Finance Bill (HL Bill 71)

requirement pursuant to Section 4 of Chapter 6 of Title 1 of
the Solvency 2 Directive if that undertaking were an
insurance undertaking.

(2) In sections 269ZJ to 269ZO and this section—

• 5“actuarial function”, in relation to a PRA-authorised person, has
  the meaning given by the PRA Rulebook;

• “basic own funds” is to be interpreted in accordance with
  Article 88 of the Solvency 2 Directive;

• “chief actuary”, in relation to a PRA-authorised person, means
  10a person who has the function of having responsibility for the
  actuarial function;

• “insurance company” means a company which is an insurance
  undertaking, a reinsurance undertaking or a third-country
  insurance undertaking;

• 15“insurance undertaking” has the meaning given in Article 13(1)
  of the Solvency 2 Directive;

• “notional solvency capital requirement”, in relation to a ring-
  fenced fund, has the same meaning as in Commission
  Delegated Regulation (EU) 2015/35 supplementing the
  20Solvency 2 Directive;

• “PRA-authorised person” has the same meaning as in the
  Financial Services and Markets Act 2000 (see section 2B(5) of
  that Act);

• “the PRA Rulebook” means the Rulebook made by the
  25Prudential Regulation Authority under the Financial Services
  and Markets Act 2000 (as that Rulebook has effect from time
  to time);

• “reinsurance undertaking” has the meaning given in Article
  13(4) of the Solvency 2 Directive;

• 30“relevant ring-fenced fund” means a ring-fenced fund that is a
  with-profits fund;

• “report on solvency and financial condition” means a report on
  solvency and financial condition pursuant to Article 51 of the
  Solvency 2 Directive;

• 35“restricted own-fund item” is to be interpreted in accordance
  with Article 80(2) of Commission Delegated Regulation (EU)
  2015/35 supplementing the Solvency 2 Directive;

• “ring-fenced fund” has the same meaning as in Commission
  Delegated Regulation (EU) 2015/35 supplementing the
  40Solvency 2 Directive;

• “Solvency 2 Directive” means Directive 2009/138/EC of the
  European Parliament and the Council of 25 November 2009
  on the taking-up and pursuit of the business of Insurance and
  Reinsurance (Solvency II);

• 45“technical standards implementing Regulation” means
  Commission Implementing Regulation (EU) 2015/2452 of 2
  December 2015 laying down implementing technical
  standards with regard to the procedures, formats and
  templates of the solvency and financial condition report in
  50accordance with the Solvency 2 Directive;

• “third-country insurance undertaking” means an undertaking
  that has received authorisation under Article 162 of the

Solvency 2 Directive from the Prudential Regulation
Authority or the Financial Conduct Authority;

• “value of future transfers attributable to shareholders” has the
  same meaning as in Article 80 of Commission Delegated
  5Regulation (EU) 2015/35 supplementing the Solvency 2
  Directive;

• “with-profits fund” has the meaning given by the Glossary
  forming part of the PRA Rulebook;

• “with-profits actuary” has the meaning given by the Glossary
  10forming part of the Handbook made by the Financial
  Conduct Authority under the Financial Services and Markets
  Act 2000 (as that Handbook has effect from time to time).

269ZQ Power to amend

(1) The Treasury may by regulations make such amendments of the
15provisions mentioned in subsection (2) as they consider appropriate
in consequence of—

(a) any change made to, or replacement of, the PRA Rulebook or
the FCA Handbook;

(b) any regulatory requirement, or change to a regulatory
20requirement, imposed by EU legislation, or by or under any
Act (whenever adopted, enacted or made).

(2) The provisions are—

(a) sections 269ZJ to 269ZP,

(b) sections 124A to 124E of FA 2012.

(3) 25Regulations under this section may include transitional provision.

(4) In this section—

• “the PRA Rulebook” means the Rulebook made by the
  Prudential Regulation Authority under the Financial Services
  and Markets Act 2000 (as that Rulebook has effect from time
  30to time);

• “the FCA Handbook means the Handbook made by the
  Financial Conduct Authority under the Financial Services
  and Markets Act 2000 (as that Handbook has effect from time
  to time).

