|
| |
|
(2) | For the purposes of Part 2 of the 2001 Act (capital allowances for plant and |
| |
machinery), the NDA or its subsidiary is to be treated— |
| |
(a) | as having incurred capital expenditure on the provision of the plant |
| |
or machinery at the time of the transfer; and |
| |
(b) | as having owned the plant or machinery as a result of having |
| 5 |
incurred that expenditure. |
| |
(3) | The amount of that expenditure is to be treated as being the book value of |
| |
| |
(4) | For the purposes of the application of section 61 of that Act in relation to the |
| |
transferor the disposal value of the plant or machinery is to be treated as |
| 10 |
being the book value of the plant or machinery. |
| |
(5) | The references in this paragraph to the book value of the plant or machinery |
| |
are references to the amount which, in accordance with generally accepted |
| |
accounting practice (within the meaning of the Tax Acts)— |
| |
(a) | was recognised as its value in the accounts of the transferor at the |
| 15 |
| |
(b) | should have been so recognised at that time. |
| |
(6) | Expressions used in this paragraph and in Part 2 of the 2001 Act have the |
| |
same meanings in this paragraph as in that Part. |
| |
Capital allowances: transfer not to be transaction between connected persons |
| 20 |
10 | For the purposes of Part 2 of the 2001 Act references in that Part to a |
| |
transaction (however described) between connected persons (within the |
| |
meaning of section 839 of the 1988 Act) are not to include references to a |
| |
transfer of anything in accordance with a section 42 scheme to the NDA or a |
| |
| 25 |
Continuity in relation to loan relationships |
| |
11 (1) | This paragraph applies if, in consequence of a section 42 scheme, the NDA |
| |
or a subsidiary of the NDA replaces a person as a party to a loan |
| |
| |
(2) | Chapter 2 of Part 4 of the Finance Act 1996 (c. 8) is to have effect in relation |
| 30 |
to the time when the transfer takes effect and any later time as if— |
| |
(a) | the NDA or its subsidiary had been a party to the loan relationship |
| |
at the time when the transferor became a party to it and at all times |
| |
| |
(b) | the loan relationship to which the NDA or its subsidiary is a party |
| 35 |
after the time when the transfer takes effect is the same loan |
| |
relationship as that to which, by virtue of paragraph (a), it is treated |
| |
as having been a party before that time. |
| |
(3) | Expressions used in this paragraph and in Chapter 2 of Part 4 of the Finance |
| |
Act 1996 have the same meanings in this paragraph as in that Chapter. |
| 40 |
Continuity in relation to derivative contracts |
| |
12 (1) | This paragraph applies if, in consequence of a section 42 scheme, the NDA |
| |
or a subsidiary of the NDA replaces a person as a party to a derivative |
| |
| |
|
| |
|
| |
|
(2) | Schedule 26 to the Finance Act 2002 (c. 23) is to have effect in relation to the |
| |
time when the transfer takes effect and any later time as if— |
| |
(a) | the NDA or its subsidiary had been a party to the derivative contract |
| |
at the time when the transferor became a party to it and at all times |
| |
| 5 |
(b) | the derivative contract to which the NDA or its subsidiary is a party |
| |
after the time when the transfer takes effect is the same derivative |
| |
contract as that to which, by virtue of paragraph (a), it is treated as |
| |
having been a party before that time. |
| |
(3) | Expressions used in this paragraph and in Schedule 26 to the Finance Act |
| 10 |
2002 have the same meanings in this paragraph as in that Schedule. |
| |
Continuity in relation to transfer of intangible assets |
| |
| |
(a) | property is transferred in accordance with a section 42 scheme to the |
| |
NDA or a subsidiary of the NDA, and |
| 15 |
(b) | the property transferred includes a chargeable intangible asset of the |
| |
| |
| the transfer of that asset is to be treated for the purposes of Schedule 29 to |
| |
the Finance Act 2002 as a tax neutral transfer. |
| |
(2) | Where, in the case of a transfer in accordance with a section 42 scheme of any |
| 20 |
property to the NDA or a subsidiary of the NDA— |
| |
(a) | the property transferred includes an asset which is not a chargeable |
| |
intangible asset of the transferor, but |
| |
(b) | that asset falls to be treated after the transfer as a chargeable |
| |
intangible asset of the NDA or its subsidiary, |
| 25 |
| that asset shall be treated as acquired by the NDA or its subsidiary for an |
| |
amount equal to the amount of the consideration determined for the |
| |
purposes of paragraph 3(2) of this Schedule. |
| |
(3) | Expressions used in this paragraph and in Schedule 29 to the Finance Act |
| |
2002 have the same meanings in this paragraph as in that Schedule. |
| 30 |
Chargeable intangible assets: degrouping charges |
| |
14 (1) | This paragraph applies if a company (“the degrouped company”)— |
