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Corporation Tax Bill


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

703

 

“(1A)   

For income tax purposes, the condition is that a person carrying on

the trade or property business immediately before the change

continues to carry it on after the change.

(1B)   

For corporation tax purposes, the condition is that a company

carrying on the trade or property business in partnership

5

immediately before the change continues to carry it on in partnership

after the change.”

496   (1)  

Amend section 265 (successions: general) as follows.

      (2)  

For subsection (1)(b) substitute—

“(b)   

if the qualifying activity is a trade or property business, the

10

condition in subsection (1A) or (1B) (whichever is

appropriate) is met.”

      (3)  

For subsection (1A) substitute—

“(1A)   

For income tax purposes, the condition is that no person carrying on

the trade or property business immediately before the succession

15

continues to carry it on after the succession.

(1B)   

For corporation tax purposes, the condition is that no company

carrying on the trade or property business in partnership

immediately before the succession continues to carry it on in

partnership after the succession.”

20

497        

In section 282 (buildings outside the United Kingdom) for the words from

“or that apply” to the end substitute “or corporation tax purposes.”

498        

In section 291(3)(a) (supplementary provisions with respect to elections) for

“section 38(1) to (4) and (6) of ICTA,” substitute “sections 243 and 244 of CTA

2009,”.

25

499        

In section 326(1) (interpretation of section 325), in the definition of

“premium” for paragraph (a) and the “or” immediately after it substitute—

“(a)   

an amount brought into account as a receipt in calculating the

profits of a property business under sections 217 to 221 of

CTA 2009 that is calculated by reference to the sum, or”.

30

500        

In section 331(1)(b) (meaning of “capital value”) for sub-paragraph (i) and

the “or” immediately after it substitute—

“(i)   

an amount brought into account as a receipt in

calculating the profits of a property business under

sections 217 to 221 of CTA 2009 that is calculated by

35

reference to the sum, or”.

501   (1)  

Amend section 353 (lessors and licensors) as follows.

      (2)  

In subsection (2) omit “, or a Schedule A business,”.

      (3)  

In subsection (4) for “Schedule A business” substitute “UK property

business”.

40

502   (1)  

Amend section 354 (buildings temporarily out of use) as follows.

      (2)  

In subsection (3), in the words after paragraph (b)—

(a)   

for “section 105 of ICTA” substitute “section 196 of CTA 2009”, and

 
 

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

704

 

(b)   

for “section 103 or 104(1) of ICTA” substitute “Chapter 15 of Part 3 of

CTA 2009”.

      (3)  

In subsection (5) for “section 18 of ITTOIA 2005 or section 337(1) of ICTA”

substitute “section 577(2A) of this Act or section 18 of ITTOIA 2005”.

503        

In section 390(1) (interpretation of section 389), in the definition of

5

“premium” for paragraph (a) and the “or” immediately after it substitute—

“(a)   

an amount brought into account as a receipt in calculating the

profits of a UK property business under sections 217 to 221 of

CTA 2009 that is calculated by reference to the sum, or”.

504   (1)  

Amend section 392 (UK property business and Schedule A business) as

10

follows.

      (2)  

In subsection (2) omit “, or a Schedule A business,”.

      (3)  

In subsection (2A)—

(a)   

omit the words from “is within” to “and he”, and

(b)   

for “treating him as if he had been carrying on” substitute “treating

15

the person as having carried on”.

      (4)  

Omit subsection (3).

      (5)  

For the title substitute “UK property businesses”.

505        

In section 393B(4) (meaning of “qualifying expenditure”) omit “or Schedule

A business”.

20

506        

In section 393J(3)(a) (entitlement to writing-down allowances) for “section

38(1) to (4) and (6) of ICTA,” substitute “sections 243 and 244 of CTA 2009,”.

507   (1)  

Amend section 393T (giving effect to allowances and charges) as follows.

      (2)  

In subsection (2) omit “, or a Schedule A business,”.

      (3)  

In subsection (2A)—

25

(a)   

for the words from “person” to “his” substitute “person’s”,

(b)   

for “by him” substitute “by the person”, and

(c)   

for “treating him as if he had been carrying on” substitute “treating

the person as having carried on”.

      (4)  

Omit subsection (3).

30

508   (1)  

Amend section 406 (reduction where premium relief previously allowed) as

follows.

      (2)  

In subsection (1)(b) for “sections 87 and 87A of ICTA” substitute “sections 62

to 67 of CTA 2009”.

