such adjustments must be made in relation to any person, whether by

the making of assessments or otherwise, as are required to give effect

to subsection (4) (regardless of any limitation on the time within which

any adjustment may be made).

(6)
Section 236H(4A) (restrictions on application of section 236L) applies

for the purposes of subsection (2)(b).

(7)
Section 236N(2) applies for the purposes of subsection (2)(d) as it

applies in relation to section 236N(1)(b) and (1A).”

Mr Chancellor of the Exchequer

55

Schedule  33,  page  567,  line  11,  after “occasion” insert “, after the end of the tax

year following the tax year in which the acquisition occurs, when”

Mr Chancellor of the Exchequer

56

Schedule  33,  page  567,  leave out lines 13 to 25 and insert—

Notices of Amendments: 25 June 2014
297

Finance Bill, continued

“(2)
A “disqualifying event” occurs in relation to the acquisition if and when—

(a)
C ceases to meet the trading requirement,

(b)
the settlement ceases to meet the all-employee benefit requirement,

(c)
the settlement ceases to meet the controlling interest requirement,

(d)
the participator fraction exceeds 2/5, or

(e)
the trustees act in a way which the trusts, as required by the all-employee

benefit requirement, do not permit.”

Mr Chancellor of the Exchequer

57

Schedule  33,  page  567,  line  26,  leave out “after” and insert “before”

Mr Chancellor of the Exchequer

58

Schedule  33,  page  567,  line  34,  leave out “(2)(b)(i)” and insert “(2)(b)”

Mr Chancellor of the Exchequer

59

Schedule  33,  page  567,  leave out lines 44 to 48

Mr Chancellor of the Exchequer

60

Schedule  33,  page  568,  line  1,  leave out “(2)(b)(ii) as it applies in relation to

section 236N(1)(b)” and insert “(2)(b) as it applies in relation to section 236N(1)(b) and

(1A)”

Mr Chancellor of the Exchequer

61

Schedule  33,  page  568,  line  36,  at end insert—

“(7)
Section 236PA makes provision about events which prevent a claim being made

under this section and circumstances in which a claim is revoked.”

Mr Chancellor of the Exchequer

62

Schedule  33,  page  568,  line  36,  at end insert—

“236PA
No section 236P relief if disqualifying event in next tax year

(1)
This section applies where—

(a)
a deemed disposal arises in circumstances where paragraphs

(a) to (c) of section 236P(1) are satisfied, and

(b)
one or more disqualifying events occur in relation to the

disposal in the tax year following the tax year in which the

deemed disposal arises.

(2)
No claim for relief under section 236P may be made in respect of the

deemed disposal on or after the day on which the disqualifying event

(or, if more than one, the first of them) occurs.

(3)
Any claim for relief under section 236P made in respect of the deemed

disposal before that day is revoked, and the chargeable gains and

allowable losses of any person for any chargeable period are to be

calculated as if that claim had never been made.



© Parliamentary copyright	Revised 26 June 2014