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These notes refer to the Corporation Tax Bill as introduced to the House of Commons on 4 December 2008 CORPORATION TAX BILL EXPLANATORY NOTES - VOLUME 1 (INTRODUCTION AND SECTIONS 1 TO 476) TABLE OF CONTENTS INTRODUCTION 13 Summary 13 Background 13 This Bill 16 Glossary 17 COMMENTARY ON CLAUSES 17 Part 1: Introduction 17 Clause 1: Overview of Act 17 Part 2: Charge to corporation tax: basic provisions 18 Chapter 1: The charge to corporation tax 18 Clause 2: Charge to corporation tax 19 Clause 3: Exclusion of charge to income tax 20 Clause 4: Exclusion of charge to capital gains tax 20 Clause 5: Territorial scope of charge 20 Clause 6: Profits accruing in fiduciary or representative capacity 20 Clause 7: Profits accruing under trusts 21 Clause 8: How tax is charged and assessed 21 Chapter 2: Accounting periods 21 Clause 9: Beginning of accounting period 22 Clause 10: End of accounting period 22 Clause 11: Companies with more than one accounting date 23 Clause 12: Companies being wound up 23 Chapter 3: Company residence 24 Clause 13: Overview of Chapter 25 Clause 14: Companies incorporated in the United Kingdom 25 Clause 15: Continuation of residence established under common law 25 Clause 16: SEs which transfer registered office to the United Kingdom 26 Clause 17: SCEs which transfer registered office to the United Kingdom 26 Clause 18: Companies treated as non-UK resident under double taxation arrangements 26 Chapter 4: Non-UK resident companies: chargeable profits 27 Clause 19: Chargeable profits 28 Clause 20: Profits attributable to permanent establishment: introduction 29 Clause 21: The separate enterprise principle 29 Clause 22: Transactions treated as being on arm’s length terms 29 Clause 23: Provision of goods or services for permanent establishment 29 Clause 24: Application to insurance companies 30 Clause 25: Non-UK resident banks: introduction 30 Clause 26: Transfer of financial assets 30 Clause 27: Loans: attribution of financial assets and profits arising 30 Clause 28: Borrowing: permanent establishment acting as agent or intermediary 31 Clause 29: Allowable deductions 31 Clause 30: Restriction on deductions: costs 31 Clause 31: Restriction on deductions: payments in respect of intangible assets 31 Clause 32: Restriction on deductions: interest or other financing costs 31 Chapter 5: Supplementary 31 Clause 33: Trade includes office 31 Part 3: Trading income 32 Chapter 1: Introduction 32 Clause 34: Overview of Part 32 Chapter 2: Income taxed as trade profits 33 Clause 35: Charge to tax on trade profits 33 Clause 36: Farming and market gardening 33 Clause 37: Commercial occupation of woodlands 34 Clause 38: Commercial occupation of land other than woodlands 34 Clause 39: Profits of mines, quarries and other concerns 35 Clause 40: Credit unions 36 Clause 41: Effect of company starting or ceasing to be within charge to corporation tax 36 Clause 42: Tied premises 37 Clause 43: Caravan sites where trade carried on 37 Clause 44: Surplus business accommodation 37 Clause 45: Payments for wayleaves 38 Chapter 3: Trade profits: basic rules 38 Clause 46: Generally accepted accounting practice 38 Clause 47: Losses calculated on same basis as profits 39 Clause 48: Receipts and expenses 39 Clause 49: Items treated as receipts and expenses 39 Clause 50: Animals kept for trade purposes 39 Clause 51: Relationship between rules prohibiting and allowing deductions 40 Clause 52: Apportionment etc of profits and losses to accounting period 40 Chapter 4: Trade profits: rules restricting deductions 40 Clause 53: Capital expenditure 40 Clause 54: Expenses not wholly and exclusively for trade and unconnected losses 41 Clause 55: Bad debts 42 Clause 56: Car or motor cycle hire 42 Clause 57: Car or motor cycle hire: supplementary 43 Clause 58: Hiring cars (but not motor cycles) with low CO2 emissions before 1 April 2013 43 Clause 59: Patent royalties 43 Clause 60: Expenditure on integral features 44 Chapter 5: Trade profits: rules allowing deductions 44 Clause 61: Pre-trading expenses 44 Clause 62: Tenants under taxed leases: introduction 44 Clause 63: Tenants occupying land for purposes of trade treated as incurring expenses 