| |
(a) | acquired an intangible fixed asset from another company at a time |
| |
when both were members of the same group of companies (“the old |
| |
| 35 |
(b) | ceases by virtue of a transfer to the NDA or a subsidiary of the NDA |
| |
in accordance with a section 42 scheme to be a member of the old |
| |
| |
(2) | Paragraph 58 of Schedule 29 to the Finance Act 2002 (company ceasing to be |
| |
member of group) is not to treat the degrouped company as having, by |
| 40 |
virtue of the transfer, sold and immediately reacquired the asset. |
| |
(3) | Where sub-paragraph (2) has applied to an asset, paragraph 58 of Schedule |
| |
29 to the Finance Act 2002 is to have effect on and after the first subsequent |
| |
occasion on which the degrouped company ceases to be a member of a |
| |
group of companies (“the new group”) as if— |
| 45 |
(a) | the degrouped company, and |
| |
(b) | the company from which it acquired the asset, |
| |
|
| |
|
| |
|
| had been members of the new group at the time of acquisition. |
| |
(4) | Expressions used in this paragraph and in paragraph 58 of Schedule 29 to |
| |
the Finance Act 2002 (c. 23) have the same meanings in this paragraph as in |
| |
| |
Computation of profits and losses in respect of transfer of trade |
| 5 |
15 (1) | This paragraph applies where, in consequence of a section 42 scheme— |
| |
(a) | a BNFL company ceases to carry on a trade or a part of a trade; and |
| |
(b) | an NDA group member begins to carry on the trade or that part of it. |
| |
(2) | For the purpose of computing, in relation to the time when the scheme |
| |
comes into force and subsequent times, the relevant trading profits or losses |
| 10 |
of the BNFL company and the NDA group member— |
| |
(a) | the trade or part is to be treated as having been a separate trade at the |
| |
time of its commencement and as having been carried on by the |
| |
NDA group member at all times since its commencement as a |
| |
| 15 |
(b) | the trade carried on by the NDA group member after the time when |
| |
the section 42 scheme comes into force is to be treated as the same |
| |
trade as that which it is treated, by virtue of paragraph (a), as having |
| |
carried on as a separate trade before that time. |
| |
(3) | This paragraph is subject to paragraph 11. |
| 20 |
| |
| “BNFL company” means BNFL or a subsidiary of BNFL; |
| |
| “NDA group member” means the NDA or a subsidiary of the NDA; |
| |
| “relevant trading profits and losses” means profits or losses under |
| |
Case I of Schedule D in respect of the trade or part of a trade in |
| 25 |
| |
| |
Transfers relating to BNFL or the UKAEA etc. |
| |
Application of Part 2 of Schedule |
| |
16 (1) | This Part of this Schedule applies to a transfer if— |
| 30 |
(a) | it is a transfer in accordance with a section 42 scheme of securities of |
| |
a BNFL company or of property, rights or liabilities of a BNFL |
| |
| |
(b) | the transferee is a publicly owned company which is not a subsidiary |
| |
| 35 |
(2) | This Part of this Schedule also applies to a transfer if it is a transfer in |
| |
accordance with a section 42 scheme to a transferee falling within sub- |
| |
| |
(a) | property, rights or liabilities of the UKAEA; |
| |
(b) | securities of a wholly-owned subsidiary of the UKAEA; or |
| 40 |
(c) | property, rights or liabilities of such a subsidiary. |
| |
(3) | The transferee falls within this sub-paragraph if it is— |
| |
(a) | a publicly owned company which is not a subsidiary of the NDA; or |
| |
| |
|
| |
|
| |
|
(4) | In this paragraph “BNFL company” means BNFL or a wholly-owned |
| |
| |
Application of rules for reorganisations under same ownership |
| |
17 | Where the conditions set out in subsection (1) of section 343 of the Taxes Act |
| |
(company reconstructions without a change of ownership) are satisfied in |
| 5 |
relation to a transfer to which this Part of this Schedule applies, that section |
| |
shall have effect in relation to the transfer with the omission of subsection (4) |
| |
(which restricts the losses that may be carried forward to the excess of |
| |
relevant liabilities over relevant assets). |
| |
Chargeable gains: assets to be treated as disposed without a gain or a loss |
| 10 |
18 (1) | This paragraph applies for the purposes of the 1992 Act where an asset is |
| |
transferred by a transfer to which this Part of this Schedule applies. |
| |
(2) | The asset shall be treated as disposed of to the transferee for a consideration |
| |
of such amount as would secure that, on the disposal, neither a gain nor a |
| |
loss accrues to the transferor. |
| 15 |
Chargeable gains: degrouping charges |
| |
19 (1) | This paragraph applies if a company (“the degrouped company”)— |
| |
(a) | acquired an asset from another company at a time when both were |
| |
members of the same group of companies (“the old group”); and |
| |
