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SCHEDULE 3
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ADVANCE CORPORATION TAX |
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Section 1 of the Provisional Collection of Taxes Act 1968 |
| | 1. - (1) Section 1 of the Provisional Collection of Taxes Act 1968 (temporary statutory effect of House of Commons resolutions) shall be amended as follows.
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(2) In subsection (1) the words "(including advance corporation tax)" shall cease to have effect.
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(3) This paragraph has effect in relation to distributions made on or after 6th April 1999.
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Section 10 of the Taxes Management Act 1970 |
| | 2. - (1) Section 10 of the Taxes Management Act 1970 (notice of liability to corporation tax) shall be amended as follows.
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(2) Subsection (4) (which makes provision in relation to surplus ACT) shall cease to have effect.
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(3) This paragraph has effect in relation to accounting periods beginning on or after 6th April 1999.
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Section 87 of the Taxes Management Act 1970 |
| | 3. - (1) Section 87 of the Taxes Management Act 1970 (interest on overdue ACT and income tax on company payments) shall be amended as follows.
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(2) In subsection (1) (which contains a reference to Schedule 13) the words "13 or" shall cease to have effect.
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(3) In subsection (2), paragraph (a) (which concerns ACT) shall cease to have effect.
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(4) In subsection (6) (which contains a reference to Schedule 13) the words "13 or" shall cease to have effect.
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(5) In subsection (7)-
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(a) the words "advance corporation tax and" shall cease to have effect; and |
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(b) for "either of those Schedules" there shall be substituted "the said Schedule 16". |
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(6) This paragraph has effect in relation to accounting periods beginning on or after 6th April 1999.
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Section 87A of the Taxes Management Act 1970 |
| | 4. - (1) Section 87A of the Taxes Management Act 1970 (interest on overdue corporation tax etc) shall be amended as follows.
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(2) Subsection (4) (which makes provision in relation to surplus ACT) shall cease to have effect.
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(3) Subsections (4B) and (7) (which make further provision in relation to surplus ACT) shall cease to have effect.
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(4) Sub-paragraph (2) above has effect where the later period mentioned in subsection (4) of section 87A begins on or after 6th April 1999.
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(5) Sub-paragraph (3) above has effect where the earlier period mentioned in subsections (4B) and (7) of section 87A begins on or after 6th April 1999.
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Section 94 of the Taxes Management Act 1970 |
| | 5. - (1) Section 94 of the Taxes Management Act 1970 (failure to make return for corporation tax) shall be amended as follows.
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(2) Subsection (8) (which makes provision in relation to surplus ACT) shall cease to have effect.
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(3) This paragraph has effect in relation to accounting periods beginning on or after 6th April 1999.
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Section 13 of the Taxes Act 1988 |
| | 6. - (1) Section 13 of the Taxes Act 1988 (small companies' relief) shall be amended as follows.
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(2) In subsection (7) (exclusion of group income etc) for the words from "other than franked investment income" onwards there shall be substituted-
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" other than franked investment income (if any) which the company ("the receiving company") receives from a company resident in the United Kingdom which is- |
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(a) a 51 per cent. subsidiary of the receiving company or of a company resident in the United Kingdom of which the receiving company is a 51 per cent. subsidiary; or |
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(b) a trading or holding company which does not fall within section 247(1A) and which is owned by a consortium the members of which include the receiving company." |
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(3) After subsection (8) there shall be inserted-
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"(8AA) Subsections (8) to (9A) of section 247 shall apply for the purposes of subsection (7) above as they apply for the purposes of that section.
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(8AB) The reference in subsection (7) above to franked investment income received by a company applies to any such income received by another person on behalf of or in trust for the company, but not to any such income received by the company on behalf of or in trust for another person."
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(4) This paragraph has effect in relation to distributions made on or after 6th April 1999.
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Section 14 of the Taxes Act 1988 |
| | 7. - (1) Section 14 of the Taxes Act 1988 (ACT and qualifying distributions) shall be amended as follows.
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(2) Subsections (1) and (3) to (5) (which make provision for and in connection with the imposition of ACT) shall cease to have effect.
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(3) This paragraph has effect in relation to distributions made on or after 6th April 1999.
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Section 75 of the Taxes Act 1988 |
| | 8. - (1) Section 75 of the Taxes Act 1988 (expenses of management: investment companies) shall be amended as follows.
