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
673

(b)
in sub-paragraph (ii) for “that Act” substitute “the Income and
Corporation Taxes Act 1988”.
Taxes Management Act 1970 (c. 9)
295
The Taxes Management Act 1970 is amended as follows.
296
In section 12(5) (information about chargeable gains) for “section 100(2) of
5
the principal Act” substitute “section 163 of CTA 2009”.
297
Omit section 12AE (choice between different Cases of Schedule D).
298
In section 17 (interest paid or credited by banks, building societies etc
without deduction of income tax) after subsection (7) insert—
“(8)
References in this section to interest include references to—
10
(a)
alternative finance return within the meaning of Chapter 5 of
Part 2 of the Finance Act 2005 (see section 57 of that Act), and
(b)
alternative finance return within the meaning of Chapter 6 of
Part 6 of CTA 2009 (see sections 511 to 513 of that Act).”
299
In section 18 (interest paid without deduction of income tax) at the end
15
insert—
“(5)
References in this section to interest include references to—
(a)
alternative finance return within the meaning of Chapter 5 of
Part 2 of the Finance Act 2005 (see section 57 of that Act), and
(b)
alternative finance return within the meaning of Chapter 6 of
20
Part 6 of CTA 2009 (see sections 511 to 513 of that Act).”
300   (1)
Amend section 19 (information for purposes of charge on profits of UK
property business or under Schedule A) as follows.
      (2)
In subsection (1) for “as the profits of a UK property business or under
Schedule A” substitute “, or under Chapter 3 of Part 4 of CTA 2009, as the
25
profits of a UK property business”.
      (3)
Omit subsection (2).
301
Omit section 31(3) (appeals: right of appeal).
302
In section 42(7) (procedure for making claims etc)—
(a)
in paragraph (a)—
30
(i)
omit “, 84, 91B, 101(2),” and “504, 531,”, and
(ii)
for the words from “571(4)” to the end substitute “571(4) and
732(4) of the principal Act;”,
(b)
omit paragraph (b),
(c)
omit the “and” immediately after paragraph (e), and
35
(d)
at the end insert “, and
“(g)
sections 109(1), 124(2), 127(2), 178 and 268 of CTA
2009.”
303
In section 46B(5) (questions to be determined by Special Commissioners),
after paragraph (d) insert “or
40
(e)
section 1313 of CTA 2009.”

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
674

304
In section 71(1) (bodies of persons) omit the words from “Subject to” to
“companies),”.
305
In section 87A(4A)(b) (interest on overdue corporation tax etc) for “section
83(2)(c)” to “that Act” substitute “section 389(1) or 459(1)(b) of CTA 2009”.
306   (1)
Amend section 90 (disallowance of relief for interest on tax) as follows.
5
      (2)
In subsection (1) omit paragraph (b) and the “and” immediately before that
paragraph.
      (3)
Omit subsection (2).
      (4)
For the title substitute “Interest on tax payable gross”.
307   (1)
Amend section 98 (special returns, etc) as follows.
10
      (2)
In the first column of the Table—
(a)
omit the entry relating to section 38(5) of ICTA,
(b)
at the appropriate place in the list of entries relating to ICTA insert—
“section 76ZE(5);”,
(c)
omit the entry relating to section 588(7) of ICTA,
15
(d)
omit the entry relating to paragraph 10 of Schedule 5 to ICTA, and
(e)
at the end insert—
“Section 75(5) of CTA 2009;
Section 126 of CTA 2009;
Section 241 of CTA 2009;
20
Section 245 of CTA 2009;
Section 966(1) of CTA 2009.”
      (3)
In the second column of the Table—
(a)
at the appropriate place in the list of entries relating to ICTA insert—
“section 76ZE(4);”,
25
(b)
omit the entry relating to section 577(4) of ICTA,
(c)
omit the entry relating to section 588(6) of ICTA, and
(d)
at the end insert—
“Section 75(4) of CTA 2009.”
308
After section 109 insert—
30
“109A
Residence of companies
Chapter 3 of Part 2 of CTA 2009 (rules for determining residence of
companies) applies for the purposes of this Act as it applies for the
purposes of the Corporation Tax Acts.”
309
In section 118 (interpretation) at the appropriate place insert—
35
““CTA 2009” means the Corporation Tax Act 2009,”.
310
In Schedule 3 (rules for assigning proceedings to General Commissioners),
in paragraph 10—
(a)
omit “102(1),” and
(b)
for “and section 563 of the Capital Allowances Act.” substitute
40
“, section 563 of the Capital Allowances Act and section 171 of CTA
2009.”

