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Session 2008 - 09
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Corporation Tax Bill


Corporation Tax Bill

xli

 

Assets ceasing to be or becoming chargeable intangible assets

859   

Asset ceasing to be chargeable intangible asset: deemed realisation at market

value

860   

Asset ceasing to be chargeable intangible asset: postponement of gain

861   

Treatment of postponed gain on subsequent realisation

862   

Treatment of postponed gain in other cases

863   

Asset becoming chargeable intangible asset

Matters to be ignored

864   

Tax avoidance arrangements to be ignored

865   

Debits for expenditure not generally deductible for tax purposes

Delayed payments and bad debts

866   

Delayed payment of employees’ remuneration

867   

Provisions supplementing section 866

868   

Delayed payment of pension contributions

869   

Bad debts etc

Controlled foreign companies

870   

Assumptions for calculating chargeable profits

Chapter 15

Adjustments on change of accounting policy

Introductory

871   

Introduction to Chapter

Change of policy involving change of value

872   

Adjustments in respect of change

873   

Effect of application of section 872 in later period and subsequently

Change of policy involving disaggregation

874   

Original asset not subject to fixed-rate writing down

875   

Effect of application of section 874 in later period and subsequently

876   

Original asset subject to fixed-rate writing down

877   

Election for fixed-rate writing down in relation to resulting asset

Supplementary

878   

Exclusion of credits or debits brought into account under other provisions

879   

Subsequent events affecting asset subject to adjustment under this Chapter

 
 

Corporation Tax Bill

xlii

 

Chapter 16

Pre-FA 2002 assets etc

Introduction

880   

Overview of Chapter

881   

Meaning of “pre-FA 2002 assets”

General rule

882   

Application of this Part to assets created or acquired on or after 1 April 2002

When assets are treated as created or acquired

883   

Assets treated as created or acquired when expenditure incurred

884   

Internally-generated goodwill: time of creation

885   

Certain other internally-generated assets: time of creation

886   

Assets representing production expenditure on films: time of creation

When expenditure treated as incurred

887   

General rule

888   

Cases where chargeable gains rule applies

889   

Cases where capital allowances general rule applies

Fungible assets

890   

Fungible assets: application of section 858

891   

Realisation and acquisition of fungible assets

Assets treated as pre-FA 2002 assets

892   

Certain assets acquired on transfer of business

893   

Assets whose value derives from pre-FA 2002 assets

894   

The preserved status conditions etc

895   

Assets acquired in connection with disposals of pre-FA 2002 assets

Application of Part to royalties and telecommunication rights

896   

Application to royalties

897   

Application to pre-FA 2002 assets consisting of telecommunication rights

Roll-over relief for disposals of pre-FA 2002 assets

898   

Relief where assets disposed of on or after 1 April 2002

899   

Relief where degrouping charge on asset arises on or after 1 April 2002

900   

Meaning of “chargeable asset within TCGA” in sections 898 and 899

 
 

Corporation Tax Bill

xliii

 

Chapter 17

Insurance companies

Effect of application of the I minus E basis: non-trading amounts

901   

Effect of application of the I minus E basis: non-trading amounts

Excluded assets and computer software

902   

Excluded assets

903   

Elections to exclude capital expenditure on computer software

Miscellaneous

904   

Transfers of life assurance business: transfers of assets treated as tax-neutral

905   

Pre-FA 2002 assets: Lloyd’s syndicate capacity

Chapter 18

Priority rules

906   

Priority of this Part for corporation tax purposes

Part 9

Intellectual property: know-how and patents

Chapter 1

Introduction

907   

Overview of Part

Chapter 2

Disposals of know-how

908   

Charge to tax on profits from disposals of know-how

909   

Exceptions to charge under section 908

910   

Profits charged under section 908

Chapter 3

Sales of patent rights

Introductory

911   

Overview of Chapter

Charge to tax

912   

Charge to tax on profits from sales of patent rights

913   

Profits charged under section 912

 
 

Corporation Tax Bill

xliv

 

Spreading of charge to tax

914   

UK resident companies: proceeds of sale not received in instalments

915   

UK resident companies: proceeds of sale received in instalments

916   

Non-UK resident companies: proceeds of sale not received in instalments

917   

Non-UK resident companies: proceeds of sale received in instalments

918   

Winding up of a body corporate

Miscellaneous

919   

Deduction of tax from payments to non-UK resident companies

920   

Adjustments where tax has been deducted

921   

Licences connected with patents

922   

Rights to acquire future patent rights

923   

Sums paid for Crown use etc treated as paid under licence

Chapter 4

Relief from corporation tax on patent income

924   

Relief for expenses: patent income

925   

How relief is given under section 924

Chapter 5

Supplementary

926   

Contributions to expenditure

927   

Contributions not made by public bodies nor eligible for tax relief

928   

Exchanges

929   

Apportionment where property sold together

930   

Questions about apportionments affecting two or more persons

931   

Meaning of “capital sums” etc

Part 10

Miscellaneous income

Chapter 1

Introduction

932   

Overview of Part

Chapter 2

Dividends of non-UK resident companies

933   

Charge to tax on dividends of non-UK resident companies

 
 