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(2) In subsection (2) the words "group income" shall cease to have effect.
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(3) This paragraph has effect in relation to distributions made on or after 6th April 1999.
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Section 116 of the Taxes Act 1988 |
| | 9. - (1) Section 116 of the Taxes Act 1988 (arrangements for transferring relief) shall be amended as follows.
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(2) In subsection (2), paragraph (d) (which makes provision in relation to section 239) shall cease to have effect.
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(3) This paragraph has effect in relation to accounting periods beginning on or after 6th April 1999.
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Section 238 of the Taxes Act 1988 |
| | 10. - (1) Section 238 of the Taxes Act 1988 (interpretation of terms and collection of ACT) shall cease to have effect.
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(2) This paragraph has effect in relation to accounting periods beginning on or after 6th April 1999.
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Section 239 of the Taxes Act 1988 |
| | 11. - (1) Section 239 of the Taxes Act 1988 (set-off of ACT against liability to corporation tax) shall cease to have effect.
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(2) Sub-paragraph (1) above has effect in relation to accounting periods beginning on or after 6th April 1999.
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(3) No advance corporation tax shall, by virtue of section 239(4) of the Taxes Act 1988, be treated as if it were paid in respect of distributions made in accounting periods beginning on or after 6th April 1999.
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(4) The limit under section 239(2) of the Taxes Act 1988 on the set-off of advance corporation tax for an accounting period of a company beginning before, and ending on or after, 6th April 1999 (a "straddling period") shall be determined as if-
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(a) the straddling period were an accounting period beginning at the beginning of the straddling period and ending on 5th April 1999 ("the notional period"); and |
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(b) there were apportioned to the notional period a proportionate amount of the profits of the company which, apart from this sub-paragraph, would be taken into account in determining the limit under section 239(2) of that Act. |
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(5) The references in sub-paragraphs (2) and (3) above to accounting periods beginning on or after 6th April 1999 include a reference to a separate accounting period mentioned in section 245(2) of the Taxes Act 1988 which begins on 6th April 1999.
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(6) The reference in sub-paragraph (4) above to an accounting period beginning before, and ending on or after, 6th April 1999 includes a reference to a separate accounting period mentioned in section 245(2) of the Taxes Act 1988 which begins before, and ends on or after, that date.
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Section 240 of the Taxes Act 1988 |
| | 12. - (1) Section 240 of the Taxes Act 1988 (set-off of company's surplus ACT against subsidiary's liability to corporation tax) shall cease to have effect.
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(2) This paragraph has effect in relation to accounting periods of the surrendering company (as defined in section 240(1) of the Taxes Act 1988) beginning on or after 6th April 1999.
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Section 241 of the Taxes Act 1988 |
| | 13. - (1) Section 241 of the Taxes Act 1988 (calculation of ACT where company receives franked investment income) shall cease to have effect.
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(2) This paragraph has effect in relation to accounting periods beginning on or after 6th April 1999.
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Section 245 of the Taxes Act 1988 |
| | 14. - (1) Section 245 of the Taxes Act 1988 (calculation etc of ACT on change of ownership of company) shall cease to have effect.
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(2) This paragraph has effect in relation to changes in ownership (within the meaning of section 245 of that Act) occurring on or after 6th April 1999.
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Section 245A of the Taxes Act 1988 |
| | 15. - (1) Section 245A of the Taxes Act 1988 (restriction on application of section 240 in certain circumstances) shall cease to have effect.
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(2) This paragraph has effect in relation to changes in ownership (within the meaning of section 245A of that Act) occurring on or after 6th April 1999.
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Section 245B of the Taxes Act 1988 |
| | 16. - (1) Section 245B of the Taxes Act 1988 (restriction on set-off where asset transferred after change in ownership of company) shall cease to have effect.
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(2) Sub-paragraph (1) above has effect in relation to disposals on or after 6th April 1999.
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(3) In relation to an accounting period beginning before, and ending on or after, 6th April 1999, the reference in section 245B(4)(a) of the Taxes Act 1988 to the end of the relevant period shall be taken to be a reference to the end of a period which ends on 5th April 1999.
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Section 246 of the Taxes Act 1988 |
| | 17. - (1) Section 246 of the Taxes Act 1988 (charge of ACT at previous rate until new rate fixed, and changes of rate) shall cease to have effect.
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(2) This paragraph has effect in relation to distributions made on or after 6th April 1999.
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