45 Clause 64: Limit on deductions if tenant entitled to mineral extraction allowance 46 Clause 65: Tenants dealing with land as property employed for purposes of trade 46 Clause 66: Restrictions on section 63 expenses: lease premium receipts 46 Clause 67: Restrictions on section 63 expenses: lease of part of premises 47 Clause 68: Replacement and alteration of trade tools 48 Clause 69: Payments for restrictive undertakings 48 Clause 70: Employees seconded to charities and educational establishments 49 Clause 71: Educational establishments 49 Clause 72: Payroll deduction schemes: contributions to agents’ expenses 49 Clause 73: Counselling and other outplacement services 50 Clause 74: Retraining courses 50 Clause 75: Retraining courses: recovery of tax 50 Clause 76: Redundancy payments and approved contractual payments 51 Clause 77: Payments in respect of employment wholly in employer’s trade 51 Clause 78: Payments in respect of employment in more than one capacity 52 Clause 79: Additional payments 52 Clause 80: Application of section 79 in cases involving partnerships 53 Clause 81: Payments made by the Government 53 Clause 82: Contributions to local enterprise organisations or urban regeneration companies 53 Clause 83: Meaning of “local enterprise organisation” 54 Clause 84: Approval of local enterprise agencies 55 Clause 85: Supplementary provisions with respect to approvals 55 Clause 86: Meaning of “urban regeneration company” 55 Clause 87: Expenses of research and development 55 Clause 88: Payments to research associations, universities etc 55 Clause 89: Expenses connected with patents 56 Clause 90: Expenses connected with designs or trade marks 56 Clause 91: Payments to Export Credits Guarantee Department 56 Clause 92: Levies etc under FISMA 2000 57 Chapter 6: Trade profits: receipts 58 Clause 93: Capital receipts 58 Clause 94: Debts incurred and later released 58 Clause 95: Acquisition of trade: receipts from transferor’s trade 58 Clause 96: Reverse premiums 59 Clause 97: Excluded cases 59 Clause 98: Tax treatment of reverse premiums 60 Clause 99: Arrangements not at arm’s length 60 Clause 100: Connected persons and property arrangements 60 Clause 101: Distribution of assets of mutual concerns 60 Clause 102: Industrial development grants 61 Clause 103: Sums recovered under insurance policies etc 62 Clause 104: Repayments under FISMA 2000 62 Chapter 7: Trade profits: gifts to charities etc 62 Clause 105: Gifts of trading stock to charities etc 62 Clause 106: Meaning of “designated educational establishment” 63 Clause 107: Gifts of medical supplies and equipment 64 Clause 108: Receipt of benefits by donor or connected person 64 Chapter 8: Trade profits: herd basis rules 64 Clause 109: Election for application of herd basis rules 65 Clause 110: Meaning of “animal”, “herd”, “production herd” etc 65 Clause 111: Other interpretative provisions 66 Clause 112: Initial cost of herd and value of herd 66 Clause 113: Addition of animals to herd 67 Clause 114: Replacement of animals in herd 67 Clause 115: Amount of receipt if old animal slaughtered under disease control order 67 Clause 116: Sale of animals from herd 68 Clause 117: Sale of whole or substantial part of herd 68 Clause 118: Acquisition of new herd begun within 5 years of sale 68 Clause 119: Section 118: sale for reasons outside farmer’s control 68 Clause 120: Replacement of part sold begun within 5 years of sale 69 Clause 121: Section 120: sale for reasons outside farmer’s control 69 Clause 122: Herd basis elections 69 Clause 123: Five year gap in which no production herd kept 70 Clause 124: Slaughter under disease control order 71 Clause 125: Preventing abuse of the herd basis rules 71 Clause 126: Information if election made 71 Clause 127: Further assessment etc if herd basis rules apply 71 Chapter 9: Trade profits: other specific trades 71 Clause 128: Taxation of amounts taken to reserves 71 Clause 129: Conversion etc of securities held as circulating capital 72 Clause 130: Traders receiving distributions etc 73 Clause 131: Incidental costs of issuing qualifying shares 74 Clause 132: Dividends etc granted by industrial and provident societies 74 Clause 133: Annual payments paid by a credit union 75 