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PART II |
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MINOR AND CONSEQUENTIAL AMENDMENTS |
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Section 97 of the Inheritance Tax Act 1984 |
| | 14. The main amendments have effect for the purposes of section 97 of the Inheritance Tax Act 1984 (transfer of asset within a group of companies) in relation to disposals on or after 1st April 2000.
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Section 132 of the Finance Act 1988 |
| | 15. - (1) In section 132 of the Finance Act 1988 (recovery of tax from another group company or controlling director), in subsection (6), in the definition of "group", the words "references to residence in the United Kingdom were omitted and" shall cease to have effect.
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(2) The above amendment, and the main amendments so far as they apply for the purposes of section 132, have effect in relation to cases in which the migrating company ceases to be resident in the United Kingdom on or after 1st April 2000.
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(3) Any question whether a company was a member of a group during the period of twelve months ending when the migrating company ceased to be so resident shall be determined in accordance with section 170 of the Taxation of Chargeable Gains Act 1992 as amended by the main amendments.
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Section 14 of the Taxation of Chargeable Gains Act 1992 |
| | 16. - (1) Section 14 of the Taxation of Chargeable Gains Act 1992 (non-resident groups of companies) is amended as follows.
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(2) For subsection (2) substitute-
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"(2) The following provisions-
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(b) section 171 (except subsections (1)(b) and (1A)), |
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(c) section 173 (with the omission of the words "to which this section applies" in subsections (1)(a) and (2)(a) and "such" in subsections (1)(c) and (2)(c) and with the omission of subsection (3)), |
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(d) section 174(4) (with the substitution of "at a time when both were members of the group" for "in a transfer to which section 171(1) applied"), and |
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(e) section 175(1) (with the omission of the words "to which this section applies"), |
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shall apply in relation to non-resident companies which are members of a non-resident group of companies as they apply in relation to companies which are members of a group of companies."
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(3) In subsection (3), for "Sections 178 to 180" substitute "Section 179 (except subsections (1)(b) and (1A))".
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(4) In subsection (4)(b), the words "without subsections (2)(a), (9) and (12) to (14)" shall cease to have effect.
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(5) The above amendments, and the main amendments so far as they apply for the purposes of section 14, have effect in cases in which section 41, 171, 173, 174(4), 175(1) or 179, as the case may be, have effect as amended by this Schedule.
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Section 31A of the Taxation of Chargeable Gains Act 1992 |
| | 17. - (1) Section 31A of the Taxation of Chargeable Gains Act 1992 (asset-holding company leaving a group of companies) is amended as follows.
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(2) In subsection (9)(b) for "the principal company of that group" substitute-
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" any other company which- |
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(i) is a member of that group immediately before that event, and
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(ii) is designated as the chargeable company for the purposes of this section in a notice served on the company by an officer of the Board."
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(3) After subsection (10) add-
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"(11) Where a notice is served on a company under subsection (9)(b) above, the Inland Revenue may make an assessment to tax in the amount which in their opinion ought to be charged under this section."
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(4) The above amendments, and the main amendments so far as they apply for the purposes of sections 30 to 34 of that Act, have effect in relation to disposals on or after 1st April 2000.
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Section 106 of the Taxation of Chargeable Gains Act 1992 |
| | 18. - (1) Section 106 of the Taxation of Chargeable Gains Act 1992 (disposal of shares and securities within prescribed period of acquisition) is amended as follows.
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(2) For subsection (2) substitute-
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"(2) Subsections (2A) to (2C) below apply where the company making the disposal is a member of a group.
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(2A) Where-
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(a) shares of the class in question are held by another member of the group, and |
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(b) at any time during the prescribed period before the disposal, the condition in subsection (2D) below is met, |
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those shares shall be treated for the purposes of paragraph (a) of subsection (1) above as held by the company making the disposal.
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(2B) Where-
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(a) shares of the class in question are acquired by another member of the group, and |
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(b) at the time of the acquisition, the condition in subsection (2D) below is met, |
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those shares shall be treated for the purposes of paragraph (b) of subsection (1) above as acquired by the company making the disposal.
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(2C) Where-
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(a) shares of the class in question are acquired by the company making the disposal from another company which was a member of the group throughout the prescribed period before and after the disposal, and |
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(b) throughout the part of the prescribed period before or after the disposal for which the other member of the group held the shares, the condition in subsection (2D) below is met, |
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those shares shall be disregarded for the purposes of paragraph (b) of subsection (1) above.
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(2D) The condition referred to in subsections (2A) to (2C) above is-
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(a) that the other member of the group is resident in the United Kingdom, or |
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(b) that the shares are chargeable shares in relation to that other member." |
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(3) In subsection (10), after the definition of "prescribed period" insert-
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| " and for the purposes of this section shares are "chargeable shares" in relation to a company at any time if, were the shares to be disposed of by the company at that time, any gain accruing to the company would be a chargeable gain and would by virtue of section 10(3) form part of its chargeable profits for corporation tax purposes."
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(4) The above amendments, and the main amendments so far as they apply for the purposes of section 106, have effect in relation to cases in which the prescribed period before the disposal (within the meaning of that section) begins on or after 1st April 2000.