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
675

Finance Act 1973 (c. 51)
311
The Finance Act 1973 is amended as follows.
312
In paragraph 2(a) of Schedule 15 (territorial extension of charge to tax -
supplementary provisions) for “or section 874 of the Income Tax (Trading
and Other Income) Act 2005;” substitute “, section 874 of the Income Tax
5
(Trading and Other Income) Act 2005 or section 1313 of the Corporation Tax
Act 2009;”.
Oil Taxation Act 1975 (c. 22)
313
The Oil Taxation Act 1975 is amended as follows.
314
In section 3(2) (allowance of expenditure (other than expenditure on long-
10
term assets and abortive exploration expenditure)) in the first sentence—
(a)
omit “under subsection (2) of section 579 of the Taxes Act or”,
(b)
after “(“ITTOIA 2005”)” insert “or section 77 of the Corporation Tax
Act 2009”, and
(c)
omit “that subsection or”.
15
Inheritance Tax Act 1984 (c. 51)
315
The Inheritance Tax Act 1984 is amended as follows.
316   (1)
Amend section 91 (administration period) as follows.
      (2)
In subsection (2) for paragraph (c) substitute—
“(c)
subject to subsection (3) below, “charges on residue” means,
20
in relation to the estate of a deceased person, the following
liabilities properly payable out of the estate and interest
payable in respect of those liabilities—
(i)
funeral, testamentary and administration expenses
and debts,
25
(ii)
general legacies, demonstrative legacies, annuities
and any sum payable out of the residue of the estate
to which a person is entitled under the law of
intestacy of any part of the United Kingdom or any
other country, and
30
(iii)
any other liabilities of the deceased person’s personal
representatives as such,
(d)
“specific disposition” has the meaning given in section 947(6)
of the Corporation Tax Act 2009, and
(e)
the reference to the completion of the administration of the
35
estate shall be construed as if it were in Chapter 3 of Part 10
of that Act.”
      (3)
After subsection (2) insert—
“(3)
If, as between—
(a)
persons interested under a specific disposition or in a general
40
or demonstrative legacy or in an annuity, and
(b)
persons interested in the residue of an estate,

any such liabilities as are mentioned in paragraph (c) of subsection
(2) above fall exclusively or primarily on the property that is the

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
676

subject of the specific disposition or on the legacy or annuity, only
such part (if any) of those liabilities as falls ultimately on the residue
shall be treated as charges on residue.
(4)
In the application of this section to Scotland, “charges on residue”
shall include, in addition to the liabilities specified in subsection
5
(2)(c), any sums required to meet—
(a)
claims in respect of prior rights or legal rights by a surviving
spouse or civil partner, or
(b)
claims in respect of legal rights by children.”
317
In section 94(2)(a) (charge on participators) for “section 208 of the Taxes Act
10
1988” substitute “section 1285 of the Corporation Tax Act 2009 (exemption
for UK company distributions)”.
Films Act 1985 (c. 21)
318
The Films Act 1985 is amended as follows.
319
In paragraph 1(1) of Schedule 1 (certification of British films for the purposes
15
of film tax relief), in the definition of “film production company”, for the
words from “Chapter 3” to the end substitute “Part 15 of the Corporation Tax
Act 2009 (see section 1182 of that Act)”.
Airports Act 1986 (c. 31)
320
The Airports Act 1986 is amended as follows.
20
321
In section 77(3) (corporation tax) for “Chapter II of Part IV of the Finance Act
1996” substitute “Part 5 of the Corporation Tax Act 2009”.
Finance Act 1986 (c. 41)
322
The Finance Act 1986 is amended as follows.
323
In section 78(7)(d) (loan capital) after “2005” insert “or section 507 of the
25
Corporation Tax Act 2009”.
324
In section 79 (loan capital: new provisions)—
(a)
in subsection (6), as it has effect by virtue of subsection (8A)(a) of that
section, after “2005”, in both places where it occurs, insert “or section
507(1) of the Corporation Tax Act 2009”, and
30
(b)
in subsection (8A)(b) after “2005” insert “or section 507 of the
Corporation Tax Act 2009”.
325
In section 99(9A) (interpretation) after “2005” insert “or section 507 of the
Corporation Tax Act 2009”.
Gas Act 1986 (c. 44)
35
326
The Gas Act 1986 is amended as follows.
327
In section 60(3) (tax provisions) for “Chapter II of Part IV of the Finance Act
1996” substitute “Part 5 of the Corporation Tax Act 2009”.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
677

