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
687

      (5)
In paragraph 7 for paragraphs (a) and (b) substitute—
“(a)
under section 277 of ITTOIA 2005 any amount is brought
into account by virtue of section 278 of that Act as a receipt
of a UK property business which is carried on by any
person, or
5
(b)
under section 217 of CTA 2009 any amount is brought into
account by virtue of section 218 of that Act as a receipt of a
UK property business which is carried on by any
company,”.
      (6)
In paragraph 7A omit “Schedule A business or”.
10
Finance (No. 2) Act 1992 (c. 48)
388
The Finance (No. 2) Act 1992 is amended as follows.
389   (1)
Amend paragraph 3 of Schedule 12 (banks etc in compulsory liquidation) as
follows.
      (2)
In sub-paragraph (1), omit the words from “(in” to “Schedule D)”.
15
      (3)
After that sub-paragraph insert—
   “(1A)
So far as relating to corporation tax, the charge to tax under sub-
paragraph (1) has effect as an application of the charge to
corporation tax on income.”
      (4)
In sub-paragraph (3)—
20
(a)
omit “section 100 of the Taxes Act 1988 or”, and
(b)
after “2005” insert “or section 162 of the Corporation Tax Act 2009
(valuation of stock)”.
      (5)
In sub-paragraph (5) for the words from “section 80(5)” to the end substitute
“section 464(1) of the Corporation Tax Act 2009 (matters to be brought into
25
account in the case of loan relationships only under Part 5 of that Act)”.
      (6)
For the italic cross-heading before the paragraph substitute “Taxation of
certain receipts”.
Finance Act 1994 (c. 9)
390
The Finance Act 1994 is amended as follows.
30
391   (1)
Amend section 219 (Lloyd’s underwriters: taxation of profits) as follows.
      (2)
In subsection (2)—
(a)
in paragraph (a) for “Case I of Schedule D” substitute “Part 3 of the
Corporation Tax Act 2009”, and
(b)
in paragraph (b) for the words from “under” to the end substitute
35
“otherwise than under Part 3 of the Corporation Tax Act 2009”.
      (3)
In subsection (3)—
(a)
for “Case I of Schedule D” substitute “Part 3 of the Corporation Tax
Act 2009”, and
(b)
for the words from “under any other” to the end substitute
40
“otherwise than under Part 3 of that Act”.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
688

      (4)
In subsection (4) for “section 11(2)(a) or 208 of the Taxes Act 1988” substitute
“section 1285 of the Corporation Tax Act 2009 (exemption for UK company
distributions)”.
      (5)
In subsection (4A)—
(a)
for “208 of the Taxes Act 1988” substitute “1285 of the Corporation
5
Tax Act 2009”, and
(b)
in paragraph (b)—
(i)
for “Case I of Schedule D” substitute “Part 3 of the
Corporation Tax Act 2009”, and
(ii)
for “(and not under any other Schedule or any other Case of
10
Schedule D)” substitute “(and not under any other provision
of the Corporation Tax Acts)”.
392
In section 220(3) (accounting period in which certain profits or losses arise)
for “section 72 of the Taxes Act 1988” substitute “section 52 of the
Corporation Tax Act 2009”.
15
393
In section 225(4) (stop-loss and quota share insurance) in the definition of
“apportioned part” for “section 72 of the Taxes Act 1988” substitute “section
52 of the Corporation Tax Act 2009”.
394
In section 226(3) (provisions which are not to apply) for “Schedule 26 to the
Finance Act 2002” substitute “Part 7 of the Corporation Tax Act 2009”.
20
395
In section 229(1)(ca) (regulations) for sub-paragraph (ii) substitute—
“(ii)
arrangements involving repos (within the meaning
given by section 554(4) of the Corporation Tax Act
2009); or
(iii)
arrangements meeting the conditions in section 554(2)
25
of that Act (redemption arrangements);”.
396
Omit sections 249 and 250 (certain companies treated as non-resident).
397
In paragraph 20(1) of Schedule 24 (provisions relating to the Railways Act
1993), in the words after paragraph (b) omit the words from “the trade” to
“but”.
30
Finance Act 1995 (c. 4)
398
The Finance Act 1995 is amended as follows.
399
In section 126(7A) (UK representatives of non-residents) omit paragraph (b)
and the “or” immediately before it.
400
In section 127(1) (persons not treated as UK representatives)—
35
(a)
in paragraph (ca)—
(i)
for “Chapter 5 of Part 2” substitute “section 47(6) or (7),
47A(5), 48B(1) or 49A(2)”, and
(ii)
for “the arrangements falling within that section” substitute
“the alternative finance arrangements in question”, and
40
(b)
omit paragraph (cb).
Finance Act 1996 (c. 8)
401
The Finance Act 1996 is amended as follows.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
689

