|
| |
|
reduction under section 288 (the additional calculation rule) |
| |
by reference to the taxed receipt, or |
| |
(b) | in calculating the amount of a receipt of a property business |
| |
under Chapter 4 of Part 4 of CTA 2009 (profits of a property |
| |
business: lease premiums etc) in respect of the lease, there is |
| 5 |
a reduction under section 228 of that Act (the additional |
| |
calculation rule) by reference to the taxed receipt. |
| |
| In this section and sections 65 and 67 the receipt that is so reduced is |
| |
referred to as a “lease premium receipt”.” |
| |
(3) | In subsection (6) after “288” insert “below or section 228 of CTA 2009”. |
| 10 |
593 | In section 65(1)(a) (restrictions on section 61 expenses: lease of part of |
| |
premises) for “the conditions in section 64(1)(a) and (b) are met” substitute |
| |
| |
594 | In the title of section 66 (corporation tax receipts treated as taxed receipts) |
| |
after “tax receipts” insert “under ICTA”. |
| 15 |
595 (1) | Amend section 67 (restrictions on section 61 expenses: corporation tax |
| |
| |
(2) | In subsection (3)(a), after “2005” insert “but before 1st April 2009”. |
| |
(3) | In the title after “receipts” insert “under ICTA”. |
| |
596 (1) | Amend section 71 (educational establishments) as follows. |
| 20 |
| |
(a) | in paragraph (a) for “education or library board” substitute |
| |
“education and library board”, and |
| |
(b) | in paragraph (b) for “or a controlled, maintained, grant-maintained |
| |
integrated, controlled integrated, voluntary or” substitute “, a grant- |
| 25 |
| |
597 | Omit section 79(2) (additional payments: change in persons carrying on the |
| |
| |
598 | After section 79 insert— |
| |
“79A | Additional payments: change in the persons carrying on the trade |
| 30 |
(1) | This section deals with the application of section 79 in circumstances |
| |
where there is a change in the persons carrying on the trade. |
| |
(2) | The employer is treated for the purposes of section 79 as |
| |
permanently ceasing to carry on the trade unless a person carrying |
| |
on the trade immediately before the change continues to carry it on |
| 35 |
| |
599 | In section 80(2) (payments made by the Government) for “79” substitute |
| |
| |
600 | In section 88(6)(b) (payments to research associations, universities etc) |
| |
before “what” insert “to”. |
| 40 |
601 (1) | Amend section 155 (levies and repayments under FISMA 2000) as follows. |
| |
(2) | In subsection (1) omit the words from “carried” to the end. |
| |
|
| |
|
| |
|
(3) | For subsection (2) substitute— |
| |
“(2) | A deduction is allowed for any sum— |
| |
(a) | spent by the person carrying on the trade in paying a levy, or |
| |
(b) | paid by that person as a result of an award of costs under |
| |
| 5 |
| so far as it is not otherwise allowable.” |
| |
(4) | In subsection (3) after “person” insert “carrying on the trade”. |
| |
(5) | After subsection (3) insert— |
| |
“(3A) | For the purposes of this section “costs rules” means— |
| |
(a) | rules made under section 230 of FISMA 2000, or |
| 10 |
(b) | provision relating to costs contained in standard terms fixed |
| |
under paragraph 18 of Schedule 17 to FISMA 2000.” |
| |
(6) | In subsection (4)(e) for the words from “(other” to the end substitute “(other |
| |
than a sum paid as a result of an award of costs under costs rules)”. |
| |
602 | In section 158(1)(d) (lease premiums etc: reduction of receipts) for “term” |
| 15 |
| |
603 | In section 170(3)(b) (deduction for capital expenditure) for “section 91(1)(b) |
| |
of ICTA” substitute “section 147(2)(b) of CTA 2009” and for “section 91(1)(a) |
| |
of ICTA substitute “section 147(2)(a) of CTA 2009”. |
| |
604 | In section 171(2)(d) (allocation of ancillary capital expenditure) for “section |
| 20 |
91(1)(b) of ICTA,” substitute “section 147(2)(b) of CTA 2009”. |
| |
605 | In section 175(2) (basis of valuation of trading stock)— |
| |
(a) | in paragraph (a) after “trade” insert “, profession or vocation”, and |
| |
(b) | in paragraph (b) after “trade” insert “, profession or vocation”. |
| |
606 | In section 176(1)(a) (sale basis of valuation: sale to unconnected person) after |
| 25 |
“trade”, in both places where it occurs, insert “, profession or vocation”. |
| |
607 | In section 177(1)(a) (sale basis of valuation: sale to connected person) after |
| |
“trade”, in both places where it occurs, insert “, profession or vocation”. |
