|
| |
|
(2) | The “larger SME provisions” are— |
| |
sections 1089(4) and 1090 (modification of section 1089 for larger |
| |
| |
section 1093 (modification of section 1092 for larger SMEs), |
| |
section 1104(5) (modification of amount B in section 1104 for larger |
| 5 |
| |
qualification 1 in section 1120(2) (qualifications to section 1119), and |
| |
section 1121 (meaning of “larger SME”). |
| |
(3) | But for the purpose of determining, in relation to expenditure incurred on or |
| |
after 1 August 2008, whether a company is a small or medium-sized |
| 10 |
enterprise within the meaning of Part 13, the larger SME provisions are to be |
| |
treated as always having had effect. |
| |
| |
119 (1) | In its application to expenditure incurred— |
| |
(a) | before 1 April 2004, and |
| 15 |
(b) | in an accounting period ending on or after 6 April 2003, |
| |
| section 1123 has effect with the following modification. |
| |
(2) | For subsections (2) and (3) substitute— |
| |
“(2) | This subsection applies to earnings paid by the company to |
| |
directors or employees of the company. |
| 20 |
| For this purpose “earnings” means earnings or amounts treated as |
| |
earnings which constitute employment income (see section 7(2)(a) |
| |
| |
120 | In its application to expenditure incurred before 1 August 2008, section 1123 |
| |
has effect with the omission of subsections (5) and (6). |
| 25 |
121 (1) | In relation to expenditure incurred before 27 September 2003, section 1124 |
| |
applies, for the purposes of Chapters 2 and 7 of Part 13, with the |
| |
modification in sub-paragraph (3). |
| |
(2) | In relation to expenditure incurred before 9 April 2003, section 1124 applies, |
| |
for the purposes of Chapters 3 to 5 of Part 13, with the modification in sub- |
| 30 |
| |
(3) | For subsections (3) and (4) substitute— |
| |
“(3) | In the case of a director (“D”) or employee (“E”) partly engaged |
| |
directly and actively in relevant research and development the |
| |
| 35 |
(a) | if the time D or E spends so engaged is less than 20% of D’s |
| |
or E’s total working time, none of the staffing costs relating to |
| |
D or E is treated as attributable to relevant research and |
| |
| |
(b) | if the time D or E spends so engaged is more than 80% of D’s |
| 40 |
or E’s total working time, the whole of the staffing costs |
| |
relating to D or E is treated as attributable to relevant |
| |
research and development, |
| |
(c) | in any other case, an appropriate proportion of the staffing |
| |
costs relating to D or E is treated as attributable to relevant |
| 45 |
research and development.” |
| |
|
| |
|
| |
|
Expenditure on software or consumable items |
| |
122 (1) | In relation to expenditure incurred before 1 April 2004, Part 13 applies with |
| |
the following modifications. |
| |
(2) | For “software or consumable items” in each place where it occurs, substitute |
| |
| 5 |
(3) | For sections 1125 and 1126 substitute— |
| |
| |
(1) | For the purposes of this Part expenditure on consumable stores |
| |
means expenditure that would be treated as expenditure on |
| |
consumable stores in accordance with normal accounting practice. |
| 10 |
(2) | For the purposes of this Part expenditure on consumable stores is |
| |
attributable to relevant research and development if the stores are |
| |
employed directly in such research and development.” |
| |
Qualifying expenditure on externally provided workers |
| |
123 (1) | In relation to expenditure incurred before 27 September 2003, Chapters 2 |
| 15 |
and 4 of Part 13 (relief for SMEs: cost of R&D borne by SME, and subsidised |
| |
expenditure on R&D) apply with the omission of— |
| |
| |
| |
(c) | in section 1134(3)(c), the words “or is qualifying expenditure on |
| 20 |
externally provided workers”, |
| |
(d) | section 1134(5)(b), and |
| |
(e) | sections 1127 to 1132, as they apply for the purposes of those |
| |
| |
(2) | In relation to expenditure incurred before 9 April 2003, Chapter 3 of Part 13 |
| 25 |
(relief for SMEs: R&D sub-contracted to SME) applies with the omission of— |
| |
(a) | section 1066(3)(c), and |
| |
(b) | sections 1127 to 1132, as they apply for the purposes of that Chapter. |
| |
(3) | In relation to expenditure incurred before 9 April 2003, Chapter 5 of Part 13 |
| |
(relief for large companies) applies with the omission of— |