      (3)  

In subsection (2) for “sections 87 and 87A of ICTA” substitute “sections 62 to

35

67 of CTA 2009”.

509        

In section 454(1)(c) (qualifying expenditure) for “section 531(3)(a) of ICTA”

substitute “section 178 of CTA 2009”.

510        

In section 455(4) (excluded expenditure) for “section 531(2) of ICTA”

substitute “section 178(3) of CTA 2009”.

40

 
 

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

705

 

511        

In section 462(3) (disposal values) for “section 531(2) of ICTA” substitute

“section 178(2) of CTA 2009”.

512        

In section 481(5)(b) (anti-avoidance: limit on qualifying expenditure) for

“section 524 of ICTA” substitute “section 912 of CTA 2009”.

513        

In section 483(c) (meaning of “income from patents”) for “section 524 or 525

5

of ICTA” substitute “section 912 or 918 of CTA 2009”.

514        

In section 488(3)(a) (balancing allowances) for “section 18 of ITTOIA or

section 337(1) of ICTA” substitute “section 577(2A) of this Act or section 18

of ITTOIA 2005”.

515   (1)  

Amend section 529 (giving effect to allowances and charges) as follows.

10

      (2)  

In subsection (1) omit “, or a Schedule A business,”.

      (3)  

In subsection (1A)—

(a)   

omit the words from “is within” to “and he”, and

(b)   

for “treating him as if he had been carrying on” substitute “treating

the person as having carried on”.

15

      (4)  

Omit subsection (2).

516        

In section 536(5)(a)(v) (contributions not made by public bodies and not

eligible for tax relief) for “section 55(2) of ICTA” substitute “section 39(5) of

CTA 2009”.

517        

In section 545(4) (investment assets) for “Case I of Schedule D” substitute

20

“section 35 of CTA 2009 (charge on trade profits)”.

518   (1)  

Amend section 558 (effect of partnership changes) as follows.

      (2)  

For subsection (1)(c) substitute—

“(c)   

the condition in subsection (1A) or (1B) (whichever is

appropriate) is met.”

25

      (3)  

After subsection (1) insert—

“(1A)   

For income tax purposes, the condition is that a person carrying on

the relevant activity immediately before the change continues to

carry it on after the change.

(1B)   

For corporation tax purposes, the condition is that a company

30

carrying on the relevant activity in partnership immediately before

the change continues to carry it on in partnership after the change.”

519   (1)  

Amend section 559 (effect of successions) as follows.

      (2)  

For subsection (1)(b) substitute—

“(b)   

the condition in subsection (1A) or (1B) (whichever is

35

appropriate) is met.”

      (3)  

For subsection (1A) substitute—

“(1A)   

For income tax purposes, the condition is that no person carrying on

the relevant activity immediately before the succession continues to

carry it on after the succession.

40

(1B)   

For corporation tax purposes, the condition is that no company

carrying on the relevant activity in partnership immediately before

 
 

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

706

 

the succession continues to carry it on in partnership after the

succession.”

520   (1)  

Amend section 577 (other definitions) as follows.

      (2)  

In subsection (1), in the definition of “property business” omit “, a Schedule

A business”.

5

      (3)  

After subsection (2) insert—

“(2A)   

A person’s ceasing to carry on a trade, property business, profession

or vocation is treated for the purposes of this Act as the permanent

discontinuance of the trade, property business, profession or

vocation, whether or not it is in fact discontinued.

10

(2B)   

For income tax purposes, a change in the persons carrying on a trade,

property business, profession or vocation is not treated as the

permanent discontinuance of the trade, property business,

profession or vocation if a person carrying it on immediately before

the change continues to carry it on after the change.

15

(2C)   

For corporation tax purposes, a change in the persons carrying on a

trade or property business is not treated as the permanent

discontinuance of the trade or property business if a company

carrying it on in partnership immediately before the change

continues to carry it on in partnership after the change.”

20

521   (1)  

Amend Schedule A1 (first-year tax credits) as follows.

      (2)  

In paragraph 5—

(a)   

in sub-paragraph (1) for “Schedule A business” substitute “UK

property business”, and

(b)   

in sub-paragraph (2) for “(Schedule A losses)” substitute “(UK

25

property business losses)”.

      (3)  

In paragraph 7—

(a)   

in sub-paragraph (1)(a) for “Schedule A business” substitute “UK

property business”, and

(b)   

in sub-paragraph (3) for “Schedule A business” substitute “UK

30

property business”.

