|
| |
|
| and section 13 of the Capital Allowances Act (use for qualifying |
| |
activity of plant or machinery provided for other purposes) is to |
| |
| |
(3) | This paragraph is to be read as one with Part 2 of the Capital |
| |
| 5 |
| |
16 (1) | For the purposes of this Part of this Schedule references to |
| |
recalculating the EEA amount in accordance with the applicable |
| |
UK tax rules are to recalculating it in accordance with any |
| |
provision made by or under the Corporation Tax Acts— |
| 10 |
(a) | which applies for the purpose of calculating for |
| |
corporation tax purposes the amount of the loss or other |
| |
amount to which the EEA amount corresponds, or |
| |
(b) | which otherwise affects in any way the amount of that loss |
| |
or other amount for which relief from corporation tax is |
| 15 |
| |
(2) | For the purposes of sub-paragraph (1), the Treasury may by |
| |
regulations provide for the modification of any provision made by |
| |
or under the Corporation Tax Acts— |
| |
(a) | which applies as mentioned in sub-paragraph (1)(a), or |
| 20 |
(b) | which otherwise affects an amount as mentioned in sub- |
| |
| |
(3) | Regulations under this paragraph may make provision in relation |
| |
| |
(a) | all classes of trade or business, or |
| 25 |
(b) | any particular class or classes of trade or business. |
| |
(4) | Regulations under this paragraph may make— |
| |
(a) | different provision for different cases or different |
| |
| |
(b) | incidental, supplemental, consequential or transitional |
| 30 |
| |
(5) | Regulations under this paragraph may make provision having |
| |
effect before the date on which the regulations are made. |
| |
| |
Definitions for the purposes of this Schedule |
| 35 |
Charge to tax under the law of any territory outside the United Kingdom |
| |
17 (1) | This paragraph applies for the purposes of this Schedule. |
| |
(2) | Any reference to a tax under a territory outside the United |
| |
Kingdom is a reference to a tax chargeable under the law of that |
| |
| 40 |
(a) | is charged on income and corresponds to United Kingdom |
| |
| |
|
| |
|
| |
|
(b) | is charged on income or chargeable gains or both and |
| |
corresponds to United Kingdom corporation tax. |
| |
(3) | A tax chargeable under the law of a territory outside the United |
| |
Kingdom is not to be regarded as failing to correspond to income |
| |
or corporation tax just because— |
| 5 |
(a) | it is chargeable under the law of a province, state or other |
| |
| |
(b) | it is levied by or on behalf of a municipality or other local |
| |
| |
| 10 |
Amendments of other enactments |
| |
| |
8 | After paragraph 77 of Schedule 18 to FA 1998 (joint amended returns) |
| |
| |
“Claims in respect of overseas losses of non-resident companies |
| 15 |
77A (1) | This paragraph applies if a claim for group relief is made in |
| |
respect of any loss or other amount as a result of the condition in |
| |
section 402(2A) of the Taxes Act 1988 being satisfied (relief in |
| |
respect of overseas losses of non-resident companies). |
| |
(2) | In relation to the surrendering company, this Part of this Schedule |
| 20 |
| |
(a) | references to the relief being surrendered were to the EEA |
| |
amount and to the relief being claimed, and |
| |
(b) | references to its accounting period were to its deemed |
| |
accounting period under Part 2 of Schedule 18A to the |
| 25 |
| |
(3) | Notice of consent of the surrendering company— |
| |
(a) | is to be given to the officer of the Board under paragraph |
| |
70(3)(b) by the claimant company (and not by the |
| |
surrendering company), and |
| 30 |
(b) | is to be given to the officer to whom the claimant company |
| |
makes its company tax returns. |
| |
(4) | If the surrendering company is not within the charge to income or |
| |
corporation tax, the requirement under paragraph 71(1)(e) for |
| |
notice of consent by the surrendering company to contain details |
| 35 |
of its tax district reference is not to apply. |
| |
(5) | If notice of consent is withdrawn under paragraph 71, the notice of |
| |
the withdrawal is to be given to the officer of the Board by the |
| |
claimant company (and not by the surrendering company). |
| |
(6) | If notice of consent is withdrawn under paragraph 75— |
| 40 |
(a) | the notice of withdrawal, and any copy of any new notice |
| |
of consent, is to be sent to an officer of Revenue and |
| |
Customs by the claimant company (and not by the |
| |
surrendering company), and |
| |
|
| |
|
| |
|
(b) | any notice containing directions by an officer of Revenue |
| |
and Customs under sub-paragraph (4) of that paragraph is |
| |
to be given to the claimant company (and not to the |
| |
| |
(7) | The remaining provisions of that paragraph, and the rest of this |
| 5 |
Part of this Schedule, are, accordingly, to be read with the |
| |
appropriate modifications (so that, in particular, it is the claimant |
| |
company (and not the surrendering company) which can bring an |
| |
appeal under paragraph 75(7)). |
| |
(8) | A notice under paragraph 27 (notice to produce documents etc for |
| 10 |
purposes of an enquiry) given to the claimant company may |
| |
require the claimant company— |
| |
(a) | to explain why the EEA amount meets the conditions |
| |
mentioned in subsection (2)(a) to (d) of section 403F of the |
| |
Taxes Act 1988 and is not prevented from being |
| 15 |
surrendered by section 403G of that Act, and |
| |
(b) | to provide details of the recalculation required under Part |
| |
2 of Schedule 18A to that Act in relation to the EEA |
| |
| |
(9) | Except where expressly indicated, requirements imposed under |