| 30 |
(a) | section 1077(2)(c), and |
| |
(b) | sections 1127 to 1132, as they apply for the purposes of that Chapter. |
| |
(4) | In relation to expenditure incurred by a large company before 27 September |
| |
2003, Chapter 7 of Part 13 (relief for SMEs and large companies: vaccine |
| |
research etc) applies in the case of such a company with the omission of— |
| 35 |
(a) | section 1101(4)(c), and |
| |
(b) | sections 1127 to 1132, as they apply for the purposes of that Chapter. |
| |
(5) | In sub-paragraph (4) “large company” has the same meaning as in Part 13. |
| |
Qualifying expenditure on relevant payments to subjects of clinical trials |
| |
124 (1) | In relation to expenditure incurred before 1 August 2008, Chapter 2 of Part |
| 40 |
13 (relief for SMEs: cost of R&D borne by SME) applies with the omission |
| |
| |
|
| |
|
| |
|
| |
| |
(c) | in section 1134(3)(c), the words “or relevant payments to the subjects |
| |
of a clinical trial”, and |
| |
(d) | section 1140, as it applies for the purposes of that Chapter. |
| 5 |
(2) | In relation to expenditure incurred before 1 August 2008, Chapter 3 of Part |
| |
13 (relief for SMEs: cost of R&D sub-contracted to SME) applies with the |
| |
| |
(a) | section 1066(3)(d), and |
| |
(b) | section 1140, as it applies for the purposes of that Chapter. |
| 10 |
(3) | In relation to expenditure incurred before 1 April 2006, Chapter 4 of Part 13 |
| |
(relief for SMEs: subsidised expenditure on R&D) applies with the omission |
| |
| |
| |
(b) | in section 1134(3)(c), the words “or relevant payments to the subjects |
| 15 |
of a clinical trial”, and |
| |
(c) | section 1140, as it applies for the purposes of that Chapter. |
| |
(4) | In relation to expenditure incurred before 1 April 2006, Chapter 5 of Part 13 |
| |
(relief for large companies) applies with the omission of— |
| |
(a) | section 1077(2)(d), and |
| 20 |
(b) | section 1140, as it applies for the purposes of that Chapter. |
| |
(5) | In relation to expenditure incurred before 1 August 2008, Chapter 7 of Part |
| |
13 (relief for SMEs and large companies: vaccine research etc) applies with |
| |
| |
(a) | section 1101(4)(d), and |
| 25 |
(b) | section 1140, as it applies for the purposes of that Chapter. |
| |
| |
Remediation of contaminated land |
| |
Part 14: expenditure incurred before 11 May 2001 |
| |
125 (1) | Part 14 does not apply to expenditure incurred before 11 May 2001. |
| 30 |
(2) | For this purpose section 61 (pre-trading expenses) is to be ignored. |
| |
| |
126 (1) | In its application to expenditure incurred— |
| |
(a) | before 1 April 2004, and |
| |
(b) | in an accounting period ending on or after 6 April 2003, |
| 35 |
| section 1170 has effect with the following modification. |
| |
(2) | For subsections (2) and (3) substitute— |
| |
“(2) | This subsection applies to earnings paid by the company to directors |
| |
or employees of the company. |
| |
| For this purpose “earnings” means earnings or amounts treated as |
| 40 |
earnings which constitute employment income (see section 7(2)(a) or |
| |
| |
|
| |
|
| |
|
| |
| |
| |
127 | The provisions of sections 1181 to 1187 apply for the purposes of this Part of |
| |
this Schedule as if this Part were contained in Part 15 of this Act. |
| 5 |
Chapters 2 and 3 of Part 15 to apply only to films that commence principal photography on or |
| |
| |
128 | Chapters 2 and 3 of Part 15 apply only in relation to films that commence |
| |
principal photography on or after 1 January 2007 (but see paragraphs 130 |
| |
| 10 |
129 | The references in section 1206 to the functions of the Secretary of State under |
| |
Schedule 1 to the Films Act 1985 (c. 21) are to those functions only so far as |
| |
they are exercised in relation to films that commence principal photography |
| |
on or after 1 January 2007 (but see paragraphs 130 and 131). |
| |
Application of Part 15 etc to films that commenced principal photography before 1 January |
| 15 |
2007 but were not completed before that date |
| |
130 (1) | The Treasury may make provision by regulations for the application of the |
| |
| |
(a) | Part 15 or section 812 of this Act, and |
| |
(b) | Chapter 3 of Part 3 of FA 2006 and any enactment amended by that |
| 20 |
| |
| in relation to films that commenced principal photography before 1 January |
