Corporation Tax Bill

House of Commons

Session 2008 - 09
Internet Publications
Other Bills before Parliament

Corporation Tax Bill

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
673

(b)
alternative finance return within the meaning of Chapter 6 of
Part 6 of CTA 2009 (see sections 511 to 513 of that Act).”
299   (1)
Amend section 19 (information for purposes of charge on profits of UK
property business or under Schedule A) as follows.
      (2)
In subsection (1) for “as the profits of a UK property business or under
5
Schedule A” substitute “, or under Chapter 3 of Part 4 of CTA 2009, as the
profits of a UK property business”.
      (3)
Omit subsection (2).
300
Omit section 31(3) (appeals: right of appeal).
301
In section 42(7) (procedure for making claims etc)—
10
(a)
in paragraph (a)—
(i)
omit “, 84, 91B, 101(2),” and “504, 531,”, and
(ii)
for the words from “571(4)” to the end substitute “571(4) and
732(4) of the principal Act;”,
(b)
omit paragraph (b),
15
(c)
omit the “and” immediately after paragraph (e), and
(d)
at the end insert “, and
“(g)
sections 109(1), 124(2), 127(2), 178 and 268 of CTA
2009.”
302
In section 46B(5) (questions to be determined by Special Commissioners),
20
after paragraph (d) insert “or
(e)
section 1313 of CTA 2009.”
303
In section 71(1) (bodies of persons) omit the words from “Subject to” to
“companies),”.
304
In section 87A(4A)(b) (interest on overdue corporation tax etc) for “section
25
83(2)(c)” to “that Act” substitute “section 389(1) or 459(1)(b) of CTA 2009”.
305   (1)
Amend section 90 (disallowance of relief for interest on tax) as follows.
      (2)
In subsection (1) omit paragraph (b) and the “and” immediately before that
paragraph.
      (3)
Omit subsection (2).
30
      (4)
For the title substitute “Interest on tax payable gross”.
306   (1)
Amend section 98 (special returns, etc) as follows.
      (2)
In the first column of the Table—
(a)
omit the entry relating to section 38(5) of ICTA,
(b)
at the appropriate place in the list of entries relating to ICTA insert—
35
“section 76ZE(5);”,
(c)
omit the entry relating to section 588(7) of ICTA,
(d)
omit the entry relating to paragraph 10 of Schedule 5 to ICTA, and
(e)
at the end insert—
“Section 75(5) of CTA 2009;
40
Section 126 of CTA 2009;
Section 241 of CTA 2009;
Section 245 of CTA 2009;

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
674

Section 966(1) of CTA 2009.”
      (3)
In the second column of the Table—
(a)
at the appropriate place in the list of entries relating to ICTA insert—
“section 76ZE(4);”,
(b)
omit the entry relating to section 577(4) of ICTA,
5
(c)
omit the entry relating to section 588(6) of ICTA, and
(d)
at the end insert—
“Section 75(4) of CTA 2009.”
307
After section 109 insert—
“109A
Residence of companies
10
Chapter 3 of Part 2 of CTA 2009 (rules for determining residence of
companies) applies for the purposes of this Act as it applies for the
purposes of the Corporation Tax Acts.”
308
In section 118 (interpretation) at the appropriate place insert—
““CTA 2009” means the Corporation Tax Act 2009,”.
15
309
In Schedule 3 (rules for assigning proceedings to General Commissioners),
in paragraph 10—
(a)
omit “102(1),” and
(b)
for “and section 563 of the Capital Allowances Act.” substitute
“, section 563 of the Capital Allowances Act and section 171 of CTA
20
2009.”
Finance Act 1973 (c. 51)
310
The Finance Act 1973 is amended as follows.
311
In paragraph 2(a) of Schedule 15 (territorial extension of charge to tax -
supplementary provisions) for “or section 874 of the Income Tax (Trading
25
and Other Income) Act 2005;” substitute “, section 874 of the Income Tax
(Trading and Other Income) Act 2005 or section 1313 of the Corporation Tax
Act 2009;”.
Oil Taxation Act 1975 (c. 22)
312
The Oil Taxation Act 1975 is amended as follows.
30
313
In section 3(2) (allowance of expenditure (other than expenditure on long-
term assets and abortive exploration expenditure)) in the first sentence—
(a)
omit “under subsection (2) of section 579 of the Taxes Act or”,
(b)
after “(“ITTOIA 2005”)” insert “or section 77 of the Corporation Tax
Act 2009”, and
35
(c)
omit “that subsection or”.
Inheritance Tax Act 1984 (c. 51)
314
The Inheritance Tax Act 1984 is amended as follows.
315   (1)
Amend section 91 (administration period) as follows.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
675