402
Omit section 80 (taxation of loan relationships).
403
Omit section 81 (meaning of “loan relationship” etc).
404
Omit section 82 (methods of bringing amounts into account).
405
Omit section 83 (non-trading deficit on loan relationships).
406
Omit section 84 (debits and credits brought into account).
5
407
Omit section 84A (exchange gains and losses from loan relationships).
408
Omit section 85A (computation in accordance with generally accepted
accounting practice).
409
Omit section 85B (amounts recognised in determining a company’s profit or
loss).
10
410
Omit section 85C (amounts not fully recognised for accounting purposes).
411
Omit section 87 (accounting method where parties have a connection).
412
Omit section 87A (meaning of “control” in section 87).
413
Omit section 88 (exemption from section 87 in certain cases).
414
Omit section 88A (accounting method where rate of interest is reset).
15
415
Omit section 90A (change of accounting basis applicable to assets or
liabilities).
416
Omit section 91A (shares subject to outstanding third party obligations).
417
Omit section 91B (non-qualifying shares).
418
Omit section 91C (Condition 1 for section 91B(6)(b)).
20
419
Omit section 91D (Condition 2 for section 91B(6)(b)).
420
Omit section 91E (Condition 3 for section 91B(6)(b)).
421
Omit section 91F (power to add, vary or remove Conditions for section
91B(6)(b)).
422
Omit section 91G (shares beginning or ceasing to be subject to section 91A or
25
91B).
423
Omit section 91H (payments in return for capital contribution).
424
Omit section 91I (change of partnership shares).
425
Omit section 93C (creditor relationships and benefit derived by connected
persons).
30
426
Omit section 94 (indexed gilt-edged securities).
427
Omit section 94A (loan relationships with embedded derivatives).
428
Omit section 94B (loan relationships treated differently by connected debtor
and creditor).
429
Omit section 95 (gilt strips).
35
430
Omit section 96 (special rules for certain other gilts).

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
690

431
Omit section 97 (manufactured interest).
432
Omit section 98 (collective investment schemes).
433
Omit section 99 (insurance companies).
434
Omit section 100 (money debts etc not arising from the lending of money).
435
Omit section 101 (financial instruments).
5
436
Omit section 103 (interpretation of Chapter).
437
In section 154 (FOTRA securities), omit subsections (2), (3), (5), (6) and (8).
438
In section 203(9) (modification of the Agriculture Act 1993) for “Chapter II of
Part IV of this Act” substitute “Part 5 of the Corporation Tax Act 2009 (loan
relationships)”.
10
439
Omit Schedule 8 (loan relationships: claims etc relating to deficits).
440
Omit Schedule 9 (loan relationships: special computational provisions).
441
Omit Schedule 10 (loan relationships: collective investment schemes).
442
Omit Schedule 11 (loan relationships: special provisions for insurers).
443   (1)
Amend Schedule 15 (loan relationships: savings and transitional provisions)
15
as follows.
      (2)
Omit—
(a)
paragraph 2 (loan relationships terminated before 1st April 1996),
(b)
paragraph 3 (basic rules for transitional accounting periods),
(c)
paragraph 3A (adjustment of opening value where new accounting
20
basis adopted as from an accounting period beginning on 1st April
1996), and
(d)
paragraph 4 (application of accruals basis to pre-commencement
relationships).
      (3)
In paragraph 5—
25
(a)
in sub-paragraph (5) for “this Chapter is” substitute “this Chapter (as
it had effect immediately before 1st April 2009) was”,
(b)
in sub-paragraph (6)(b)—
(i)
for “which is” substitute “which was”, and
(ii)
after “this Chapter” insert “(as it had effect immediately
30
before 1st April 2009)”, and
(c)
in sub-paragraph (7)—
(i)
for “taken to be” substitute “taken to have been”,
(ii)
for “is treated” substitute “was treated”, and
(iii)
after “paragraph 4 above” insert “(as it had effect
35
immediately before 1st April 2009)”.
      (4)
In paragraph 6—
(a)
in sub-paragraph (3) for “this Chapter” substitute “Part 5 of the
Corporation Tax Act 2009”,
(b)
for sub-paragraphs (4) to (7) substitute—
40
    “(4)
Sub-paragraphs (1) to (3) above do not apply if the
company duly made an election for the purposes of this

