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Session 2008 - 09
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Other Bills before Parliament

Corporation Tax Bill


Corporation Tax Bill

xlviii

 

1000   

Deduction for costs of setting up employee share ownership trust

Part 12

Other relief for employee share acquisitions

Chapter 1

Introduction

Introductory

1001   

Overview of Part

Interpretation

1002   

“Employment”

1003   

“Shares” etc

1004   

Groups, consortiums and commercial associations of companies

1005   

Other definitions

Chapter 2

Relief if shares acquired by employee or other person

Introductory

1006   

Overview of Chapter

Requirements to be met for relief to be available

1007   

Basic requirements for relief under Chapter 2

1008   

Conditions relating to shares acquired

1009   

Conditions relating to employee’s income tax position

Calculation of amount of relief

1010   

Calculation of relief if shares are neither restricted nor convertible

1011   

Calculation of relief if shares are restricted or convertible

1012   

Reduction in amount of relief

Giving of relief

1013   

How the relief is given

Chapter 3

Relief if employee or other person obtains option to acquire shares

Introductory

1014   

Overview of Chapter

 
 

Corporation Tax Bill

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Requirements to be met for relief to be available

1015   

Basic requirements for relief under Chapter 3

1016   

Conditions relating to shares acquired

1017   

Condition relating to employee’s income tax position

Calculation of amount of relief

1018   

Calculation of relief if shares are neither restricted nor convertible

1019   

Calculation of relief if shares are restricted or convertible

1020   

Reduction in amount of relief

Giving of relief

1021   

How the relief is given

Takeovers and transfers of businesses

1022   

Takeover of company whose shares are subject to option

1023   

Supplementary provision for purposes of section 1022

1024   

Transfer of qualifying business by group transfers

Chapter 4

Additional relief in cases involving restricted shares

1025   

Additional relief available if shares acquired are restricted shares

1026   

Relief available on occurrence of chargeable event

1027   

Relief available on death of employee

1028   

Supplementary provision for purposes of sections 1026 and 1027

1029   

Transfer of qualifying business by group transfers

Chapter 5

Additional relief in cases involving convertible securities

1030   

Application of Chapter

1031   

Additional relief available if shares acquired are convertible shares etc

1032   

Meaning of “chargeable event”

1033   

Relief available on occurrence of chargeable event

1034   

Relief available following death of employee

1035   

Supplementary provision for purposes of sections 1033 and 1034

1036   

Transfer of qualifying business by group transfers

Chapter 6

Relationship between relief under this Part and other reliefs

1037   

Priority of Chapter 1 of Part 11

1038   

Exclusion of other deductions

 
 

Corporation Tax Bill

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Part 13

Additional relief for expenditure on research and development

Chapter 1

Introduction

Introductory

1039   

Overview of Part

1040   

Relief may be available under more than one Chapter of Part

Interpretation

1041   

“Research and development”

1042   

“Relevant research and development”

Chapter 2

Relief for SMEs: cost of R&D incurred by SME

Introductory

1043   

Overview of Chapter

Reliefs

1044   

Additional deduction in calculating profits of trade

1045   

Alternative treatment for pre-trading expenditure: deemed trading loss

Reliefs: further provision

1046   

Relief only available where company is going concern

1047   

Elections under section 1045

1048   

Treatment of deemed trading loss under section 1045

1049   

Restriction on consortium relief

Threshold

1050   

R&D threshold

Qualifying expenditure

1051   

Qualifying Chapter 2 expenditure

1052   

Qualifying expenditure on in-house direct R&D

1053   

Qualifying expenditure on contracted out R&D

Tax credit: entitlement and payment

1054   

Entitlement to and payment of tax credit

1055   

Meaning of “Chapter 2 surrenderable loss”

1056   

Amount of trading loss which is “unrelieved”

1057   

Tax credit only available where company is going concern

 
 

Corporation Tax Bill

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Amount of tax credit

1058   

Amount of tax credit

1059   

Total amount of company’s PAYE and NIC liabilities

Supplementary

1060   

Payment of tax credit

1061   

Tax credit payment not income of company

1062   

Restriction on losses carried forward where tax credit claimed

Chapter 3

Relief for SMEs: R&D sub-contracted to SME

Relief

1063   

Additional deduction in calculating profits of trade

Threshold

1064   

R&D threshold

Qualifying expenditure

1065   

Qualifying Chapter 3 expenditure

1066   

Expenditure on sub-contracted R&D undertaken in-house

1067   

Expenditure on sub-contracted R&D not undertaken in-house

Chapter 4

Relief for SMEs: subsidised and capped expenditure on R&D

Relief

1068   

Additional deduction in calculating profits of trade

Threshold

1069   

R&D threshold

Qualifying expenditure

1070   

Qualifying Chapter 4 expenditure

1071   

Subsidised qualifying expenditure on in-house direct R&D

1072   

Subsidised qualifying expenditure on contracted out R&D

1073   

Capped R&D expenditure

Chapter 5

Relief for large companies

Relief

1074   

Additional deduction in calculating profits of trade

 
 