      (2)
In subsection (2) for paragraph (c) substitute—
“(c)
subject to subsection (3) below, “charges on residue” means,
in relation to the estate of a deceased person, the following
liabilities properly payable out of the estate and interest
payable in respect of those liabilities—
5
(i)
funeral, testamentary and administration expenses
and debts,
(ii)
general legacies, demonstrative legacies, annuities
and any sum payable out of the residue of the estate
to which a person is entitled under the law of
10
intestacy of any part of the United Kingdom or any
other country, and
(iii)
any other liabilities of the deceased person’s personal
representatives as such,
(d)
“specific disposition” has the meaning given in section 947(6)
15
of the Corporation Tax Act 2009, and
(e)
the reference to the completion of the administration of the
estate shall be construed as if it were in Chapter 3 of Part 10
of that Act.”
      (3)
After subsection (2) insert—
20
“(3)
If, as between—
(a)
persons interested under a specific disposition or in a general
or demonstrative legacy or in an annuity, and
(b)
persons interested in the residue of an estate,

any such liabilities as are mentioned in paragraph (c) of subsection
25
(2) above fall exclusively or primarily on the property that is the
subject of the specific disposition or on the legacy or annuity, only
such part (if any) of those liabilities as falls ultimately on the residue
shall be treated as charges on residue.
(4)
In the application of this section to Scotland, “charges on residue”
30
shall include, in addition to the liabilities specified in subsection
(2)(c), any sums required to meet—
(a)
claims in respect of prior rights or legal rights by a surviving
spouse or civil partner, or
(b)
claims in respect of legal rights by children.”
35
316
In section 94(2)(a) (charge on participators) for “section 208 of the Taxes Act
1988” substitute “section 1285 of the Corporation Tax Act 2009 (exemption
for UK company distributions)”.
Films Act 1985 (c. 21)
317
The Films Act 1985 is amended as follows.
40
318
In paragraph 1(1) of Schedule 1 (certification of British films for the purposes
of film tax relief), in the definition of “film production company”, for the
words from “Chapter 3” to the end substitute “Part 15 of the Corporation Tax
Act 2009 (see section 1182 of that Act)”.
Airports Act 1986 (c. 31)
45
319
The Airports Act 1986 is amended as follows.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
676

320
In section 77(3) (corporation tax) for “Chapter II of Part IV of the Finance Act
1996” substitute “Part 5 of the Corporation Tax Act 2009”.
Finance Act 1986 (c. 41)
321
The Finance Act 1986 is amended as follows.
322
In section 78(7)(d) (loan capital) after “2005” insert “or section 507 of the
5
Corporation Tax Act 2009”.
323
In section 79 (loan capital: new provisions)—
(a)
in subsection (6), as it has effect by virtue of subsection (8A)(a) of that
section, after “2005”, in both places where it occurs, insert “or section
507(1) of the Corporation Tax Act 2009”, and
10
(b)
in subsection (8A)(b) after “2005” insert “or section 507 of the
Corporation Tax Act 2009”.
324
In section 99(9A) (interpretation) after “2005” insert “or section 507 of the
Corporation Tax Act 2009”.
Gas Act 1986 (c. 44)
15
325
The Gas Act 1986 is amended as follows.
326
In section 60(3) (tax provisions) for “Chapter II of Part IV of the Finance Act
1996” substitute “Part 5 of the Corporation Tax Act 2009”.
British Steel Act 1988 (c. 35)
327
The British Steel Act 1988 is amended as follows.
20
328
In section 11(7) (corporation tax) for “Chapter II of Part IV of the Finance Act
1996” substitute “Part 5 of the Corporation Tax Act 2009”.
Finance Act 1988 (c. 39)
329
The Finance Act 1988 is amended as follows.
330
Omit section 65 (commercial woodlands).
25
331
Omit section 66 (company residence).
332
Omit section 66A (residence of SE or SCE).
333
Omit section 73(2) to (4) (consideration for certain restrictive undertakings).
334
Omit Schedule 6 (commercial woodlands).
335
Omit Schedule 7 (exceptions to the rule in section 66(1)).
30
336
In paragraph 3 of Schedule 12 (building societies: change of status)—
(a)
omit sub-paragraph (1), and
(b)
in sub-paragraph (2) for “those Acts” substitute “the Capital
Allowances Act 2001”.
Finance Act 1989 (c. 26)
35
337
The Finance Act 1989 is amended as follows.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
677

