|
| |
|
(5) | This paragraph is subject to sections 63(5) and 68 of CAA 2001. |
| |
Capital allowances: determination of disposal value of fixtures |
| |
20 (1) | This paragraph applies to a relevant transfer if— |
| |
(a) | it is a disposal event for the purposes of Part 2 of CAA 2001, and |
| |
(b) | by virtue of the transfer a person is treated by section 188 of that Act |
| 5 |
as ceasing to own a fixture. |
| |
(2) | For the purposes of the application of section 196 of that Act in relation to the |
| |
transferor, the disposal value of the fixture is to be treated— |
| |
(a) | if a capital sum is received by the transferor by way of consideration |
| |
or compensation in respect of the transfer, as an amount equal to that |
| 10 |
portion of that sum which, if the person to whom the disposal is |
| |
made were entitled to an allowance, would fall to be treated for the |
| |
purposes of Part 2 of that Act as expenditure incurred by that person |
| |
on the provision of the fixture, or |
| |
(b) | if no such sum is received, as nil. |
| 15 |
(3) | For the purposes of this paragraph a sum received by a person connected |
| |
with the transferor is to be treated as received by the transferor. |
| |
(4) | This paragraph is subject to section 63(5) of CAA 2001. |
| |
Capital allowances: determination of capital value of industrial buildings etc. |
| |
21 (1) | This paragraph applies for the purposes of Part 3 of CAA 2001, and the other |
| 20 |
provisions of that Act which are relevant to that Part, in relation to a relevant |
| |
transfer of the relevant interest in an industrial building or structure. |
| |
(2) | This paragraph is subject to section 36 of FA 2007 (which makes provision |
| |
about balancing adjustments etc under Part 3 of CAA 2001). |
| |
(3) | The transfer is to be treated as a sale of that relevant interest. |
| 25 |
(4) | The net proceeds of that sale are to be treated— |
| |
(a) | if a capital sum is received by the transferor by way of consideration |
| |
or compensation in respect of the transfer, as an amount equal to that |
| |
| |
(b) | if no such sum is received, as nil. |
| 30 |
(5) | For the purposes of this paragraph a sum received by a person connected |
| |
with the transferor is to be treated as received by the transferor. |
| |
(6) | Sections 567 to 570 of CAA 2001 (sales treated as being for alternative |
| |
amount) are not to have effect in relation to that sale. |
| |
Chargeable gains: assets to be treated as disposed of without a gain or a loss |
| 35 |
22 (1) | For the purposes of TCGA 1992 a disposal— |
| |
(a) | constituted by a relevant transfer, or |
| |
(b) | to which sub-paragraph (2) applies, |
| |
| is to be taken to be for a consideration such that no gain or loss accrues to the |
| |
person making the disposal. |
| 40 |
(2) | This sub-paragraph applies to a disposal if— |
| |
|
| |
|
| |
|
(a) | it is made in accordance with provision contained in a transfer |
| |
scheme by virtue of paragraph 5 or 11 of Schedule 12 to this Act, |
| |
(b) | the person making the disposal is a taxable public body, |
| |
(c) | the person to whom the disposal is made is an exempt public body, |
| |
| 5 |
(d) | each of those persons is either the transferor or a transferee under the |
| |
| |
Neutral effect of transfer of intangible assets |
| |
23 (1) | For the purposes of Schedule 29 to FA 2002, a relevant transfer of a |
| |
chargeable intangible asset of the transferor is to be treated as not involving |
| 10 |
any realisation of the asset by the transferor. |
| |
(2) | Expressions used in this paragraph and in that Schedule have the same |
| |
meanings in this paragraph as in that Schedule. |
| |
Neutral effect of transfer for loan relationships and derivative contracts |
| |
24 | No credit or debit shall be required or allowed, in respect of a relevant |
| 15 |
transfer, to be brought into account in the transferor’s case— |
| |
(a) | for the purposes of Chapter 2 of Part 4 of FA 1996 (loan |
| |
| |
(b) | for the purposes of Schedule 26 to FA 2002 (derivative contracts). |
| |
| 20 |
25 (1) | This paragraph applies for the purposes of section 781 of ICTA (assets leased |
| |
to traders and others) where— |
| |
(a) | the interest of the lessor or the lessee under a lease, or any other |
| |
interest in an asset, is transferred under a relevant transfer, or |
| |
(b) | a lease, or any other interest in a lease, is granted by a taxable public |
| 25 |
body to an exempt public body in accordance with provision |
| |
contained by virtue of paragraph 5 or 11 of Schedule 12 to this Act in |
| |
| |
(2) | Section 783(4) of ICTA is to be disregarded and the transfer or grant is to be |
| |
treated as made without any capital sum having been obtained in respect of |
