Corporation Tax Bill

House of Commons

Session 2008 - 09
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Other Bills before Parliament

Corporation Tax Bill

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
691

444   (1)
Amend Schedule 15 (loan relationships: savings and transitional provisions)
as follows.
      (2)
Omit—
(a)
paragraph 2 (loan relationships terminated before 1st April 1996),
(b)
paragraph 3 (basic rules for transitional accounting periods),
5
(c)
paragraph 3A (adjustment of opening value where new accounting
basis adopted as from an accounting period beginning on 1st April
1996), and
(d)
paragraph 4 (application of accruals basis to pre-commencement
relationships).
10
      (3)
In paragraph 5—
(a)
in sub-paragraph (5) for “this Chapter is” substitute “this Chapter (as
it had effect immediately before 1st April 2009) was”,
(b)
in sub-paragraph (6)(b)—
(i)
for “which is” substitute “which was”, and
15
(ii)
after “this Chapter” insert “(as it had effect immediately
before 1st April 2009)”, and
(c)
in sub-paragraph (7)—
(i)
for “taken to be” substitute “taken to have been”,
(ii)
for “is treated” substitute “was treated”, and
20
(iii)
after “paragraph 4 above” insert “(as it had effect
immediately before 1st April 2009)”.
      (4)
In paragraph 6—
(a)
in sub-paragraph (3) for “this Chapter” substitute “Part 5 of the
Corporation Tax Act 2009”,
25
(b)
for sub-paragraphs (4) to (7) substitute—
    “(4)
Sub-paragraphs (1) to (3) above do not apply if the
company duly made an election for the purposes of this
sub-paragraph as it had effect on 30th September 1996.”,
and
30
(c)
in sub-paragraph (8)—
(i)
for “section 82(2) of this Act” substitute “section 297 of the
Corporation Tax Act 2009”, and
(ii)
at the end insert “under Part 5 of that Act”.
      (5)
In paragraph 9—
35
(a)
in sub-paragraph (1) after “this Chapter” insert “or Part 5 of the
Corporation Tax Act 2009”, and
(b)
in sub-paragraph (2)—
(i)
after “this Chapter”, in the first place where it occurs, insert
“or that Part”, and
40
(ii)
after “this Chapter”, in the second place where it occurs,
insert “or, as the case may be, that Part”.
      (6)
Omit paragraph 10 (adjustments of opening value for mark to market
accounting in the case of chargeable assets).
      (7)
In paragraph 11 (other adjustments in the case of chargeable assets etc)—
45
(a)
in sub-paragraphs (1) and (3)(a) for “this Chapter” substitute “Part 5
of the Corporation Tax Act 2009”,

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
692

(b)
in sub-paragraph (6) at the end insert “under Part 5 of the
Corporation Tax Act 2009”, and
(c)
in sub-paragraph (8) after “this Chapter” insert “and Part 5 of the
Corporation Tax Act 2009”.
      (8)
In paragraph 11A(2) (reduction of paragraph 11 credit where section 251(4)
5
of 1992 Act prevents paragraph 8 loss) for “this Chapter” substitute “Part 5
of the Corporation Tax Act 2009”.
      (9)
In paragraph 12 (notional closing values of relevant assets)—
(a)
in sub-paragraph (2) for “makes” substitute “made”, and
(b)
in sub-paragraph (3)—
10
(i)
for “is made” substitute “was made”, and
(ii)
after “this Chapter” insert “and Part 5 of the Corporation Tax
Act 2009”.
     (10)
Omit—
(a)
paragraph 13 (further transitional rules where interest under loan
15
relationships),
(b)
paragraph 14 (transitional in respect of incidental expenses already
allowed), and
(c)
paragraph 15 (holdings of unit trusts etc).
     (11)
In paragraph 16 (bad debt relieved before commencement of FA 1996)—
20
(a)
in sub-paragraph (2)—
(i)
after “this Chapter”, in the first place where it occurs, insert
“or Part 5 of the Corporation Tax Act 2009”, and
(ii)
after “this Chapter”, in the second place where it occurs,
insert “or that Part”,
25
(b)
in sub-paragraph (3)—
(i)
after “this Chapter”, in the first place where it occurs, insert
“and Part 5 of the Corporation Tax Act 2009”, and
(ii)
after “this Chapter”, in the second place where it occurs,
insert “and that Part”, and
30
(c)
in sub-paragraph (4) for “falls” substitute “fell”.
     (12)
In paragraph 17 (transitional for overseas sovereign debt etc)—
(a)
in sub-paragraph (1) after “this Chapter” insert “and Part 5 of the
Corporation Tax Act 2009”, and
(b)
in sub-paragraph (3)—
35
(i)
after “this Chapter”, in the first place where it occurs, insert
“and Part 5 of the Corporation Tax Act 2009”, and
(ii)
after “this Chapter”, in the second place where it occurs,
insert “and that Part”.
     (13)
Omit paragraph 18 (transitional for accrued income scheme).
40
     (14)
In paragraph 19 (deep discount securities)—
(a)
omit sub-paragraphs (1) and (2),
(b)
in sub-paragraphs (3A), (4), (5), (6), (7) and (8) for “this Chapter”
substitute “Part 5 of the Corporation Tax Act 2009”,
(c)
omit sub-paragraph (10), and
45
(d)
in sub-paragraph (11)(b) for “this Chapter is” substitute “this
Chapter was”.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
693

