|
| |
|
| |
1283 | Interest from tax reserve certificates |
| |
No liability to corporation tax arises in respect of interest from tax reserve |
| |
certificates issued by the Treasury. |
| |
| 5 |
(1) | No liability to corporation tax arises in respect of a payment if it is made— |
| |
(a) | under an enactment relating to the giving of financial assistance for the |
| |
provision, maintenance or improvement of housing accommodation or |
| |
other residential accommodation, and |
| |
(b) | by way of grant or other contribution towards expenses. |
| 10 |
(2) | It does not matter whether— |
| |
(a) | the payment is made to the person who incurs the expenses, or |
| |
(b) | the expenses have been, or are to be, incurred. |
| |
(3) | Subsection (1) does not apply so far as the payment is made towards an |
| |
expense which is deductible in calculating income for any corporation or |
| 15 |
| |
1285 | UK company distributions |
| |
(1) | Corporation tax is not chargeable on dividends or other distributions of a UK |
| |
| |
(2) | Dividends and other distributions of a UK resident company are not taken into |
| 20 |
account as receipts in any calculation of income for corporation tax purposes. |
| |
(3) | Subsection (1) does not prevent any dividends or other distributions from |
| |
being taken into account in the calculation of chargeable gains. |
| |
(4) | Subsections (1) and (2) are subject to any exceptions made in the Corporation |
| |
| 25 |
(5) | For exceptions see in particular— |
| |
(a) | section 130 (traders receiving distributions etc), and |
| |
(b) | section 219(4) and (4A) of FA 1994 (Lloyd’s underwiters: taxation of |
| |
| |
1286 | VAT repayment supplements |
| 30 |
No liability to corporation tax arises in respect of a sum paid by way of |
| |
supplement under section 79 of VATA 1994 (VAT repayment supplements). |
| |
1287 | Incentives to use electronic communications |
| |
No liability to corporation tax arises in respect of anything received by way of |
| |
incentive under any regulations made in accordance with Schedule 38 to FA |
| 35 |
2000 (regulations for providing incentives for electronic communications). |
| |
|
| |
|
| |
|
| |
General calculation rules |
| |
| |
Restriction of deductions |
| |
| 5 |
| |
(1) | This section applies if— |
| |
(a) | an amount is charged in respect of employees’ remuneration in a |
| |
company’s accounts for a period, |
| |
(b) | the amount would, apart from this section, be deductible in calculating |
| 10 |
income from any source for corporation tax purposes, and |
| |
(c) | the remuneration is not paid before the end of the period of 9 months |
| |
immediately following the end of the period of account. |
| |
(2) | If the remuneration is paid after the end of that period of 9 months, the |
| |
deduction for it is allowed for the period of account in which it is paid. |
| 15 |
(3) | No deduction is allowed for the remuneration if it is not paid. |
| |
(4) | Provision corresponding to that made by this section is made by— |
| |
(a) | section 1249 (in relation to expenses of management of a company’s |
| |
investment business), and |
| |
(b) | section 76ZL of ICTA (in relation to the expenses of insurance |
| 20 |
| |
1289 | Unpaid remuneration: supplementary |
| |
(1) | For the purposes of section 1288 an amount charged in the accounts in respect |
| |
of employees’ remuneration includes an amount for which provision is made |
| |
in the accounts with a view to its becoming employees’ remuneration. |
| 25 |
(2) | For the purposes of section 1288 it does not matter whether an amount is |
| |
| |
(a) | particular employments, or |
| |
(b) | employments generally. |
| |
(3) | If the income is calculated before the end of the 9 month period mentioned in |
| 30 |
| |
(a) | it must be assumed, in making the calculation, that any remuneration |
| |
which is unpaid when the calculation is made will not be paid before |
| |
the end of that period, but |
| |
(b) | if the remuneration is subsequently paid before the end of that period, |
| 35 |
nothing in this subsection prevents the calculation being revised and |
| |
any tax return being amended accordingly. |
| |
