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Section 434 of the Taxes Act 1988 |
| | 24. - (1) Section 434 of the Taxes Act 1988 (franked investment income etc) shall be amended as follows.
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(2) Subsection (3) (certain franked investment income not to be used to frank distributions) shall cease to have effect.
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(3) Subsection (6) (which makes provision in relation to section 239) shall cease to have effect.
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(4) Subsection (8) (which applies where subsection (3) or (6) of section 434 applies) shall cease to have effect.
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(5) Sub-paragraph (2) above has effect in relation to franked investment income which is attributable to distributions made on or after 6th April 1999.
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(6) Sub-paragraphs (3) and (4) above have effect in relation to accounting periods beginning on or after 6th April 1999.
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Section 434C of the Taxes Act 1988 |
| | 25. - (1) Section 434C of the Taxes Act 1988 (interest on repayment of ACT) 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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Section 468Q of the Taxes Act 1988 |
| | 26. - (1) Section 468Q of the Taxes Act 1988 (dividend distribution to corporate unit holder) shall be amended as follows.
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(2) In subsection (3) (as amended by paragraph 8(6)(b) of Schedule 6 to the Finance (No. 2) Act 1997)-
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(a) for the definition of "C" there shall be substituted- |
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"C = such amount of the gross income as does not derive from franked investment income, as reduced by an amount equal to the trustees' net liability to corporation tax in respect of the gross income;"; |
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(b) for the definition of "D" there shall be substituted- |
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"D = the amount of the gross income, as reduced by an amount equal to the trustees' net liability to corporation tax in respect of the gross income;". |
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(3) After that subsection there shall be inserted-
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"(3A) Any reference in this section to the trustees' net liability to corporation tax in respect of the gross income is a reference to the amount of the liability of the trustees of the authorised unit trust to corporation tax in respect of that gross income less the amount (if any) of any reduction of that liability which is given or falls to be given in accordance with any arrangements having effect by virtue of section 788 or by way of a credit under section 790(1)."
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(4) After subsection (5) there shall be inserted-
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"(5A) Where, in relation to a dividend distribution, any tax is deemed to have been deducted by virtue of the application of subsection (2)(b) above, the amount to which the unit holder is entitled by way of repayment of that tax shall not exceed the amount of the unit holder's portion of the trustees' net liability to corporation tax in respect of the gross income.
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(5B) For the purposes of subsection (5A) above the unit holder's portion shall be determined by reference to the proportions in which unit holders have rights in the authorised unit trust in the distribution period in question.
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(5C) The trustees of the authorised unit trust shall in the appropriate statement sent to the unit holder under section 234A include a statement showing their net liability to corporation tax in respect of the gross income."
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(5) This paragraph has effect in relation to distribution periods beginning on or after 6th April 1999.
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Section 490 of the Taxes Act 1988 |
| | 27. - (1) Section 490 of the Taxes Act 1988 (companies carrying on a mutual business or not carrying on a business) shall be amended as follows.
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(2) In subsection (1) the words "(including 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 497 of the Taxes Act 1988 |
| | 28. - (1) Section 497 of the Taxes Act 1988 (restriction on setting ACT against income from oil extraction activities etc) 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 498 of the Taxes Act 1988 |
| | 29. - (1) Section 498 of the Taxes Act 1988 (limited right to carry back surrendered ACT) shall cease to have effect.
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(2) Sub-paragraph (1) above 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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(3) The limit under section 498(5) of the Taxes Act 1988 for an accounting period of the surrendering company (as defined in section 240(1) of that Act) 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 limit which, apart from this sub-paragraph, would apply for the purposes of section 498(5) of the Taxes Act 1988. |
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Section 499 of the Taxes Act 1988 |
| | 30. - (1) Section 499 of the Taxes Act 1988 (surrender of ACT where oil extraction company etc owned by a consortium) 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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Section 703 of the Taxes Act 1988 |
| | 31. - (1) Section 703 of the Taxes Act 1988 (cancellation of tax advantage) shall be amended as follows.
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(2) After subsection (3) there shall be inserted-
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"(3A) The amount of income tax which may be specified in an assessment which is made under subsection (3) above to counteract a tax advantage-
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(a) obtained by a person in circumstances falling within paragraph D or paragraph E of section 704, and |
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(b) consisting of the avoidance of a charge to income tax, |
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shall not exceed the amount of income tax for which that person would be liable in respect of the receipt, on the date on which the consideration mentioned in paragraph D or paragraph E of section 704 is received, of a qualifying distribution of an amount equal to the amount or value of that consideration." |
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(3) Subsections (4) to (6) (which make provision in relation to treating of amounts of ACT as paid) shall cease to have effect.
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(4) Sub-paragraph (2) above has effect in relation to assessments under section 703(3) of the Taxes Act 1988 made on or after 6th April 1999.
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(5) Sub-paragraph (3) above has effect for the year 1999-00 and subsequent years of assessment.
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Section 704 of the Taxes Act 1988 |
| | 32. - (1) Section 704 of the Taxes Act 1988 (the prescribed circumstances) shall be amended as follows.
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(2) In paragraph A, sub-paragraph (d) (which relates to 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 705 of the Taxes Act 1988 |
| | 33. - (1) Section 705 of the Taxes Act 1988 (appeals against Board's notices under section 703) shall be amended as follows.
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(2) Subsections (6) to (8) (which make provision supplemental to section 703(5) and (6)) shall cease to have effect.
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(3) This paragraph has effect for the year 1999-00 and subsequent years of assessment.
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Section 797 of the Taxes Act 1988 |
| | 34. - (1) Section 797 of the Taxes Act 1988 (limits on credit: corporation tax) shall be amended as follows.
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(2) Sub-paragraphs (4) and (5) (which make 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 802 of the Taxes Act 1988 |
| | 35. - (1) Section 802 of the Taxes Act 1988 (UK insurance companies trading overseas) shall be amended as follows.
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(2) In subsection (2)(a) the words "and 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 813 of the Taxes Act 1988 |
| | 36. - (1) Section 813 of the Taxes Act 1988 (recovery of tax credits incorrectly paid) shall be amended as follows.
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(2) In subsection (6), paragraph (b) (which makes provision in relation to 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 826 of the Taxes Act 1988 |
| | 37. - (1) Section 826 of the Taxes Act 1988 (interest on tax overpaid) shall be amended as follows.
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(2) Subsection (2A) (material date for ACT) shall cease to have effect.
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(3) Subsection (7) (which make provision in relation to surplus ACT) shall cease to have effect.
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(4) Subsections (7AA) and (7CA) (which make further provision in relation to surplus ACT) shall cease to have effect.
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(5) Sub-paragraph (2) above has effect in relation to accounting periods beginning on or after 6th April 1999.
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(6) Sub-paragraph (3) above has effect where the later period mentioned in subsection (7) of section 826 begins on or after 6th April 1999.
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(7) Sub-paragraph (4) above has effect where the earlier period mentioned in subsections (7AA) and (7CA) of section 826 begins on or after 6th April 1999.
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