338
Omit section 43 (Schedule D: computation (unpaid remuneration)).
339
Omit section 44 (companies with investment business and insurance
companies: computation).
340
In section 82(1) (calculation of profits: bonuses etc) for the words from “, for”
to the end substitute “computed in accordance with the provisions
5
applicable for the purposes of the taxation of such profits under section 35 of
the Corporation Tax Act 2009 (charge on trade profits)”.
341
In section 82D(2) (treatment of profits: life assurance - adjustment
consequent on change in Insurance Prudential Sourcebook) for the words
from “for the purposes” to “Schedule D” substitute “in accordance with the
10
life assurance trade profits provisions”.
342
In section 82E(6) (section 82D: treatment of transferors under insurance
business transfer schemes) for the words from “for the purposes” to
“Schedule D” substitute “in accordance with the life assurance trade profits
provisions”.
15
343   (1)
Amend section 83 (receipts to be taken into account) as follows.
      (2)
In subsection (1) for the words from “, for” to the end substitute “computed
in accordance with the provisions applicable for the purposes of the taxation
of such profits under section 35 of the Corporation Tax Act 2009 (charge on
trade profits)”.
20
      (3)
For subsection (2ZA)(a) to (c) substitute—
“(a)
section 464 of the Corporation Tax Act 2009 (priority of Part
5 of that Act for corporation tax purposes),
(b)
section 699 of that Act (priority of Part 7 of that Act for
corporation tax purposes), and
25
(c)
section 906 of that Act (priority of Part 8 of that Act for
corporation tax purposes).”
      (4)
In subsection (2AB)(a) for “of the Taxes Act 1988 applicable to Case I of
Schedule D” substitute “applicable to the taxation of such profits under
section 35 of the Corporation Tax Act 2009”.
30
344   (1)
Amend section 83YC (FAFTS: charge in relevant period of account) as
follows.
      (2)
In subsection (6)(b) for “provisions of Case I of Schedule D” substitute “life
assurance trade profits provisions”.
      (3)
In subsection (10) for “provisions of Case I of Schedule D” substitute “life
35
assurance trade profits provisions”.
345
In section 83YD(3)(a) (FAFTS: deduction in subsequent periods of account)
for “section 82(2)(b) of the Finance Act 1996” substitute “section 297(3) of the
Corporation Tax Act 2009”.
346   (1)
Amend section 83YF (financial reinsurance arrangements: further
40
provision) as follows.
      (2)
In subsection (2) for “provisions of Case I of Schedule D” substitute “life
assurance trade profits provisions”.
      (3)
In subsection (3) for “provisions of Case I of Schedule D” substitute “life
assurance trade profits provisions”.
45

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
678

347   (1)
Amend section 85 (charge of certain receipts of basic life assurance business)
as follows.
      (2)
In subsection (1)—
(a)
for “there shall be chargeable under Case VI of that Schedule”
substitute “the charge to corporation tax on income shall apply to”,
5
(b)
in paragraph (a) for “Case I of Schedule D” substitute “section 35 of
the Corporation Tax Act 2009 (charge on trade profits)”, and
(c)
in paragraph (b) for “Case I of Schedule D” substitute “section 35 of
the Corporation Tax Act 2009”.
      (3)
In subsection (2)(e) for “Case I of Schedule D” substitute “section 35 of the
10
Corporation Tax Act 2009”.
      (4)
For subsection (2B) substitute—
“(2B)
Expenses are deducted from receipts falling within subsection (1) so
far as is necessary for calculating the full amount of the profits.