Clause 134: Purchase or sale of woodlands 75 Clause 135: Relief in respect of mineral royalties 75 Clause 136: Lease premiums etc: reduction of receipts 76 Clause 137: Mineral exploration and access 76 Clause 138: Payments by companies liable to pool betting duty 76 Clause 139: Deduction for deemed employment payment 77 Clause 140: Special rules for partnerships 78 Clause 141: Deduction for deemed employment payments 78 Clause 142: Deduction for site preparation expenditure 79 Clause 143: Allocation of site preparation expenditure 79 Clause 144: Site preparation expenditure: supplementary 80 Clause 145: Site restoration payments 80 Clause 146: Cemeteries and crematoria: introduction 80 Clause 147: Deduction for capital expenditure 81 Clause 148: Allocation of ancillary capital expenditure 81 Clause 149: Exclusion of expenditure met by subsidies 81 Clause 150: Revenue nature of expenditure 82 Clause 151: Allocation of expenditure 82 Clause 152: Interpretation of sections 150 and 151 82 Clause 153: Reserves of marketing authorities and certain other statutory bodies 82 Clause 154: Conditions to be met by reserve fund 83 Clause 155: Interpretation of sections 153 and 154 83 Chapter 10: Trade profits: changes in trading stock 83 Clause 156: Meaning of “trading stock” 83 Clause 157: Trading stock appropriated by trader 84 Clause 158: Trading stock supplied by trader 84 Clause 159: Disposals not made in the course of trade 84 Clause 160: Acquisitions not made in the course of trade 84 Clause 161: Transfer pricing rules to take precedence 84 Chapter 11: Trade profits: valuation of stock on cessation of trade 84 Clause 162: Valuation of trading stock on cessation 85 Clause 163: Meaning of “trading stock” 85 Clause 164: Basis of valuation of trading stock 85 Clause 165: Sale basis of valuation: sale to unconnected person 86 Clause 166: Sale basis of valuation: sale to connected person 86 Clause 167: Sale basis of valuation: election by connected persons 86 Clause 168: Connected persons 87 Clause 169: Cost to buyer of stock valued on sale basis of valuation 87 Clause 170: Meaning of “sale” and related expressions 87 Clause 171: Determination of questions 87 Chapter 12: Deductions from profits: unremittable amounts 88 Clause 172: Application of Chapter 88 Clause 173: Relief for unremittable amounts 89 Clause 174: Restrictions on relief 90 Clause 175: Withdrawal of relief 90 Chapter 13: Disposal and acquisition of know-how 91 Clause 176: Meaning of “know-how” etc 91 Clause 177: Disposal of know-how if trade continues to be carried on 92 Clause 178: Disposal of know-how as part of disposal of all or part of a trade 92 Clause 179: Seller controlled by buyer etc 93 Chapter 14: Adjustment on change of basis 93 Clause 180: Application of Chapter 94 Clause 181: Giving effect to positive and negative adjustments 94 Clause 182: Calculation of the adjustment 95 Clause 183: No adjustment for certain expenses previously brought into account 95 Clause 184: Cases where adjustment not required until assets realised or written off 95 Clause 185: Change from realisation basis to mark to market 95 Clause 186: Election for spreading if section 185 applies 96 Clause 187: Transfer of insurance business 96 Chapter 15: Post-cessation receipts 96 Clause 188: Charge to tax on post-cessation receipts 97 Clause 189: Extent of charge to tax 97 Clause 190: Basic meaning of “post-cessation receipt” 97 Clause 191: Other rules about what counts as post-cessation receipts 97 Clause 192: Debts paid after cessation 98 Clause 193: Debts released after cessation 98 Clause 194: Transfer of rights if transferee does not carry on trade 98 Clause 195: Transfer of trading stock 99 Clause 196: Allowable deductions 99 Clause 197: Further rules about allowable deductions 99 Clause 198: Election to carry back 99 Clause 199: Deductions already made are not displaced 100 Clause 200: Election given effect in accounting period in which receipt is received 100 Chapter 16: Priority rules 100 Clause 201: Provisions which must be given priority over this Part 100 Part 4: Property income 101 Chapter 1: Introduction 101 Clause 202: Overview of Part 101 Chapter 2: Property businesses 101 Clause 203: Overview of Chapter 101 Clause 