Corporation Tax Bill

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Threshold

1075   

R&D threshold

Qualifying expenditure

1076   

Qualifying Chapter 5 expenditure

1077   

Qualifying expenditure on in-house direct R&D

1078   

Qualifying expenditure on contracted out R&D

1079   

Qualifying expenditure on contributions to independent R&D

Insurance companies

1080   

Entitlement to relief: I minus E basis

Chapter 6

Chapters 2 to 5: further provision

1081   

Insurance companies treated as large companies

1082   

R&D expenditure of group companies

1083   

Refunds of expenditure treated as income chargeable to tax

1084   

Artificially inflated claims for relief or tax credit

Chapter 7

Relief for SMEs and large companies: vaccine research etc

Introductory

1085   

Overview of Chapter

1086   

Meaning of “qualifying R&D activity”

Reliefs

1087   

Deduction in calculating profits of trade

1088   

Large companies: declaration about effect of relief

1089   

SMEs: amount of deduction

1090   

Modification of section 1089 for larger SMEs

1091   

Large companies: amount of deduction

1092   

SMEs: deemed trading loss for pre-trading expenditure

1093   

Modification of section 1092 for larger SMEs

1094   

Relief only available to SME where company is going concern

Deemed trading loss: further provision

1095   

Elections under section 1092

1096   

Treatment of deemed trading loss under section 1092

Threshold

1097   

R&D threshold

 
 

Corporation Tax Bill

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Qualifying expenditure

1098   

Meaning of “qualifying Chapter 7 expenditure”

1099   

SMEs: qualifying expenditure “for” an accounting period

1100   

Large companies: qualifying expenditure “for” an accounting period

1101   

Qualifying expenditure on in-house direct R&D

1102   

Qualifying expenditure on contracted out R&D

Tax credit: entitlement and payment

1103   

Entitlement to and payment of tax credit

1104   

Meaning of “Chapter 7 surrenderable loss”

1105   

Amount of trading loss which is “unrelieved”

1106   

Tax credit only available where company is going concern

Amount of tax credit

1107   

Amount of tax credit

1108   

Total amount of company’s PAYE and NIC liabilities

Supplementary

1109   

Payment of tax credit

1110   

Tax credit payment not income of company

1111   

Restriction on losses carried forward where tax credit claimed

Tax avoidance

1112   

Artificially inflated claims for relief or tax credit

Chapter 8

Cap on aid for R&D

1113   

Cap on R&D aid under Chapter 2 or 7

1114   

Total R&D aid

1115   

“The tax credits”

1116   

“The actual reduction in tax liability”

1117   

“The potential relief”

1118   

“The notional relief”

Chapter 9

Supplementary

SMEs and large companies

1119   

“Small or medium-sized enterprise”

1120   

Qualifications to section 1119

1121   

“Larger SME”

1122   

“Large company”

Staffing costs

1123   

“Staffing costs”

 
 

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1124   

Staffing costs: attributable expenditure

Software or consumable items

1125   

“Software or consumable items”

1126   

Software or consumable items: attributable expenditure

Qualifying expenditure on externally provided workers

1127   

“Qualifying expenditure on externally provided workers”

1128   

“Externally provided worker”

1129   

Qualifying expenditure on externally provided workers: connected persons

1130   

Election for connected persons treatment

1131   

Qualifying expenditure on externally provided workers: other cases

1132   

External workers: attributable expenditure

Sub-contractor payments

1133   

“Sub-contractor” and “sub-contractor payment”

1134   

Qualifying element of sub-contractor payment: connected persons

1135   

Election for connected persons treatment

1136   

Qualifying element of sub-contractor payment: other cases

Miscellaneous

1137   

Accounting periods: company not within charge to corporation tax

1138   

“Subsidised expenditure”

1139   

“Intellectual property”

1140   

“Relevant payments to the subjects of a clinical trial”

1141   

“Payment period”

1142   

“Qualifying body”

Part 14

Remediation of contaminated land

Chapter 1

Introduction

Introductory

1143   

Overview of Part

Basic definitions

1144   

“Qualifying land remediation expenditure”

1145   

Land “in a contaminated state”

1146   

“Relevant land remediation”

 
 

 
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Revised 9 December 2008