British Steel Act 1988 (c. 35)
328
The British Steel Act 1988 is amended as follows.
329
In section 11(7) (corporation tax) for “Chapter II of Part IV of the Finance Act
1996” substitute “Part 5 of the Corporation Tax Act 2009”.
Finance Act 1988 (c. 39)
5
330
The Finance Act 1988 is amended as follows.
331
Omit section 65 (commercial woodlands).
332
Omit section 66 (company residence).
333
Omit section 66A (residence of SE or SCE).
334
Omit section 73(2) to (4) (consideration for certain restrictive undertakings).
10
335
Omit Schedule 6 (commercial woodlands).
336
Omit Schedule 7 (exceptions to the rule in section 66(1)).
337
In paragraph 3 of Schedule 12 (building societies: change of status)—
(a)
omit sub-paragraph (1), and
(b)
in sub-paragraph (2) for “those Acts” substitute “the Capital
15
Allowances Act 2001”.
Finance Act 1989 (c. 26)
338
The Finance Act 1989 is amended as follows.
339
Omit section 43 (Schedule D: computation (unpaid remuneration)).
340
Omit section 44 (companies with investment business and insurance
20
companies: computation).
341
In section 82(1) (calculation of profits: bonuses etc) for the words from “, for”
to the end substitute “computed in accordance with the provisions
applicable for the purposes of the taxation of such profits under section 35 of
the Corporation Tax Act 2009 (charge on trade profits)”.
25
342
In section 82D(2) (treatment of profits: life assurance - adjustment
consequent on change in Insurance Prudential Sourcebook) for the words
from “for the purposes” to “Schedule D” substitute “in accordance with the
life assurance trade profits provisions”.
343
In section 82E(7) (section 82D: treatment of transferors under insurance
30
business transfer schemes) for the words from “for the purposes” to
“Schedule D” substitute “in accordance with the life assurance trade profits
provisions”.
344   (1)
Amend section 83 (receipts to be taken into account) as follows.
      (2)
In subsection (1) for the words from “, for” to the end substitute “computed
35
in accordance with the provisions applicable for the purposes of the taxation
of such profits under section 35 of the Corporation Tax Act 2009 (charge on
trade profits)”.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
678