204: Meaning of “property business” 102 Clause 205: UK property business 102 Clause 206: Overseas property business 102 Clause 207: Meaning of “generating income from land” 103 Clause 208: Activities not for generating income from land 103 Chapter 3: Profits of property businesses: basic rules 103 Clause 209: Charge to tax on profits of a property business 103 Clause 210: Profits of a property business: application of trading income rules 103 Clause 211: Loan relationships and derivative contracts 105 Clause 212: Items treated as receipts and expenses 105 Clause 213: Certain amounts brought into account under Part 3 106 Clause 214: Relationship between rules prohibiting and allowing deductions 106 Chapter 4: Profits of property businesses: lease premiums etc 106 Chapter 5: Profits of property businesses: other rules about receipts and deductions 117 Clause 248: Furnished lettings 117 Clause 249: Acquisition of business: receipts from transferor’s UK property business 118 Clause 250: Reverse premiums 118 Clause 251: Deduction for expenditure on energy-saving items 119 Clause 252: Restrictions on relief 119 Clause 253: Regulations 119 Clause 254: Deduction for expenditure on sea walls 119 Clause 255: Transfer of interest in premises 120 Clause 256: Ending of lease of premises 120 Clause 257: Transfer involving person within the charge to income tax 121 Clause 258: Relief in respect of mineral royalties 122 Clause 260: Mutual business 123 Clause 261: Adjustment on change of basis 123 Clause 262: Giving effect to positive and negative adjustments 124 Clause 263: Expenditure on integral features 124 Chapter 6: Commercial letting of furnished holiday accommodation 124 Clause 264: Overview of Chapter 124 Clause 265: Meaning of “commercial letting of furnished holiday accommodation” 125 Clause 266: Meaning of “relevant period” in sections 267 and 268 125 Clause 267: Meaning of “qualifying holiday accommodation” 125 Clause 268: Under-used holiday accommodation: averaging elections 126 Clause 269: Capital allowances and loss relief 126 Chapter 7: Rent receivable in connection with a UK section 39(4) concern 126 Clause 270: Charge to tax on rent receivable in connection with a UK section 39(4) concern 127 Clause 271: Meaning of “rent receivable in connection with a UK section 39(4) concern” 127 Clause 272: Deduction for management expenses of owner of mineral rights 128 Clause 273: Relief in respect of mineral royalties 128 Clause 274: Meaning of “mineral lease or agreement” and “mineral royalties” 128 Clause 275: Extended meaning of “mineral royalties” etc in Northern Ireland 129 Clause 276: Power to determine what counts as “mineral royalties” 129 Chapter 8: Rent receivable for UK electric-line wayleaves 129 Clause 277: Charge to tax on rent receivable for a UK electric-line wayleave 130 Clause 278: Meaning of “rent receivable for a UK electric-line wayleave” 130 Clause 279: Extent of charge to tax 130 Chapter 9: Post-cessation receipts 131 Clause 280: Charge to tax on post-cessation receipts 131 Clause 281: Extent of charge to tax 131 Clause 282: Basic meaning of “post-cessation receipt” 131 Clause 283: Other rules about what counts as a “post-cessation receipt” 132 Clause 284: Transfer of rights if transferee does not carry on UK property business 132 Clause 285: Allowable deductions 132 Clause 286: Election to carry back 132 Chapter 10: Supplementary 133 Clause 287: Provisions which must be given priority over this Part 133 Clause 288: Priority between Chapters within this Part 133 Clause 289: Effect of company starting or ceasing to be within charge to corporation tax 133 Clause 290: Overseas property businesses and overseas land: adaptation of rules 133 Clause 291: Meaning of “lease” and “premises” 134 Part 5: Loan Relationships 134 Chapter 1: Introduction 134 Clause 292: Overview of Part 135 Clause 293: Construction of references to profits or losses from loan relationships 135 Clause 294: Matters treated as loan relationships 135 Clause 295: General rule: profits arising from loan relationships chargeable as income 135 Clause 296: Profits and deficits to be calculated using credits and debits given by this Part 135 Clause 297: Trading credits and debits to be