|
| |
|
140 | In section 615(3) (exemption from tax in respect of certain pensions) for |
| |
“section 349(1)” substitute “Chapter 6 of Part 15 of ITA 2007 (deduction from |
| |
annual payments and patent royalties)”. |
| |
141 | In section 657(2)(b) (purchased life annuities to which section 656 applies) |
| |
after “or 273” insert “of this Act or section 459 of ITA 2007”. |
| 5 |
142 | In section 658(4)(b) (supplementary) omit “(notwithstanding anything in |
| |
| |
143 | In section 659E(1) (treatment of income from property investment LLPs) at |
| |
the end insert “(see section 1004 of ITA 2007)”. |
| |
144 | Omit section 660C(3) (nature of charge on settlor). |
| 10 |
145 | Omit sections 685A to 687 (liability of trustees). |
| |
146 (1) | Amend section 687A (discretionary payments made by trustees to |
| |
| |
(2) | In subsection (1) for paragraph (b) substitute— |
| |
“(b) | sections 494 and 495 of ITA 2007 apply in relation to the |
| 15 |
| |
(3) | In subsection (2)(a) for “charity” substitute “charitable company”. |
| |
| |
(a) | in paragraph (a)(iii) for “paragraph 5(1) of Schedule 16” substitute |
| |
“section 952 of ITA 2007 (set off of income tax suffered against |
| 20 |
income tax payable)”, and |
| |
(b) | in paragraph (c) for “section 687(2)” substitute “section 494 of ITA |
| |
| |
(5) | In the sidenote for “Payments to companies under section 687” substitute |
| |
“Discretionary payments by trustees to companies”. |
| 25 |
147 | Omit section 689A (disregard of trustees’ expenses where beneficiary non- |
| |
| |
148 (1) | Amend section 689B (order in which trustees’ expenses are to be set against |
| |
| |
(2) | In subsection (3) for the words from “to which section 1A applies” to the end |
| 30 |
substitute “of the trustees which is savings income (within the meaning of |
| |
section 18 of ITA 2007).” |
| |
| |
| |
“(5) | This section applies for corporation tax purposes only.” |
| 35 |
149 | Omit sections 690 to 694. |
| |
| |
151 | In section 699A(4)(b) (untaxed sums comprised in the income of the estate) |
| |
for “lower rate” substitute “savings rate”. |
| |
152 | In section 701(3A) (interpretation of sections 695 to 700) for “lower rate”, |
| 40 |
wherever it occurs, substitute “savings rate”. |
| |
|
| |
|
| |
|
153 | In the heading for Chapter 1 of Part 17 (cancellation of tax advantages from |
| |
certain transactions in securities) for “TAX” substitute “CORPORATION |
| |
| |
154 (1) | Amend section 703 (cancellation of tax advantage) as follows. |
| |
| 5 |
(a) | for “person” substitute “company”, |
| |
(b) | for “tax”, in both places where it occurs, substitute “corporation tax”, |
| |
(c) | for “he” substitute “it”, and |
| |
(d) | for “him” substitute “it”. |
| |
| 10 |
(a) | for “tax” substitute “corporation tax”, |
| |
(b) | for “person” substitute “company”, and |
| |
(c) | for “him” substitute “it”. |
| |
| |
(a) | for “tax advantage”, in both places where it occurs, substitute |
| 15 |
“corporation tax advantage”, |
| |
(b) | for “person” substitute “company”, |
| |
(c) | for “him”, in both places where it occurs, substitute “it”, |
| |
(d) | omit “in the case of corporation tax”, and |
| |
(e) | for “liability to tax” substitute “liability to corporation tax”. |
| 20 |
(5) | Omit subsection (3A). |
| |
| |
(a) | for “person”, in both places where it occurs, substitute “company”, |
| |
(b) | for “him”, wherever it occurs, substitute “it”, and |
| |
(c) | for “his” substitute “its”. |
| 25 |
(7) | In subsection (10) for “person” substitute “company”. |
| |
(8) | Omit subsection (11). |
| |
| |
(a) | for “tax advantage”, in both places where it occurs, substitute |
| |
“corporation tax advantage”, |
| 30 |
(b) | for “chargeable period”, in the second place where it occurs, |
| |
substitute “accounting period”, and |
| |
(c) | for “Tax Acts” substitute “Corporation Tax Acts”. |
| |