| |
2007 but were not completed before that date. |
| |
(2) | The regulations may provide for such adaptations and modifications of— |
| |
(a) | the provisions mentioned in sub-paragraph (1), and |
| 25 |
(b) | any other provision of the Corporation Tax Acts, |
| |
| as appear to the Treasury appropriate for that purpose. |
| |
| |
(a) | provide that the provisions of Part 15 or section 812 of this Act (or |
| |
any specified provisions of that Part or section) or Chapter 3 of Part |
| 30 |
3 of FA 2006 (or any specified provisions of that Chapter) have effect |
| |
as if they had been in force at all material times, |
| |
(b) | require or authorise the making or amendment of returns, or the |
| |
making of assessments, in relation to past accounting periods or tax |
| |
years (whenever beginning), and |
| 35 |
(c) | authorise the making of any such return, amendment or assessment |
| |
despite any limitation on the time within which a return, |
| |
amendment or assessment may normally be made. |
| |
131 (1) | In accordance with Part 1 of this Schedule, the Corporation Tax (Taxation of |
| |
Films) (Transitional Provisions) Regulations 2007 (S.I. 2007/1050) have |
| 40 |
effect as if made under paragraph 130 above. |
| |
(2) | For that purpose they are amended as follows. |
| |
|
| |
|
| |
|
(3) | In regulation 1(2) for “(films and sound recordings)” substitute “and Part 15 |
| |
and section 812 of the Corporation Tax Act 2009 (film production)”. |
| |
| |
(5) | In regulation 3 for “Chapter 3 of Part 3” substitute “Part 15 and section 812 |
| |
of the Corporation Tax Act 2009, Chapter 3 of Part 3 of the Finance Act 2006”. |
| 5 |
(6) | In regulation 4 for “section 32” substitute “section 1182 of the Corporation |
| |
Tax Act 2009” (and make a corresponding change in the heading for |
| |
| |
(7) | In regulation 5 for “section 40” substitute “section 1197 of the Corporation |
| |
Tax Act 2009” (and make a corresponding change in the heading for |
| 10 |
| |
(8) | In regulation 6(1) after “section 46” insert “of the Finance Act 2006” (and |
| |
make a corresponding change in the heading for regulation 6). |
| |
(9) | In regulation 7(1) after “section 47” insert “of the Finance Act 2006” (and |
| |
make a corresponding change in the heading for regulation 7). |
| 15 |
(10) | For regulation 8 substitute— |
| |
“8 | Modification of section 812 of the Corporation Tax Act 2009 |
| |
(intangible fixed assets: films) |
| |
In section 812(1) of the Corporation Tax Act 2009— |
| |
(a) | in paragraph (a) for “that began principal photography |
| 20 |
before 1st January 2007” substitute “to which Chapter 2 of |
| |
Part 15 of the Corporation Tax Act 2009 does not apply”, and |
| |
(b) | in paragraph (b) for “1st October 2007” substitute “31st |
| |
| |
(11) | For regulation 9 substitute— |
| 25 |
“9 | Modification of section 1188 of the Corporation Tax Act 2009 (taxation |
| |
of activities of film production company) |
| |
In section 1188(1) of the Corporation Tax Act 2009 (taxation of |
| |
activities of film production company) after “a film” insert “if the |
| |
| 30 |
(a) | is certified by the Secretary of State under Schedule 1 to the |
| |
Films Act 1985 as a British film for the purposes of film tax |
| |
| |
(b) | is intended for theatrical release at the time principal |
| |
| 35 |
(12) | In regulation 10(1) after “Schedule 5” insert “to the Finance Act 2006” (and |
| |
make a corresponding change in the heading for regulation 10). |
| |
(13) | Omit regulation 10(2). |
| |
(14) | In regulation 10(5) for the words after “sections 46 and 47” substitute “of the |
| |
Finance Act 2006 (films: withdrawal of existing reliefs) and section 1188(1) |
| 40 |
of the Corporation Tax Act 2009 (taxation of activities of film production |
| |
| |
(15) | In regulation 13(1)— |
| |
|
| |
|
| |
|
(a) | for “Chapter 3 of Part 3” substitute “Part 15 or section 812 of the |
| |
Corporation Tax Act 2009, of Chapter 3 of Part 3 of the Finance Act |
| |
| |
(b) | for “whether before or after the commencement of that Chapter” |
| |
substitute “whenever beginning”. |
| 5 |
Prohibition on double counting |
| |
132 (1) | Expenditure is not to be taken into account for the purposes of Chapter 2 of |
| |
Part 15 if relief has been given in respect of it under— |
| |
