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House of Commons

Session 2008 - 09 Internet Publications Other Bills before Parliament

Corporation Tax Bill

Corporation Tax Bill xxvii
Debtor repos and debtor quasi-repos
548    Meaning of debtor repo
549    Meaning of debtor quasi-repo
550    Ignoring effect on borrower of sale of securities
551    Relief for borrower for finance charges in respect of the advance
General provisions
552    General provisions about arrangements
553    Persons buying or selling for others
554    Power to modify this Chapter
555    Cases where section 554 applies: non-standard repos
Interpretation
556    Meaning of securities and similar securities
557    Meaning of person receiving an asset
558    Interpretation of accounting expressions
559    Minor definitions
Chapter 11
Investment life insurance contracts
Introduction
560    Introduction to Chapter
561    Meaning of “investment life insurance contract”
Investment life assurance contracts treated as creditor relationships
562    Contract to be loan relationship
563    Increased non-trading credits for BLAGAB and EEA taxed contracts
564    Section 563: interpretation
565    Relevant amount where the relevant company uses fair value accounting
Old accounting period contracts
566    Introduction
567    Gains on deemed surrenders to be brought into account on related
transactions
568    Restriction on credits on old contracts: fair value accounting cases
569    Restriction on debits on old contracts: non-fair value accounting cases
Corporation Tax Bill xxviii
Part 7
Derivative contracts
Chapter 1
Introduction
Introduction
570    Overview of Part
How profits and losses from derivative contracts are dealt with
571    General rule: profits chargeable as income
572    Profits and losses to be calculated using credits and debits given by this Part
573    Trading credits and debits to be brought into account under Part 3
574    Non-trading credits and debits to be brought into account under Part 5
Chapter 2
Contracts to which this Part applies
Introduction
575    Overview of Chapter
Meaning of “derivative contract” and other basic definitions
576    “Derivative contract”
577    “Relevant contract”
578    Relevant contracts of a company and being party to such contracts
579    The accounting conditions
580    “Option”
581    “Future”
582    “Contract for differences”
583    “Underlying subject matter”
Cases where companies treated as parties to relevant contracts
584    Hybrid derivatives with embedded derivatives
585    Loan relationships with embedded derivatives
586    Other contracts with embedded derivatives
Other contracts etc treated as derivative contracts
587    Contract relating to holding in OEIC, unit trust or offshore fund
588    Associated transaction treated as derivative contract
Exclusions from derivative contracts
589    Contracts excluded because of underlying subject matter: general
590    Disregard of subordinate or small value underlying subject matter
591    Conditions A to E mentioned in section 589(5)
Corporation Tax Bill xxix
592    Embedded derivatives treated as meeting condition in section 591 etc
593    Contracts where part of underlying subject matter is excluded property
Chapter 3
Credits and debits to be brought into account: general
Introduction
594    Overview of Chapter
General principles
595    General principles about the bringing into account of credits and debits
596    Meaning of “related transaction”
Amounts recognised in determining a company’s profit or loss
597    Amounts recognised in determining a company’s profit or loss
598    Regulations about recognised amounts
599    Meaning of “amounts recognised for accounting purposes”
Application of fair value accounting
600    Contract which is or forms part of financial asset or liability
601    Contract relating to holding in OEIC, unit trust or offshore fund
602    Contract becoming one relating to holding in OEIC, unit trust or offshore
fund
603    Associated transaction treated as derivative contract
Rules differing from generally accepted accounting practice
604    Credits and debits treated as relating to capital expenditure
605    Credits and debits recognised in equity
Miscellaneous
606    Exchange gains and losses
607    Pre-contract or abortive expenses
608    Company ceasing to be party to derivative contract
609    Company ceasing to be UK resident
610    Non-UK resident company ceasing to hold derivative contract for UK
permanent establishment
611    Release under statutory insolvency arrangement of liability under derivative
contract
Chapter 4
Further provision about credits and debits to be brought into account
Introduction
612    Overview of Chapter
Corporation Tax Bill xxx
Adjustments on change of accounting policy
613    Introduction to sections 614 and 615
614    Change of accounting policy involving change of value
615    Change of accounting policy after ceasing to be party to derivative contract
Certain embedded derivatives
616    Disapplication of fair value accounting
617    Election for section 616 not to apply
618    Elections under section 617: groups of companies
Partnerships involving companies
619    Partnerships involving companies
620    Determination of credits and debits by company partners
621    Company partners using fair value accounting
Miscellaneous
622    Contracts ceasing to be derivative contracts
623    Index-linked gilt-edged securities with embedded contracts for differences