(10) | In the sidenote for “tax” substitute “corporation tax”. |
| |
155 (1) | Amend section 704 (the prescribed circumstances) as follows. |
| 35 |
(2) | After “The circumstances mentioned in section 703(1) are” insert “as follows |
| |
(and in this section references to “the section 703(1) company” are references |
| |
to the company referred to in that section)”. |
| |
| |
(a) | for “person in question” substitute “section 703(1) company”, |
| 40 |
(b) | in paragraph (a) for “tax” substitute “corporation tax”, and |
| |
(c) | omit from “, or” at the end of paragraph (da) to the end of paragraph |
| |
| |
|
| |
|
| |
|
| |
(a) | for “person in question” substitute “section 703(1) company”, and |
| |
(b) | for “him”, wherever it occurs, substitute “it”. |
| |
(5) | In paragraph B(2) for “tax advantage” substitute “corporation tax |
| |
| 5 |
| |
(a) | for “person in question”, in both places where it occurs, substitute |
| |
“section 703(1) company”, |
| |
(b) | at the end of sub-paragraph (b) add “or section 687 of ITA 2007”, and |
| |
(c) | for “he” substitute “it”. |
| 10 |
(7) | In paragraph D(1) for “person in question” substitute “section 703(1) |
| |
| |
| |
(a) | in sub-paragraph (1) for “person in question” substitute “section |
| |
| 15 |
(b) | in sub-paragraph (2)— |
| |
(i) | for “person” substitute “company”, |
| |
(ii) | for “tax”, in both places where it occurs, substitute |
| |
| |
(iii) | for “the year” substitute “the accounting period”, and |
| 20 |
(c) | in the definition of “non-taxable” in sub-paragraph (3)— |
| |
(i) | for “person” substitute “section 703(1) company”, and |
| |
(ii) | for “tax” substitute “corporation tax”. |
| |
156 (1) | Amend section 705 (appeals against Board’s notices under section 703) as |
| |
| 25 |
| |
(a) | for “person to whom” substitute “company to which”, and |
| |
(b) | for “him” substitute “it”. |
| |
| |
(a) | for “he”, in the first place where it occurs, substitute “the company”, |
| 30 |
| |
(b) | for “he or they” substitute “the company or the Board”. |
| |
157 (1) | Amend section 705A (statement of case by tribunal for opinion of High |
| |
| |
(2) | In subsections (1) and (2) for “his” substitute “its”. |
| 35 |
(3) | In subsection (3) for “he” substitute “that party”. |
| |
| |
(a) | for “he” and “the party requiring it” substitute “that party”, and |
| |
(b) | for “his” substitute “that party’s”. |
| |
(5) | In subsections (10) and (11)(a) and (b) for “tax” substitute “corporation tax”. |
| 40 |
158 | In section 705B(1) (proceedings in Northern Ireland) for the words from “the |
| |
Taxes Acts” to “shall have effect” substitute “the Management Act and the |
| |
Corporation Tax Acts shall have effect”. |
| |
|
| |
|
| |
|
159 (1) | Amend section 707 (procedure for clearance in advance) as follows. |
| |
| |
(a) | for “person”, wherever it occurs, substitute “company”, and |
| |
(b) | for “him”, wherever it occurs, substitute “it”. |
| |
(3) | In subsection (3) for “person” substitute “company”. |
| 5 |
160 | In section 708 (power to obtain information)— |
| |
(a) | for “person”, in both places where it occurs, substitute “company”, |
| |
(b) | for “whom” substitute “which”, |
| |
(c) | for “him”, wherever it occurs, substitute “it”, and |
| |
(d) | for “his” substitute “its”. |
| 10 |
161 (1) | Amend section 709 (meaning of “tax advantage” and other expressions) as |
| |
| |
(2) | In subsection (1) for “tax”, in each place where it occurs, substitute |
| |
| |
(3) | In subsection (4)(a) for “he”, in both places where it occurs, substitute “the |
| 15 |
| |
(4) | In subsection (6)(a)— |
| |
(a) | for “he”, in both places where it occurs, substitute “the recipient”, |
| |
| |
(b) | for “him” substitute “the recipient”. |
| 20 |
(5) | In the sidenote for ““tax advantage”” substitute ““corporation tax |
| |
| |
162 | Omit sections 710 to 727A (accrued income scheme). |