35Deductions allowance

269ZR Deductions allowance for company in a group

(1) This section makes provision as to the deductions allowance of a
company for an accounting period where, at any time in the period—

(a) the company is a member of a group, and

(b) 40one or more other companies within the charge to
corporation tax are members of that group.

(2) The company’s deductions allowance for the accounting period is
the sum of—

(a) any amounts of group deductions allowance allocated to the
45company for the period in accordance with sections 269ZS to
269ZV, and

(b) the appropriate amount of non-group deductions allowance
of the company for the period,

up to a limit of £5,000,000.

(3) The “appropriate amount of non-group deductions allowance” of the
5company, for the accounting period, is—

where—

“DNG” is the number of days in the period on which the
company is not a member of a group that has another
10member that is a company within the charge to corporation
tax, and

“DAC” is the total number of days in the period.

(4) If the accounting period is less than 12 months—

(a) the appropriate amount of non-group deductions allowance,
15and

(b) the limit in subsection (2),

are proportionally reduced.

269ZS Group deductions allowance and the nominated company

(1) This section applies where—

(a) 20two or more members of a group are companies within the
charge to corporation tax, and

(b) all the companies within the charge to corporation tax that
are members of the group together nominate (“the group
allowance nomination”) one of their number (“the nominated
25company”) for the purposes of this Part.

(2) The “group deductions allowance” for the group is £5,000,000 for
each accounting period of the nominated company throughout
which the group allowance nomination has effect.

(3) If the group allowance nomination takes effect, or ceases to have
30effect, part of the way through an accounting period of the
nominated company, the “group deductions allowance” for the
group for that period is—

where—

35“DN” is the number of days in the accounting period on which
a group allowance nomination that nominates the nominated
company in relation to the group has effect, and

“DAC” is the total number of days in the accounting period.

(4) If an accounting period of the nominated company is less than 12
40months, the group deductions allowance for that period is
proportionally reduced.

(5) A group allowance nomination must state the date on which it is to
take effect (which may be earlier than the date the nomination is
made).

(6) A group allowance nomination is of no effect unless it is signed by
the appropriate person on behalf of each company that is, when the
nomination is made, a member of the group and within the charge to
corporation tax.

(7) 5A group allowance nomination ceases to have effect—

(a) immediately before the date on which a new group
allowance nomination in respect of the group takes effect,

(b) upon the appropriate person in relation to a company within
the charge to corporation tax that is a member of the group
10notifying an officer of Revenue and Customs, in writing, that
the group allowance nomination is revoked, or

(c) upon the nominated company ceasing to be a company
within the charge to corporation tax or ceasing to be a
member of the group.

(8) 15The Commissioners for Her Majesty’s Revenue and Customs may by
regulations make further provision about a group allowance
nomination or any notification under this section including, in
particular, provision—

(a) about the form and manner in which a nomination or
20notification may be made,

(b) about how a nomination may be revoked and the form and
manner of such revocation,

(c) requiring a person to notify HMRC of the making or
revocation of a nomination,

(d) 25requiring a person to give information to HMRC in
connection with the making or revocation of a nomination or
the giving of a notification,

(e) imposing time limits in relation to making or revoking a
nomination or giving a notification, and

(f) 30providing that a nomination or its revocation, or a
notification, is of no effect, or ceases to have effect, if time
limits or other requirements under the regulations are not
met.

(9) In this Part “the appropriate person”, in relation to a company,
35means—

(a) the proper officer of the company, or

(b) such other person as may for the time being have the express,
implied or apparent authority of the company to act on its
behalf for the purposes of this Part.

(10) 40Subsections (3) and (4) of section 108 of TMA 1970 (responsibility of
company officers: meaning of “proper officer”) apply for the
purposes of subsection (9) as they apply for the purposes of that
section.

269ZT Group allowance allocation statement: submission

(1) 45A company must submit a group allowance allocation statement to
HMRC for each of its accounting periods in which it is the nominated
company in relation to a group.

This is subject to subsections (2) and (3).

(2) If a company ceases to be the nominated company in relation to a
group before it submits a group allowance allocation statement to
HMRC for an accounting period—

(a) that company may not submit the statement, and

(b) 5the company that is for the time being the nominated
company in relation to the group must do so.