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
691

sub-paragraph as it had effect on 30th September 1996.”,
and
(c)
in sub-paragraph (8)—
(i)
for “section 82(2) of this Act” substitute “section 297 of the
Corporation Tax Act 2009”, and
5
(ii)
at the end insert “under Part 5 of that Act”.
      (5)
In paragraph 9—
(a)
in sub-paragraph (1) after “this Chapter” insert “or Part 5 of the
Corporation Tax Act 2009”, and
(b)
in sub-paragraph (2)—
10
(i)
after “this Chapter”, in the first place where it occurs, insert
“or that Part”, and
(ii)
after “this Chapter”, in the second place where it occurs,
insert “or, as the case may be, that Part”.
      (6)
Omit paragraph 10 (adjustments of opening value for mark to market
15
accounting in the case of chargeable assets).
      (7)
In paragraph 11 (other adjustments in the case of chargeable assets etc)—
(a)
in sub-paragraphs (1) and (3)(a) for “this Chapter” substitute “Part 5
of the Corporation Tax Act 2009”,
(b)
in sub-paragraph (6) at the end insert “under Part 5 of the
20
Corporation Tax Act 2009”, and
(c)
in sub-paragraph (8) after “this Chapter” insert “and Part 5 of the
Corporation Tax Act 2009”.
      (8)
In paragraph 11A(2) (reduction of paragraph 11 credit where section 251(4)
of 1992 Act prevents paragraph 8 loss) for “this Chapter” substitute “Part 5
25
of the Corporation Tax Act 2009”.
      (9)
In paragraph 12 (notional closing values of relevant assets)—
(a)
in sub-paragraph (2) for “makes” substitute “made”, and
(b)
in sub-paragraph (3)—
(i)
for “is made” substitute “was made”, and
30
(ii)
after “this Chapter” insert “and Part 5 of the Corporation Tax
Act 2009”.
     (10)
Omit—
(a)
paragraph 13 (further transitional rules where interest under loan
relationships),
35
(b)
paragraph 14 (transitional in respect of incidental expenses already
allowed), and
(c)
paragraph 15 (holdings of unit trusts etc).
     (11)
In paragraph 16 (bad debt relieved before commencement of FA 1996)—
(a)
in sub-paragraph (2)—
40
(i)
after “this Chapter”, in the first place where it occurs, insert
“or Part 5 of the Corporation Tax Act 2009”, and
(ii)
after “this Chapter”, in the second place where it occurs,
insert “or that Part”,
(b)
in sub-paragraph (3)—
45
(i)
after “this Chapter”, in the first place where it occurs, insert
“and Part 5 of the Corporation Tax Act 2009”, and