Chapter 5
Continuity of treatment on transfers within groups
Introductory
624    Introduction to Chapter
Group member replacing another as party to derivative contract
625    Group member replacing another as party to derivative contract
626    Transactions to which section 625 applies
627    Meaning of company replacing another as party to derivative contract
Exceptions to section 625
628    Transferor using fair value accounting
629    Tax avoidance
Transferee leaving group after replacing transferor as party to derivative contract
630    Introduction to sections 631 and 632
631    Transferee leaving group otherwise than because of exempt distribution
632    Transferee leaving group because of exempt distribution
Chapter 6
Special kinds of company
Mutual trading companies
633    Mutual trading companies
Corporation Tax Bill xxxi
Insurance companies
634    Insurance companies
635    Creditor relationships: embedded derivatives which are options
636    Modifications of Chapter 5
Investment and venture capital trusts
637    Investment trusts: profits or losses of a capital nature
638    Venture capital trusts: profits or losses of a capital nature
Chapter 7
Chargeable gains arising in relation to derivative contracts
Introduction
639    Overview of Chapter
Some credits and debits not to be brought into account under Part 5
640    Credits and debits not to be brought into account under Part 5
Some derivative contracts to be taxed on a chargeable gains basis
641    Derivative contracts to be taxed on a chargeable gains basis
642    Exception from section 641
Derivative contracts to which sections 640 and 641 apply
643    Contracts relating to land or certain tangible movable property
644    Income to be left out of account in determining whether section 643 applies
645    Creditor relationships: embedded derivatives which are options
646    Exclusions from section 645
647    Meaning of certain expressions in section 645
648    Creditor relationships: embedded derivatives which are exactly tracking
contracts for differences
649    Meaning of certain expressions in section 648
650    Property based total return swaps
Some credits and debits not to be brought into account under Part 3 or 5
651    Credits and debits not to be brought into account under Part 3 or Part 5
Issuers of securities with embedded derivatives: deemed options
652    Introduction to sections 653 to 655
653    Shares issued or transferred as a result of exercise of deemed option
654    Payment instead of disposal on exercise of deemed option
655    Ceasing to be party to debtor relationship when deemed option not exercised
Issuers of securities with embedded derivatives: deemed contracts for differences
656    Introduction to section 658
657    Meaning of “exactly tracking contract” in section 656
Corporation Tax Bill xxxii
658    Chargeable gain or allowable loss treated as accruing
Interpretation
659    Meaning of “relevant credits” and “relevant debits”
Chapter 8
Further provision about chargeable gains and derivative contracts
Company ceasing to be party to certain contracts
660    Contract relating to holding in OEIC, unit trust or offshore fund
661    Contract which becomes derivative contract
Contracts ceasing to be derivative contracts
662    Contracts ceasing to be derivative contracts
Carry back of net losses on certain derivative contracts
663    Contracts to which section 641 applies
664    Meaning of certain expressions in section 663
Issuers of securities with embedded derivatives: equity instruments
665    Introduction to section 666
666    Allowable loss treated as accruing
Treatment of shares acquired in certain circumstances
667    Shares acquired on exercise of non-embedded option
668    Shares acquired on running of future to delivery
669    Meaning of G and L in sections 667 and 668
Treatment of net gains and losses on exercise of option
670    Treatment of net gains and losses on exercise of option
671    Meaning of G, L and CV in section 670
Treatment of net gains and losses on disposal of certain embedded derivatives
672    Treatment of net gains and losses on disposal of certain embedded
derivatives
673    Meaning of G, L and CV in section 672
Chapter 9
European cross-border transfers of business
Introduction
674    Introduction to Chapter
Corporation Tax Bill xxxiii
Transfers of derivative contracts at notional carrying value
675    Transfer of derivative contract at notional carrying value
676    Transferor using fair value accounting
Exception for tax avoidance cases and clearances
677    Tax avoidance etc
678    Procedure on application for clearance
679    Decision on application for clearance
Transparent entities
680    Disapplication of Chapter where transparent entities involved
Interpretation
681    Interpretation
Chapter 10
European cross-border mergers
Introduction
682    Introduction to Chapter
683    Meaning of “the transferee” and “transferor”
Transfers of derivative contracts at notional carrying value
684    Transfer of derivative contract at notional carrying value
685    Transferor using fair value accounting
Exception for tax avoidance cases and clearances
686    Tax avoidance etc
Transparent entities
687    Disapplication of Chapter where transparent entities involved
Interpretation
688    Interpretation
Chapter 11
Tax avoidance
Introduction
689    Overview of Chapter

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