This is subject to subsection (2BA).
15
(2BA)
The provisions of Chapter 1 of Part 20 of the Corporation Tax Act
2009 (general rules for restricting deductions) apply to the
calculation of those profits.”
348   (1)
Amend section 85A (excess adjusted Case I profits) as follows.
      (2)
In subsection (1) for the words “Case I profits under Case VI of that
20
Schedule” substitute “life assurance trade profits under the charge to
corporation tax on income”.
      (3)
In subsection (2) for “Case I”, in both places where it occurs, substitute “life
assurance trade”.
      (4)
In subsection (3)—
25
(a)
for “Case I profits” substitute “life assurance trade profits”, and
(b)
in paragraph (a) for “provisions applicable to Case I of Schedule D”
substitute “life assurance trade profits provisions”.
      (5)
In subsection (4) for “Case I of Schedule D” substitute “section 35 of the
Corporation Tax Act 2009”.
30
      (6)
In subsection (6)(b) omit “under Case VI of Schedule D”.
      (7)
In subsection (8)—
(a)
in paragraph (b)—
(i)
after “loan relationships” insert “under Part 5 of the
Corporation Tax Act 2009”, and
35
(ii)
omit the words from “by” to “1996”, and
(b)
in paragraph (c)—
(i)
for “paragraph 4(3) of that Schedule” substitute “section
389(1) of the Corporation Tax Act 2009”, and
(ii)
omit “(in accordance with paragraph 4(5) of that Schedule)”.
40
      (8)
In the title for “Case I” substitute “life assurance trade”.
349
In section 88(3)(b) (corporation tax: policy holders’ share of profits) omit
“under Case VI of Schedule D”.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
679

350   (1)
Amend section 89 (policy holders’ share of profits) as follows.
      (2)
In subsection (1)(a) for “Case I” substitute “life assurance trade”.
      (3)
In subsection (1A)—
(a)
omit “under Case VI of Schedule D”, and
(b)
for “Case I”, in both places where it occurs, substitute “life assurance
5
trade”.
      (4)
In subsection (2) for “Case I” substitute “life assurance trade”.
      (5)
In subsection (3) for “Case I” substitute “life assurance trade”.
      (6)
In subsection (4) for “Case I”, in both places where it occurs, substitute “life
assurance trade”.
10
      (7)
In subsection (7)—
(a)
for ““Case I profits”” substitute ““life assurance trade profits””, and
(b)
for “provisions of the Taxes Act 1988 applicable to Case I of Schedule
D” substitute “life assurance trade profits provisions”.
      (8)
In subsection (7B) for “Case I” substitute “life assurance trade”.
15
Finance Act 1990 (c. 29)
351
The Finance Act 1990 is amended as follows.
352
Omit section 126(2) and (3) (pools payments for football ground
improvements).
353
In Schedule 14 (amendments correcting errors in ICTA) omit paragraph 2.
20
Finance Act 1991 (c. 31)
354
The Finance Act 1991 is amended as follows.
355
For section 65(5) (reimbursement by defaulter in respect of certain
abandonment expenditure) substitute—
“(5)
For the purposes of subsection (4) above, the relevant accounting
25
period is the accounting period in which the reimbursement
expenditure is received by the contributing participator or, if the
contributing participator—
(a)
ceases to carry on the ring fence trade before the receipt of the
reimbursement expenditure, or
30
(b)
ceases to be within the charge to corporation tax in respect of
the ring fence trade before the receipt of the reimbursement
expenditure,

the last accounting period of that trade or (as the case requires) the
accounting period during or at the end of which the contributing
35
participator ceased to be within the charge to corporation tax in
respect of the trade.”
356
Omit section 121(2) and (3) (pools payments to support games etc).
Taxation of Chargeable Gains Act 1992 (c. 12)
357
The Taxation of Chargeable Gains Act 1992 is amended as follows.
40