|
| |
|
| |
(a) | in sub-paragraph (1) for “paragraph 11 of Schedule 9 to the Finance |
| |
Act 1996 (c. 8)” substitute “section 444 of the Corporation Tax Act |
| |
| |
(b) | in sub-paragraph (2) for “Chapter 2 of Part 4 of the Finance Act 1996” |
| 5 |
and “that Chapter” substitute “Part 5 of the Corporation Tax Act |
| |
2009” and “that Part” respectively. |
| |
Finance (No. 2) Act 2005 (c. 22) |
| |
668 | The Finance (No. 2) Act 2005 is amended as follows. |
| |
669 | In section 18 (section 17(3): specific powers) for subsection (2)(c) substitute— |
| 10 |
“(c) | modify the meaning of “relevant holding” for the purposes |
| |
| |
(i) | sections 490 and 492 of the Corporation Tax Act 2009 |
| |
(loan relationships), and |
| |
(ii) | section 587 of that Act (derivative contracts).” |
| 15 |
670 (1) | Amend section 26 (receipts cases) as follows. |
| |
(2) | In subsection (7) for the words from “person who” to the end substitute |
| |
| |
(a) | is charged to corporation tax under Part 3 of CTA 2009 |
| |
(trading income) in respect of distributions of companies that |
| 20 |
are received in the course of a trade not consisting of |
| |
| |
(b) | would be so charged if resident in the United Kingdom.” |
| |
| |
(a) | for “Chapter 2 of Part 4 of FA 1996” substitute “Part 5 of CTA 2009 |
| 25 |
(loan relationships)”, and |
| |
(b) | for the words from “section 91A” to the end substitute “section 523 of |
| |
that Act (application of that Part of that Act to certain shares as rights |
| |
under creditor relationship)”. |
| |
671 | In section 27(2) (rule as to qualifying payment) for the words from “an |
| 30 |
amount” to the end substitute “a receipt of the company which is chargeable |
| |
for that period under the charge to corporation tax on income”. |
| |
672 | In section 71 (interpretation) after the definition of “CAA 2001” insert— |
| |
“CTA 2009” means the Corporation Tax Act 2009;”. |
| |
673 | In Schedule 6 (accounting practice and related matters)— |
| 35 |
(a) | omit paragraph 7 (loan relationships with embedded derivatives), |
| |
| |
(b) | omit paragraph 9 (exchange gains and losses). |
| |
674 | In Schedule 7 (avoidance involving financial arrangements) in paragraph |
| |
| 40 |
(a) | in sub-paragraph (4)(b) after “1996” insert “or Part 5 of CTA 2009”, |
| |
| |
(b) | in sub-paragraph (5) after “1996” insert “and Part 5 of CTA 2009”. |
| |
|
| |
|
| |
|
| |
675 | The Finance Act 2006 is amended as follows. |
| |
676 | Omit sections 31 to 41 (provisions about films, in particular film tax relief). |
| |
677 | In section 42(2) (film tax relief: further provisions) omit— |
| |
(a) | “Part 1 deals with entitlement to the relief;”, and |
| 5 |
(b) | “Part 4 is about provisional entitlement to relief”. |
| |
678 | Omit sections 43 to 45 (film losses). |
| |
679 | At the end of each of sections 46 and 47 insert— |
| |
“(6) | The provisions of sections 1181 to 1187 of CTA 2009 apply for the |
| |
purposes of this section as if this section were contained in Part 15 of |
| 10 |
| |
680 | Omit sections 48 to 50 (sound recordings). |
| |
681 | Omit section 52 (films: application of provisions to certain films already in |
| |
| |
682 | Omit section 53(2) (films and sound recordings: commencement etc). |
| 15 |
683 | In section 97 (beneficial loans to employees)— |
| |
(a) | in subsection (1)(a) after “2005” insert “or section 503 or 504 of CTA |
| |
| |
(b) | in subsection (2)(b)(i) after “section 47” insert “of FA 2005 or section |
| |
| 20 |
(c) | in subsection (2)(b)(ii) after “section 47A” insert “of FA 2005 or |
| |
section 504 of CTA 2009”. |
| |
684 | In section 104(1) (property rental business)— |
| |
| |
(i) | for “Schedule A business” substitute “UK property business”, |
| 25 |
| |
(ii) | for “section 832(1) of ICTA” substitute “section 205 of CTA |
| |
| |
(b) | in paragraph (b) for “section 70A(4) of ICTA” substitute “section 206 |
| |
| 30 |
685 | In section 112 (entry charge) for subsection (1) substitute— |
| |
“(1) | A company to which this Part applies shall be chargeable under the |
| |
charge to corporation tax on income on an amount of notional |
| |
income calculated in accordance with subsection (3).” |
