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Publications on the internet Index of Amendments |
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S.C.A.
Amendment Paper as at
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| (a) | underwriting business within the meaning of section 184 of the Finance Act 1993 (Lloyd's underwriters), or |
| (b) | a trade where the Board have, on the application of a partnership of which an individual is a general partner or member of a limited liability partnership, notified the partnership that the Board is satisfied that the trade will be effected for bona fide commercial reasons and will not form part of any scheme or arrangements of which the main purpose, or one of the main purposes, is avoidance of liability of tax. |
(9) The Board shall notify their decision to the applicant within 30 days of receiving the application or, if they give a notice under subsection (8) above, within 30 days of the notice being complied with.
(10) If the Board notify the applicant that they are not satisfied as mentioned in subsection (7)(b) above or do not notify their decision to the applicant within the time required by subsection (9) above, the applicant may within 30 days of the notification or of that time require the Board to transmit the application, together with any notice given and further particulars furnished under subsection (8) above, to the Special Commissioners; and in that event any notification by the Special Commissioners shall have effect for the purposes of subsection (7)(b) above as if it were a notification by the Board.
(11) If any particulars, furnished under this section do not fully and accurately disclose all facts and considerations material for the decision of the Board or the Special Commissioners, any resulting notification that the Board or Commissioners are satisfied as mentioned in subsection (7)(b) above shall be void.
(12) This section has effect subject to sections 118ZJ and 118ZK (transitional provision).
118ZEA Application to particular trades
(1) Section 118ZE(7)(b) shall not apply to any trade unless—
| (a) | It can be shown that in respect of any period where a loss was sustained, the trade was carried on throughout that period on a commercial basis and in such a way that profits in the trade could reasonably be expected to be realised in that period or within a reasonable time thereafter; |
| (b) | The profits of the trade are taxed on the general partners or members of a limited liability partnership who claimed the reliefs referred to in subsection 118ZE(1) in the same proportions that the partnership's loss was claimed. |
| (c) | The partnership's expenditure is not applied, directly or indirectly, to provide security for repayment of any borrowings of the partnership or of any of its general partners or members of a limited liability partnership, including without limitation, by means of a cash deposit; |
| (d) | The receipts from the trade are entirely contingent on the performance of the products or services comprising the trade; and |
| (e) | The trade is carried on for bona fide commercial reasons and does not form part of a scheme or arrangements of which the main purpose, or one of the main purposes, is avoidance of liability of tax. |
Mr Oliver Letwin
Mr Howard Flight
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne
190
Clause 125, page 109, line 10, at beginning insert 'relevant'.
Mr Oliver Letwin
Mr Howard Flight
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne
191
Clause 125, page 109, line 32, after 'include', insert 'any chargeable gains or'.
Mr Paul Boateng
184
Clause 125, page 109, line 49, leave out 'the lower of' and insert '(subject to subsections (6) and (7)) so much of A as does not exceed B, where'.
Mr Paul Boateng
185
Clause 125, page 110, line 1, at beginning insert 'A is'.
Mr Paul Boateng
186
Clause 125, page 110, line 5, at beginning insert 'B is'.
Mr Paul Boateng
187
Clause 125, page 110, line 9, leave out subsection (6) and insert—'(6) Subsection (7) applies if this section applies on more than one occasion in relation to the same company and partnership (whether because of two or more receipts by the company of consideration relating to the same disposal or for any other reason).
(7) On each occasion after the first, the amount found under subsection (5) shall be reduced (but not below nil) by the total of the chargeable amounts found (under that subsection read with this) on the previous occasions.'.
Mr Paul Boateng
158
Clause 127, page 112, leave out lines 20 to 23 and insert—'(1) This section applies in relation to the calculation of the lessor's income or profits for a period of account for the purpose of income tax or corporation tax.
(1A) Where—
| (a) | an amount receivable in respect of the lessor's interest under the leaseback falls to be taken into account in that calculation, and |
| (b) | that amount is reduced by an amount due to the lessee under the leaseback, |
- that reduction shall be disregarded when taking the amount receivable into account.
(1B) The amounts receivable in respect of the lessor's interest under the leaseback that fall to be taken into account in that calculation may be disregarded to the extent that they exceed the permitted threshold (whether or not subsection (1A) applies).'.
Mr Paul Boateng
159
Clause 127, page 112, leave out lines 40 to 44.
Mr Paul Boateng
160
Clause 127, page 113, line 35, leave out from 'machinery' to end of line 36.
Mr Paul Boateng
161
Clause 127, page 113, line 39, at end insert—'( ) Plant or machinery is not the subject of a lease and finance leaseback for the purposes of this section in any case where the condition in subsection (6)(c) is met only because of an election under section 199 made before 18 May 2004.'.
Mr Paul Boateng
162
Clause 127, page 113, line 46, at end insert—
- '228G Leaseback not accounted for as finance lease in accounts of lessee
(1) Sections 228B and 228C are subject to this section in their application in relation to a leaseback that is not accounted for as a finance lease in the accounts of the lessee.
(2) Subsection (3) applies where the leaseback is accounted for as a finance lease in the accounts of a person connected with the lessee; and in that subsection "relevant calculation" means the calculation of—
| (a) | the permitted maximum for the purposes of section 228B, or |
| (b) | the amount by which the income or profits of the lessee are to be increased in accordance with section 228C. |
| (a) | cannot be ascertained by reference to the lessee's accounts because the leaseback is not accounted for as a finance lease in those accounts, but |
| (b) | can be ascertained by reference to the connected person's accounts for one or more periods, |
- that amount as ascertained by reference to the connected person's accounts shall be used for the purposes of the relevant calculation.
(4) Subsections (5) and (6) apply in a case where the leaseback is not accounted for as a finance lease in the accounts of a person connected with the lessee.
(5) Sections 228B and 228C do not apply in relation to the leaseback.
(6) If the term of the leaseback begins on or after 18 May 2004 then, for the purposes of income tax or corporation tax, the income or profits of the lessee from the relevant qualifying activity for the period of account during which the term of the leaseback begins shall be increased by—
| (a) | the net consideration for the purposes of section 228C(3) (in the case of a sale and finance leaseback), or |
| (b) | the consideration referred to in section 228F(6)(b) (in the case of a lease and finance leaseback). |
| (a) | the leaseback falls, under generally accepted accounting practice, to be treated in that person's accounts as a finance lease or loan, or |
| (b) | in a case where the leaseback is comprised in other arrangements, those arrangements fall, under generally accepted accounting practice, to be so treated.'. |
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