|
| |
|
(2) | In subsection (1) for Rule 1 substitute— |
| |
“Rule 1: A lease is not to be treated as having been granted for a |
| |
term longer than one ending on a date before the end of the |
| |
term for which the lease was granted if— |
| |
(a) | the terms of the lease or any other circumstances |
| 5 |
make it unlikely that the lease will continue beyond |
| |
| |
(b) | the premium was not substantially greater than it |
| |
would have been had the term been one ending on |
| |
| 10 |
| |
44 | The amendments made by paragraph 626 of Schedule 1 (amendments of |
| |
section 303 of ITTOIA 2005, which provides rules for determining the |
| |
effective duration of a lease) do not have effect in relation to leases granted |
| |
| 15 |
45 (1) | In relation to a lease granted after 12 June 1969 and before 25 August 1971, |
| |
for sections 243 and 244 substitute— |
| |
| “243 Rules for determining effective duration of lease |
| |
(1) | The following rules apply for determining the effective duration of a |
| |
lease for the purposes of this Chapter. |
| 20 |
Rule 1: Where the terms of a lease include provision for the |
| |
determination of the lease by notice given by the landlord, |
| |
the lease is not to be treated as granted for a term longer than |
| |
one ending at the earliest date on which it could be |
| |
determined by notice so given. |
| 25 |
| |
Rule 2: A lease is not to be treated as having been granted for a |
| |
term longer than one ending on a date before the end of the |
| |
term for which the lease was granted, if the terms of the lease |
| |
or any other circumstances make it unlikely that the lease will |
| 30 |
continue beyond that date. |
| |
| |
Rule 3: Where the terms of the lease include provision for the |
| |
extension of the lease beyond a given date by notice given by |
| |
the tenant, account may be taken of any circumstances |
| 35 |
making it likely that the lease will be so extended. |
| |
(2) | Rule 2 applies by reference to the facts known or ascertainable at the |
| |
time of the grant of the lease. |
| |
(3) | In applying the rules, it is assumed that all parties concerned, |
| |
whatever their relationship, act as if they were at arm’s length. |
| 40 |
(4) | In this section, in relation to Scotland, “term”, where referring to the |
| |
duration of a lease, means period.” |
| |
(2) | This paragraph does not apply if the determination is for the purposes of |
| |
section 221 (sums payable for variation or waiver of terms of lease). |
| |
46 (1) | In relation to a lease granted before 13 June 1969, for sections 243 to 245 |
| 45 |
|
| |
|
| |
|
| |
| “243 Rules for determining effective duration of lease |
| |
(1) | The following rules apply for determining the effective duration of a |
| |
lease for the purposes of this Chapter. |
| |
Rule 1: Where the effective duration of a lease is being |
| 5 |
determined after the date on which the lease has for any |
| |
reason come to an end, the duration is taken to have extended |
| |
from its commencement to that date. |
| |
| |
Rule 2: Where the terms of the lease include provision for the |
| 10 |
determination of the lease by notice given either by the |
| |
landlord or by the tenant, the lease is not to be treated as |
| |
granted for a term longer than one ending at the earliest date |
| |
on which it could be determined by notice. |
| |
| 15 |
Rule 3: A lease is not to be treated as having been granted for a |
| |
term longer than one ending on a date before the end of the |
| |
term for which the lease was granted, if the terms of the lease |
| |
or any other circumstances make it unlikely that the lease will |
| |
continue beyond that date. |
| 20 |
(2) | Rules 2 and 3 are subject to Rule 1. |
| |
(3) | Rules 2 and 3 apply in accordance with circumstances prevailing at |
| |
the time of the determination. |
| |
(4) | In this section, in relation to Scotland, “term”, where referring to the |
| |
duration of a lease, means period.” |
| 25 |
(2) | This paragraph does not apply if the determination is for the purposes of |
| |
section 221 (sums payable for variation or waiver of terms of lease). |
| |
47 | The amendments made by paragraphs 498 and 506 of Schedule 1 |
| |
(amendments of sections 291(3)(a) and 393J(3)(a) of CAA 2001) do not have |
| |
effect in relation to leases granted before 1 April 2009. |
| 30 |
Lease premiums: meaning of “premium” |
| |
48 (1) | In relation to a lease granted after 12 June 1969 and before 25 August 1971 |
| |
sections 246 and 247 have effect with the following modifications. |
| |
(2) | Section 246 has effect with the omission of subsections (4) and (5). |
| |