| |
686 | In section 115(4) (profit: financing-cost ratio)— |
| 35 |
(a) | in paragraph (a) for “Chapter 2 of Part 4 of FA 1996” and “section |
| |
103(1A) and (1B)” substitute “Part 5 of CTA 2009” and “section 475” |
| |
| |
(b) | in paragraph (b) for “that Chapter” substitute “that Part”, and |
| |
(c) | in paragraph (c) for “under Schedule 26 to FA 2002” substitute “in |
| 40 |
accordance with Part 7 of CTA 2009”. |
| |
687 | In section 117(3)(b) (cancellation of tax advantage) omit “under Case VI of |
| |
| |
|
| |
|
| |
|
688 (1) | Amend section 120 (calculation of profits) as follows. |
| |
(2) | For subsection (2) substitute— |
| |
“(2) | Profits (of any kind) are calculated in the same way as profits of a UK |
| |
property business are calculated for the purposes of the charge to tax |
| |
under Chapter 2 of Part 4 of CTA 2009 (as to which see, in particular, |
| 5 |
section 210 of that Act).” |
| |
(3) | In subsection (3) for the words from the beginning to “(Schedule A:” |
| |
substitute “Section 211(1) of CTA 2009 (property businesses:”. |
| |
(4) | For subsection (4)(c) substitute— |
| |
“(c) | “embedded derivatives” is to be read in accordance with |
| 10 |
section 584 or 586 (as the case may be) of CTA 2009, and |
| |
(d) | “the host contract” means— |
| |
(i) | the rights and liabilities within section 584(1)(b)(ii) of |
| |
| |
(ii) | the rights and liabilities within section 586(1)(b)(ii) of |
| 15 |
| |
| |
| |
(a) | for “Schedule 26 to FA 2002” substitute “Part 7 of CTA 2009”, and |
| |
(b) | for “paragraph 4(2)(b)” substitute “section 589(2)(b) and (c) of that |
| 20 |
| |
689 (1) | Amend section 121 (distributions: liability to tax) as follows. |
| |
(2) | In subsection (1)(a) for “Schedule A business” substitute “UK property |
| |
business (within the meaning of section 205 of CTA 2009)”. |
| |
(3) | In subsection (2)(a) for “Schedule A business” substitute “UK property |
| 25 |
business (within the meaning of section 205 of CTA 2009)”. |
| |
(4) | In subsection (3)(a) for the words from “dealer” to the end substitute “person |
| |
who is charged to tax under Part 3 of CTA 2009 (trading income) in respect |
| |
of distributions made by companies that are received in the course of a trade |
| |
not consisting of insurance business,”. |
| 30 |
| |
| |
(a) | in paragraph (a) for “Schedule A business” substitute “UK property |
| |
business (within the meaning of section 205 of CTA 2009)”, and |
| |
(b) | in paragraph (c) for “section 70A(4) of ICTA” substitute “section 206 |
| 35 |
| |
690 | In section 136(2) (availability of group reliefs) for paragraphs (d) to (f) |
| |
| |
“(d) | Chapters 4 and 6 to 8 of Part 5 of CTA 2009 (loan |
| |
| 40 |
(e) | Part 7 of that Act (derivative contracts), and |
| |
(f) | Part 8 of that Act (intangible fixed assets).” |
| |
|
| |
|
| |
|
691 | In section 139(2) (manufactured dividends), in the provision substituted for |
| |
paragraph 2(2) of Schedule 23A to ICTA, in sub-paragraph (2B)(b) for |
| |
“section 75 of this Act” substitute “Chapter 2 of Part 16 of CTA 2009”. |
| |
692 | In section 179 (interpretation) after the definition of “CAA 2001” insert— |
| |
““CTA 2009” means the Corporation Tax Act 2009;”. |
| 5 |
693 | Omit Schedule 4 (taxation of activities of film production company). |
| |
694 | In Schedule 5 (film tax relief: further provisions)— |
| |
(a) | omit Part 1 (entitlement to film tax relief), |
| |
(b) | omit paragraphs 24 and 25, and |
| |
(c) | omit Part 4 (provisional entitlement to relief). |
| 10 |
695 (1) | Amend Schedule 10 (sale etc of lessor companies etc) as follows. |
| |
(2) | In paragraph 5(1) after “trade” insert “carried on wholly or partly in the |
| |
United Kingdom” and for “Case I of Schedule D” substitute “Chapter 2 of |
| |
| |
(3) | In paragraph 23(5) for the words from “means the business” to the end |
| 15 |
substitute “means the business the profits or losses of which are determined, |
| |
in relation to the company, under section 1259 of CTA 2009.” |
| |
(4) | In paragraph 28(2) for paragraphs (a) and (b) substitute “any matter that |
| |
would be taken into account in determining under section 1262 of CTA 2009 |
| |