(4) | For the purposes of this section and section 1288 remuneration is paid when |
| |
| |
|
| |
|
| |
|
(a) | is treated as received by an employee for the purposes of ITEPA 2003 |
| |
by section 18 or 19 of that Act (receipt of money and non-money |
| |
| |
(b) | would be so treated if it were not exempt income. |
| |
(5) | In this section and section 1288— |
| 5 |
“employee” includes an office-holder and “employment” therefore |
| |
| |
“remuneration” means an amount which is or is treated as earnings for the |
| |
purposes of Parts 2 to 7 of ITEPA 2003. |
| |
Employee benefit contributions |
| 10 |
1290 | Employee benefit contributions |
| |
(1) | This section applies if, in calculating for corporation tax purposes the profits of |
| |
a company (“the employer”) of a period of account, a deduction would |
| |
otherwise be allowable for the period in respect of employee benefit |
| |
contributions made or to be made (but see subsection (4)). |
| 15 |
(2) | No deduction is allowed for the contributions for the period except so far as— |
| |
(a) | qualifying benefits are provided, or qualifying expenses are paid, out |
| |
of the contributions during the period or within 9 months from the end |
| |
| |
(b) | if the making of the contributions is itself the provision of qualifying |
| 20 |
benefits, the contributions are made during the period or within 9 |
| |
months from the end of it. |
| |
(3) | An amount disallowed under subsection (2) is allowed as a deduction for a |
| |
subsequent period of account so far as— |
| |
(a) | qualifying benefits are provided out of the contributions before the end |
| 25 |
of the subsequent period, or |
| |
(b) | if the making of the contributions is itself the provision of qualifying |
| |
benefits, the contributions are made before the end of the subsequent |
| |
| |
(4) | This section does not apply to any deduction that is allowable— |
| 30 |
(a) | for anything given as consideration for goods or services provided in |
| |
the course of a trade or profession, |
| |
(b) | for contributions under a registered pension scheme or under a |
| |
superannuation fund to which section 615(3) of ICTA applies, |
| |
(c) | for contributions under a qualifying overseas pension scheme in |
| 35 |
respect of an individual who is a relevant migrant member of the |
| |
pension scheme in relation to the contributions, |
| |
(d) | for contributions under an accident benefit scheme, |
| |
(e) | under Chapter 1 of Part 11 (share incentive plans), |
| |
(f) | under section 67 of FA 1989 (qualifying employee share ownership |
| 40 |
| |
(g) | under Part 12 (other relief for employee share acquisitions). |
| |
(5) | For the purposes of subsection (4)(c) “qualifying overseas pension scheme” |
| |
and “relevant migrant member” have the same meaning as in Schedule 33 to |
| |
FA 2004 (see paragraphs 4 to 6 of that Schedule). |
| 45 |
|
| |
|
| |
|
| |
section 1291 (making of “employee benefit contributions”), |
| |
section 1292 (provision of qualifying benefits), |
| |
section 1293 (timing and amount of certain qualifying benefits), |
| |
section 1294 (provision or payment out of employee benefit |
| 5 |
| |
section 1295 (profits calculated before end of 9 month period), |
| |
| |
section 1297 (some special rules for companies carrying on a life assurance |
| |
| 10 |
1291 | Making of “employee benefit contributions” |
| |
(1) | For the purposes of section 1290 an “employee benefit contribution” is made if, |
| |
as a result of any act or omission— |
| |
(a) | property is held, or may be used, under an employee benefit scheme, or |
| |
(b) | there is an increase in the total value of property that is so held or may |
| 15 |
be so used (or a reduction in any liabilities under an employee benefit |
| |
| |
(2) | For this purpose “employee benefit scheme” means a trust, scheme or other |
| |
arrangement for the benefit of persons who are, or include, present or former |
| |
employees of the employer. |
| 20 |
1292 | Provision of qualifying benefits |
| |
(1) | For the purposes of section 1290 qualifying benefits are provided if there is— |
| |
(a) | a payment of money, or |
| |
(b) | a transfer of assets, |
| |
| which meets condition A, B, C or D. |