| 20 |
this paragraph are in addition to those imposed apart from this |
| |
| |
(10) | In this paragraph “the EEA amount” has the same meaning as in |
| |
Part 2 of Schedule 18A to the Taxes Act 1988.”. |
| |
| 25 |
| |
| |
9 (1) | The amendments made by this Schedule, other than those made by |
| |
paragraphs 4(2) and 5, have effect— |
| |
(a) | in relation to any accounting period of a claimant company |
| 30 |
beginning on or after 1st April 2006, and |
| |
(b) | in relation to any period (“the loss period”) beginning on or after 1st |
| |
April 2006 in which any loss or other amount arises to a non-resident |
| |
| |
(2) | If an accounting period (a “straddling period”) of a claimant company |
| 35 |
begins before 1st April 2006 and ends on or after that date— |
| |
(a) | so much of the straddling period as falls before 1st April 2006, and |
| |
(b) | so much of the straddling period as falls on or after that date, |
| |
| are to be treated as separate accounting periods for the purposes of the |
| |
amendments made by this Schedule other than those made by paragraphs |
| 40 |
| |
(3) | The amount of the claimant company’s profits for the straddling period is to |
| |
be attributed, on an apportionment in accordance with this paragraph, to |
| |
those separate accounting periods. |
| |
|
| |
|
| |
|
(4) | If the loss period of the non-resident company begins before 1st April 2006 |
| |
and ends on or after that date— |
| |
(a) | so much of the loss period as falls before 1st April 2006, and |
| |
(b) | so much of the loss period as falls on or after that date, |
| |
| are to be treated as separate periods for the purposes of the amendments |
| 5 |
made by this Schedule other than those made by paragraphs 4(2) and 5. |
| |
(5) | The amount of the loss or other amount of the non-resident company for the |
| |
loss period is to be attributed, on an apportionment in accordance with this |
| |
paragraph, to those separate periods. |
| |
(6) | Any apportionment under this paragraph is to be made on a just and |
| 10 |
| |
| |
| |
Relief for research and development: subjects of clinical trials |
| |
Amendments to Schedule 20 to FA 2000 |
| |
1 (1) | Schedule 20 to FA 2000 (tax relief for expenditure on research and |
| 15 |
development by small or medium-sized enterprises) is amended as follows. |
| |
(2) | In paragraph 3 (qualifying R&D expenditure), in sub-paragraph (4), after |
| |
| |
“(ba) | is incurred on relevant payments to the subjects of a |
| |
clinical trial (see paragraph 6A),”. |
| 20 |
(3) | After paragraph 6 (expenditure on software or consumable items), insert— |
| |
“Relevant payments to subjects of clinical trials |
| |
6A (1) | For the purposes of this Schedule “relevant payment”, in relation |
| |
to a subject of a clinical trial, means a payment made to him for |
| |
participating in the trial. |
| 25 |
(2) | For the purposes of this Schedule “clinical trial” means an |
| |
investigation in human subjects undertaken in connection with |
| |
the development of a health care treatment or procedure.” |
| |
(4) | In paragraph 10 (treatment of expenditure where company and sub- |
| |
contractor are connected persons), in sub-paragraph (2)(a)(iii), for “or on |
| 30 |
software or consumable items” substitute “, on software or consumable |
| |
items or on relevant payments to the subjects of a clinical trial”. |
| |
Amendments to Schedule 12 to FA 2002 |
| |
2 (1) | Schedule 12 to FA 2002 (tax relief for expenditure on research and |
| |
development: large companies etc) is amended as follows. |
| 35 |
(2) | In paragraph 4 (qualifying expenditure on direct research and |
| |
development), in sub-paragraph (3)— |
| |
(a) | omit the word “or” at the end of paragraph (b); |
| |
|
| |
|
| |
|
(b) | after that paragraph insert— |
| |
“(ba) | is incurred on relevant payments to the subjects of |
| |
| |
(3) | In paragraph 9 (expenditure on research and development directly |
| |
undertaken by the SME), in sub-paragraph (2)— |
| 5 |
(a) | omit the word “or” at the end of paragraph (b); |
| |
(b) | after that paragraph insert— |
| |
“(ba) | is incurred on relevant payments to the subjects of |
| |
| |
(4) | In paragraph 17 (which applies certain definitions from Schedule 20 to FA |
| 10 |
| |
(a) | in the heading, after ““software or consumable items”” insert “, |
| |
“relevant payments to the subjects of a clinical trial””; |
| |
(b) | omit the word “and” at the end of paragraph (c); |
| |
(c) | after that paragraph insert— |
| 15 |
“(ca) | paragraph 6A (relevant payments to subjects of |
| |
| |
Amendments to Schedule 13 to FA 2002 |
| |
3 (1) | Schedule 13 to FA 2002 (tax relief for expenditure on vaccine research etc) is |
| |
| 20 |
(2) | In paragraph 3 (qualifying expenditure on direct research and |
| |
development), in sub-paragraph (5)— |
| |
(a) | omit the word “or” at the end of paragraph (b); |
| |
(b) | after that paragraph insert— |
| |
“(ba) | is incurred on relevant payments to the subjects of |
| 25 |
| |
(3) | In paragraph 5 (which applies certain definitions from Schedule 20 to FA |
| |
| |
(a) | in the heading, after ““software or consumable items”,” insert |
| |
““relevant payments to the subjects of a clinical trial”,”; |
| 30 |
(b) | in sub-paragraph (3), after paragraph (c) insert— |
| |
“(ca) | paragraph 6A (relevant payments to subjects of |
| |
| |
(4) | In paragraph 9 (relevant expenditure of the sub-contractor), in sub- |
| |
| 35 |
(a) | omit the word “or” at the end of paragraph (b); |
| |
(b) | after that paragraph insert— |
| |
“(ba) | is incurred on relevant payments to the subjects of |
| |
| |
|
| |
|