| |
163 (1) | Amend section 728 (information) as follows. |
| |
(2) | In subsection (1) for “sections 710 to 727A” substitute “Part 12 of ITA 2007 |
| 25 |
(accrued income profits)”. |
| |
(3) | In subsection (2) omit the words from “In relation to transactions before” to |
| |
| |
(4) | In subsection (5) for “sections 710 to 727A” substitute “Part 12 of ITA 2007 |
| |
(accrued income profits)”. |
| 30 |
(5) | After subsection (8) insert— |
| |
“(9) | In this section “securities” has the meaning given by section 619 of |
| |
| |
164 (1) | Amend section 730A (treatment of price differential on sale and repurchase |
| |
of securities) as follows. |
| 35 |
(2) | In subsections (2), (3) and (4) for “Tax Acts” substitute “Corporation Tax |
| |
| |
| |
(a) | for “tax” substitute “corporation tax”, and |
| |
(b) | omit the words from “, 613(4) or” to “Act 2004”. |
| 40 |
165 (1) | Amend section 730B (interpretation of section 730A) as follows. |
| |
|
| |
|
| |
|
(2) | In subsection (3) for “has the same meaning as in section 737A” substitute |
| |
“means United Kingdom equities, United Kingdom securities or overseas |
| |
| |
(3) | After subsection (3) insert— |
| |
“(3A) | In this section “United Kingdom equities”, “United Kingdom |
| 5 |
securities” and “overseas securities” have the meanings given by |
| |
paragraph 1(1) of Schedule 23A.” |
| |
166 (1) | Amend section 730BB (exchange gains and losses on sale and repurchase of |
| |
| |
(2) | In subsection (7) for “this section and sections 730A, 737A and 737C” |
| 10 |
substitute “the excepted provisions specified in subsection (7A) below”. |
| |
(3) | After subsection (7) insert— |
| |
“(7A) | The excepted provisions are— |
| |
| |
| 15 |
| |
| |
(e) | Chapter 4 of Part 11 of ITA 2007 (deemed manufactured |
| |
| |
(f) | Chapter 5 of Part 11 of ITA 2007 (price differences under |
| 20 |
| |
167 (1) | Amend section 731 (application and interpretation of sections 732 to 734) as |
| |
| |
(2) | In subsection (2A) after “737A(5)” insert “below or section 602(1) of ITA |
| |
| 25 |
(3) | In subsection (9) in the definition of “securities” for “for the purposes of |
| |
sections 710 to 728” substitute “within the meaning of Chapter 2 of Part 12 of |
| |
ITA 2007 (accrued income profits)”. |
| |
168 | Omit section 733(2) (persons entitled to exemptions). |
| |
169 | In section 734(1) (persons other than dealers in securities) for “section 380 or |
| 30 |
381” substitute “section 64 or 72 of ITA 2007”. |
| |
170 | In section 736(4) (company dealing in securities: distribution materially |
| |
reducing value of holding) for “section 839 shall have effect in relation to |
| |
paragraph (b) above” substitute “, for the purposes of paragraph (b) above, |
| |
whether persons are connected is determined in accordance with section |
| 35 |
| |
171 (1) | Amend section 736B (deemed manufactured payments in the case of stock |
| |
lending arrangements) as follows. |
| |
| |
(a) | after “that Schedule” insert “, and section 97 of the Finance Act 1996 |
| 40 |
(loan relationships: manufactured interest),”, and |
| |
(b) | after “apply” insert “for corporation tax purposes”. |
| |
| |
(a) | in paragraph (a) omit “income tax or”, and |
| |
|
| |
|
| |
|
(b) | in paragraph (b) omit “total income or, as the case may be,”. |
| |
172 (1) | Amend section 736C (deemed interest: cash collateral under stock lending |
| |
arrangements) as follows. |
| |
(2) | In subsections (2), (3) and (4) for “Tax Acts” substitute “Corporation Tax |
| |
| 5 |
| |
(4) | In subsection (11) in the definition of “tax advantage” for “section 709(1)” |
| |
substitute “section 840ZA”. |
| |
173 (1) | Amend section 737A (sale and repurchase of securities: deemed |
| |
manufactured payments) as follows. |
| 10 |
| |
(a) | after “dividend manufacturing regulations” insert “, and section 97 |
| |
