|
| |
|
(2) | For subsections (1) and (2) substitute— |
| |
“(1) | In the Corporation Tax Acts “recognised stock exchange” has the |
| |
same meaning as in the Income Tax Acts (see section 939 of ITA |
| |
| |
(3) | In subsection (3) for “Tax Acts” substitute “Corporation Tax Acts”. |
| 5 |
229 | In section 842(1) (investment trusts) for “Tax Acts” substitute “Corporation |
| |
| |
230 | Omit section 842AA (venture capital trusts). |
| |
231 | In section 842A(1) (meaning of “local authority) for “Tax Acts” substitute |
| |
| 10 |
232 (1) | Amend section 842B (meaning of “investment LLP” and “property |
| |
investment LLP”) as follows. |
| |
| |
(a) | for “this Act” substitute “the Corporation Tax Acts”, and |
| |
(b) | omit paragraph (a) and the “and” immediately after it. |
| 15 |
(3) | In subsection (2) omit “an investment LLP or”. |
| |
(4) | In the sidenote omit ““investment LLP” and”. |
| |
233 (1) | Amend Schedule 14 (provisions ancillary to section 266) as follows. |
| |
(2) | In paragraph 2 after sub-paragraph (1) insert— |
| |
“(1A) | In sub-paragraph (1)(a) “industrial assurance business” means |
| 20 |
any industrial assurance business within the meaning given by— |
| |
(a) | section 1(2) of the Industrial Assurance Act 1923, or |
| |
(b) | Article 3(1) of the Industrial Assurance (Northern Ireland) |
| |
| |
| which was carried on before 1 December 2001.” |
| 25 |
(3) | In paragraph 6(1) for “subsections (6) and (7)” substitute “subsection (7)”. |
| |
(4) | In paragraph 8 after sub-paragraph (3) insert— |
| |
“(3A) | In sub-paragraph (3) “industrial assurance business” means any |
| |
industrial assurance business within the meaning given by— |
| |
(a) | section 1(2) of the Industrial Assurance Act 1923, or |
| 30 |
(b) | Article 3(1) of the Industrial Assurance (Northern Ireland) |
| |
| |
| which was carried on before 1 December 2001.” |
| |
234 | In Part 1 of Schedule 15 (qualifying policies for the purposes of section 267) |
| |
after paragraph 20 insert— |
| 35 |
“Meaning of “industrial assurance business” |
| |
20A | In this Part of this Schedule “industrial assurance business” means |
| |
any industrial assurance business within the meaning given by— |
| |
(a) | section 1(2) of the Industrial Assurance Act 1923, or |
| |
(b) | Article 3(1) of the Industrial Assurance (Northern Ireland) |
| 40 |
| |
|
| |
|
| |
|
| which was carried on before 1 December 2001.” |
| |
235 | Omit Part 1 of Schedule 15B (venture capital trusts: relief from income tax). |
| |
236 | Omit Schedule 16 (collection of income tax on company payments). |
| |
237 | In paragraph 2(b) of Schedule 19B (petroleum extraction activities: |
| |
exploration expenditure supplement) after “section 837B” insert “of this Act |
| 5 |
and section 937 of ITA 2007”. |
| |
238 (1) | Amend Schedule 20 (charities: qualifying investments and loans) as follows. |
| |
(2) | In paragraph 8 for the words from “for corporation tax” to the end substitute |
| |
| |
(3) | In paragraph 9(1) for “charity”, in both places where it occurs, substitute |
| 10 |
| |
| |
(a) | in paragraph (b) for “charity”, in both places where it occurs, |
| |
substitute “charitable company”, and |
| |
(b) | in paragraph (d) for “charity”, in both places where it occurs, |
| 15 |
substitute “charitable company”. |
| |
(5) | In the heading for “Charities” substitute “Charitable companies”. |
| |
239 (1) | Amend Schedule 23A (manufactured dividends and interest) as follows. |
| |
| |
(a) | omit the definition of “interest manufacturer”, |
| 20 |
(b) | in the definition of “manufactured dividend”, “manufactured |
| |
interest” and “manufactured overseas dividend” omit “, |
| |
“manufactured interest”” and “, 3”, and |
| |
(c) | after that definition insert— |
| |
““manufactured interest” means an amount— |
| 25 |
(a) | which is representative of a periodical |
| |
payment of interest on United Kingdom |
| |
| |
(b) | which, under a contract or other |
| |
arrangements for the transfer of the securities, |
| 30 |
one of the parties is required to pay to the |
| |
| |
(3) | In paragraph 2 (manufactured dividends on UK equities: general)— |
| |
(a) | in sub-paragraph (2) before “Tax” insert “Corporation”, |
| |
(b) | in sub-paragraph (3)(b) before “Tax” insert “Corporation”, |