| |
608 | In section 178(1)(a) (sale basis of valuation: election by connected persons) |
| |
after “trade”, in both places where it occurs, insert “, profession or vocation”. |
| 30 |
609 (1) | Amend section 180 (cost to buyer of stock valued on sale basis of valuation) |
| |
| |
(2) | In subsection (1) after “trade” insert “, profession or vocation”. |
| |
(3) | In subsection (2)(b) for “section 100(1A) to (1C) of ICTA” substitute “section |
| |
| 35 |
610 | In section 184(1) (basis of valuation of work in progress)— |
| |
(a) | in paragraph (a) after “a” insert “trade,” and |
| |
(b) | in paragraph (b) after “that” insert “trade,”. |
| |
611 | In section 194(7) (disposal of know-how as part of disposal of all or part of |
| |
| 40 |
(a) | in paragraph (a) for “subsection (3) of section 531 of ICTA” substitute |
| |
“section 178 of CTA 2009”, and |
| |
|
| |
|
| |
|
(b) | for “that subsection”, in both places where it occurs, substitute “that |
| |
| |
612 | In section 246(2) (basic meaning of “post-cessation receipt”) for the words |
| |
from “the occurrence” to the end substitute “a reference to a company |
| |
ceasing to be within the charge to corporation tax in respect of a trade.” |
| 5 |
613 | In section 249(3) (debts released after cessation) for the words from “the |
| |
occurrence” to the end substitute “a reference to a company ceasing to be |
| |
within the charge to corporation tax in respect of a trade.” |
| |
614 | In section 276(3) (introduction to Chapter 4 of Part 3) for “term” substitute |
| |
| 10 |
615 | In section 279(3) for “or of” substitute “of or”. |
| |
616 | In the title of section 281 (sums payable for variation or waiver of term of |
| |
lease) for “term” substitute “terms”. |
| |
617 (1) | Amend section 287 (circumstances in which additional calculation rule |
| |
| 15 |
(2) | In subsection (1) for “term” substitute “terms”. |
| |
| |
(a) | omit the “or” immediately before paragraph (b), |
| |
(b) | in paragraph (b) for “additional calculation rule” substitute “rule in |
| |
section 288 (the additional calculation rule)”, |
| 20 |
(c) | after paragraph (b) insert— |
| |
“(c) | there is a receipt under any of sections 217 to 222 of |
| |
CTA 2009 (receipts in respect of lease premiums, |
| |
sums payable instead of rent, for surrender of lease |
| |
and for variation or waiver of terms of lease and |
| 25 |
assignments) in respect of the lease, or |
| |
(d) | there would be such a receipt, but for the operation of |
| |
the rule in section 228 of that Act (the additional |
| |
calculation rule) in the calculation of its amount.”, |
| |
| 30 |
(d) | in the second sentence for “such a receipt” substitute “a receipt |
| |
falling within paragraph (a), (b), (c) or (d)”. |
| |
618 (1) | Amend section 288 (the additional calculation rule) as follows. |
| |
| |
(a) | for “282,” substitute “282 above, or in section 217, 219, 220, 221 or 222 |
| 35 |
| |
(b) | after “section 290(2) to (4)” insert “above”. |
| |
| |
(a) | omit the “and” immediately before paragraph (d), and |
| |
(b) | after paragraph (d) insert “, and |
| 40 |
(e) | in the case of a receipt under Chapter 4 of Part 4 of |
| |
CTA 2009 (profits of property businesses: lease |
| |
premiums etc), its receipt period within the meaning |
| |
of that Chapter (see section 228(6) of that Act).” |
| |
|
| |
|
| |
|
619 (1) | Amend section 290 (meaning of “unused amount” and “unreduced |
| |
| |
(2) | In subsection (2) for the words from “formula” to the end substitute |
| |
| |
(a) | section 277, 279, 280, 281 or 282 above, or |
| 5 |
| |
provisions corresponding to those listed in paragraph (a)).” |
| |
(3) | For subsection (3) substitute— |
| |
“(3) | Subsection (4) applies— |
| |
(a) | to a taxed receipt under section 277 (lease premiums) as a |
| 10 |
result of section 278 (amount treated as lease premium where |
| |
| |
(b) | to a taxed receipt under section 217 of CTA 2009 (lease |
| |
premiums) as a result of section 218 of that Act (amount |
| |
treated as lease premium where work required).” |
| 15 |
| |
(a) | in paragraph (a) after “288” insert “above or section 228 of CTA 2009 |
| |
(the additional calculation rule)”, |
| |
(b) | in paragraph (b) after “61” insert “above or section 63 of CTA 2009”, |
| |
| 20 |
(c) | in paragraph (c) after “292” insert “below or section 232 of CTA |
| |
| |
| |
(a) | after “288” insert “above or section 228 of CTA 2009”, and |
| |