      (4)  

In paragraph 8(2) for paragraph (a) substitute—

“(a)   

the sum of the amounts mentioned in section 1223(2) of

CTA 2009, exceeds”.

      (5)  

In paragraph 11(4) for paragraphs (a) to (d) substitute—

35

“(a)   

Chapter 2 or 7 of Part 13 of CTA 2009 (tax credits for

expenditure on research and development or vaccine

research etc),

(b)   

Chapter 3 of Part 14 of that Act (tax credits for remediation

of contaminated land), and

40

(c)   

Chapter 3 of Part 15 of that Act (film tax credits).”

      (6)  

In paragraph 12—

(a)   

in sub-paragraph (1) for “Schedule A business” substitute “UK

property business”, and

 
 

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

707

 

(b)   

in sub-paragraph (2)(c) for “Part 3 of Schedule 22 to FA 2001”

substitute “Chapter 3 of Part 14 of CTA 2009”.

      (7)  

In paragraph 14—

(a)   

in sub-paragraph (1)(a) for “Schedule A business” substitute “UK

property business”,

5

(b)   

in sub-paragraph (4)(a) for “Part 3 of Schedule 22 to FA 2001”

substitute “Chapter 3 of Part 14 of CTA 2009”, and

(c)   

in sub-paragraph (6)(b) for “paragraph 4(4) of Schedule 11 to FA

1996” substitute “section 391(3)(b) of CTA 2009”.

      (8)  

In paragraph 15(3) for “section 75(9) of that Act” substitute “section 1223 of

10

CTA 2009”.

      (9)  

In paragraph 16—

(a)   

in sub-paragraph (2)(a) for “Part 4 of Schedule 22 to FA 2001”

substitute “Chapter 4 of Part 14 of CTA 2009”, and

(b)   

in sub-paragraph (3)(b) for “paragraph 4(4) of Schedule 11 to FA

15

1996” substitute “section 391(3)(b) of CTA 2009”.

     (10)  

In paragraph 20—

(a)   

in sub-paragraph (b) for “section 75(9) of that Act (relief of expenses

and charges against future profits)” substitute “section 1223 of CTA

2009 (carrying expenses forward)”,

20

(b)   

in sub-paragraph (c)—

(i)   

for “Schedule A business” substitute “UK property business”,

(ii)   

for “Schedule A losses” substitute “UK property business

losses”, and

(iii)   

for “that Act” substitute “ICTA”, and

25

(c)   

in sub-paragraph (d) for “that Act” substitute “ICTA”.

     (11)  

In paragraph 21(1) for “Schedule A business” substitute “UK property

business”.

522   (1)  

Amend Schedule 1 (abbreviations and defined expressions) as follows.

      (2)  

In Part 1 at the end insert—

30

 

“CTA 2009

The Corporation Tax Act 2009”

 

      (3)  

In Part 2—

(a)   

in the entry for “accounting period”, in the second column, for

“section 12 of ICTA” substitute “Chapter 2 of Part 2 of CTA 2009”,

(b)   

after the entry for “car (in Part 2)” insert—

35

 

“the charge to

section 2(3) of CTA 2009 (as applied by

 
 

corporation

section 834(1) of ICTA)”,

 
 

tax on income

  

(c)   

in the entry for “overseas property business”, for the words in the

second column substitute “Chapter 2 of Part 3 of ITTOIA 2005 (as

40

applied by section 989 of ITA 2007) and Chapter 2 of Part 4 of CTA

2009 (as applied by section 834B of ICTA)”,

 
 

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

708

 

(d)   

omit the entry for “Schedule A business”, and

(e)   

in the entry for “UK property business”, in the second column, at the

end insert “and Chapter 2 of Part 4 of CTA 2009 (as applied by

section 834B of ICTA)”.

Finance Act 2001 (c. 9)

5

523        

The Finance Act 2001 is amended as follows.

524        

Omit section 70(1) and (2) (which introduces Schedule 22).

525        

Omit Schedule 22 (remediation of contaminated land).

Finance Act 2002 (c. 23)

526        

The Finance Act 2002 is amended as follows.

10

527        

Omit section 53 (which introduces Schedule 12 to that Act).

528        

Omit section 54 (which introduces Schedules 13 and 14 to that Act).

529        

Omit section 55 (gifts of medical supplies and equipment).

530        

Omit section 64 (adjustment on change of basis).