brought into account under Part 3 135 Clause 298: Meaning of trade and purposes of trade 135 Clause 299: Charge to tax on non-trading profits 136 Clause 300: Method of bringing non-trading deficits into account 136 Clause 301: Calculation of non-trading profits and deficits from loan relationships: non-trading credits and debits 136 Chapter 2 Basic definitions 136 Clause 302: “Loan relationship”, “creditor relationship”, “debtor relationship” 136 Clause 303: “Money debt” 136 Clause 304: “Related transaction” 136 Clause 305: Payments, interest, rights and liabilities under a loan relationship 136 Chapter 3: The credits and debits to be brought into account: general 136 Clause 306: Overview of Chapter 137 Clause 307: General principles about the bringing into account of credits and debits 137 Clause 308: Amounts recognised in determining a company’s profit or loss 137 Clause 309: Companies without GAAP-compliant accounts 138 Clause 310: Power to make regulations about recognised amounts 138 Clause 311: Amounts not fully recognised for accounting purposes: introduction 138 Clause 312: Determination of credits and debits where amounts not fully recognised 138 Clause 313: Basis of accounting: “amortised cost basis”, “fair value accounting” and “fair value” 138 Clause 314: Power to make regulations about changes from amortised cost basis 139 Clause 315: Introduction to sections 316 to 319 139 Clause 316: Change of accounting policy involving change of value 139 Clause 317: Carrying value 139 Clause 318: Change of accounting policy following cessation of loan relationship 139 Clause 319: General power to make regulations about changes in accounting policy 139 Clause 320: Credits and debits treated as relating to capital expenditure 140 Clause 321: Credits and debits recognised in equity 140 Clause 322: Release of debts: cases where credits not required to be brought into account 140 Clause 323: Meaning of expressions relating to insolvency etc 140 Clause 324: Restriction on debits resulting from revaluation 140 Clause 325: Restriction on credits resulting from reversal of disallowed debits 141 Clause 326: Writing off government investments 141 Clause 327: Disallowance of imported losses etc 141 Clause 328: Exchange gains and losses 141 Clause 329: Pre-loan relationship and abortive expenses 141 Clause 330: Debits in respect of pre-trading expenditure 141 Clause 331: Company ceasing to be party to loan relationship 142 Clause 332: Repo, stock lending and other transactions 142 Clause 333: Company ceasing to be UK resident 142 Clause 334: Non-UK resident company ceasing to hold loan relationship for UK permanent establishment 142 Chapter 4: Continuity of treatment on transfers within groups or on reorganisations 142 Clause 335: Introduction to Chapter 142 Clause 336: Transfers of loans on group transactions 142 Clause 337: Transfers of loans on insurance business transfers 143 Clause 338: Meaning of company replacing another as party to loan relationship 143 Clause 339: Issues of new securities on certain cross-border reorganisations 143 Clause 340: Group transfers and transfers of insurance business: transfer at notional carrying value 143 Clause 341: Transferor using fair value accounting 143 Clause 342: Issues of new securities on reorganisations: disposal at notional carrying value 144 Clause 343: Receiving company using fair value accounting 144 Clause 344: Introduction 144 Clause 345: Transferee leaving group otherwise than because of exempt distribution 144 Clause 346: Transferee leaving group because of exempt distribution 144 Clause 347: Disapplication of Chapter where transferor party to avoidance 145 Chapter 5: Connected companies relationships: introduction and general 145 Clause 348: Introduction: meaning of “connected companies relationship” 145 Clause 349: Application of amortised cost basis to connected companies relationships 145 Clause 350: Companies beginning to be connected 146 Clause 351: Companies ceasing to be connected 146 Clause 352: Disregard of related transactions 146 Chapter 6: Connected companies relationships: impairment losses and releases of debts 146 Clause 353: Introduction to Chapter 146 Clause 354: Exclusion of debits for impaired or