|
| |
|
(b) | in paragraphs (a) and (b) for “Case I” substitute “section 35”. |
| |
| |
(a) | for “Case I profits” substitute “section 35 profits”, |
| |
(b) | for “Case I losses” substitute “section 35 losses”, and |
| |
(c) | for “Case I advantage” substitute “life assurance trade profits |
| 5 |
| |
| |
(a) | for “a Case I advantage” substitute “a life assurance trade profits |
| |
| |
(b) | for “the Case I advantage” substitute “the advantage”, and |
| 10 |
(c) | in paragraphs (a) and (b) for “Case I” substitute “section 35”. |
| |
| |
(a) | for “a Case I advantage” substitute “a life assurance trade profits |
| |
| |
(b) | for “the Case I advantage” substitute “the advantage”. |
| 15 |
(6) | In subsection (6) for “Case I”, in both places where it occurs, substitute |
| |
| |
(7) | In the title for “Case I” substitute “life assurance trade profits”. |
| |
149 (1) | Amend section 444AECC (parts of transfer scheme arrangements: Case I |
| |
advantage transferee) as follows. |
| 20 |
| |
(a) | for “Case I advantage” substitute “life assurance trade profits |
| |
| |
(b) | in paragraphs (a) and (b) for “Case I” substitute “section 35”. |
| |
| 25 |
(a) | for “Case I profits” substitute “section 35 profits”, |
| |
(b) | for “Case I losses” substitute “section 35 losses”, and |
| |
(c) | for “Case I advantage” substitute “life assurance trade profits |
| |
| |
| 30 |
(a) | for “a Case I advantage” substitute “a life assurance trade profits |
| |
| |
(b) | for “the Case I advantage” substitute “the advantage”, and |
| |
(c) | in paragraphs (a) and (b) for “Case I” substitute “section 35”. |
| |
(5) | In subsection (5) for “Case I”, in both places where it occurs, substitute |
| 35 |
| |
(6) | In the title for “Case I” substitute “life assurance trade profits”. |
| |
150 (1) | Amend section 444AED (clearance: no avoidance or group advantage) as |
| |
| |
(2) | In subsection (2) for “Case I”, in both places where it occurs, substitute “life |
| 40 |
assurance trade profits”. |
| |
(3) | In subsection (3) for “Case I”, in both places where it occurs, substitute “life |
| |
assurance trade profits”. |
| |
|
| |
|
| |
|
151 | In section 444AF(5) (demutualisation surplus: life assurance business)— |
| |
(a) | in paragraph (a) for “provisions of this Act applicable to Case I of |
| |
Schedule D” substitute “life assurance trade profits provisions”, and |
| |
(b) | in paragraph (b) omit “under Case VI of Schedule D”. |
| |
152 | In section 444AH (modification of section 444AG etc for Case VI businesses) |
| 5 |
in the heading for “Case VI” substitute “gross roll-up”. |
| |
153 | In section 444AK(3) (mutual surplus: gross roll-up business) for “provisions |
| |
of this Act applicable to Case I of Schedule D” substitute “life assurance |
| |
trade profits provisions”. |
| |
154 | In section 444BA(1) (equalisation reserves for general business) for “Case I |
| 10 |
or V of Schedule D” substitute “section 35 of CTA 2009 (charge on trade |
| |
| |
155 | In section 444BB(2) (modification of section 444BA for mutual or overseas |
| |
business and for non-resident companies) for “to Case I of Schedule D” |
| |
substitute “for the purposes of section 35 of CTA 2009 (charge on trade |
| 15 |
| |
156 | Omit section 469(4A) to (5) and (6) (other unit trusts). |
| |
157 | Omit section 472A (trading profits etc from securities: taxation of amounts |
| |
| |
158 | Omit section 473 (conversion etc of securities held as circulating capital). |
| 20 |
159 | In section 475 (tax-free Treasury securities: exclusion of interest on borrowed |
| |
| |
(a) | in subsections (1)(b) and (2)(a) for “the Tax Acts” substitute “the |
| |
| |
(b) | in subsection (2), omit paragraph (b) and the “and” immediately |
| 25 |
| |
(c) | in subsection (4) omit the words from “or to be brought” to the end. |
| |
160 | In section 477A (building societies: loan relationships), omit subsections |
| |
(3)(a) and (aa), (4) and (10). |
| |
161 | Omit section 477B (incidental costs of issuing qualifying shares). |
| 30 |
162 (1) | Amend section 486 (industrial and provident societies and co-operative |
| |
associations) as follows. |
| |
(2) | In subsection (1), omit from the word “but” to the end. |
| |
(3) | Omit subsections (4) and (7). |
| |
(4) | Omit subsections (10) and (11). |
| 35 |
(5) | In subsection (12) omit the definition of “registered industrial and provident |
