House of Commons Public Bill Committee Proceedings

Session 2014 - 15
Internet Publications
Other Bills before Parliament

:
131

, continued

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).”

Mr Chancellor of the Exchequer

Agreed to  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

:
132

, continued

(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—

“(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

:
133

, continued

(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.”

Mr Chancellor of the Exchequer

Agreed to  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)),”.

:
134

, continued

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

(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

:
135

, continued

(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”.

Commencement

15
The amendments made by this Schedule come into force on 1 August 2014.”

:
136

, continued

Mr Chancellor of the Exchequer

Agreed to  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.

(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.

:
137

, continued

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).

(4)
“Relevant recording” means a recording of a performance—

(a)
as a film (or part of a film) for exhibition to the paying general

public at the commercial cinema, or

(b)
for broadcast to the general public.

(5)
In this section—



© Parliamentary copyright	Revised 3 July 2014