     (15)
In paragraph 20 (deep gain securities)—
(a)
omit sub-paragraph (1),
(b)
in sub-paragraphs (2A) and (3) for “this Chapter” substitute “Part 5
of the Corporation Tax Act 2009”, and
(c)
in sub-paragraph (5) for “this Chapter is” substitute “this Chapter (as
5
it had effect immediately before 1st April 2009) was”.
     (16)
In paragraph 21 (convertible securities)—
(a)
omit sub-paragraph (1), and
(b)
in sub-paragraphs (2) and (4) for “this Chapter” substitute “Part 5 of
the Corporation Tax Act 2009”.
10
Broadcasting Act 1996 (c. 55)
445
The Broadcasting Act 1996 is amended as follows.
446   (1)
Amend Schedule 7 (transfer schemes relating to BBC transmission
networking: taxation provisions) as follows.
      (2)
In paragraph 11(2) for “Chapter II of Part IV of the Finance Act 1996”
15
substitute “Part 5 of the Corporation Tax Act 2009”.
      (3)
In paragraph 21—
(a)
in sub-paragraph (1) for “Section 35 of the Taxes Act 1988 (charge on
lease” substitute “Section 222 of the Corporation Tax Act 2009
(lease”,
20
(b)
in sub-paragraph (2) for “Section 87 of the Taxes Act 1988 (taxable
premiums)” substitute “Sections 62 to 67 of the Corporation Tax Act
2009 (tenants occupying land for purposes of trade treated as
incurring expenses)” and for “that section to the amount chargeable”
substitute “those sections to the taxed receipt”, and
25
(c)
in sub-paragraph (3) for “Part II of the Taxes Act 1988” substitute
“Part 4 of the Corporation Tax Act 2009 (see section 291 of that Act)”.
Finance Act 1997 (c. 16)
447
The Finance Act 1997 is amended as follows.
448
In Schedule 12 (leasing arrangements: finance leases and loans), in
30
paragraph 11(11) for sub-paragraphs (a) and (b) substitute—
“(a)
section 165 or 168 of ITTOIA 2005 or section 142 or 145 of the
Corporation Tax Act 2009 (preparation and restoration
expenditure in relation to waste disposal site), or
(b)
section 170 of ITTOIA 2005 or section 147 of the Corporation
35
Tax Act 2009 (cemeteries etc),”.
Finance (No. 2) Act 1997 (c. 58)
449
The Finance (No. 2) Act 1997 is amended as follows.
450
Omit section 40 (carry-back of loan relationship deficits).
Finance Act 1998 (c. 36)
40
451
The Finance Act 1998 is amended as follows.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
694