| 35 |
(c) | omit sub-paragraph (3)(c) and the “and” immediately before it, |
| |
(d) | in sub-paragraph (6)(a) omit “to which sub-paragraph (3) above |
| |
| |
(e) | in sub-paragraph (6) after paragraph (a) insert “, and |
| |
(aa) | the dividend manufacturer is a non-UK resident |
| 40 |
company within the charge to corporation tax,”, |
| |
| |
(f) | in sub-paragraph (7)(c) after “sub-paragraph (3)(b) above” insert “or |
| |
section 573(2) of ITA 2007”. |
| |
|
| |
|
| |
|
(4) | Omit paragraphs 2A to 3A (deductibility of manufactured payment in case |
| |
of manufacturer of UK equities; manufactured interest on UK securities: |
| |
general; and manufactured interest on gilt-edged securities etc). |
| |
(5) | In paragraph 4 (manufactured overseas dividends)— |
| |
(a) | omit sub-paragraphs (2) to (3B), |
| 5 |
(b) | in sub-paragraph (4)— |
| |
(i) | for “sub-paragraph (2) above” substitute “section 855(2) of |
| |
ITA 2007 (amount of income tax to be deducted at source)”, |
| |
(ii) | for “sub-paragraph (3) above” substitute “section 856 of that |
| |
Act (income tax to be accounted for and paid)”, |
| 10 |
(iii) | for “Tax Acts” substitute “Corporation Tax Acts”, |
| |
(iv) | omit the words from “as they apply” to “branch or agency in |
| |
| |
(v) | in paragraph (a) for “persons” substitute “companies”, for |
| |
“him” substitute “the recipient” and for “under sub- |
| 15 |
paragraph (2) above” substitute “under section 855(2) of ITA |
| |
| |
(vi) | in paragraph (b) for “persons” substitute “companies” and |
| |
for “him” substitute “the recipient”, |
| |
(c) | in sub-paragraph (5) omit paragraph (a), |
| 20 |
(d) | omit sub-paragraph (6), |
| |
(e) | omit sub-paragraphs (7) and (7AA), and |
| |
(f) | in sub-paragraph (9) before “Tax” insert “Corporation”. |
| |
(6) | In paragraph 7 (irregular manufactured payments)— |
| |
(a) | in sub-paragraph (1)— |
| 25 |
(i) | omit “manufactured interest or”, |
| |
| |
(iii) | omit “interest or”, |
| |
(iv) | omit “, as the case may be” where it occurs for the first time, |
| |
| 30 |
(vi) | for “Tax Acts” substitute “Corporation Tax Acts”, and |
| |
(vii) | for “paragraphs 2 or 3” substitute “paragraph 2”, |
| |
(b) | in sub-paragraph (1A) omit “manufactured interest or”, |
| |
(c) | in sub-paragraph (3)— |
| |
(i) | for “Tax Acts” substitute “Corporation Tax Acts”, |
| 35 |
| |
(iii) | omit “manufactured interest or”, and |
| |
| |
(d) | in sub-paragraph (4)(b) omit “or set off” and “income or”. |
| |
(7) | In paragraph 7A(10) for the definition of “tax advantage” substitute— |
| 40 |
““tax advantage” has the meaning given by section 840ZA;”. |
| |
(8) | In paragraph 8 (dividend manufacturing regulations: general)— |
| |
(a) | in sub-paragraph (1)— |
| |
(i) | omit “, manufactured interest” in both places where it occurs, |
| |
(ii) | omit “, interest manufacturers”, |
| 45 |
(iii) | for “2 to 4” substitute “2 and 4”, and |
| |
(iv) | before “Tax Acts” insert “Corporation”, |
| |
|
| |
|
| |
|
(b) | in sub-paragraph (1A)— |
| |
(i) | before “Tax Acts” insert “Corporation”, and |
| |
(ii) | omit “or the 1992 Act”, |
| |
(c) | in sub-paragraph (2)— |
| |
(i) | omit paragraphs (c) and (d), |
| 5 |
| |
(iii) | omit “, manufactured interest or manufactured overseas |
| |
| |
(d) | omit sub-paragraph (2A), and |
| |
(e) | in sub-paragraph (3)— |
| 10 |
(i) | in paragraph (a) after “apply” insert “for corporation tax |
| |
| |
| |
240 | In Schedule 28AA (provision not at arm’s length) in paragraph 5(7) for |
| |
paragraphs (a) and (b) substitute— |
| 15 |
“(a) | disregarded income within the meaning given by section |
| |
746 of ITA 2007 (limits on liability to income tax of non-UK |
| |
| |
(b) | disregarded company income within the meaning given |
| |
by section 749 of that Act.” |
| 20 |
241 | Omit Schedule 28B (venture capital trusts: meaning of “qualifying holding”). |
| |
| |
| |
| |
242 | Omit sections 39 and 40 of the Finance Act 1950 (treatment of enemy debts |
| 25 |
etc written off during World War II). |
| |
Chevening Estate Act 1959 (c. 49) |
| |
243 | In section 2(1A)(a) of the Chevening Estate Act 1959 (provisions as to income |
| |
tax, estate duty and stamp duty) for “section 505(1A) of the Income and |