(3) But if a new group allowance nomination in respect of the group
takes effect on a date before it is made, that does not affect the
validity of the submission of any group allowance allocation
10statement submitted before the date the new nomination is made.

(4) A group allowance allocation statement under this section must be
received by HMRC before the first anniversary of the filing date for
the company tax return for the accounting period to which the
statement relates.

(5) 15A group allowance allocation statement under this section may be
submitted at a later time if an officer of Revenue and Customs allows
it.

(6) A group allowance allocation statement under this section must
comply with the requirements of section 269ZV.

269ZU 20 Group allowance allocation statement: submission of revised
statement

(1) This section applies if a group allowance allocation statement has
been submitted under section 269ZT, or this section, in respect of an
accounting period of a company that is, or was, a nominated
25company (“the nominee’s accounting period”).

(2) A revised group allowance allocation statement in respect of the
nominee’s accounting period may be submitted to HMRC by the
company that is for the time being the nominated company in
relation to the group.

(3) 30But if a new group allowance nomination in respect of the group
takes effect on a date before it is made, that does not affect the
validity of the submission of any revised group allowance allocation
statement submitted before the date the new nomination is made.

(4) A revised group allowance allocation statement may be submitted
35on or before whichever is the latest of the following dates—

(a) the first anniversary of the filing date for the company tax
return for the nominee’s accounting period,

(b) if notice of enquiry (within the meaning of Schedule 18 to FA
1998) is given into a relevant company tax return, 30 days
40after the enquiry is completed,

(c) if, after such an enquiry, an officer of Revenue and Customs
amends the return under paragraph 34(2) of that Schedule, 30
days after the notice of amendment is issued,

(d) if an appeal is brought against such an amendment, 30 days
45after the date on which the appeal is finally determined.

(5) A revised group allowance allocation statement may be submitted at
a later time if an officer of Revenue and Customs allows it.

(6) In this section “relevant company tax return” means a company tax
return of a company for an accounting period for which an amount
of group deductions allowance was, or could have been, allocated by
a previous group allowance allocation statement in respect of the
5nominee’s accounting period.

(7) The references in subsection (4) to an enquiry into a relevant
company tax return do not include an enquiry resulting from an
amendment of such a return where—

(a) the scope of the enquiry is limited as mentioned in paragraph
1025(2) of Schedule 18 to FA 1998 (enquiry into amendments
when time limit for enquiry into return as originally
submitted is passed), and

(b) the amendment relates only to the allocation of group
deductions allowance for the nominee’s accounting period.

(8) 15A group allowance allocation statement under this section must
comply with the requirements of section 269ZV.

269ZV Group allowance allocation statement: requirements and effects

(1) This section applies in relation to a group allowance allocation
statement submitted under section 269ZT or 269ZU.

(2) 20The statement must be signed by the appropriate person in relation
to the company giving the statement.

(3) The statement must—

(a) identify the group to which it relates,

(b) specify the accounting period, of the company that is or was
25the nominated company, to which the statement relates (“the
nominee’s accounting period”),

(c) specify the days in the nominee’s accounting period on
which that company was the nominated company in relation
to the group or state that that company was the nominated
30company throughout the period,

(d) state the group deductions allowance the group has for the
nominee’s accounting period,

(e) list one or more of the companies that were members of the
group and within the charge to corporation tax in the
35nominee’s accounting period (“listed companies”),

(f) allocate amounts of the group deductions allowance to the
listed companies, and

(g) for each amount of group deductions allowance allocated to
a listed company, specify the accounting period of the listed
40company for which it is allocated.

(4) An amount of group deductions allowance allocated to a listed
company must be allocated to that company for an accounting
period that falls wholly or partly in the nominee’s accounting period.

(5) The maximum amount of group deductions allowance that may be
45allocated, by the group allowance allocation statement, to a listed
company for an accounting period of that company is—

where—

• “DAP” is the number of days in the accounting period of the
  listed company that are—

  (a)

  days in the nominee’s accounting period, and

  (b)

  5days on which the company was a member of the
  group,

• “DNAP” is the number of days in the nominee’s accounting
  period, and

• “GSA” is the group deductions allowance of the group for the
  10nominee’s accounting period.