| 30 |
the interest or lease by the transferor or grantor. |
| |
(3) | Expressions used in this paragraph and in sections 781 to 785 of ICTA have |
| |
the same meanings in this paragraph as in those sections. |
| |
| |
Transfers from exempt public bodies to taxable public bodies |
| 35 |
Meaning of “relevant transfer” in Part 4 of Schedule |
| |
26 | In this Part of this Schedule “relevant transfer” means a transfer, in |
| |
accordance with a transfer scheme, from an exempt public body to a taxable |
| |
| |
|
| |
|
| |
|
Capital allowances: transfer of plant or machinery |
| |
27 (1) | This paragraph applies where— |
| |
(a) | there is a relevant transfer of plant or machinery, |
| |
(b) | the plant or machinery would have been treated for the purposes of |
| |
CAA 2001 (had the transferor incurred expenditure qualifying for |
| 5 |
allowances under Part 2 of that Act on the provision of the plant or |
| |
machinery) as disposed of by the transferor to the transferee on the |
| |
transfer taking effect, and |
| |
(c) | the transfer scheme in accordance with which the transfer is made |
| |
contains provision for the transferee to be treated for the purposes of |
| 10 |
that Act as having incurred capital expenditure of an amount |
| |
specified in or determined in accordance with the scheme on the |
| |
provision of the plant or machinery. |
| |
(2) | For the purposes of CAA 2001— |
| |
(a) | the transferee is to be treated as having incurred capital expenditure |
| 15 |
of that amount on the provision of the plant or machinery for the |
| |
purposes for which it is used by the transferee on and after the taking |
| |
| |
(b) | the property is to be treated as belonging to the transferee as a result |
| |
of the transferee having incurred that expenditure, and |
| 20 |
(c) | in the case of a fixture, the expenditure which falls to be treated as |
| |
incurred by the transferee is to be treated for the purposes of sections |
| |
181(1) and 182(1) of that Act as being incurred by the giving of a |
| |
consideration consisting in a capital sum of that amount. |
| |
(3) | The provision mentioned in sub-paragraph (1)(c) for the determination of an |
| 25 |
amount may include provision for a determination— |
| |
(a) | to be made by the Secretary of State in a manner described in the |
| |
| |
(b) | to be made by reference to factors so described or to the opinion of a |
| |
| 30 |
(c) | to be capable of being modified (on one or more occasions) in a |
| |
manner and in circumstances so described. |
| |
(4) | The consent of the Treasury is required for the making or modification of a |
| |
determination under the provision mentioned in sub-paragraph (1)(c). |
| |
(5) | The consent of the transferee is required for the modification of a |
| 35 |
determination under the provision mentioned in sub-paragraph (1)(c). |
| |
(6) | As to the making of a determination or a modification of a determination |
| |
under the provision mentioned in sub-paragraph (1)(c), see further |
| |
| |
(7) | Expressions used in this paragraph and in Part 2 of CAA 2001 have the same |
| 40 |
meanings in this paragraph as in that Part. |
| |
Capital allowances: determination of capital value of industrial buildings etc. |
| |
28 (1) | This paragraph applies where there is a relevant transfer of the relevant |
| |
interest in an industrial building or structure and the transfer scheme in |
| |
accordance with which the transfer is made contains provision specifying |
| 45 |
for the purposes of section 311 of CAA 2001— |
| |
|
| |
|
| |
|
(a) | the amount to be taken as the amount of the residue of qualifying |
| |
expenditure immediately after the event, and |
| |
(b) | the period to be taken as the period from the date of the event to the |
| |
end of the period of 25 years beginning with the day on which the |
| |
building or structure was first used. |
| 5 |
(2) | For the purposes of that section— |
| |
(a) | the transfer is to be treated as the occurrence of a relevant event, |
| |
(b) | the residue of qualifying expenditure immediately after the event is |
| |
to be taken to be the amount specified by virtue of sub-paragraph |
| |
| 10 |
(c) | the period from the date of the event to the end of the period of 25 |
| |
years beginning with the day on which the building or structure was |
| |
first used is to be taken to be the period specified by virtue of sub- |
| |
| |
(3) | Expressions used in this paragraph and in Part 3 of CAA 2001 have the same |
| 15 |
meanings in this paragraph as in that Part. |
| |
| |
Other provisions concerning transfers between public bodies |
| |
Meaning of “relevant transfer” in Part 5 of Schedule |
| |
29 | In this Part of this Schedule “relevant transfer” means a transfer, in |
