| Previous Section | Index | Home Page |
That--
(1) For the year 2001-02 the amount specified in section 1(2)(aa) of the Income and Corporation Taxes Act 1988 shall be £1,880.
(2) Accordingly, section 1(4) of that Act, so far as it relates to the amount so specified, shall not apply for that year.
(3) Nothing in this Resolution shall require any change to be made in the amounts deductible or repayable under section 203 of that Act before 18th May 2001.
And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
14 Children's tax credit
That--
(1) In section 257AA(2) of the Income and Corporation Taxes Act 1988 for "£4,420" there shall be substituted "£5,200".
(2) This Resolution has effect for the year 2001-02.
(3) Nothing in this Resolution shall require any change to be made in the amounts deductible or repayable under section 203 of the Income and Corporation Taxes Act 1988 before 18th May 2001.
And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
15 Corporation tax (charge and rate for 2002)
That, for the financial year 2002, corporation tax shall be charged at the rate of 30 per cent.
16 Corporation tax (small companies' rate for 2001)
That, for the financial year 2001--
(a) the small companies' rate shall be 20 per cent., and
(b) the fraction mentioned in section 13(2) of the Income and Corporation Taxes Act 1988 shall be one fortieth.
17 Corporation tax (starting rate for 2001)
That, for the financial year 2001--
(a) the corporation tax starting rate shall be 10 per cent., and
(b) the fraction mentioned in section 13AA(3) of the Income and Corporation Taxes Act 1988 shall be one fortieth.
18 Employee share ownership plans
That provision (including retrospective provision) may be made about employee share ownership plans.
19 Enterprise investment scheme
That provision may be made amending Chapter III of Part VII of the Income and Corporation Taxes Act 1988.
20 Loss relief on shares in trading companies
That provision may be made about the circumstances in which companies that are wound up are to be treated as qualifying trading companies for the purposes of sections 573 to 576 of the Income and Corporation Taxes Act 1988.
21 Corporate venturing scheme
That provision may be made amending Schedule 15 to the Finance Act 2000.
22 Capital allowances
That provision (including retrospective provision) may be made about capital allowances.
23 Repeal of certain reliefs
That provision may be made for the repeal of sections 534, 535, 537A and 538 of the Income and Corporation Taxes Act 1988.
24 Payments to employers out of pension funds
That provision may be made as to the amount recoverable under section 601(2) of the Income and Corporation Taxes Act 1988.
25 Deductions for deemed manufactured payments
That--
(1) Section 736B of the Income and Corporation Taxes Act 1988 shall be amended as follows.
(2) In subsection (2), after "shall apply" there shall be inserted ", subject to subsection (2A) below,".
(3) After that subsection there shall be inserted--
"(2A) The borrower is not entitled, by virtue of anything in Schedule 23A or any provision of regulations under that Schedule, or otherwise--
(a) to any deduction in computing profits or gains for the purposes of income tax or corporation tax, or
(b) to any deduction against total income or, as the case may be, total profits,
in respect of any such deemed requirement or payment as is provided for by subsection (2) above.
Where the borrower is a company, an amount may not be surrendered by way of group relief if a deduction in respect of it is prohibited by this subsection.".
(4) This Resolution shall apply to payments treated under section 736B as made on or after 3rd October 2000.
26 Double taxation relief
That provision may be made amending Part XVIII of the Income and Corporation Taxes Act 1988.
27 Controlled foreign companies
That provision may be made amending Part I of Schedule 25 to the Income and Corporation Taxes Act 1988.
28 Life policies etc.
That provision may be made about gains arising in connection with policies of life assurance, contracts for life annuities and capital redemption policies.
29 Deduction of tax (payments between companies etc.)
That--
(1) After section 349 of the Income and Corporation Taxes Act 1988 there shall be inserted--
"Exceptions to section 349 for payments between companies etc
349A.--(1) The provisions specified in subsection (3) below (which require tax to be deducted on making certain payments) do not apply to a payment made by a company if, at the time the payment is made, the company reasonably believes that one of the conditions specified in section 349B is satisfied.
(2) Subsection (1) above has effect subject to any directions under section 349C.