| |
| |
163 | Omit section 487 (credit unions). |
| |
164 | Omit section 491 (distribution of assets of body corporate carrying on |
| |
| 40 |
165 | In section 492(3A) (treatment of oil extraction activities etc for tax purposes) |
| |
for “section 75” substitute “section 1219 of CTA 2009”. |
| |
|
| |
|
| |
|
166 (1) | Amend section 494 (loan relationships etc) as follows. |
| |
(2) | In subsection (1) for “Chapter II of Part IV of the Finance Act 1996” substitute |
| |
| |
| |
(a) | for “Chapter II of Part IV of the Finance Act 1996”, in both places |
| 5 |
where it occurs, substitute “Part 5 of CTA 2009”, |
| |
(b) | in paragraph (b) for “subsection (4) of section 84” substitute “section |
| |
| |
(c) | in paragraph (c) and in the second sentence for “section 100” |
| |
substitute “Chapter 2 of Part 6 (relevant non-lending relationships)”. |
| 10 |
(4) | In subsection (2ZA) for “Chapter 2 of Part 4 of the Finance Act 1996” |
| |
substitute “Part 5 of CTA 2009”. |
| |
| |
(a) | in paragraph (a) for “Chapter II of Part IV of the Finance Act 1996” |
| |
substitute “Part 5 of CTA 2009”, and |
| 15 |
(b) | in the words following paragraph (b) for “section 82(2)” substitute |
| |
| |
167 (1) | Amend section 494AA (sale and lease-back) as follows. |
| |
(2) | In subsection (3) for “Schedule D” substitute “Part 3 of CTA 2009”. |
| |
| 20 |
(a) | in paragraph (a) for “Schedule D” substitute “Part 3 of CTA 2009”, |
| |
| |
(b) | for “Chapter II of Part IV of the Finance Act 1996” substitute “Part 5 |
| |
| |
168 | In section 494A(1) (computation of amount available for surrender by way |
| 25 |
of group relief) for “Schedule A losses” substitute “UK property business |
| |
| |
169 (1) | Amend section 500 (deduction of PRT in computing income for corporation |
| |
tax purposes) as follows. |
| |
(2) | For subsection (3)(b) substitute— |
| 30 |
“(b) | if that chargeable period ends after the accounting period of |
| |
the company in or at the end of which the company— |
| |
(i) | ceases to carry on the trade giving rise to the income |
| |
| |
(ii) | ceases to be within the charge to corporation tax in |
| 35 |
| |
| |
(3) | In subsection (6)(d) for the words from “means” to the end substitute |
| |
| |
(i) | the accounting period in or at the end of which ends |
| 40 |
the operative chargeable period, or |
| |
(ii) | if the company ceases to carry on its ring fence trade |
| |
(or to be within the charge to corporation tax in |
| |
respect of that trade) before the end of the operative |
| |
chargeable period, the last accounting period of that |
| 45 |
trade (or, as the case requires, the accounting period |
| |
|
| |
|
| |
|
during or at the end of which the company ceased to |
| |
be within the charge to corporation tax in respect of |
| |
| |
170 | In section 501A(5) (supplementary charge in respect of ring fence trades)— |
| |
(a) | in paragraph (a) for “Chapter 2 of Part 4 of the Finance Act 1996” and |
| 5 |
“section 103(1A) and (1B)” substitute “Part 5 of CTA 2009” and |
| |
“section 475” respectively, |
| |
(b) | in paragraph (b) for “that Chapter” and “section 103(1A) and (1B)” |
| |
substitute “that Part” and “section 475” respectively, and |
| |
(c) | in paragraph (c) for “under Schedule 26 to the Finance Act 2002 |
| 10 |
(derivative contracts)” substitute “in accordance with Part 7 of CTA |
| |
2009 (derivative contracts)”. |
| |
171 | In section 503(1)(a) (letting of furnished holiday accommodation treated as |
| |
a trade for certain corporation tax purposes)— |
| |
(a) | for “Schedule A business” substitute “UK property business”, and |
| 15 |
(b) | for “trade the profits of which are chargeable to corporation tax |
| |
under Case I of Schedule D,” substitute “trade carried on wholly or |
| |
partly in the United Kingdom the profits of which are chargeable to |
| |
corporation tax under Part 3 of CTA 2009,”. |
| |
172 | Omit section 504 (meaning of “commercial letting of furnished holiday |
| 20 |
| |
173 (1) | Amend section 505 (charitable companies: general) as follows. |
| |
(2) | In subsection (1)(a) for “under Schedules A and D” substitute “under Parts 3 |
| |
| |
(3) | In subsection (1)(aa) for “under Schedules A and D” substitute “under Parts |
| 25 |
| |
(4) | In subsection (1)(c)— |
| |
(a) | for sub-paragraph (ii) substitute— |
| |