| 20 |
accordance with a transfer scheme, from a public body to another public |
| |
| |
Trading losses: change in ownership |
| |
30 (1) | This paragraph applies to a relevant transfer of all the issued share capital of |
| |
a company (the “transferred company”). |
| 25 |
(2) | For the purposes of sections 768 to 768E of ICTA, the transfer is not to be |
| |
taken to result in a change in the ownership of— |
| |
(a) | the transferred company, or |
| |
(b) | a company which is a wholly-owned subsidiary of the transferred |
| |
company when the transfer takes effect. |
| 30 |
Chargeable gains: degrouping charges |
| |
31 (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”), |
| |
(b) | ceases by virtue of a relevant transfer to be a member of the old |
| 35 |
| |
(c) | becomes by virtue of the transfer a member of the same group of |
| |
companies as the transferee (“the new group”). |
| |
(2) | Section 179 of TCGA 1992 (company ceasing to be member of group) is not |
| |
to treat the degrouped company as having by virtue of the transfer sold and |
| 40 |
immediately reacquired the asset. |
| |
|
| |
|
| |
|
(3) | Where sub-paragraph (2) has applied to an asset, section 179 of TCGA 1992 |
| |
is to have effect on and after the first subsequent occasion on which the |
| |
degrouped company ceases to be a member of the new group otherwise than |
| |
by virtue of a relevant transfer as if— |
| |
(a) | the degrouped company, and |
| 5 |
(b) | the company from which it acquired the asset, |
| |
| had been members of the new group at the time of acquisition. |
| |
(4) | If, disregarding any preparatory transactions, a company would be |
| |
regarded by virtue of a relevant transfer— |
| |
(a) | as ceasing to be a member of a group of companies for the purposes |
| 10 |
of section 179 of TCGA 1992 (and, accordingly, of this paragraph), or |
| |
(b) | as becoming a member of a group of companies for the purposes of |
| |
| |
| it is to be regarded for those purposes as so doing by virtue of the relevant |
| |
transfer and not by virtue of any preparatory transactions. |
| 15 |
(5) | In this paragraph “preparatory transactions” means anything done under or |
| |
by virtue of this Act for the purpose of initiating, advancing or facilitating |
| |
the relevant transfer in question. |
| |
(6) | Expressions used in this paragraph and in section 179 of TCGA 1992 have |
| |
the same meanings in this paragraph as in that section. |
| 20 |
| |
32 (1) | Stamp duty is not to be chargeable— |
| |
(a) | on a transfer scheme in the case of which the transferor and each |
| |
transferee is a public body, or |
| |
(b) | on an instrument certified by the Secretary of State to the |
| 25 |
Commissioners for Her Majesty’s Revenue and Customs as made for |
| |
the purposes of such a transfer scheme, or as made for purposes |
| |
connected with such a transfer scheme. |
| |
(2) | But where, by virtue of sub-paragraph (1), stamp duty is not chargeable on |
| |
a scheme or instrument, the scheme or instrument is to be treated as duly |
| 30 |
| |
(a) | in accordance with section 12 of the Stamp Act 1891 (c. 39) it has been |
| |
stamped with a stamp denoting either that it is not chargeable to |
| |
duty or that it has been duly stamped, or |
| |
(b) | it is stamped with the duty to which it would be chargeable apart |
| 35 |
| |
(3) | In this paragraph “instrument” has the same meaning as in the Stamp Act |
| |
| |
| |
Transfers etc involving private persons |
| 40 |
Meaning of “relevant transfer” in Part 6 of Schedule |
| |
33 | In this Part of this Schedule “relevant transfer” means a transfer, in |
| |
accordance with a transfer scheme, from or to a person other than a public |
| |
| |
|
| |
|
| |
|
Transfers of trading stock |
| |
34 (1) | This paragraph applies if under a relevant transfer trading stock of the |
| |
transferor is transferred to the transferee. |
| |
(2) | Sub-paragraphs (3) and (4) have effect in computing for any corporation tax |
| |
or income tax purpose both the profits of the trade in relation to which the |
| 5 |
stock is trading stock immediately before the transfer takes effect (“the |
| |
transferor’s trade”) and— |
| |
(a) | if the stock falls immediately after the transfer takes effect to be |
| |
treated as trading stock of the transferee, the profits of the trade in |
| |
relation to which it falls to be treated as trading stock (“the |
| 10 |
| |
(b) | otherwise, the consideration given by the transferee, or the |
| |
expenditure incurred by the transferee, for the acquisition of the |
| |
| |
(3) | The stock must be taken to have been— |
| 15 |
(a) | disposed of by the transferor in the course of the transferor’s trade, |
| |
(b) | if sub-paragraph (2)(a) applies, acquired by the transferee in the |