531   (1)  

Amend section 65 (postponement of change to mark to market in certain

15

cases) as follows.

      (2)  

In subsection (1) for “of Case I of Schedule D” substitute “applicable for the

purposes of section 35 of the Corporation Tax Act 2009 (charge on trade

profits)”.

      (3)  

In subsection (2)(b) for “section 42 of the Finance Act 1998” substitute

20

“section 46 of the Corporation Tax Act 2009”.

532        

Omit section 71 (accounting method where rate of interest etc is reset).

533        

In section 81(3)(b) (transitional provision) for “Chapter 2 of Part 4 of the

Finance Act 1996” substitute “Part 5 of the Corporation Tax Act 2009”.

534        

In section 83 (derivative contracts) omit subsections (1)(a) and (2).

25

535        

Omit section 84(1) (gains and losses from intangible fixed assets of

company).

536        

Omit Schedule 12 (tax relief for expenditure on research and development).

537        

Omit Schedule 13 (tax relief for expenditure on vaccine research etc).

538        

In Schedule 16 (community investment tax relief) in paragraph 27(4) omit

30

“under Case VI of Schedule D”.

539   (1)  

Amend Schedule 18 (relief for community amateur sports clubs) as follows.

      (2)  

In paragraph 4(4) for the words from “means” to the end substitute “profits

that (apart from this paragraph) are chargeable under Chapter 2 of Part 3 of

CTA 2009 and are—

35

(a)   

profits of a trade carried on wholly or partly in

the United Kingdom, or

(b)   

profits of an activity other than a trade.”

 
 

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

709

 

      (3)  

In paragraph 5(3)(a) for the words from “on” to the end substitute “which

(apart from this paragraph) would be required to be brought into account

under Part 5 of the Corporation Tax Act 2009 (loan relationships) as a non-

trading credit of the club;”.

      (4)  

Omit paragraph 9(3)(a).

5

540        

Omit Schedule 22 (computation of profits: adjustment on change of basis).

541   (1)  

Amend Schedule 23 (exchange gains and losses from loan relationships etc)

as follows.

      (2)  

Omit paragraph 25 (anti-avoidance: change of accounting period).

      (3)  

In paragraph 26 (deferred foreign exchange gains)—

10

(a)   

in sub-paragraph (2)—

(i)   

in paragraph (a) for “Chapter 2 of Part 4 of the Finance Act

1996 (c. 8)” substitute “Part 5 of the Corporation Tax Act

2009”,

(ii)   

in paragraph (b) for “that Chapter” substitute “that Part”, and

15

(iii)   

in paragraph (c) for “section 82(2) of the Finance Act 1996”

substitute “section 297(2) of the Corporation Tax Act 2009”,

and

(b)   

in sub-paragraph (5) for “subsection (8) of section 84A of the Finance

Act 1996” and “subsection (9)” substitute “section 328(5) of the

20

Corporation Tax Act 2009” and “subsection (6)” respectively.

542        

In Schedule 25 (loan relationships) omit paragraphs 61 to 64.

543        

Omit Schedule 26 (derivative contracts).

544   (1)  

Schedule 28 (derivative contracts: transitional provisions etc) is amended as

follows.

25

      (2)  

Omit paragraph 1 (anti-avoidance: change of accounting period).

      (3)  

After paragraph 2(4) (qualifying contracts to which company ceases to be

party before commencement day) insert—

   “(4A)  

In relation to a subsequent accounting period ending on or after 1

April 2009, the reference in sub-paragraph (4) to Schedule 26 is to

30

be read as a reference to Part 7 of the Corporation Tax Act 2009.”

      (4)  

Omit paragraph 3 (qualifying contracts which become derivative contracts).

      (5)  

After paragraph 4(7) (contracts which became derivative contracts:

chargeable assets) insert—

   “(7A)  

In relation to an accounting period ending on or after 1 April 2009,

35

the reference in sub-paragraph (7) to Chapter 2 of Part 4 of the

Finance Act 1996 is to be read as a reference to Part 5 of the

Corporation Tax Act 2009.”

      (6)  

After paragraph 5(9) (contracts: election to treat as two assets) insert—

   “(9A)  

In relation to an accounting period ending on or after 1 April 2009,

40

the reference in sub-paragraph (9) to Chapter 2 of Part 4 of the

Finance Act 1996 is to be read as a reference to Part 5 of the

Corporation Tax Act 2009.”

 
 

 
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