“(ii) | from tax under section 299 of CTA 2009 (non- |
| |
trading profits in respect of loan |
| 30 |
| |
(iiza) | from tax under Chapter 5 of Part 10 of that Act |
| |
(distributions from unauthorised unit trusts), |
| |
(iizb) | from tax under Chapter 7 of that Part (annual |
| |
payments not otherwise charged),”, |
| 35 |
(b) | omit sub-paragraph (iia), |
| |
(c) | for sub-paragraph (iib) substitute— |
| |
“(iib) | from tax under Chapter 2 of Part 10 of CTA |
| |
2009 (dividends of non-UK resident |
| |
companies) or from tax under Chapter 8 of |
| 40 |
that Part (income not otherwise charged) so |
| |
far as it applies to relevant foreign |
| |
| |
(d) | for sub-paragraph (iic) substitute— |
| |
“(iic) | from tax under Part 8 of CTA 2009 in respect |
| 45 |
of non-trading gains on intangible fixed |
| |
| |
|
| |
|
| |
|
(5) | In subsection (1)(e) for “Schedule D” substitute “Part 3 of CTA 2009”. |
| |
(6) | In subsection (1AA) for the words from “which” to the end substitute “which |
| |
is not chargeable under Chapter 2 of Part 10 of CTA 2009.” |
| |
(7) | In subsection (2) for “Case III of Schedule D” substitute “the charge to |
| |
corporation tax on income”. |
| 5 |
174 (1) | Amend section 506C (sections 506A and 506B: supplemental) as follows. |
| |
(2) | In subsection (1) for paragraph (a) substitute— |
| |
“(a) | section 105 of CTA 2009,”. |
| |
(3) | In subsection (7)(b)(ii) after “2005” insert “or section 501(2) of CTA 2009”. |
| |
175 | Omit section 509 (reserves of marketing boards etc). |
| 10 |
176 | In section 510A(6A) (European Economic Interest Groupings) for “Chapter |
| |
2 of Part 4 of the Finance Act 1996” and “section 87A of, and paragraphs 19 |
| |
and 20 of Schedule 9 to,” substitute “Part 5 of CTA 2009” and “Chapter 9 of |
| |
that Part and sections 467 and 472 to 474 of” respectively. |
| |
177 | For section 518(2) (harbour reorganisation schemes) substitute— |
| 15 |
“(2) | For the purposes of provisions of the Corporation Tax Acts that |
| |
| |
(a) | only if a person starts to carry on a trade, or |
| |
(b) | only if a person ceases to carry on a trade, |
| |
| the transferor is not treated as ceasing to carry on the trade, and the |
| 20 |
transferee is not treated as starting to carry it on.” |
| |
178 | Omit section 524 (taxation of receipts from sale of patent rights). |
| |
179 | Omit section 525 (capital sums: winding up or partnership change). |
| |
180 | Omit section 526 (relief for expenses). |
| |
181 | Omit section 528 (manner of making allowances and charges). |
| 25 |
182 | Omit section 531 (provisions supplementary to section 530). |
| |
183 | Omit section 532 (application of Capital Allowances Act). |
| |
184 | Omit section 533 (interpretation of sections 520 to 532). |
| |
185 | Omit section 556 (activity treated as trade etc and attribution of income). |
| |
186 | Omit section 558(5) and (6) (visiting performers: supplementary provisions). |
| 30 |
187 | In section 568(1) (deductions from profits of contributions paid under |
| |
| |
(a) | omit “section 74 of this Act or”, |
| |
(b) | after “section 33 of ITTOIA 2005” insert “or section 53 of CTA 2009 |
| |
(no deduction for capital expenditure)”, and |
| 35 |
(c) | for “under Case I of Schedule D or under Part 2 of ITTOIA 2005,” |
| |
substitute “under Part 2 of ITTOIA 2005 or Part 3 of CTA 2009,”. |
| |
188 | In section 570(4) (payments under certified schemes which are not |
| |
repayments of contributions), in the words after paragraph (c), for the words |
| |
from “section 337(1)” to the end substitute “section 18 of ITTOIA 2005 or |
| 40 |
|
| |
|
| |
|
section 41 of CTA 2009 (company starting or ceasing to be within charge to |
| |
corporation tax) is to be treated as effecting a cessation of trading.” |
| |
189 (1) | Amend section 571 (cancellation of certificates) as follows. |
| |
(2) | In subsection (1) omit the words from “(in” to “Schedule D)”. |
| |
(3) | After subsection (1A) insert— |
| 5 |
“(1B) | So far as relating to corporation tax, the charge to tax under |
| |
subsection (1) has effect as an application of the charge to |
| |
corporation tax on income.” |
| |
190 | Omit section 577 (business entertaining expenses). |
| |
191 | Omit section 577A (expenditure involving crime). |
| 10 |
192 | Omit section 578 (housing grants). |
| |
193 | Omit sections 578A and 578B (expenditure on car hire). |