| |
course of the transferee’s trade, and |
| |
(c) | subject to that, disposed of and acquired when the transfer takes |
| |
| 20 |
(4) | The value of the stock is to be taken to be— |
| |
(a) | if consideration is given to the transferor in respect of the transfer, an |
| |
amount equal to the value of the consideration, or |
| |
(b) | if no such consideration is given, nil. |
| |
(5) | For the purposes of this paragraph consideration given to a person |
| 25 |
connected with the transferor is to be treated as given to the transferor. |
| |
(6) | In this paragraph “trading stock” has the same meaning as in section 100 of |
| |
ICTA (as respects corporation tax) or section 174 of ITTOIA 2005 (as respects |
| |
| |
(7) | For the purposes of this paragraph whether a person is connected with |
| 30 |
another person is determined in accordance with section 839 of ICTA (as |
| |
respects corporation tax) or section 993 of ITA 2007 (as respects income tax). |
| |
Capital allowances: determination of disposal value of plant or machinery |
| |
35 (1) | This paragraph applies to a relevant transfer of plant or machinery which is |
| |
a disposal event for the purposes of Part 2 of CAA 2001 (capital allowances |
| 35 |
for plant and machinery). |
| |
(2) | For the purposes of the application of section 61 of that Act (disposal events |
| |
and disposal value) in relation to the transferor, the disposal value of the |
| |
plant or machinery is to be treated— |
| |
(a) | if a capital sum is received by the transferor by way of consideration |
| 40 |
or compensation in respect of the transfer, as an amount equal to that |
| |
| |
(b) | if no such sum is received, as nil. |
| |
(3) | For the purposes of this paragraph a sum received by a person connected |
| |
with the transferor is to be treated as received by the transferor. |
| 45 |
|
| |
|
| |
|
(4) | Section 88 of CAA 2001 (sales at an undervalue) is to be disregarded. |
| |
(5) | This paragraph is subject to sections 63(5) and 68 of CAA 2001. |
| |
Capital allowances: determination of disposal value of fixtures |
| |
36 (1) | This paragraph applies to a relevant transfer if— |
| |
(a) | it is a disposal event for the purposes of Part 2 of CAA 2001, and |
| 5 |
(b) | by virtue of the transfer a person is treated by section 188 of that Act |
| |
as ceasing to own a fixture. |
| |
(2) | For the purposes of the application of section 196 of that Act in relation to the |
| |
transferor, the disposal value of the fixture is to be treated— |
| |
(a) | if a capital sum is received by the transferor by way of consideration |
| 10 |
or compensation in respect of the transfer, as an amount equal to that |
| |
portion of that sum which falls (or, if the person to whom the |
| |
disposal is made were entitled to an allowance, would fall) to be |
| |
treated for the purposes of Part 2 of that Act as expenditure incurred |
| |
by that person on the provision of the fixture, or |
| 15 |
(b) | if no such sum is received, as nil. |
| |
(3) | For the purposes of this paragraph a sum received by a person connected |
| |
with the transferor is to be treated as received by the transferor. |
| |
(4) | This paragraph is subject to section 63(5) of CAA 2001. |
| |
Capital allowances: section 265 of CAA 2001 not to apply in relation to transferee |
| 20 |
37 (1) | This paragraph applies in relation to a relevant transfer. |
| |
(2) | For the purposes of the application of Part 2 of CAA 2001 in relation to the |
| |
transferee, section 265 of that Act (successions: general) is to be disregarded. |
| |
Capital allowances: determination of capital value of industrial buildings etc. |
| |
38 (1) | This paragraph applies for the purposes of Part 3 of CAA 2001, and the other |
| 25 |
provisions of that Act which are relevant to that Part, in relation to a relevant |
| |
transfer of the relevant interest in an industrial building or structure. |
| |
(2) | This paragraph is subject to section 36 of FA 2007 (which makes provision |
| |
about balancing adjustments etc under Part 3 of CAA 2001). |
| |
(3) | The transfer is to be treated as a sale of that relevant interest. |
| 30 |
(4) | The net proceeds of that sale are to be treated— |
| |
(a) | if a capital sum is received by the transferor by way of consideration |
| |
or compensation in respect of the transfer, as an amount equal to that |
| |
| |
(b) | if no such sum is received, as nil. |
| 35 |
(5) | For the purposes of this paragraph a sum received by a person connected |
| |
with the transferor is to be treated as received by the transferor. |
| |
(6) | Sections 567 to 570 of CAA 2001 (sales treated as being for alternative |
| |
amount) are not to have effect in relation to that sale. |
| |
|
| |
|