(but without regard to sections 1263 and 1264 of that Act) the company’s |
| 20 |
share at that time of the profits or loss of the business.” |
| |
| |
(a) | in paragraph (a) for “(Schedule A losses)” substitute “(UK property |
| |
| |
(b) | in paragraph (d) for “(Case VI losses)” substitute “(losses from |
| 25 |
miscellaneous transactions)”. |
| |
696 (1) | Amend Schedule 15 (accountancy change: spreading of adjustment), Part 2 |
| |
(corporation tax) as follows. |
| |
(2) | In paragraph 9(1), in the words after paragraph (c), for “section 64 of and |
| |
Schedule 22 to FA 2002” substitute “Chapter 14 of Part 3 of or section 262 of |
| 30 |
| |
(3) | In paragraph 10(5)(a) for “Schedule 22 to FA 2002” substitute “Chapter 14 of |
| |
Part 3 of or section 262 of CTA 2009”. |
| |
(4) | In paragraph 11(1)(b) for “section 12(7ZA) of ICTA” substitute “section 10 of |
| |
| 35 |
(5) | In paragraph 12(1)(b) for “section 12(7) of ICTA” substitute “section 12 of |
| |
| |
(6) | In paragraph 14(1)(b) for “Schedule A business” substitute “UK property |
| |
| |
697 (1) | Amend Schedule 16 (real estate investment trusts: excluded business and |
| 40 |
| |
(2) | In paragraph 4 for “Schedule A” substitute “Chapter 3 of Part 4 of CTA |
| |
| |
|
| |
|
| |
|
(3) | In paragraph 13 for “section 118ZA(4) of ICTA” substitute “section 1273(4) |
| |
| |
698 (1) | Amend Schedule 17 (group real estate investment trusts: modifications) as |
| |
| |
(2) | In paragraph 11(1)(d)(ii) for “a charge to corporation tax under Case VI of |
| 5 |
Schedule D” substitute “the charge to corporation tax on income”. |
| |
(3) | In paragraph 32(1)(b) for “or as profits of a Schedule A business” substitute |
| |
“or as profits of a UK property business under Chapter 3 of Part 4 of CTA |
| |
| |
Income Tax Act 2007 (c. 3) |
| 10 |
699 | The Income Tax Act 2007 is amended as follows. |
| |
700 | For section 5 substitute— |
| |
“5 | Income tax and companies |
| |
Section 3 of CTA 2009 disapplies the provisions of the Income Tax |
| |
Acts relating to the charge to income tax in relation to income of a |
| 15 |
company (not accruing to it in a fiduciary or representative capacity) |
| |
| |
(a) | the company is UK resident, or |
| |
(b) | the company is non-UK resident and the income is within its |
| |
chargeable profits as defined by section 19 of that Act (profits |
| 20 |
attributable to its permanent establishment in the United |
| |
| |
701 | In section 276(3) (conditions relating to income) for “paragraph 14(3) of |
| |
Schedule 26 to FA 2002 as if they were non-trading credits or non-trading |
| |
debits” substitute “section 574 of CTA 2009 (non-trading credits and debits |
| 25 |
to be brought into account under Part 5 of that Act)”. |
| |
702 | In section 489(6) (the “applicable period” in relation to shares) for |
| |
“paragraph 9 of Schedule 4AA to ICTA” substitute “section 989 of CTA |
| |
| |
703 | In section 550(a) (meaning of “relievable gift”) for “section 83A of ICTA” |
| 30 |
substitute “section 105 of CTA 2009”. |
| |
704 | In section 557(1)(b)(ii) (substantial donor transactions: supplementary) after |
| |
“2005” insert “or section 501(2) of CTA 2009”. |
| |
705 (1) | Amend section 835 (residence rules for trustees and companies) as follows. |
| |
| 35 |
(3) | In the title omit “and companies”. |
| |
706 | After section 835 insert— |
| |
“835A | Residence of companies |
| |
Chapter 3 of Part 2 of CTA 2009 (rules for determining residence of |
| |
companies) applies for the purposes of the Income Tax Acts as it |
| 40 |
applies for the purposes of the Corporation Tax Acts.” |
| |
|
| |
|
| |
|
707 | In section 899(4)(b) (meaning of “qualifying annual payment”) for “charged |
| |
to corporation tax under Case III of Schedule D” substitute “which is— |
| |
(i) | required to be brought into account under Part 5 of |
| |
CTA 2009 (loan relationships) as a non-trading credit, |
| |
| 5 |
(ii) | from a source in the United Kingdom and chargeable |
| |
to corporation tax under Chapter 5 of Part 10 of that |
| |
Act (distribution from unauthorised unit trusts) or |
| |
Chapter 7 of that Part (annual payments not |
| |
| 10 |
708 | In section 904 (annual payments for dividends or non-taxable consideration) |