| |
194 | Omit sections 579 and 580 (statutory redundancy payments). |
| |
195 | Omit section 582 (funding bonds issued in respect of interest on certain |
| |
| 15 |
196 | Omit section 584 (relief for unremittable overseas income). |
| |
197 | Omit sections 586 and 587 (disallowance of deductions for war risk |
| |
premiums and of certain payments in respect of war injuries to employees). |
| |
198 | In section 587B(2)(b) (gifts of shares, securities and real property to charities |
| |
etc) for “section 83A,” substitute “section 105 of CTA 2009 (gifts of trading |
| 20 |
stock to charities etc),”. |
| |
199 | Omit section 588 (training courses for employees). |
| |
200 | Omit section 589A (counselling services for employees). |
| |
201 | Omit section 589B(5) (interpretation of section 589A). |
| |
202 | Omit section 617 (social security benefits and contributions). |
| 25 |
203 | Omit section 695 (limited interests in residue). |
| |
204 | Omit section 696 (absolute interests in residue). |
| |
205 | Omit section 697 (supplementary provisions as to absolute interests in |
| |
| |
206 | Omit section 698 (special provisions as to certain interests in residue). |
| 30 |
207 | Omit section 699A (untaxed sums comprised in the income of the estate). |
| |
208 | In section 700 (adjustments and information)— |
| |
(a) | omit subsections (1) to (3), |
| |
(b) | in subsection (4) omit “this Part or”, |
| |
| 35 |
| |
(ii) | in paragraph (b) omit “(a) or”, and |
| |
(iii) | in the words following paragraph (b) omit the words from |
| |
“deemed” to “this Part or”, in the first place where they occur, |
| |
|
| |
|
| |
|
and the words “this Part or” in the second place where they |
| |
occur, and for “(a) to” substitute “(aa) and”, and |
| |
(d) | after subsection (6) insert— |
| |
“(7) | This section is to be read as if it were in Chapter 6 of Part 5 of |
| |
| 5 |
209 | Omit section 701 (interpretation). |
| |
210 | Omit section 702 (application to Scotland). |
| |
211 | In section 703(3) (cancellation of corporation tax advantage) omit the words |
| |
from “(the amount” to “accordingly)”. |
| |
212 | In section 709(2) (meaning of “corporation tax advantage” and other |
| 10 |
expressions), in the definition of “trading stock”, for “the same meaning as |
| |
in section 100(1)” substitute “the meaning given by section 163 of CTA 2009”. |
| |
213 | In section 730(6) (transfers of rights to receive distributions in respect of |
| |
| |
(a) | for the words from “, in respect of” to “Schedule D” substitute “be |
| 15 |
chargeable, under the charge to corporation tax on income, in respect |
| |
of any distribution which is deemed to be his income by virtue of this |
| |
| |
(b) | for “section 18(3B)” substitute “Chapter 6 of Part 10 of CTA 2009 (sale |
| |
of foreign dividend coupons)”. |
| 20 |
214 | In section 736B(2) (deemed manufactured payments in the case of stock |
| |
lending arrangements) for “section 97 of the Finance Act 1996” substitute |
| |
“Chapter 9 of Part 6 of CTA 2009”. |
| |
215 | In section 736C(9) (deemed interest: cash collateral under stock lending |
| |
| 25 |
(a) | in paragraph (a) for “Chapter 2 of Part 4 of the Finance Act 1996” |
| |
substitute “Part 5 of CTA 2009”, and |
| |
(b) | in paragraph (b) for “section 100” to “lending of money)” substitute |
| |
“Chapter 2 of Part 6 of that Act applies (relevant non-lending |
| |
| 30 |
216 | In section 747(1B) (controlled foreign companies: company residence for |
| |
purposes of Chapter), for “section 249 of the Finance Act 1994” substitute |
| |
“section 18 of CTA 2009”. |
| |
217 | In section 751(3) (controlled foreign companies: accounting periods) for |
| |
“subsections (3), (5) and (7) of section 12” substitute “sections 10(1) and (5), |
| 35 |
11(1) and (2) and 12 of CTA 2009”. |
| |
218 (1) | Amend section 755A (treatment of chargeable profits and creditable tax |
| |
apportioned to company carrying on life assurance business) as follows. |
| |
(2) | In subsection (5) for “Case I of Schedule D” substitute “section 35 of CTA |
| |
2009 (charge on trade profits)”. |
| 40 |
(3) | In subsection (7) for “Case I of Schedule D” substitute “section 35 of CTA |
| |
| |
(4) | In subsection (11BA)— |
| |
(a) | for “Case I profits”, in both places where it occurs, substitute “section |
| |
| 45 |
|
| |
|