| |
Corporation Taxes Act 1988” substitute “section 533(2) of the Income Tax Act |
| 30 |
| |
Taxes Management Act 1970 (c. 9) |
| |
244 | The Taxes Management Act 1970 is amended as follows. |
| |
245 | In section 6(1) (declarations on taking office) at the end of paragraph (c) add |
| |
“or section 637 of ITA 2007”. |
| 35 |
246 | In section 7(6) (notice of liability to income tax and capital gains tax) for |
| |
“lower rate” substitute “savings rate”. |
| |
247 (1) | Amend section 12AB(1) (partnership return to include partnership |
| |
| |
| 40 |
(a) | insert the word “and” at the end of sub-paragraph (ii), and |
| |
|
| |
|
| |
|
(b) | omit sub-paragraph (iv) and the “and” immediately before it. |
| |
(3) | In paragraph (b) for “tax, credit or charge” substitute “tax or credit”. |
| |
248 | In section 12B(4A)(a) (records to be kept for purposes of returns) for sub- |
| |
paragraph (ii) substitute— |
| |
“(ii) | section 495(1) or 908(2) or (4) of ITA 2007 (statements |
| 5 |
about deduction of income tax),”. |
| |
249 (1) | Amend section 17 (interest paid or credited by banks etc without deduction |
| |
of income tax or after deduction of income tax) as follows. |
| |
(2) | In subsection (1) after “bank” insert “or building society”. |
| |
(3) | In subsection (1A) for “section 840A of the principal Act” substitute “section |
| 10 |
| |
(4) | After subsection (6) insert— |
| |
“(7) | In the application of this section in relation to building societies, |
| |
references to interest include references to dividends. |
| |
| For this purpose “dividend” includes any distribution (whether or |
| 15 |
not described as a dividend).” |
| |
(5) | In the sidenote after “banks” insert “, building societies”. |
| |
250 | In section 21(5A) (transactions in securities etc) for “Schedule 23A to the |
| |
principal Act” substitute “Chapter 2 of Part 11 or Chapter 9 of Part 14 of ITA |
| |
| 20 |
251 | In section 24(3A) (power to obtain information as to income from securities) |
| |
for “section 840A of the principal Act” substitute “section 925 of ITA 2007”. |
| |
252 | In section 31C(2)(b) (appeals: appeals to Special Commissioners) for “section |
| |
350 of the principal Act” substitute “section 896(3) of ITA 2007. |
| |
253 | In section 36(3A) (fraudulent or negligent conduct)— |
| 25 |
(a) | after “section 257BA of the principal Act” insert “or “any of sections |
| |
47 to 49 of ITA 2007”, and |
| |
(b) | for “(elections as to transfer of married couple’s allowance)” |
| |
substitute “(tax reductions for married couples and civil partners: |
| |
elections to transfer relief)”. |
| 30 |
254 (1) | Amend section 37A (effect of assessment where allowances transferred) as |
| |
| |
(2) | For “income tax reduction or deduction from total income” in both places |
| |
where it occurs substitute “deduction from net income or tax reduction”. |
| |
(3) | After “spouse” insert “or civil partner”. |
| 35 |
(4) | After “the principal Act” insert “or section 39, 51 or 52 of ITA 2007”. |
| |
255 | In section 43A(2A) (further assessments: claims etc)— |
| |
(a) | in paragraph (a) after “section 257BA of the principal Act” insert “or |
| |
any of sections 47 to 49 of ITA 2007”, |
| |
(b) | in paragraph (a) for “(election as to transfer of married couple’s |
| 40 |
allowance)” substitute “(tax reductions for married couples and civil |
| |
partners: elections to transfer relief)”, and |
| |
(c) | in paragraph (b) for “that Act” substitute “the principal Act”. |
| |
|
| |
|
| |
|
256 (1) | Amend section 46B (questions to be determined by Special Commissioners) |
| |
| |
| |
(a) | in paragraph (c) for “sections 740 and 743(1) of the principal Act” |
| |
substitute “sections 653, 660 and 664 of ITA 2007”, and |
| 5 |
(b) | in paragraph (d) for “of that Act” substitute “of the principal Act”. |
| |
(3) | In subsection (5) after paragraph (d) insert “, or |
| |
(e) | section 947 of ITA 2007,”. |
| |
257 (1) | Amend section 46C as follows. |
| |
(2) | In subsection (1)(b) omit “of the principal Act”. |
| 10 |
| |
(a) | omit “of the principal Act”, |
| |
(b) | in paragraph (b) after “460” insert “of the principal Act”, |
| |
(c) | in paragraph (c) after “467” insert “of the principal Act”, |
| |