(b) | for “that section” substitute “the section concerned”. |
| 25 |
620 (1) | Amend section 293 (restrictions on section 292 expenses: the additional |
| |
calculation rule) as follows. |
| |
(2) | For subsection (1) substitute— |
| |
“(1) | This section applies if— |
| |
(a) | in calculating the amount of a receipt under this Chapter |
| 30 |
there is a reduction under section 288 (the additional |
| |
calculation rule) by reference to a taxed receipt, or |
| |
(b) | in calculating the amount of a receipt under Chapter 4 of Part |
| |
4 of CTA 2009 (profits of a property business: lease premiums |
| |
etc) there is a reduction under section 228 of that Act (the |
| 35 |
additional calculation rule) by reference to a taxed receipt. |
| |
| The receipt that is so reduced is referred to in this section as the “lease |
| |
| |
(3) | In subsection (6) after “288” insert “above or section 228 of CTA 2009”. |
| |
621 | For section 294(1)(c) (restriction on section 292 expenses: lease of part of |
| 40 |
| |
“(c) | the condition in subsection (1A) is met. |
| |
(1A) | The condition is that— |
| |
(a) | in calculating the amount of a receipt under any of sections |
| |
277 to 281 (receipts in respect of lease premiums or sums |
| 45 |
|
| |
|
| |
|
payable instead of rent, for surrender of lease or for variation |
| |
or waiver of terms of lease) in respect of the lease, there is a |
| |
reduction under section 288 by reference to a taxed receipt, or |
| |
(b) | in calculating the amount of a receipt under any of sections |
| |
217 to 221 of CTA 2009 (receipts in respect of lease premiums |
| 5 |
or sums payable instead of rent, for surrender of lease or for |
| |
variation or waiver of terms of lease) in respect of the lease, |
| |
there is a reduction under section 228 of that Act (the |
| |
additional calculation rule) by reference to a taxed receipt. |
| |
| The receipt that is so reduced is referred to in this section as the “lease |
| 10 |
| |
622 | For section 295(2)(b) (limit on reductions and deductions) substitute— |
| |
“(b) | the total of the amounts mentioned in subsection (3). |
| |
| |
(a) | the reductions under section 228 of CTA 2009 (the additional |
| 15 |
calculation rule) by reference to the taxed receipt, |
| |
(b) | the deductions allowed in calculating the profits of a |
| |
property business for expenses under section 232 of CTA |
| |
2009 (tenant under taxed lease which uses premises for |
| |
purposes of property business treated as incurring expenses) |
| 20 |
by reference to the taxed receipt, and |
| |
(c) | the deductions allowed in calculating the profits of a trade, |
| |
profession or vocation for expenses under section 61 above or |
| |
section 63 of CTA 2009 (tenant under taxed lease who uses |
| |
land in connection with trade treated as incurring expenses) |
| 25 |
by reference to the taxed receipt.” |
| |
623 | In section 296(1)(a) (corporation tax receipts treated as taxed receipts) after |
| |
“2005” insert “but before 1st April 2009”. |
| |
624 | In section 298 (taking account of deductions for rent as a result of section |
| |
| 30 |
(a) | in subsections (1)(a) and (3)(a) after “2005” insert “but before 1st |
| |
| |
(b) | in subsection (2) for “295(2)(b)” substitute “295(3)(c)”. |
| |
625 | In section 299(1)(b) (payment of tax by instalments) for “term” substitute |
| |
| 35 |
626 (1) | Amend section 303 (rules for determining effective duration of lease) as |
| |
| |
(2) | For Rule 1 substitute— |
| |
| |
(a) | the terms of the lease or any other circumstances |
| 40 |
make it unlikely that the lease will continue beyond a |
| |
date before the end of the term for which the lease |
| |
| |
(b) | the premium was not substantially greater than it |
| |
would have been had the term been one ending on |
| 45 |
| |
the lease is treated as ending on that date (or the earliest such |
| |
| |
|
| |
|
| |
|
(3) | After subsection (2) insert— |
| |
“(2A) | In Rule 1 “premium” includes— |
| |
(a) | an amount treated as a premium under section 278 (amount |
| |
treated as lease premium where work required), |
| |
(b) | a sum payable by the tenant under the terms subject to which |
| 5 |
the lease is granted instead of the whole or a part of the rent |
| |
| |
(c) | a sum payable by the tenant under the terms subject to which |
| |
the lease is granted as consideration for the surrender of the |
| |
| 10 |
(d) | a sum payable by the tenant (otherwise than by way of rent) |