(b) | ceases by virtue of a transfer to which this Part of this Schedule |
| 20 |
applies to be a member of the old group. |
| |
(2) | Section 179 of the 1992 Act (company ceasing to be member of group) is not |
| |
to treat the degrouped company as having by virtue of the transfer sold and |
| |
immediately reacquired the asset. |
| |
(3) | Where sub-paragraph (2) has applied to an asset, section 179 of the 1992 Act |
| 25 |
is to have effect on and after the first subsequent occasion on which the |
| |
degrouped company ceases to be a member of a group of companies (“the |
| |
| |
(a) | the degrouped company, and |
| |
(b) | the company from which it acquired the asset, |
| 30 |
| had been members of the new group at the time of acquisition. |
| |
(4) | Expressions used in this paragraph and in section 179 of the 1992 Act have |
| |
the same meanings in this paragraph as in that section. |
| |
Chargeable gains: disposal of debts |
| |
20 (1) | This paragraph applies if— |
| 35 |
(a) | a debt owed to any person is transferred by a transfer to which this |
| |
Part of this Schedule applies; and |
| |
(b) | the transferor would (apart from this paragraph) be the original |
| |
creditor in relation to that debt for the purposes of section 251 of the |
| |
1992 Act (disposal of debts). |
| 40 |
(2) | The 1992 Act is to have effect as if the transferee (and not the transferor) were |
| |
the original creditor for those purposes. |
| |
|
| |
|
| |
|
Capital allowances: transfer of plant or machinery |
| |
21 (1) | This paragraph applies where— |
| |
(a) | property transferred by a transfer to which this Part of this Schedule |
| |
applies includes plant or machinery; and |
| |
(b) | section 343 of the Taxes Act does not apply in relation to the transfer |
| 5 |
of the plant or machinery. |
| |
(2) | For the purposes of Part 2 of the 2001 Act (capital allowances for plant and |
| |
machinery), the transferee is to be treated— |
| |
(a) | as having incurred capital expenditure on the provision of the plant |
| |
or machinery at the time of the transfer; and |
| 10 |
(b) | as having owned the plant or machinery as a result of having |
| |
incurred that expenditure. |
| |
(3) | The amount of that expenditure is to be treated as being the book value of |
| |
| |
(4) | For the purposes of the application of section 61 of that Act in relation to the |
| 15 |
transferor the disposal value of the plant or machinery is to be treated as |
| |
being the book value of the plant or machinery. |
| |
(5) | The references in this paragraph to the book value of the plant or machinery |
| |
are references to the amount which, in accordance with generally accepted |
| |
accounting practice (within the meaning of the Tax Acts)— |
| 20 |
(a) | was recognised as its value in the accounts of the transferor at the |
| |
| |
(b) | should have been so recognised at that time. |
| |
(6) | Expressions used in this paragraph and in Part 2 of the 2001 Act have the |
| |
same meanings in this paragraph as in that Part. |
| 25 |
Capital allowances: transfer not to be transaction between connected persons |
| |
22 | For the purposes of Part 2 of the 2001 Act references in that Part to a |
| |
transaction (however described) between connected persons within the |
| |
meaning of section 839 of the Taxes Act are not to include references to a |
| |
transfer to which this Part of this Schedule applies. |
| 30 |
Continuity in relation to loan relationships |
| |
23 (1) | This paragraph applies if, in consequence of a transfer to which this Part of |
| |
this Schedule applies, the transferee replaces a person as a party to a loan |
| |
| |
(2) | Chapter 2 of Part 4 of the Finance Act 1996 (c. 8) is to have effect in relation |
| 35 |
to the time when the transfer takes effect and any later time as if— |
| |
(a) | the transferee had been a party to the loan relationship at the time |
| |
when the transferor became a party to it and at all times since that |
| |
| |
(b) | the loan relationship to which the transferee is a party after the time |
| 40 |
when the transfer takes effect is the same loan relationship as that to |
| |
which, by virtue of paragraph (a), it is treated as having been a party |
| |
| |
(3) | Expressions used in this paragraph and in Chapter 2 of Part 4 of the Finance |
| |
Act 1996 have the same meanings in this paragraph as in that Chapter. |
| 45 |
|
| |
|
| |
|
Continuity in relation to derivative contracts |
| |
24 (1) | This paragraph applies if, in consequence of a transfer to which this Part of |
| |
this Schedule applies, the transferee replaces a person as a party to a |
| |
| |
(2) | Schedule 26 to the Finance Act 2002 (c. 23) is to have effect in relation to the |
| 5 |
time when the transfer takes effect and any later time as if— |
| |
(a) | the transferee had been a party to the derivative contract at the time |
| |
when the transferor became a party to it and at all times since that |
| |
| |