452
Omit section 42 (computation of profits of trade, profession or vocation).
453
In section 46 (minor and consequential provisions about computations) omit
subsections (1) and (2).
454   (1)
Amend Schedule 18 (company tax returns, assessments and related matters)
as follows.
5
      (2)
In paragraph 9(2) for “section 6(2) of the Taxes Act 1988” substitute “section
3 of the Corporation Tax Act 2009”.
      (3)
In paragraph 10—
(a)
omit sub-paragraphs (2B) and (3), and
(b)
in sub-paragraph (5)—
10
(i)
for “section 32(7) of the Finance Act 2006” substitute “section
1182(7) of the Corporation Tax Act 2009”, and
(ii)
for “section 32(8)(a)” substitute “section 1182(8)(a)”.
      (4)
In paragraph 13(3) in the definition of “trading stock” for “section 100(2) of
the Taxes Act 1988” substitute “section 163 of the Corporation Tax Act 2009”.
15
      (5)
In paragraph 26(1)(b) for the words from “section 12(5A)” to “Board”
substitute “section 11(3) of the Corporation Tax Act 2009 (power of officer of
Revenue and Customs”.
      (6)
In paragraph 52—
(a)
in sub-paragraph (2)—
20
(i)
in paragraph (ba), for “Schedule 20 to the Finance Act 2000”
substitute “Chapter 2 or 7 of Part 13 of the Corporation Tax
Act 2009”,
(ii)
in paragraph (bb), for “Schedule 22 to the Finance Act 2001”
substitute “Part 14 of the Corporation Tax Act 2009”,
25
(iii)
omit paragraph (bc), and
(iv)
in paragraph (bd) after “credit” insert “under Part 15 of the
Corporation Tax Act 2009”,
(b)
omit sub-paragraph (4), and
(c)
in sub-paragraph (5)—
30
(i)
omit paragraph (ad), and
(ii)
at the end, omit “, (ad)”.
      (7)
In paragraph 83A for “Schedule 20 to the Finance Act 2000” substitute “Part
13 of the Corporation Tax Act 2009”.
      (8)
In paragraph 83F(1)—
35
(a)
in paragraph (a), after “tax credit” insert “under Chapter 2 or 7 of Part
13 of the Corporation Tax Act 2009”, and
(b)
in paragraph (b), after “by it” insert “under that Chapter”.
      (9)
In paragraph 83G—
(a)
in paragraph (a) for “paragraph 14 of Schedule 22 to the Finance Act
40
2001” substitute “section 1151 of the Corporation Tax Act 2009”, and
(b)
in paragraph (b) for “paragraph 24 of that Schedule” substitute
“section 1164 of that Act”.
     (10)
Omit Part 9BA.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
695

     (11)
Omit Part 9C.
     (12)
Omit paragraph 84 and the italic cross-heading before it.
Finance Act 1999 (c. 16)
455
The Finance Act 1999 is amended as follows.
456
Omit section 54 (tax treatment of reverse premiums).
5
457
Omit section 63 (treatment of transfer fees under existing contracts).
458   (1)
Amend section 81 (acquisitions disregarded under insurance companies
concession) as follows.
      (2)
In subsection (4)—
(a)
omit paragraph (a), and
10
(b)
in paragraph (b) for “paragraph 6(4)(a)” substitute “paragraph 6(4)”.
      (3)
In subsection (8) for “Chapter II of Part IV of the Finance Act 1996” substitute
“Part 5 of the Corporation Tax Act 2009 (see section 302(5))”.
      (4)
In subsection (9)—
(a)
for “section 473 of the Taxes Act 1988” substitute “section 129 of the
15
Corporation Tax Act 2009”,
(b)
for “the purposes of that Act” substitute “the purpose of calculating
the profits of a company’s trade”, and
(c)
for “paragraph 12(2) of Schedule 9 to the Finance Act 1996” and
“Chapter II of Part IV of that Act of 1996” substitute “section 340(2)
20
to (4) of the Corporation Tax Act 2009” and “Part 5 of that Act”
respectively.
      (5)
In subsection (13) for “Schedule 22 to the Finance Act 2002” substitute
“Chapter 14 of Part 3 of the Corporation Tax Act 2009”.
459
Omit Schedule 6 (tax treatment of receipts by way of reverse premium).
25
Commonwealth Development Corporation Act 1999 (c. 20)
460
The Commonwealth Development Corporation Act 1999 is amended as
follows.
461   (1)
Amend paragraph 6 of Schedule 3 (tax) as follows.
      (2)
In sub-paragraph (2)—
30
(a)
in paragraph (a) for “section 208 of the Income and Corporation
Taxes Act 1988” substitute “section 1285 of the Corporation Tax Act
2009”, and
(b)
in paragraph (b) for “that Act” substitute “the Income and
Corporation Taxes Act 1988”.
35
      (3)
In sub-paragraph (3) for the words from “as income” to the end substitute
“as dividends of a non-UK resident company chargeable under Chapter 2 of
Part 10 of the Corporation Tax Act 2009.”
Finance Act 2000 (c. 17)
462
The Finance Act 2000 is amended as follows.
40