| |
as consideration for the variation or waiver of a term of the |
| |
| |
627 (1) | Amend section 304 (applying the rules in section 303) as follows. |
| |
(2) | In subsection (1)(b) for “term” substitute “terms”. |
| 15 |
(3) | In subsection (4) for the words from “securing” to the end substitute |
| |
| |
(a) | an income tax advantage in the application of this Chapter, or |
| |
(b) | a corporation tax advantage in the application of Chapter 4 of |
| |
Part 4 of CTA 2009 (profits of property business: lease |
| 20 |
| |
(4) | In subsection (5) after “applying” insert “paragraph (b) of”. |
| |
628 | In section 318(4) for “section 30 of ICTA” substitute “sections 255 to 257 of |
| |
| |
629 (1) | Amend section 356 (application to Schedule A businesses) as follows. |
| 25 |
(2) | In subsection (1) for “a Schedule A business” substitute “one within the |
| |
charge to corporation tax”. |
| |
(3) | In subsection (2) for the words from “includes” to the end substitute |
| |
“includes, in the case of a company, the occurrence of an event treated under |
| |
section 289 of CTA 2009 (company starting or ceasing to be within the charge |
| 30 |
to corporation tax) as the company permanently ceasing to carry on the |
| |
| |
(4) | In subsection (3) for “Schedule A business” substitute “UK property |
| |
| |
(5) | In the title for “Schedule A business” substitute “businesses within the |
| 35 |
charge to corporation tax”. |
| |
630 | In section 413(4) (person liable) for paragraph (b) substitute— |
| |
“(b) | section 947 of CTA 2009 (under which similar provision is |
| |
made for the purposes of Chapter 3 of Part 10 of that Act)”. |
| |
631 | In section 419(2) (loans and advances to persons who die) for paragraph (b) |
| 40 |
| |
“(b) | section 947 of CTA 2009” (under which similar provision is |
| |
made for the purposes of Chapter 3 of Part 10 of that Act)”. |
| |
|
| |
|
| |
|
632 | In section 466(3) (person liable: personal representatives) for “section 701(8) |
| |
of ICTA” and “Part 16 of ICTA” substitute “section 947 of CTA 2009” and |
| |
“Chapter 3 of Part 10 of CTA 2009” respectively. |
| |
633 | In section 496(7) (modification of section 494: qualifying endowment |
| |
policies held as security for company debts) in the definition of “accounting |
| 5 |
period” for “section 12 of ICTA” substitute “Chapter 2 of Part 2 of CTA |
| |
| |
634 | In section 671 (successive absolute interests)— |
| |
(a) | at the end of subsection (4) add “(or, where the previous holder is a |
| |
company chargeable to corporation tax, having regard to the |
| 10 |
application of section 954(4) of CTA 2009 to the previous holder)”, |
| |
| |
(b) | at the end of subsection (6) add “(but, in a case where the last |
| |
previous holder or any earlier previous holder is a company |
| |
chargeable to corporation tax, having regard to the application of |
| 15 |
section 954(6) of CTA 2009 to the previous holder)”. |
| |
635 | After section 749 insert— |
| |
“749A | Interest on tax overpaid |
| |
No liability to income tax arises in respect of interest paid under |
| |
section 826 of ICTA (interest on tax overpaid).” |
| 20 |
636 | In section 754(1) (redemption of funding bonds) for “section 582(1) of ICTA” |
| |
substitute “section 413 of CTA 2009”. |
| |
637 (1) | Amend section 839 (annual payments payable out of relevant foreign |
| |
| |
(2) | In subsection (1) for “A to C” substitute “A, B1 or B2 and C”. |
| 25 |
| |
(a) | for “B” substitute “B1”, and |
| |
(b) | omit “or to corporation tax under Case III of Schedule D”. |
| |
(4) | After subsection (3) insert— |
| |
“(3A) | Condition B2 is that, had the payment arisen in the United Kingdom |
| 30 |
| |
(a) | required to be brought into account under Part 5 of CTA 2009 |
| |
(loan relationships) as a non-trading credit, or |
| |
(b) | chargeable to corporation tax under Chapter 5 of Part 10 of |
| |
that Act (distributions from unauthorised unit trusts) or |
| 35 |
Chapter 7 of that Part (annual payments not otherwise |
| |
| |
638 | In section 847(2) (partnerships: general provisions), in the words before |
| |
paragraph (a) for the words from “are expressed” to “also apply” substitute |
| |
“which are expressed to apply to trades also apply, unless otherwise |
| 40 |
indicated (whether expressly or by implication)”. |
| |
639 | In section 849 (calculation of firm’s profits or losses) after subsection (3) |
| |
|
| |
|