(3) | Section 247 has effect with the omission of— |
| 35 |
(a) | the words “or to a person connected with such a person” in |
| |
| |
| |
| |
49 (1) | Section 250 does not apply to a reverse premium— |
| 40 |
(a) | which was received before 9 March 1999, or |
| |
(b) | to which the recipient was entitled immediately before that date. |
| |
|
| |
|
| |
|
(2) | In determining whether a reverse premium was one to which the recipient |
| |
was entitled immediately before 9 March 1999, no account is to be taken of |
| |
any arrangements made on or after that date. |
| |
Deductions for expenditure on energy-saving items |
| |
50 | Sections 251 to 253 do not apply to expenditure incurred before 8 July 2008. |
| 5 |
Adjustment on change of basis |
| |
51 (1) | Sections 261 and 262 apply to a change of basis taking effect for a period of |
| |
account which ends after 31 March 2009. |
| |
(2) | For this purpose the period of account for which a change of basis takes |
| |
effect is the first period of account for which the new basis is adopted. |
| 10 |
Meaning of “mineral royalties” |
| |
52 | The definition of “mineral royalties” in section 274(2) does not include any |
| |
rent receivable before 6 April 1970. |
| |
| |
| 15 |
| |
53 | Except as provided in this Part of this Schedule, expressions used in this Part |
| |
of this Schedule and in Part 5 of this Act have the same meaning as in Part 5. |
| |
Opening and closing values determined under Schedule 15 to the Finance Act 1996 |
| |
54 | So far as immediately before the commencement of this Act any opening |
| 20 |
value or closing value is to be determined by reference to Schedule 15 to FA |
| |
1996 (loan relationships: savings and transitional provisions), the |
| |
determination of that value is not affected by the repeal by this Act of any |
| |
provision in that Schedule or any provision affecting such a provision. |
| |
References to Part 5 to include Schedule 15 to FA 1996 |
| 25 |
55 | Except where the context indicates otherwise, references to Part 5 of this Act |
| |
in any enactment other than Schedule 15 to FA 1996 include references to |
| |
| |
Exemption for interest on tax overpaid for accounting periods ending before 1 July 1999 |
| |
56 | No liability to corporation tax arises in respect of interest paid under section |
| 30 |
826(1) of ICTA (interest on tax overpaid) if the accounting period mentioned |
| |
in the paragraph of that section as a result of which it is paid ends before 1 |
| |
| |
|
| |
|
| |
|
Regulations under section 81 of FA 2002 |
| |
57 | The repeal by this Act of any provision in Schedule 23 to FA 2002 |
| |
(transitional provision) does not affect the power in section 81 of that Act so |
| |
far as relating to that provision. |
| |
Continuity on transfers: transferees becoming party to loan relationship before 9 April 2003 |
| 5 |
58 (1) | In determining whether Chapter 4 of Part 5 (continuity on transfers within |
| |
groups or on reorganisations) applies in the case mentioned in section 336 or |
| |
337 where the transferee became party to the loan relationship before 9 April |
| |
2003, section 338 (meaning of company replacing another as party to loan |
| |
relationship) applies with the following omissions. |
| 10 |
(2) | In subsection (1) omit paragraphs (b) and (c). |
| |
(3) | In subsection (2) omit “or obligations”. |
| |
(4) | Omit subsections (5) and (6). |
| |
(5) | This paragraph must be read as if it were in Chapter 4 of Part 5. |
| |
Deeply discounted securities held before 1 October 2002 |
| 15 |
59 (1) | This sub-paragraph applies if— |
| |
(a) | the condition in paragraph 17(1)(c) of Schedule 9 to FA 1996 |
| |
(connection between issuing company and another company) is met |
| |
as respects an accounting period beginning on or after 1 October |
| |
2002 as a result of the amendments made by paragraph 33 of |
| 20 |
Schedule 25 to FA 2002, but would not have been met in an |
| |
accounting period beginning before that date, and |
| |
(b) | the debtor relationship in question was a debtor relationship of the |
| |
issuing company (within the meaning of section 407) on the first day |
| |
of the company’s first accounting period beginning on or after that |
| 25 |
| |
(2) | If sub-paragraph (1) applies, section 407 does not apply in relation to that |
| |
debtor relationship as a result of those amendments. |
| |
(3) | This sub-paragraph applies if section 409 applies in a case where— |
| |
(a) | the relevant period began before 1 October 2002, |
| 30 |
(b) | as a result of paragraph 18 of Schedule 9 to FA 1996 an amount (“the |
| |
deferred amount”) was not brought into account by a company for |
| |