(3) The provisions are--
section 349(1) (certain annuities and other annual payments, and royalties and other sums paid for use of UK patents),
section 349(2)(a) and (b) (UK interest),
section 349(3A) (dividend or interest on securities issued by building societies), and
section 524(3)(b) (which provides for section 349(1) to apply to proceeds of sale of UK patent rights).
(4) References in subsection (3) above to any provision of section 349 do not include that provision as applied--
(a) under section 777(9) (directions applying section 349(1) to certain payments to non-residents), or
(b) by paragraph 4(2) of Schedule 23A (manufactured overseas dividends to be treated as annual payments within section 349).
(5) References in this section to the company by which a payment is made do not include a company acting as trustee or agent for another person.
(6) For the purposes of this section, a payment by a partnership is treated as made by a company if any member of the partnership is a company.
The conditions mentioned in section 349A(1)
349B.--(1) The first of the conditions mentioned in section 349A(1) is that the person beneficially entitled to the income in respect of which the payment is made is--
(a) a company resident in the United Kingdom, or
(b) a partnership each member of which is a company resident in the United Kingdom.
(2) The second of those conditions is that--
(a) the person beneficially entitled to the income in respect of which the payment is made is a company not resident in the United Kingdom ("the non-resident company"),
(b) the non-resident company carries on a trade in the United Kingdom through a branch or agency, and
(c) the payment falls to be brought into account in computing the chargeable profits (within the meaning given by section 11(2)) of the non-resident company.
Directions disapplying section 349A(1)
349C.--(1) The Board may give a direction to a company directing that section 349A(1) is not to apply in relation to any payment that--
(a) is made by the company after the giving of the direction, and
(b) is specified in the direction or is of a description so specified.
(2) A direction under this section may be varied or revoked by a subsequent such direction.
(3) In this section "company" includes a partnership of which any member is a company.
Section 349A(1): consequences of reasonable but incorrect belief
349D.--(1) Where--
(a) a payment is made by a company without an amount representing the income tax on the payment being deducted from the payment,
(b) at the time the payment is made, the company reasonably believes that one of the conditions specified in section 349B is satisfied,
(c) if the company did not so believe, tax would be deductible from the payment under section 349, and
(d) neither of the conditions specified in section 349B is satisfied at the time the payment is made,
section 350 applies as if the payment were within section 349 (and Schedule 16 applies as if tax were deductible from the payment under section 349).
(2) In this section "company" includes a partnership of which any member is a company.".
(2) In section 98 of the Taxes Management Act 1970, after subsection (4) there shall be inserted--
"(4A) If--
(a) a failure to comply with section 350(1) of, or Schedule 16 to, the principal Act arises from a person's failure to deliver an account, or show the amount, of a payment, and
(b) the payment is within subsection (4B) below,
subsection (1) above shall have effect as if for "£300" there were substituted "£3,000" and as if for "£60" there were substituted "£600".
(4B) A payment is within this subsection if--
(a) the payment is made by a company without an amount representing the income tax on the payment being deducted from the payment,
(b) at the time the payment is made, the company--
(i) does not believe that either of the conditions specified in section 349B of the principal Act is satisfied, or
(ii) where it believes that either of those conditions is satisfied, could not reasonably so believe,
(c) the payment is one from which tax is deductible under section 349 of the principal Act unless the company reasonably believes that one of those conditions is satisfied, and
(d) neither of those conditions is satisfied at the time the payment is made.
(4C) In subsection (4B) above "company" includes a partnership of which any member is a company.".
(3) In section 338(4) of the Income and Corporation Taxes Act 1988, after paragraph (a) there shall be inserted--
"(aa) the person beneficially entitled to the income in respect of which the payment is made is a company not resident in the United Kingdom ("the non-resident company"), the non-resident company carries on a trade in the United Kingdom through a branch or agency and the payment falls to be brought into account in computing the chargeable profits (within the meaning given by section 11(2)) of the non-resident company, or".
(4) This Resolution applies to payments made on or after 1st April 2001.
And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
30 Deduction of tax (payments between group members)
| Next Section
| Index | Home Page |