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
696

463   (1)
Amend section 46 (exemption for small trades etc) as follows.
      (2)
For subsection (1)(b) substitute—
“(b)
from corporation tax chargeable—
(i)
under Part 3 of the Corporation Tax Act 2009 in
respect of a trade carried on wholly or partly in the
5
United Kingdom, or
(ii)
under or by virtue of any provision to which section
834A of the Taxes Act 1988 (miscellaneous charges)
applies,”.
      (3)
In subsection (2)(b) for “under Case VI of Schedule D” substitute “under or
10
by virtue of any provision to which section 834A of the Taxes Act 1988
applies”.
      (4)
In subsection (2A)—
(a)
for the words from “, 703” to “790” substitute “or 776”, and
(b)
omit paragraph (b).
15
      (5)
In subsection (6), in the definition of “income”, for paragraph (b)
substitute—
“(b)
any profits or gains or other income—
(i)
which is chargeable to corporation tax under
Part 3 of the Corporation Tax Act 2009 in
20
respect of a trade carried on wholly or partly
in the United Kingdom, or
(ii)
which is chargeable to corporation tax under
or by virtue of any provision to which section
834A of the Taxes Act 1988 applies,
25

and which (in either case) is not, apart from this
section, exempted from corporation tax chargeable
under or by virtue of that Part or provision.”
464
Omit section 50 (phasing out of relief for payments to trustees of profit
sharing schemes).
30
465
Omit section 69(1) (which introduces Schedule 20).
466
Omit section 143(2) (power to provide incentives to use electronic
communications).
467
In Schedule 12 (provision of services through an intermediary) omit
paragraphs 17 and 18.
35
468
In Schedule 15 (the corporate venturing scheme) in paragraph 60(1) omit
“under Case VI of Schedule D”.
469
Omit Schedule 20 (tax relief for expenditure on research and development).
470   (1)
Amend Schedule 22 (tonnage tax) as follows.
      (2)
In paragraph 50(2)—
40
(a)
in paragraph (a) for “Chapter II of Part IV of the Finance Act 1996”
substitute “Part 5 of the Corporation Tax Act 2009”, and
(b)
in paragraph (c) for “under Schedule 26 to the Finance Act 2002
(derivative contracts)” substitute “in accordance with Part 7 of the
Corporation Tax Act 2009 (derivative contracts)”.
45

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
697

      (3)
For paragraph 51(3) and (4) substitute—
    “(3)
For the purposes of this paragraph “income from investments”
includes anything chargeable to tax under—
(a)
Part 4 of the Corporation Tax Act 2009 (property income),
(b)
section 299 of that Act (loan relationships: non-trading
5
profits),
(c)
Chapter 5 of Part 10 of that Act (distributions from
unauthorised unit trusts), or
(d)
Chapter 7 of that Part (annual payments not otherwise
charged).”
10
      (4)
In paragraph 61(6) for “Chapter II of Part IV of the Finance Act 1996”
substitute “Part 5 of the Corporation Tax Act 2009”.
      (5)
In paragraph 62(6) for “Chapter II of Part IV of the Finance Act 1996”
substitute “Part 5 of the Corporation Tax Act 2009”.
      (6)
In paragraph 63(2)—
15
(a)
in paragraph (a) for “Chapter II of Part IV of the Finance Act 1996”
substitute “Part 5 of the Corporation Tax Act 2009”,
(b)
in paragraph (b) for “under Schedule 26 to the Finance Act 2002
(derivative contracts)” substitute “in accordance with Part 7 of the
Corporation Tax Act 2009 (derivative contracts)”, and
20
(c)
in paragraph (c) for “section 103(1A) of the Finance Act 1996”
substitute “section 475 of the Corporation Tax Act 2009”.
Transport Act 2000 (c. 38)
471
The Transport Act 2000 is amended as follows.
472   (1)
Amend Schedule 7 (transfer schemes: tax) as follows.
25
      (2)
In paragraph 12(5) for “section 100 of the 1988 Act” substitute “section 163 of
the Corporation Tax Act 2009”.
      (3)
In paragraph 17—
(a)
in sub-paragraph (2) for “Chapter II of Part IV of the Finance Act
1996” substitute “Part 5 of the Corporation Tax Act 2009”, and
30
(b)
in sub-paragraph (3) for “Chapter II of Part IV of the Finance Act
1996” and “that Chapter” substitute “Part 5 of the Corporation Tax
Act 2009” and “that Part” respectively.
473   (1)
Amend Schedule 26 (transfers: tax) as follows.
      (2)
In paragraph 7—
35
(a)
in sub-paragraph (2) for “Chapter II of Part IV of the Finance Act
1996” substitute “Part 5 of the Corporation Tax Act 2009”, and
(b)
in sub-paragraph (4) for “Chapter II of Part IV of the Finance Act
1996” and “that Chapter” substitute “Part 5 of the Corporation Tax
Act 2009” and “that Part” respectively.
40
      (3)
For paragraph 13(1) substitute—
    “(1)
Sub-paragraphs (2) to (4) apply if—
(a)
the transferor ceased to carry on a trade by virtue of a
relevant transfer taking effect, and