      (3)
For subsection (2ZA)(a) to (c) substitute—
“(a)
section 464 of the Corporation Tax Act 2009 (priority of Part
5 of that Act for corporation tax purposes),
(b)
section 699 of that Act (priority of Part 7 of that Act for
corporation tax purposes), and
5
(c)
section 906 of that Act (priority of Part 8 of that Act for
corporation tax purposes).”
      (4)
In subsection (2AB)(a) for “of the Taxes Act 1988 applicable to Case I of
Schedule D” substitute “applicable to the taxation of such profits under
section 35 of the Corporation Tax Act 2009”.
10
345   (1)
Amend section 83YC (FAFTS: charge in relevant period of account) as
follows.
      (2)
In subsection (6)(b) for “provisions of Case I of Schedule D” substitute “life
assurance trade profits provisions”.
      (3)
In subsection (10) for “provisions of Case I of Schedule D” substitute “life
15
assurance trade profits provisions”.
346
In section 83YD(3)(a) (FAFTS: deduction in subsequent periods of account)
for “section 82(2)(b) of the Finance Act 1996” substitute “section 297(3) of the
Corporation Tax Act 2009”.
347   (1)
Amend section 83YF (financial reinsurance arrangements: further
20
provision) as follows.
      (2)
In subsection (2) for “provisions of Case I of Schedule D” substitute “life
assurance trade profits provisions”.
      (3)
In subsection (3) for “provisions of Case I of Schedule D” substitute “life
assurance trade profits provisions”.
25
348   (1)
Amend section 85 (charge of certain receipts of basic life assurance business)
as follows.
      (2)
In subsection (1)—
(a)
for “there shall be chargeable under Case VI of that Schedule”
substitute “the charge to corporation tax on income shall apply to”,
30
(b)
in paragraph (a) for “Case I of Schedule D” substitute “section 35 of
the Corporation Tax Act 2009 (charge on trade profits)”, and
(c)
in paragraph (b) for “Case I of Schedule D” substitute “section 35 of
the Corporation Tax Act 2009”.
      (3)
In subsection (2)(e) for “Case I of Schedule D” substitute “section 35 of the
35
Corporation Tax Act 2009”.
      (4)
For subsection (2B) substitute—
“(2B)
Expenses are deducted from receipts falling within subsection (1) so
far as is necessary for calculating the full amount of the profits.

This is subject to subsection (2BA).
40
(2BA)
The provisions of Chapter 1 of Part 20 of the Corporation Tax Act
2009 (general rules for restricting deductions) apply to the
calculation of those profits.”
349   (1)
Amend section 85A (excess adjusted Case I profits) as follows.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
679

      (2)
In subsection (1) for the words “Case I profits under Case VI of that
Schedule” substitute “life assurance trade profits under the charge to
corporation tax on income”.
      (3)
In subsection (2) for “Case I”, in both places where it occurs, substitute “life
assurance trade”.
5
      (4)
In subsection (3)—
(a)
for “Case I profits” substitute “life assurance trade profits”, and
(b)
in paragraph (a) for “provisions applicable to Case I of Schedule D”
substitute “life assurance trade profits provisions”.
      (5)
In subsection (4) for “Case I of Schedule D” substitute “section 35 of the
10
Corporation Tax Act 2009”.
      (6)
In subsection (6)(b) omit “under Case VI of Schedule D”.
      (7)
In subsection (8)—
(a)
in paragraph (b)—
(i)
after “loan relationships” insert “under Part 5 of the
15
Corporation Tax Act 2009”, and
(ii)
omit the words from “by” to “1996”, and
(b)
in paragraph (c)—
(i)
for “paragraph 4(3) of that Schedule” substitute “section
389(1) of the Corporation Tax Act 2009”, and
20
(ii)
omit “(in accordance with paragraph 4(5) of that Schedule)”.
      (8)
In the title for “Case I” substitute “life assurance trade”.
350
In section 88(3)(b) (corporation tax: policy holders’ share of profits) omit
“under Case VI of Schedule D”.
351   (1)
Amend section 89 (policy holders’ share of profits) as follows.
25
      (2)
In subsection (1)(a) for “Case I” substitute “life assurance trade”.
      (3)
In subsection (1A)—
(a)
omit “under Case VI of Schedule D”, and
(b)
for “Case I”, in both places where it occurs, substitute “life assurance
trade”.
30
      (4)
In subsection (2) for “Case I” substitute “life assurance trade”.
      (5)
In subsection (3) for “Case I” substitute “life assurance trade”.
      (6)
In subsection (4) for “Case I”, in both places where it occurs, substitute “life
assurance trade”.
      (7)
In subsection (7)—
35
(a)
for ““Case I profits”” substitute ““life assurance trade profits””, and
(b)
for “provisions of the Taxes Act 1988 applicable to Case I of Schedule
D” substitute “life assurance trade profits provisions”.
      (8)
In subsection (7B) for “Case I” substitute “life assurance trade”.
Finance Act 1990 (c. 29)
40
352
The Finance Act 1990 is amended as follows.