the purposes of Chapter 2 of Part 4 of that Act in respect of a debtor |
| |
relationship for an accounting period beginning before that date, and |
| |
(c) | the deeply discounted security concerned has not been redeemed |
| 35 |
before the beginning of the company’s first accounting period to |
| |
| |
(4) | If sub-paragraph (3) applies, as regards any accounting period to which this |
| |
Act applies, section 409(2) applies as if paragraph 18(2) of Schedule 9 to FA |
| |
1996, instead of preventing the bringing of amounts into account for any |
| 40 |
accounting period before that in which the security was redeemed, had |
| |
provided for the deferred amount to be brought into account for the |
| |
accounting period in which the security was redeemed rather than for the |
| |
| |
|
| |
|
| |
|
| |
“deeply discounted security” has the same meaning as in Chapter 8 of |
| |
Part 4 of ITTOIA 2005 (profits from deeply discounted securities) |
| |
(see section 430 of that Act), and |
| |
“the relevant period” has the same meaning as in section 409. |
| 5 |
60 (1) | This paragraph applies if— |
| |
(a) | an authorised unit trust or open-ended investment company holds a |
| |
deeply discounted security on the last day of the unit trust’s or |
| |
company’s last accounting period beginning before 1 October 2002 |
| |
| 10 |
(b) | the security was not transferred or redeemed on that day, |
| |
(c) | there is an amount which, if the unit trust or company had made a |
| |
transfer of that security on that day, by selling it for its adjusted |
| |
| |
(i) | would have been charged under paragraph 1 of Schedule 13 |
| 15 |
to FA 1996 under Case III or IV of Schedule D, or |
| |
(ii) | would have been eligible for relief from tax on a claim for the |
| |
purposes of paragraph 2 of Schedule 13 to FA 1996, and |
| |
(d) | that amount has not fallen to be brought into account under |
| |
paragraph 64(3) of Schedule 25 to FA 2002. |
| 20 |
(2) | That amount must be brought into account as a non-trading credit, or (as the |
| |
case may be) a non-trading debit, for the purposes of Part 5 (loan |
| |
relationships) for the relevant accounting period. |
| |
(3) | The relevant accounting period is the accounting period in which falls the |
| |
| 25 |
(a) | the first day that falls after the last old day and is a day on which, |
| |
under the terms on which the security was issued, the holder of the |
| |
security is entitled to require it to be redeemed, |
| |
(b) | the day on which the security is redeemed, and |
| |
(c) | the day on which the unit trust or company makes a disposal of the |
| 30 |
| |
(4) | For the purposes of sub-paragraph (1)(c), the “adjusted closing value” of a |
| |
deeply discounted security held by the unit trust or company on the last old |
| |
day is the amount which for the purposes of Chapter 2 of Part 4 of FA 1996 |
| |
was the opening value, as at the first day of the unit trust’s or company’s |
| 35 |
first accounting period beginning on or after 1 October 2002, of the unit |
| |
trust’s or company’s rights and liabilities under the relationship represented |
| |
| |
(5) | Paragraph 5(7) of Schedule 15 to FA 1996 (determination of opening value |
| |
where accruals basis of accounting is used) applies for the purposes of sub- |
| 40 |
paragraph (4) as it applies for the purposes of paragraph 5 of that Schedule, |
| |
| |
(a) | taking the reference to 1 April 1996 as a reference to the first day of |
| |
the unit trust’s or company’s first accounting period beginning on or |
| |
after 1 October 2002, and |
| 45 |
(b) | applying paragraph 4 of that Schedule (determination of amounts |
| |
treated as accruing on or after 1 April 1996) (as it had effect |
| |
immediately before 1 April 2009) for these purposes with the same |
| |
| |
|
| |
|
| |
|
| |
“creditor relationship” has the same meaning as in Part 5, |
| |
“deeply discounted security” has the same meaning as in that Chapter |
| |
(see section 430 of that Act), |
| |
“open-ended investment company” has the same meaning as in section |
| 5 |
| |
| |
(a) | make a disposal, within the meaning of Chapter 8 of Part 4 of |
| |
ITTOIA 2005 (profits from deeply discounted securities), |
| |
except by a transfer within the meaning of that Chapter, or |
| 10 |
(b) | convert as mentioned in section 437(1)(c) of that Act, and |
| |
“transfer” has the same meaning as in that Chapter. |
| |
(7) | In this paragraph “the relevant period” has the same meaning as in section |
| |
| |
Restriction on bringing into account credits resulting from reversal of debits disallowed in a |
| 15 |
period of account beginning before 1 January 2005 |
| |
61 (1) | No credit is to be brought into account for the purposes of Part 5 in respect |