(b) | the derivative contract to which transferee is a party after the time |
| 10 |
when the transfer takes effect is the same derivative contract as that |
| |
to which, by virtue of paragraph (a), it is treated as having been a |
| |
| |
(3) | Expressions used in this paragraph and in Schedule 26 to the Finance Act |
| |
2002 have the same meanings in this paragraph as in that Schedule. |
| 15 |
Continuity in relation to transfer of intangible assets |
| |
| |
(a) | property is transferred by a transfer to which this Part of this |
| |
| |
(b) | the property transferred includes a chargeable intangible asset of the |
| 20 |
| |
| the transfer of that asset is to be treated for the purposes of Schedule 29 to |
| |
the Finance Act 2002 as a tax neutral transfer. |
| |
(2) | Where, in the case of a transfer of property by a transfer to which this Part of |
| |
| 25 |
(a) | the property transferred includes an asset which is not a chargeable |
| |
intangible asset of the transferor, but |
| |
(b) | that asset falls to be treated after the transfer as a chargeable |
| |
intangible asset of the transferee, |
| |
| that asset shall be treated as acquired by the transferee for an amount equal |
| 30 |
to the amount of the consideration determined for the purposes of |
| |
paragraph 18(2) of this Schedule. |
| |
(3) | Expressions used in this paragraph and in Schedule 29 to the Finance Act |
| |
2002 have the same meanings in this paragraph as in that Schedule. |
| |
Chargeable intangible assets: degrouping charges |
| 35 |
26 (1) | This paragraph applies if a company (“the degrouped company”)— |
| |
(a) | acquired an intangible fixed asset from another company at a time |
| |
when both were members of the same group of companies (“the old |
| |
| |
(b) | ceases by virtue of a transfer to which this Part of this Schedule |
| 40 |
applies to be a member of the old group. |
| |
(2) | Paragraph 58 of Schedule 29 to the Finance Act 2002 (company ceasing to be |
| |
member of group) is not to treat the degrouped company as having, by |
| |
virtue of the transfer, sold and immediately reacquired the asset. |
| |
(3) | Where sub-paragraph (2) has applied to an asset, paragraph 58 of Schedule |
| 45 |
29 to the Finance Act 2002 is to have effect on and after the first subsequent |
| |
|
| |
|
| |
|
occasion on which the degrouped company ceases to be a member of a |
| |
group of companies (“the new group”) as if— |
| |
(a) | the degrouped company, and |
| |
(b) | the company from which it acquired the asset, |
| |
| had been members of the new group at the time of acquisition. |
| 5 |
(4) | Expressions used in this paragraph and in paragraph 58 of Schedule 29 to |
| |
the Finance Act 2002 (c. 23) have the same meanings in this paragraph as in |
| |
| |
Computation of profits and losses: transfer of trade |
| |
27 (1) | This paragraph applies where, in consequence of a section 42 scheme— |
| 10 |
(a) | a BNFL company ceases to carry on a trade or a part of a trade; and |
| |
(b) | a publicly owned company that is not a subsidiary of the NDA (the |
| |
“transferee company”) begins to carry on the trade or that part. |
| |
(2) | For the purpose of computing, in relation to the time when the scheme |
| |
comes into force and subsequent times, the relevant trading profits or losses |
| 15 |
of the BNFL company and the transferee company— |
| |
(a) | the trade or part is to be treated as having been a separate trade at the |
| |
time of its commencement and as having been carried on by the |
| |
transferee company at all times since its commencement as a |
| |
| 20 |
(b) | the trade carried on by the transferee company after the time when |
| |
the section 42 scheme comes into force is to be treated as the same |
| |
trade as that which it is treated, by virtue of paragraph (a), as having |
| |
carried on as a separate trade before that time. |
| |
(3) | This paragraph is subject to paragraph 23. |
| 25 |
| |
| “BNFL company” means BNFL or a wholly-owned subsidiary of |
| |
| |
| “relevant trading profits and losses” means profits or losses under |
| |
Case I of Schedule D in respect of the trade or part of a trade in |
| 30 |
| |
| |
Transfers relating to relevant site licensees |
| |
28 (1) | This paragraph applies where, in consequence of a nuclear transfer scheme, |
| |
a subsidiary of the NDA becomes a relevant site licensee. |
| 35 |
(2) | For the purposes of the application of the enactments mentioned in sub- |
| |
paragraph (3) to the assets of the company which has become a relevant site |
| |
licensee, that company shall be treated as continuing, for so long as it is a |
| |
relevant site licensee, to be a member of the group of companies of which it |
| |
was a member immediately before the scheme took effect. |
| 40 |
(3) | Those enactments are— |
| |
| |
(b) | Schedule 29 to the Finance Act 2002; |
| |
(c) | paragraphs 5, 14, 19 and 26 of this Schedule. |
| |
|
| |
|