Corporation Tax Bill

xlv

 

Chapter 3

Beneficiaries’ income from estates in administration

Introduction

934   

Charge to tax on estate income

935   

Absolute, limited and discretionary interests

936   

Meaning of “UK estate” and “foreign estate”

Types of estate income

937   

Absolute interests in residue

938   

Meaning of “the administration period”, “the final accounting period” and

“the final tax year”

939   

Limited interests in residue

940   

Discretionary interests in residue

Income charged

941   

UK estates

942   

Foreign estates

Basic amount of estate income: general calculations rules

943   

Absolute interests

944   

Limited interests

945   

Discretionary interests

946   

Applicable rate for grossing up basic amounts of estate income

947   

Aggregate income of the estate

Further provisions for calculating estate income relating to absolute interests

948   

Assumed income entitlement

949   

Residuary income of the estate

950   

Shares of residuary income of estate

951   

Reduction in share of residuary income of estate

952   

Applicable rate for determining assumed income entitlement (UK estates)

Successive interests

953   

Introduction

954   

Successive absolute interests

955   

Assumed income entitlement of holder of absolute interest following limited

interest

956   

Payments in respect of limited interests followed by absolute interests

957   

Holders of limited interests

958   

Basic amount of estate income: successive limited interests

959   

Apportionments

Relief where foreign estates have borne UK income tax

960   

Relief in respect of tax relating to absolute interests

961   

Relief in respect of tax relating to limited or discretionary interests

 
 

Corporation Tax Bill

xlvi

 

General

962   

Income from which basic amounts are treated as paid

963   

Income treated as bearing income tax

964   

Transfers of assets etc treated as payments

965   

Assessments, adjustments and claims after the administration period

966   

Power to obtain information from personal representatives and beneficiaries

967   

Statements relating to estate income

Supplementary

968   

Meaning of “personal representatives”

Chapter 4

Income from holding an office

969   

Charge to tax on income from holding an office

970   

Rule restricting deductions for bad debts

Chapter 5

Distributions from unauthorised unit trusts

971   

Overview of Chapter

972   

Charge to tax under this Chapter

973   

Amount of income treated as received

Chapter 6

Sale of foreign dividend coupons

974   

Charge to tax under this Chapter

975   

Meaning of “foreign holdings” etc

Chapter 7

Annual payments not otherwise charged

976   

Overview of Chapter

977   

Charge to tax on annual payments not otherwise charged

978   

Exemption for payments by persons liable to pool betting duty

Chapter 8

Income not otherwise charged

979   

Charge to tax on income not otherwise charged

980   

Exemption for commercial occupation of woodlands in UK

981   

Exemption for gains on financial futures

 
 

Corporation Tax Bill

xlvii

 

Chapter 9

Priority rules

982   

Provisions which must be given priority over this Part

Part 11

Relief for particular employee share acquisition schemes

Chapter 1

Share incentive plans

Introductory

983   

Overview of Chapter

984   

Chapter to form part of SIP code etc

Deductions and receipts: general

985   

References to a deduction being allowed to a company

986   

Treatment of receipts under Chapter

Deductions relating to setting up and running costs

987   

Deduction for costs of setting up an approved share incentive plan

988   

Deductions for running expenses of an approved share incentive plan

Deductions relating to payments used to acquire shares

989   

Deduction for contribution to plan trust

990   

Withdrawal of deduction under section 989

991   

Another deduction to be allowed if all acquired shares are awarded

992   

Award of shares to excluded employee

993   

Termination plan notice

Deductions relating to provision of certain types of shares

994   

Deduction for providing free or matching shares

995   

Deduction for additional expense in providing partnership shares

996   

Shares excluded from sections 994 and 995

997   

No deduction for expenses in providing dividend shares

Withdrawal of approval for a plan

998   

Withdrawal of deductions if approval for share incentive plan withdrawn

Chapter 2

SAYE option schemes, company share option schemes and employee share

options trusts

999   

Deduction for costs of setting up SAYE option scheme or CSOP scheme

 
 

 
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Revised 9 December 2008