| |
of the reversal of a debit that was disallowed for tax purposes in a period of |
| |
account beginning before 1 January 2005— |
| |
(a) | because of the assumption required by paragraph 5(1) of Schedule 9 |
| 20 |
| |
(b) | because the exceptions in section 74(1)(j) of ICTA did not apply. |
| |
(2) | This paragraph does not apply if fair value accounting is used. |
| |
Disregard of pre-2005 disallowed debits |
| |
62 (1) | This paragraph applies if in a period of account of a company beginning |
| 25 |
before 1 January 2005 (“the earlier period”) a debit was disallowed for tax |
| |
| |
(a) | because of the assumption required by paragraph 5(1) of Schedule 9 |
| |
| |
(b) | because the exceptions in section 74(1)(j) of ICTA did not apply. |
| 30 |
(2) | The debit is ignored in determining the accounting value of an asset of the |
| |
company at the end of the earlier period for the purposes of section 316 |
| |
(change of accounting policy involving change of value). |
| |
Bringing into account losses on overseas sovereign debt etc |
| |
63 (1) | This paragraph applies if at the end of the last period of account of a |
| 35 |
company before paragraph 17(1)(b) of Schedule 4 to FA 2005 (which |
| |
repealed paragraph 9 of Schedule 9 to FA 1996) had effect— |
| |
(a) | the company had ceased to be a party to a loan relationship, and |
| |
(b) | the effect of paragraph 9 of Schedule 9 to FA 1996 (restrictions on |
| |
bringing into account losses on overseas sovereign debt) (or a |
| 40 |
corresponding earlier enactment) was that part of the loss arising |
| |
had not been brought into account for tax purposes. |
| |
(2) | Despite the repeal by this Act of paragraph 17(3) of Schedule 4 to FA 2005, |
| |
any debit that, as a result of that paragraph, immediately before its repeal |
| |
|
| |
|
| |
|
could have been brought into account for the purposes of Chapter 2 of Part |
| |
4 of FA 1996 (loan relationships) under paragraph 9(4) or (5) of Schedule 9 to |
| |
FA 1996 in a subsequent period of account of the company may be brought |
| |
into account in such a period for the purposes of Part 5 (loan relationships). |
| |
Saving for old elections for treating loan relationships with embedded derivatives as two assets |
| 5 |
64 (1) | The repeal by this Act of paragraph 7 of Schedule 6 to F(No.2)A 2005 (loan |
| |
relationships with embedded derivatives) does not affect— |
| |
(a) | any election made under that paragraph immediately before the |
| |
| |
(b) | any election which immediately before the repeal takes effect had |
| 10 |
effect as if so made as a result of sub-paragraph (8) of that paragraph |
| |
(elections made under paragraph 28(3) of Schedule 4 to FA 2005). |
| |
(2) | This Act applies to those elections as if they had been made under section |
| |
416 (election for application of sections 415 and 585). |
| |
Deeply discounted securities of close companies: discounts for accounting periods beginning |
| 15 |
| |
65 (1) | This paragraph applies as regards a debtor relationship entered into in |
| |
| |
(a) | made before 4 March 2005, and |
| |
(b) | not varied after that date, or not varied until after that date. |
| 20 |
(2) | A debit is not allowed or required, as a result of the amendments made by |
| |
paragraph 3(2) and (4) to (7) of Schedule 8 to F(No.2)A 2005, to be brought |
| |
into account under Part 5 for an accounting period in respect of any amount |
| |
of discount in respect of which a debit is so brought into account for any |
| |
earlier accounting period. |
| 25 |
(3) | In sub-paragraph (2) “earlier accounting period” means an accounting |
| |
period that began before— |
| |
| |
(b) | if the contract mentioned in sub-paragraph (1) was varied before that |
| |
date, the date of variation. |
| 30 |
(4) | The references in this paragraph to the variation of a contract do not include |
| |
references to a variation that does not affect the terms of the debtor |
| |
relationship in question. |
| |
Repo, stock lending and other transactions before 1 October 2007: disapplication of section 332 |
| |
66 | Section 332 (repo, stock lending and other transactions) does not apply in |
| 35 |
relation to cases where there is— |
| |
(a) | an arrangement to which Chapter 10 of Part 6 would apply if the |
| |
arrangement had not come into force before 1 October 2007, |
| |
(b) | a stock lending arrangement (within the meaning of section 263B(1) |
| |
of TCGA 1992), which came into force before that date and under |
| 40 |
which the lender transfers securities to the borrower otherwise than |
| |
| |
(c) | any other disposal before that date. |
| |
|
| |
|