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| Further provision about interest payable under the Tax Acts. |
35. Schedule 4 to this Act (which makes further amendments relating to interest payable under the Tax Acts by or to companies) shall have effect.
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| Arrangements with respect to payment of corporation tax. |
36. - (1) The Board may enter into arrangements with some or all of the members of a group of companies for one of those members to discharge any liability of each of those members to pay corporation tax for the accounting periods to which the arrangements relate.
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(2) Any such arrangements-
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(a) may make provision in relation to cases where companies become or cease to be members of a group of companies; |
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(b) may make provision in relation to the discharge of liability to pay interest or penalties; |
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(c) may make provision in relation to the discharge of liability to pay any amount treated as corporation tax; |
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(d) may make provision for or in connection with the termination of the arrangements; |
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(e) may make such supplementary, incidental, consequential or transitional provision as is necessary or expedient for the purposes of the arrangements. |
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(3) Any such arrangements-
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(a) shall not affect the liability to corporation tax, or to pay corporation tax, of any company to which the arrangements relate; and |
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(b) shall not affect any other liability of any such company under the Tax Acts. |
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(4) For the purposes of this section a company and all its 51 per cent. subsidiaries form a group of companies and, if any of those subsidiaries have 51 per cent. subsidiaries, the group of companies includes them and their 51 per cent. subsidiaries, and so on.
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(5) The reference in subsection (2)(c) above to any amount treated as corporation tax is a reference-
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(a) to any amount due from a company under section 419 of the Taxes Act 1988 (loans to participators etc) as if it were an amount of corporation tax chargeable on the company; |
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(b) to any sum chargeable on a company under section 747(4)(a) of the Taxes Act 1988 (controlled foreign companies) as if it were an amount of corporation tax. |
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Gilt-edged securities |
| Abolition of periodic accounting. |
37. - (1) Section 51B of the Taxes Act 1988 (which enables provision to be made requiring tax on interest on gilt-edged securities to be accounted for periodically) shall cease to have effect.
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(2) In consequence of subsection (1) above, in paragraph 3 of Schedule 19AB to that Act (repayment of excessive provisional payments made on self-assessment), in sub-paragraph (1C) (as inserted by Schedule 34 to the Finance Act 1996)-
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(a) the word "or" shall be inserted at the end of paragraph (a); and |
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(b) paragraph (c) and the word "or" immediately preceding it shall be omitted. |
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(3) The preceding provisions of this section have effect in relation only to payments of interest falling due on or after such day as the Treasury may by order appoint.
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Rents and other receipts from land |
| Taxation of rents and other receipts from land. |
38. - (1) The provisions of Schedule 5 to this Act have effect with respect to tax on rents and other receipts from land.
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Part I contains amendments relating to the charge to tax under Schedule A or Case V of Schedule D on rents and other receipts from land. |
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Part II contains amendments about relief for losses incurred in a Schedule A business or overseas property business, and the relationship between such relief and other reliefs. |
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Part III contains minor and consequential amendments. |
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(2) So far as relating to income tax, the provisions of Parts I to III of that Schedule have effect for the year 1998-99 and subsequent years of assessment.
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(3) So far as relating to corporation tax, the provisions of Parts I to III of that Schedule come into force on 1st April 1998, subject to the transitional provisions in Part IV of the Schedule.
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| Land managed as one estate and maintenance funds for historic buildings. |
39. Sections 26 and 27 of the Taxes Act 1988 (deductions from rent: land managed as one estate and maintenance funds for historic buildings) shall cease to have effect-
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(a) for income tax purposes, on and after 6th April 2001; |
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(b) for corporation tax purposes, for accounting periods beginning on or after 1st April 2001. |