(d) | in paragraph (d) for “sections 527 and 536 (reliefs in respect of |
| 15 |
royalties)” substitute “527 of the principal Act (spreading of patent |
| |
| |
(e) | in paragraph (e) after “Part XVIII” insert “of the principal Act”, and |
| |
(f) | after that paragraph insert— |
| |
“(f) | Part 10 of ITA 2007 (charitable trusts: claims for |
| 20 |
| |
(g) | sections 461 and 841 of ITA 2007 (reliefs in respect of |
| |
| |
258 | In section 55(1) (recovery of tax not postponed)— |
| |
(a) | omit paragraph (c), and |
| 25 |
(b) | in paragraph (d) for “that Act” substitute “the principal Act”. |
| |
259 | For section 87 (interest on income tax on company payments) substitute— |
| |
“87 | Interest on overdue income tax deducted at source |
| |
(1) | Income tax which is assessable under Chapter 15 of Part 14 of ITA |
| |
2007 carries interest at the rate applicable under section 178 of the |
| 30 |
Finance Act 1989 from the date when it was due under section 884 of |
| |
| |
(2) | Subsection (1) applies— |
| |
(a) | whether or not an assessment is made, and |
| |
(b) | whether or not income tax which is assessed has been paid |
| 35 |
when the assessment is made. |
| |
(3) | Subsection (1) applies even if the date when the income tax should |
| |
have been paid is a non-business day as defined by section 92 of the |
| |
Bills of Exchange Act 1882. |
| |
(4) | Subsection (5) applies to any income tax which— |
| 40 |
(a) | was payable under Chapter 15 of Part 14 of ITA 2007 |
| |
(collection: deposit-takers, building societies and certain |
| |
companies) in respect of payments within section 879 of that |
| |
Act made in a return period, |
| |
|
| |
|
| |
|
(b) | was not paid on the date when it was due under section 884 |
| |
| |
(c) | has subsequently been discharged or repaid under section |
| |
886 of that Act because the person who made the payments |
| |
received payments on which it suffered income tax by |
| 5 |
deduction in a later return period. |
| |
(5) | The income tax carries interest under subsection (1) from the date |
| |
when it was due under section 884 of ITA 2007 until the earliest of— |
| |
(a) | the date when the income tax was paid, |
| |
(b) | the date when the person delivered a return for the later |
| 10 |
| |
(c) | the expiry of 14 days after the end of that period, |
| |
| but subsection (1) does not otherwise apply to the income tax. |
| |
(6) | In this section “return period” means a period for which a return is |
| |
required to be made under Chapter 15 of Part 14 of ITA 2007.” |
| 15 |
260 | In section 91(3)(c) (effect on interest of reliefs) for “lower rate” substitute |
| |
| |
261 (1) | Amend section 98 (special returns etc) as follows. |
| |
(2) | In subsection (4A)(a) for “section 350(1) of, or Schedule 16 to, the principal |
| |
Act” substitute “Chapter 15 or 16 of Part 14 of ITA 2007”. |
| 20 |
(3) | In subsection (4B) for paragraphs (a) to (d) substitute— |
| |
“(a) | the payment is made by a company, local authority or |
| |
qualifying partnership (within the meaning of section 865 of |
| |
ITA 2007) without an amount representing income tax on the |
| |
payment being deducted from it, |
| 25 |
(b) | at the time the payment is made, the company, authority or |
| |
| |
(i) | does not believe that the payment is an excepted |
| |
payment for the purposes of Chapter 11 of Part 14 of |
| |
ITA 2007 (payments between companies etc: |
| 30 |
exception from duties to deduct), or |
| |
(ii) | if it does so believe, cannot reasonably do so, |
| |
(c) | the payment is one from which tax is deductible under Part |
| |
14 of ITA 2007 unless the company, authority or partnership |
| |
reasonably believes that it is an excepted payment for the |
| 35 |
purposes of Chapter 11 of that Part, and |
| |
(d) | the payment is not an excepted payment at the time the |
| |
| |
(4) | Omit subsection (4C). |
| |
(5) | For subsection (4D) substitute— |
| 40 |
“(4D) | A payment is within this subsection if— |
| |
(a) | it is a payment from which a sum representing income tax |
| |
must be deducted under Chapter 6 (deduction from annual |
| |
payments and patent royalties) or 7 (deduction from other |
| |
payments connected with intellectual property) of Part 14 of |
| 45 |
| |
|
| |
|