(a) | section 40B, 41 or 42 of F(No.2)A 1992, |
| |
(b) | section 48 of F(No.2)A 1997, or |
| 10 |
(c) | section 135, 136 to 138A or 139 to 142 of ITTOIA 2005. |
| |
(2) | For the purposes of paragraph 130 and any regulations made under that |
| |
paragraph, sub-paragraph (1) of this paragraph is treated as if contained in |
| |
| |
| 15 |
| |
| |
133 (1) | This paragraph applies for the purposes of section 1249. |
| |
(2) | In relation to a period of account ending before 27 November 2002, an |
| |
amount charged in the accounts in respect of employees’ remuneration |
| 20 |
includes an amount which is held by an intermediary with a view to its |
| |
becoming employees’ remuneration. |
| |
(3) | In relation to a period of account ending on or after 27 November 2002, an |
| |
amount charged in the accounts in respect of employees’ remuneration |
| |
| 25 |
(a) | in respect of employee benefit contributions (within the meaning of |
| |
sections 1290 to 1296) made before that date, and |
| |
(b) | which is held by an intermediary, |
| |
| with a view to its becoming employees’ remuneration. |
| |
| 30 |
| |
Unremittable income that arose in an accounting period ending before 1 April 2009 |
| |
134 (1) | A claim may be made under section 1275 (claim for relief for unremittable |
| |
income) for an accounting period ending after 31 March 2009, despite the |
| |
income having arisen in an accounting period ending before 1 April 2009. |
| 35 |
(2) | Section 1276 (withdrawal of relief) applies for an accounting period ending |
| |
after 31 March 2009, despite the income having arisen originally in an |
| |
accounting period ending before 1 April 2009 (whether the claim in respect |
| |
of it was made under section 584 of ICTA (relief for unremittable overseas |
| |
income) or section 1275 of this Act). |
| 40 |
|
| |
|
| |
|
Withdrawal of relief: income that arose in an accounting period ending before 1 October 1993 |
| |
135 | Section 1277 (income charged on withdrawal of relief after source ceases) |
| |
does not apply if the income originally arose in an accounting period ending |
| |
| |
| 5 |
| |
Ulster savings certificates |
| |
136 | In the case of certificates acquired before 27 July 1981, in section 1282(4) for |
| |
“the Department of Finance and Personnel” substitute “the Treasury”. |
| |
| 10 |
| |
Training courses for employees |
| |
137 (1) | This paragraph applies if, without the repeal by this Act of section 588 of |
| |
ICTA (training courses for employees)— |
| |
(a) | section 588(5) of ICTA would operate in relation to an employee by |
| 15 |
virtue of paragraph (a) of that provision and paragraph 37 of |
| |
Schedule 7 to ITEPA 2003 (savings in relation to tax years before |
| |
| |
(b) | section 588(5) of ICTA would operate in relation to an employer by |
| |
virtue of paragraph (b) of that provision and paragraph 37 of |
| 20 |
Schedule 7 to ITEPA 2003, or |
| |
(c) | section 588(6) and (7) of ICTA would operate in relation to an |
| |
employer by virtue of paragraph 37 of Schedule 7 to ITEPA 2003. |
| |
(2) | That repeal does not apply in relation to— |
| |
(a) | the operation of section 588(5) of ICTA in relation to the employee as |
| 25 |
mentioned in sub-paragraph (1)(a), |
| |
(b) | the operation of section 588(5) of ICTA in relation to the employer as |
| |
mentioned in sub-paragraph (1)(b), or |
| |
(c) | the operation of section 588(6) and (7) of ICTA in relation to the |
| |
employer as mentioned in sub-paragraph (1)(c). |
| 30 |
138 | In the Table in section 98 of TMA 1970 (special returns etc)— |
| |
(a) | the entry relating to section 588(6) of ICTA, and |
| |
(b) | the entry relating to section 588(7) of ICTA, |
| |
| continue to have effect (despite the repeal by this Act of those entries) in |
| |
relation to section 588(6) and (7) as it has effect by virtue of paragraph 137. |
| 35 |
139 (1) | This paragraph applies if— |
| |
(a) | at any time during the period beginning with 6 April 2003 and |
| |
ending with 31 March 2009, a company (“the employer”) incurred |
| |
expenditure in paying or reimbursing retraining course expenses |
| |
within the meaning of section 311 of ITEPA 2003, |
| 40 |
(b) | the employer’s liability to corporation tax for any accounting period |
| |
has been determined (before or after 1 April 2009, and by assessment |
| |
|
| |
|