of the Finance Act 1996 (loan relationships: manufactured interest),”, |
| |
| |
(b) | after “apply” insert “for corporation tax purposes”. |
| 15 |
(3) | In subsection (5A), omit “income tax or”, “total income or” and “Where the |
| |
relevant person is a company,”. |
| |
174 (1) | Amend section 737C (deemed manufactured payments: further provisions) |
| |
| |
| 20 |
(a) | for “Subsection (8)” substitute “Subsection (9)”, |
| |
(b) | for “paragraph 3 of Schedule 23A” substitute “section 97 of the |
| |
| |
(c) | omit the words from “and in subsection (8) below” to the end. |
| |
| 25 |
(4) | For subsection (9) substitute— |
| |
“(9) | Where this subsection applies, the repurchase price of the securities |
| |
shall be treated, for the purposes of section 730A, as increased by an |
| |
amount equal to the amount of the dividend mentioned in section |
| |
| 30 |
175 | In section 737D(1) (power to provide for manufactured payments to be |
| |
| |
(a) | after “from” insert “corporation”, and |
| |
(b) | omit the words from “, 613(4) or” to “Act 2004”. |
| |
176 (1) | Amend section 737E (power to modify sections 727A, 730A, 730BB and 737A |
| 35 |
| |
(2) | In subsections (1) and (2) omit “727A,”. |
| |
(3) | In subsections (4) and (6)(b) omit “or 263D”. |
| |
(4) | In the sidenote omit “727A,”. |
| |
177 | Omit sections 739 to 746 (transfer of assets abroad). |
| 40 |
|
| |
|
| |
|
178 | In section 747(4) (imputation of chargeable profits and creditable tax of |
| |
controlled foreign companies) omit paragraph (b) and the “and” |
| |
| |
179 (1) | Amend section 761 (offshore income gains) as follows. |
| |
| 5 |
(a) | for “charity” in the first place where it occurs, substitute “charitable |
| |
| |
(b) | for “tax” substitute “corporation tax”, and |
| |
(c) | omit the words from “; but” to the end. |
| |
(3) | After that subsection insert— |
| 10 |
“(6A) | See section 535 of ITA 2007 for an exemption for income tax purposes |
| |
for offshore income gains accruing to a charitable trust. |
| |
(6B) | If property held on charitable trusts ceases to be subject to charitable |
| |
trusts and that property represents directly or indirectly an offshore |
| |
income gain, the trustees shall be treated as if they had disposed of |
| 15 |
and immediately reacquired that property for a consideration equal |
| |
to its market value, any gain (calculated in accordance with Schedule |
| |
28) accruing being treated as an offshore income gain not accruing to |
| |
| |
(6C) | In this section “charity” and “charitable company” have the same |
| 20 |
meaning as in section 506 and “market value” has the same meaning |
| |
| |
180 | In section 762 (offshore income gains accruing to persons resident or |
| |
| |
| 25 |
(i) | in paragraph (a) for “sections 739 and 740” substitute |
| |
“Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad)”, |
| |
| |
(ii) | in paragraph (b) for “those sections” substitute “that |
| |
| 30 |
(b) | in subsection (6) for “section 739 or 740 above” substitute “Chapter 2 |
| |
| |
181 | In section 763 (deduction of offshore income gain in determining capital |
| |
gain) for subsection (8) substitute— |
| |
“(8) | For the purposes of subsection (7)(b) above, whether the person who |
| 35 |
made the disposal is connected with another person is determined in |
| |
accordance with section 839.” |
| |
182 | Omit section 775 (sale by individual of income derived from his personal |
| |
| |
183 | In section 775A(4)(c) (transfer of rights to receive annual payments) for |
| 40 |
“(annual payments that are not charges on income)” substitute “(certain |
| |
annual payments not to form part of the income of a company for |
| |
corporation tax purposes)”. |
| |
184 (1) | Amend section 776 (transactions in land: taxation of capital gains) as follows. |
| |
(2) | In subsection (1) for “persons” substitute “companies”. |
| 45 |
|
| |
|