released connected companies debts 147 Clause 355: Cessation of connection 147 Clause 356: Exception to section 354: swapping debt for equity 147 Clause 357: Exception to section 354: insolvent creditors 147 Clause 358: Exclusion of credits on release of connected companies debts: general 147 Clause 359: Exclusion of credits on release of connected companies debts during creditor’s insolvency 148 Clause 360: Exclusion of credits on reversal of impairments of connected companies debts 148 Clause 361: Acquisition of creditor rights by connected company at undervalue 148 Clause 362: Parties becoming connected where creditor’s rights subject to impairment adjustment 148 Clause 363: Companies connected for sections 361 and 362 148 Chapter 7: Group relief claims involving impaired or released consortium debts 149 Clause 364: Introduction to Chapter 149 Clause 365: Reduction of impairment loss debits where group relief claimed 149 Clause 366: Effect where credit for release brought into account on amortised cost basis 149 Clause 367: Reduction of credits exceeding impairment losses 149 Clause 368: Reduction of claims where there are earlier net consortium debits 150 Clause 369: Carry forward of claims where there are no net consortium debits 150 Clause 370: Group accounting periods 150 Clause 371: Interpretation 150 Chapter 8: Connected parties relationships: late interest 150 Clause 372: Introduction to Chapter 150 Clause 373: Late interest treated as not accruing until paid in some cases 150 Clause 374: Connection between debtor and person standing in position of creditor 151 Clause 375: Loans to close companies by participators etc 151 Clause 376: Interpretation of section 375 151 Clause 377: Party to loan relationship having major interest in other party 151 Clause 378: Loans by trustees of occupational pension schemes 151 Clause 379: Persons indirectly standing in the position of creditor 151 Chapter 9: Partnerships involving companies 151 Clause 380: Partnerships involving companies 152 Clause 381: Determinations of credits and debits by company partners: general 152 Clause 382: Company partners using fair value accounting 152 Clause 383: Lending between partners and the partnership 152 Clause 384: Treatment of exchange gains and losses 152 Clause 385: Company partners’ shares where firm owns deeply discounted securities 153 Chapter 10: Insurance companies 153 Clause 386: Overview of Chapter 153 Clause 387: Treatment of deficit on basic life assurance and general annuity business: introduction 153 Clause 388: Basic rule: deficit set off against income and gains of deficit period 153 Clause 389: Claim to carry back deficit 154 Clause 390: Meaning of “available profits” 154 Clause 391: Carry forward of surplus deficit to next accounting period 154 Clause 392: Exclusion of loan relationships of members of Lloyd’s 154 Clause 393: General rules for some debtor relationships 154 Clause 394: Special rules for some debtor relationships 154 Chapter 11: Other special kinds of company 155 Clause 395: Investment trusts: profits or losses of a capital nature 155 Clause 396: Venture capital trusts: profits or losses of a capital nature 155 Clause 397: Credit unions 156 Chapter 12: Special rules for particular kinds of securities 156 Clause 398: Overview of Chapter 156 Clause 399: Index-linked gilt-edged securities: basic rules 156 Clause 400: Index-linked gilt-edged securities: adjustments for changes in index 156 Clause 401: Gilt strips 156 Clause 402: Market value of securities 157 Clause 403: Meaning of “strip” 157 Clause 404: Restriction on deductions etc relating to FOTRA securities 157 Clause 405: Certain non-UK residents with interest on 31/2% War Loan 1952 Or After 157 Clause 406: Introduction 158 Clause 407: Postponement until redemption of debits for connected companies’ deeply discounted securities 158 Clause 408: Companies connected for section 407 158 Clause 409: Postponement until redemption of debits for close companies’ deeply discounted securities 158 Clause 410: Exceptions to section 409 158 Clause 411: Interpretation of section 409 158 Clause 412: Persons indirectly standing in the position of creditor 158 Clause 413: Issue of funding bonds 159 Clause 