| |
for subsection (2) substitute— |
| |
“(2) | The payment must be— |
| |
(a) | a payment charged to income tax under Part 5 of ITTOIA |
| |
2005 (miscellaneous income), or |
| 15 |
| |
(i) | required to be brought into account under Part 5 of |
| |
CTA 2009 (loan relationships) as a non-trading credit, |
| |
| |
(ii) | from a source in the United Kingdom and chargeable |
| 20 |
to corporation tax under Chapter 5 of Part 10 of that |
| |
Act (distributions from unauthorised unit trusts) or |
| |
Chapter 7 of that Part (annual payments not |
| |
| |
709 (1) | Amend section 910 (proceeds of a sale of patent rights: payments to non-UK |
| 25 |
| |
(2) | In subsection (1)(b) for “section 524(3) of ICTA” substitute “section 912 of |
| |
| |
(3) | In subsection (6)(b) for “section 524(9) of ICTA” substitute “section 919 of |
| |
| 30 |
710 | In section 934(4) (non-UK resident companies) for “section 11(2) of ICTA” |
| |
substitute “section 19 of CTA 2009”. |
| |
711 | In section 937(5)(c) (partnerships)— |
| |
(a) | for “section 11(2) of ICTA” substitute “section 19 of CTA 2009”, and |
| |
(b) | for “sections 114 and 115 of ICTA” substitute “Part 17 of that Act”. |
| 35 |
712 | In section 939(1)(b) (duty to retain bonds where issue treated as payment of |
| |
interest) for “section 582(1)(a) of ICTA” substitute “section 413 of CTA 2009”. |
| |
713 (1) | Amend section 941 (deemed payments to unit holders and deemed |
| |
deductions of income tax) as follows. |
| |
(2) | In subsection (1), after “ITTOIA 2005” insert “or Chapter 5 of Part 10 of CTA |
| 40 |
| |
(3) | In subsection (2), after “ITTOIA 2005” insert “and section 973(2) of CTA |
| |
| |
(4) | Omit subsections (4) and (5). |
| |
| 45 |
|
| |
|
| |
|
(a) | in the definition of “deemed deduction”, omit “or (5)”, and |
| |
(b) | in the definition of “deemed payment”, omit “or (4)”. |
| |
714 | In section 948(2) (meaning of “accounting period”) for the words from |
| |
“section” to “assessment)” substitute “Chapter 2 of Part 2 of CTA 2009 |
| |
| 5 |
715 | In section 965(2) (overview of sections 966 to 970) for “section 556 of ICTA” |
| |
substitute “section 1309 of CTA 2009”. |
| |
716 (1) | Amend section 971 (income tax in respect of non-resident landlords) as |
| |
| |
(2) | In subsection (2) for the words from “chargeable” to the end substitute |
| 10 |
“chargeable as the profits of a UK property business under Chapter 3 of Part |
| |
3 of ITTOIA 2005 or Chapter 3 of Part 4 of CTA 2009.” |
| |
(3) | In subsection (3)(a) for “Schedule A business, or a UK property business,” |
| |
substitute “UK property business (within the meaning of Chapter 2 of Part 3 |
| |
of ITTOIA 2005 or Chapter 2 of Part 4 of CTA 2009)”. |
| 15 |
717 | In section 976(6) (arrangements for payments of interest less tax or at a |
| |
specified net rate) for paragraph (b) substitute— |
| |
“(b) | interest which is required to be brought into account under |
| |
Part 5 of CTA 2009 (loan relationships) as a non-trading |
| |
credit of the recipient.” |
| 20 |
718 | In section 980(2) (derivative contracts: exception from duties to deduct) for |
| |
“Schedule 26 to FA 2002” substitute “Part 7 of CTA 2009”. |
| |
719 | In section 989 (definitions) omit the definition of “Schedule A business”. |
| |
720 | In section 1017 (abbreviated references to Acts) after the definition of “CAA |
| |
| 25 |
““CTA 2009” means the Corporation Tax Act 2009,”. |
| |
721 | In Schedule 4 (index of defined expressions) omit the entry for “Schedule A |
| |
| |
| |
722 | The Finance Act 2007 is amended as follows. |
| 30 |
723 | In section 113 (interpretation) after the definition of “CRCA 2005” insert— |
| |
““CTA 2009” means the Corporation Tax Act 2009;”. |
| |
724 | In Schedule 3 (managed service companies) omit paragraph 10. |
| |
725 (1) | Amend Schedule 7 (insurance business: gross roll-up business etc) as |
| |
| 35 |
| |
(a) | in sub-paragraph (1) omit “(a “Case VI loss”)” and “(a “Case I loss”)”, |
| |
| |
(b) | in sub-paragraph (2)— |
| |
(i) | for “Case VI losses” substitute “losses so treated”, and |
| 40 |
(ii) | for “Case I losses” substitute “losses of the transferee”. |
| |
|
| |
|