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
692

(ii)
after “this Chapter”, in the second place where it occurs,
insert “and that Part”, and
(c)
in sub-paragraph (4) for “falls” substitute “fell”.
     (12)
In paragraph 17 (transitional for overseas sovereign debt etc)—
(a)
in sub-paragraph (1) after “this Chapter” insert “and Part 5 of the
5
Corporation Tax Act 2009”, and
(b)
in sub-paragraph (3)—
(i)
after “this Chapter”, in the first place where it occurs, insert
“and Part 5 of the Corporation Tax Act 2009”, and
(ii)
after “this Chapter”, in the second place where it occurs,
10
insert “and that Part”.
     (13)
Omit paragraph 18 (transitional for accrued income scheme).
     (14)
In paragraph 19 (deep discount securities)—
(a)
omit sub-paragraphs (1) and (2),
(b)
in sub-paragraphs (3A), (4), (5), (6), (7) and (8) for “this Chapter”
15
substitute “Part 5 of the Corporation Tax Act 2009”,
(c)
omit sub-paragraph (10), and
(d)
in sub-paragraph (11)(b) for “this Chapter is” substitute “this
Chapter was”.
     (15)
In paragraph 20 (deep gain securities)—
20
(a)
omit sub-paragraph (1),
(b)
in sub-paragraphs (2A) and (3) for “this Chapter” substitute “Part 5
of the Corporation Tax Act 2009”, and
(c)
in sub-paragraph (5) for “this Chapter is” substitute “this Chapter (as
it had effect immediately before 1st April 2009) was”.
25
     (16)
In paragraph 21 (convertible securities)—
(a)
omit sub-paragraph (1), and
(b)
in sub-paragraphs (2) and (4) for “this Chapter” substitute “Part 5 of
the Corporation Tax Act 2009”.
Broadcasting Act 1996 (c. 55)
30
444
The Broadcasting Act 1996 is amended as follows.
445   (1)
Amend Schedule 7 (transfer schemes relating to BBC transmission
networking: taxation provisions) as follows.
      (2)
In paragraph 11(2) for “Chapter II of Part IV of the Finance Act 1996”
substitute “Part 5 of the Corporation Tax Act 2009”.
35
      (3)
In paragraph 21—
(a)
in sub-paragraph (1) for “Section 35 of the Taxes Act 1988 (charge on
lease” substitute “Section 222 of the Corporation Tax Act 2009
(lease”,
(b)
in sub-paragraph (2) for “Section 87 of the Taxes Act 1988 (taxable
40
premiums)” substitute “Sections 62 to 67 of the Corporation Tax Act
2009 (tenants occupying land for purposes of trade treated as
incurring expenses)” and for “that section to the amount chargeable”
substitute “those sections to the taxed receipt”, and

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
693

(c)
in sub-paragraph (3) for “Part II of the Taxes Act 1988” substitute
“Part 4 of the Corporation Tax Act 2009 (see section 291 of that Act)”.
Finance Act 1997 (c. 16)
446
The Finance Act 1997 is amended as follows.
447
In Schedule 12 (leasing arrangements: finance leases and loans), in
5
paragraph 11(11) for sub-paragraphs (a) and (b) substitute—
“(a)
section 165 or 168 of ITTOIA 2005 or section 142 or 145 of the
Corporation Tax Act 2009 (preparation and restoration
expenditure in relation to waste disposal site), or
(b)
section 170 of ITTOIA 2005 or section 147 of the Corporation
10
Tax Act 2009 (cemeteries etc),”.
Finance (No. 2) Act 1997 (c. 58)
448
The Finance (No. 2) Act 1997 is amended as follows.
449
Omit section 40 (carry-back of loan relationship deficits).
Finance Act 1998 (c. 36)
15
450
The Finance Act 1998 is amended as follows.
451
Omit section 42 (computation of profits of trade, profession or vocation).
452
In section 46 (minor and consequential provisions about computations) omit
subsections (1) and (2).
453   (1)
Amend Schedule 18 (company tax returns, assessments and related matters)
20
as follows.
      (2)
In paragraph 9(2) for “section 6(2) of the Taxes Act 1988” substitute “section
3 of the Corporation Tax Act 2009”.
      (3)
In paragraph 10—
(a)
omit sub-paragraphs (2B) and (3), and
25
(b)
in sub-paragraph (5)—
(i)
for “section 32(7) of the Finance Act 2006” substitute “section
1182(7) of the Corporation Tax Act 2009”, and
(ii)
for “section 32(8)(a)” substitute “section 1182(8)(a)”.
      (4)
In paragraph 13(3) in the definition of “trading stock” for “section 100(2) of
30
the Taxes Act 1988” substitute “section 163 of the Corporation Tax Act 2009”.
      (5)
In paragraph 26(1)(b) for the words from “section 12(5A)” to “Board”
substitute “section 11(3) of the Corporation Tax Act 2009 (power of officer of
Revenue and Customs”.
      (6)
In paragraph 52—
35
(a)
in sub-paragraph (2)—
(i)
in paragraph (ba), for “Schedule 20 to the Finance Act 2000”
substitute “Chapter 2 or 7 of Part 13 of the Corporation Tax
Act 2009”,
(ii)
in paragraph (bb), for “Schedule 22 to the Finance Act 2001”
40
substitute “Part 14 of the Corporation Tax Act 2009”,