414: Redemption of funding bonds 159 Clause 415: Loan relationships with embedded derivatives 159 Clause 416: Election for application of sections 415 and 585 159 Clause 417: Further provisions about elections under section 416 159 Clause 418: Loan relationships treated differently by connected debtor and creditor 159 Clause 419: Section 418: supplementary 160 Clause 420: Assumptions where options etc apply 160 Chapter 13: European cross-border transfers of business 160 Clause 421: Introduction to Chapter 160 Clause 422: Transfer of loan relationship at notional carrying value 160 Clause 423: Transferor using fair value accounting 160 Clause 424: Reorganisations involving loan relationships 160 Clause 425: Original holder using fair value accounting 161 Clause 426: Tax avoidance etc 161 Clause 427: Procedure on application for clearance 161 Clause 428: Decision on application for clearance 161 Clause 429: Disapplication of Chapter where transparent entities involved 161 Clause 430: Interpretation 161 Chapter 14: European cross-border mergers 162 Clause 435: Reorganisations involving loan relationships 162 Clause 436: Original holder using fair value accounting 162 Clause 437: Tax avoidance etc 163 Clause 438: Disapplication of Chapter where transparent entities involved 163 Clause 439: Interpretation 163 Chapter 15: Tax avoidance 163 Clause 440: Overview of Chapter 163 Clause 441: Loan relationships for unallowable purposes 163 Clause 442: Meaning of “unallowable purpose” 163 Clause 443: Restriction of relief for interest where tax relief schemes involved 163 Clause 444: Transactions not at arm’s length: general 164 Clause 445: Disapplication of section 444 where Schedule 28AA to ICTA applies 165 Clause 446: Bringing into account adjustments made under Schedule 28AA to ICTA 165 Clause 447: Exchange gains and losses on debtor relationships: loans disregarded under Schedule 28AA to ICTA 165 Clause 448: Exchange gains and losses on debtor relationships: equity notes where holder associated with issuer 165 Clause 449: Exchange gains and losses on creditor relationships: no corresponding debtor relationship 166 Clause 450: Meaning of “corresponding debtor relationship” 166 Clause 451: Exception to section 449 where loan exceeds arm’s length amount 166 Clause 452: Exchange gains and losses where loan not on arm’s length terms 166 Clause 453: Connected parties deriving benefit from creditor relationships 166 Clause 454: Application of fair value accounting: reset bonds etc 167 Clause 455: Disposals for consideration not fully recognised by accounting practice 167 Chapter 16: Non-trading deficits 167 Clause 456: Introduction to Chapter 167 Clause 457: Basic rule for deficits: carry forward to accounting periods after deficit period 167 Clause 458: Claim to carry forward deficit to later accounting periods 167 Clause 459: Claim to set off deficit against profits of deficit period or earlier periods 168 Clause 460: Time limits and procedure for claims under section 459(1) 168 Clause 461: Claim to set off deficit against other profits for the deficit period 169 Clause 462: Claim to carry back deficit to earlier accounting periods 169 Clause 463: Profits available for relief under section 462 169 Chapter 17: Priority rules 169 Clause 464: Priority of this Part for corporation tax purposes 169 Clause 465: Exclusion of distributions except in tax avoidance cases 169 Chapter 18: General and supplementary provisions 170 Clause 466: Companies connected for an accounting period 170 Clause 467: Connections where partnerships are involved 170 Clause 468: Connection between companies to be ignored in some circumstances 170 Clause 469: Creditors who are financial traders 170 Clause 470: Section 469: supplementary provisions 171 Clause 471: Creditors who are insurance companies carrying on BLAGAB 171 Clause 472: Meaning of “control” 171 Clause 473: Meaning of “major interest” 171 Clause 474: Treatment of connected companies and partnerships for section 473 171 Clause 475: Meaning of expressions relating to exchange gains and losses 171 Clause 476: Other definitions 171 |
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| © Parliamentary copyright 2008 | Prepared: 5 December 2008 |