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Section 116 of the Taxation of Chargeable Gains Act 1992 |
| | 19. - (1) In section 116 of the Taxation of Chargeable Gains Act 1992 (reorganisations, conversions and reconstructions), in subsection (11) for "171(1) or 172" substitute "or 171(1)".
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(2) The above amendment has effect in accordance with paragraph 3(2).
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Section 117A of the Taxation of Chargeable Gains Act 1992 |
| | 20. - (1) In section 117A of the Taxation of Chargeable Gains Act 1992 (assets that are not qualifying corporate bonds for corporation tax purposes), in subsection (8)(a) for "171 and 172" substitute "and 171".
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(2) The above amendment has effect in accordance with paragraph 3(2).
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Section 117B of the Taxation of Chargeable Gains Act 1992 |
| | 21. - (1) In section 117B of the Taxation of Chargeable Gains Act 1992 (holdings in unit trusts etc excluded from treatment as qualifying corporate bonds), in subsection (6)(a) for "171 and 172" substitute "and 171".
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(2) The above amendment has effect in accordance with paragraph 3(2).
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Section 138A of the Taxation of Chargeable Gains Act 1992 |
| | 22. The main amendments have effect for the purposes of section 138A of the Taxation of Chargeable Gains Act 1992 (use of earn-out rights for exchange of securities) in relation to rights conferred on or after 1st April 2000.
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Section 140 of the Taxation of Chargeable Gains Act 1992 |
| | 23. - (1) In section 140 of the Taxation of Chargeable Gains Act 1992 (postponement of charge on transfer of assets to non-resident company), in subsection (6)(b) for "apart from section 170(2)(a) and (9)" substitute "if subsections (1)(b) and (1A) of that section and section 170(9) were disregarded".
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(2) The above amendment has effect in relation to disposals on or after 1st April 2000.
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Section 176 of the Taxation of Chargeable Gains Act 1992 |
| | 24. - (1) In section 176 of the Taxation of Chargeable Gains Act 1992 (depreciatory transactions within a group), in subsection (7), paragraph (c) and the word "and" immediately preceding it shall cease to have effect.
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(2) The above amendment, and the main amendments so far as they apply for the purposes of section 176, have effect in relation to cases in which the depreciatory transaction (within the meaning of section 176) is on or after 1st April 2000.
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Section 177 of the Taxation of Chargeable Gains Act 1992 |
| | 25. - (1) In section 177 of the Taxation of Chargeable Gains Act 1992 (dividend stripping), in subsection (2) for "171 or 172" substitute "or 171".
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(2) The above amendment, and the main amendments so far as they apply for the purposes of section 177, have effect in relation to disposals on or after 1st April 2000.
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Section 178 of the Taxation of Chargeable Gains Act 1992 |
| | 26. Section 178 of the Taxation of Chargeable Gains Act 1992 (which is spent) shall cease to have effect.
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Section 180 of the Taxation of Chargeable Gains Act 1992 |
| | 27. Section 180 of the Taxation of Chargeable Gains Act 1992 (which is spent) shall cease to have effect.
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Section 181 of the Taxation of Chargeable Gains Act 1992 |
| | 28. - (1) In section 181 of the Taxation of Chargeable Gains Act 1992 (exemption from de-grouping charge in the case of certain mergers)-
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(a) in subsection (1), for "neither section 178 nor section 179 shall" substitute "section 179 shall not"; and |
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(b) subsection (5) shall cease to have effect. |
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(2) The amendment made by sub-paragraph (1)(b) above, and the main amendments so far as they apply for the purposes of section 181, have effect in relation to cases in which the company ceases to be a member of a group on or after 1st April 2000.
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Section 192 of the Taxation of Chargeable Gains Act 1992 |
| | 29. In section 192 of the Taxation of Chargeable Gains Act 1992 (tax exempt distributions), in subsection (3) for "neither section 178 nor 179 shall" substitute "section 179 shall not".
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Section 211 of the Taxation of Chargeable Gains Act 1992 |
| | 30. - (1) Section 211 of the Taxation of Chargeable Gains Act 1992 (transfer of long term business of an insurance company) shall be amended as follows.
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(2) In subsection (2)-
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(a) the words "Subject to subsection (3) below" shall cease to have effect, |
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(b) after paragraph (a) insert "or", and |
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(c) paragraph (b), and the word "or" immediately following it, shall cease to have effect. |
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(3) After subsection (2) insert-
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"(2A) Where section 139 has effect in relation to an asset by virtue of subsection (2) above, the reference in subsection (1A) of that section to section 10(3) shall be construed as a reference to section 11(2)(b), (c), (d) or (e) of the Taxes Act."
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(4) Subsection (3) shall cease to have effect.
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(5) The above amendments have effect in accordance with paragraph 5(4).
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Section 216 of the Taxation of Chargeable Gains Act 1992 |
| | 31. The main amendments have effect for the purposes of section 216 of the Taxation of Chargeable Gains Act 1992 (assets transferred from building society to company) in relation to transfers on or after 1st April 2000.
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