| 25 |
(2) | Condition A is that the payment or transfer gives rise both to an employment |
| |
income tax charge and to an NIC charge. |
| |
(3) | Condition B is that the payment or transfer would give rise to both charges if— |
| |
(a) | the duties of the employment in respect of which the payment or |
| |
transfer was made were performed in the United Kingdom, and |
| 30 |
(b) | the person in respect of whose employment the payment or transfer |
| |
was made met at all relevant times the conditions as to residence or |
| |
presence in Great Britain or Northern Ireland prescribed under section |
| |
1(6) of the Contributions and Benefits Act. |
| |
(4) | Condition C is that the payment or transfer is made in connection with the |
| 35 |
termination of the recipient’s employment with the employer. |
| |
(5) | Condition D is that the payment or transfer is made under an employer- |
| |
financed retirement benefits scheme. |
| |
(6) | None of the conditions is met if the payment or transfer is by way of loan. |
| |
| 40 |
“the Contributions and Benefits Act” means— |
| |
(a) | the Social Security Contributions and Benefits Act 1992 (c. 4), or |
| |
|
| |
|
| |
|
(b) | the Social Security Contributions and Benefits (Northern |
| |
Ireland) Act 1992 (c. 7), |
| |
“employment income tax charge” means a charge to tax under ITEPA |
| |
2003 (whether on the recipient or on someone else), and |
| |
“NIC charge” means a liability to pay national insurance contributions |
| 5 |
under section 6 (Class 1 contributions), section 10 (Class 1A |
| |
contributions) or section 10A (Class 1B contributions) of the |
| |
Contributions and Benefits Act. |
| |
1293 | Timing and amount of certain qualifying benefits |
| |
(1) | If the provision of a qualifying benefit— |
| 10 |
(a) | takes the form of a payment of money, and |
| |
(b) | is not made under an employer-financed retirement benefits scheme, |
| |
| the benefit is provided for the purposes of section 1290 when the money is |
| |
treated as received for the purposes of Chapter 4 of Part 2 of ITEPA 2003 |
| |
(applying the rules in section 18 of that Act (receipt of money earnings)). |
| 15 |
(2) | If the provision of a qualifying benefit takes the form of a transfer of an asset, |
| |
the amount provided for the purposes of section 1290 is the total of— |
| |
(a) | the amount (if any) spent on the asset by a scheme manager, and |
| |
(b) | in a case where the asset was transferred to a scheme manager by the |
| |
employer, the amount of the deduction that would be allowable as |
| 20 |
mentioned in subsection (1) of that section in respect of the transfer. |
| |
(3) | But if the amount given by subsection (2) is more than the amount that— |
| |
(a) | is charged to tax under ITEPA 2003 in respect of the transfer, or |
| |
(b) | would be so charged if condition B in section 1292 were met, |
| |
| the deduction allowable under section 1290(2) or (3) is limited to that lower |
| 25 |
| |
1294 | Provision or payment out of employee benefit contributions |
| |
(1) | For the purposes of section 1290(2)(a)— |
| |
(a) | any qualifying benefits provided, or |
| |
(b) | any qualifying expenses paid, |
| 30 |
| by a scheme manager after the receipt by the scheme manager of employee |
| |
benefit contributions are treated as being provided or paid out of the |
| |
| |
(2) | The rule in subsection (1) operates up to the total amount of the contributions |
| |
reduced by the amount of any benefits or expenses previously provided or |
| 35 |
paid as mentioned in section 1290(2)(a). |
| |
(3) | For the purposes of section 1290(3)(a) any qualifying benefits provided by a |
| |
scheme manager after the receipt by the scheme manager of employee benefit |
| |
contributions are treated as being provided out of the contributions. |
| |
(4) | The rule in subsection (3) operates up to the total amount of the contributions |
| 40 |
reduced by the amount of any benefits or expenses previously provided or |
| |
paid as mentioned in section 1290(2)(a) or (3)(a). |
| |
(5) | For the purposes of this section no account is taken of any other amount |
| |
received or paid by the scheme manager. |
| |
|
| |
|