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Corporation Tax Bill


Corporation Tax Bill
Schedule 2 — Transitionals and savings
Part 21 — Other provisions

780

 

or otherwise) on the assumption that, by virtue only of subsection (3)

(or subsections (3) and (4)) of section 588 of ICTA, the employer is

entitled to a deduction on account of the expenditure, and

(c)   

before 1 April 2009, no assessment has been made under paragraph

41 of Schedule 18 to FA 1998 by virtue of section 588(5) of ICTA of an

5

amount due in consequence of the failure by the person in respect of

whom the expenditure was incurred to meet a condition of the kind

mentioned in section 312(1)(b)(i) or (ii) of ITEPA 2003.

      (2)  

Section 75 (retraining courses: recovery of tax) applies in relation to the

employer as if the condition in subsection (1) of that section were met.

10

      (3)  

Section 76ZE of ICTA (provision for companies carrying on life assurance

provision corresponding to section 75) applies in relation to the employer as

if the condition in subsection (1) of that section were met.

      (4)  

In the application of section 75 of this Act and section 76ZE of ICTA to the

employer, references to “the employee” are to the person in respect of whom

15

the expenditure was incurred by the employer.

Unpaid remuneration

140   (1)  

This paragraph applies for the purposes of—

(a)   

section 1288 of this Act (unpaid remuneration), and

(b)   

section 76ZL of ICTA (corresponding provision for companies

20

carrying on life assurance business).

      (2)  

In relation to a period of account ending before 27 November 2002, an

amount charged in the accounts in respect of employees’ remuneration

includes an amount which is held by an intermediary with a view to its

becoming employees’ remuneration.

25

      (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

includes an amount—

(a)   

in respect of employee benefit contributions (within the meaning of

sections 1290 to 1296) made before that date, and

30

(b)   

which is held by an intermediary,

           

with a view to its becoming employees’ remuneration.

Employee benefit contributions

141        

Section 1290 does not apply to deductions that would otherwise be

allowed—

35

(a)   

for a period ending before 27 November 2002, or

(b)   

in respect of employee benefit contributions made before that date.

Interest on overdue corporation tax etc

142   (1)  

The repeal by this Act of section 90(1)(b) of TMA 1970 does not affect the

following rules.

40

      (2)  

In calculating profits for any corporation tax purpose, no deduction is

allowed for interest payable under section 86 of TMA 1970 (interest on

overdue tax for accounting periods ending before 1 October 1993).

 
 

Corporation Tax Bill
Schedule 2 — Transitionals and savings
Part 21 — Other provisions

781

 

      (3)  

In calculating profits for any corporation tax purpose, no deduction is

allowed for interest payable under section 87 of TMA 1970 (interest on

overdue advance corporation tax and income tax on company payments) or

section 87A of TMA 1970 (interest on overdue corporation tax etc) on—

(a)   

corporation tax for accounting periods ending before 1 July 1999, or

5

(b)   

tax assessable in accordance with Schedule 13 or 16 of ICTA for

return periods in accounting periods ending before 1 July 1999.

Miscellaneous profits and losses: apportionment to accounting periods ending before 1 April

2009

143   (1)  

This paragraph applies if—

10

(a)   

a relevant period of account begins before 1 April 2009 and ends on

or after that date, and

(b)   

in order to arrive at the profits or losses of an accounting period

ending before 1 April 2009 it is necessary to apportion the profits or

losses of the relevant period of account to any part of that period

15

before 1 April 2009.

      (2)  

A period of account is a “relevant period” if—

(a)   

section 1307 applies to the period of account, and

(b)   

the profits or losses of the part of the period of account falling in an

accounting period ending after 31 March 2009 are calculated in

20

accordance with this Act.

      (3)  

The profits or losses of the relevant period of account—

(a)   

are calculated in accordance with this Act (and therefore, to that

extent, this Act has effect for accounting periods ending before 1

April 2009), and

25

(b)   

may be apportioned in accordance with section 1307 to any part of

the period of account falling in an accounting period ending before 1

April 2009.

Purchase and sale of securities: references to setting up and commencement etc of a trade

144        

In section 731 of ICTA, as that section has effect in accordance with section

30

66(6) of FA 2008 (purchase and sale of securities: securities purchased before

1 April 2008)—

(a)   

the reference in subsection (7) to the setting up and commencement

of a trade is to be read as including any event that would be treated

as the setting up and commencement of the trade if sections 114(1)

35

and 337(1) of ICTA were not repealed by this Act, and

(b)   

the reference in subsection (8) to the deemed discontinuance of a

trade is to be read as including any event that would be treated as the

discontinuance of the trade if sections 114(1) and 337(1) of ICTA were

not repealed by this Act.

40

References to Companies Act 2006

145        

Until section 658 of the Companies Act 2006 (c. 46) (rule against limited

company acquiring own shares) comes into force, references to that section

in sections 807B(3)(f)(ii) and 807D(7)(b) of ICTA (which are inserted by

Schedule 1 to this Act) have effect as if they were references to section 143 of

45

the Companies Act 1985 (c. 6).

 
 

Corporation Tax Bill
Schedule 3 — Repeals and revocations
Part 1 — Repeals and revocations on 1 April 2009

782

 

Charges to tax under Case VI of Schedule D in subordinate legislation

146   (1)  

This paragraph applies if—

(a)   

a provision of the Corporation Tax Acts (“the rule”) contains a

reference such as is mentioned in section 834A(1) of ICTA (that is, a

reference to any provision to which section 834A of ICTA applies),

5

(b)   

immediately before 1 April 2009 the reference was to Case VI of

Schedule D (or, if the rule rewrites a provision that is repealed by this

Act, the corresponding reference in that provision was to Case VI of

Schedule D), and

(c)   

by virtue of that reference, the rule (or the provision that it rewrites)

10

then applied in relation to amounts charged, under a provision of

subordinate legislation, to corporation tax under Case VI of Schedule

D.

      (2)  

As long as the provision of subordinate legislation continues to be expressed

by reference to Case VI of Schedule D, the Corporation Tax Acts have effect

15

as if it were listed in the table in section 834A(2) of ICTA.

      (3)  

In this paragraph “subordinate legislation” has the same meaning as in the

Interpretation Act 1978 (c. 30).

147   (1)  

This paragraph applies if immediately before 1 April 2009 a provision of

subordinate legislation (within the meaning of the Interpretation Act 1978)

20

treated amounts as losses incurred in a transaction in respect of which a

person is within the charge to corporation tax under Case VI of Schedule D.

      (2)  

As long as the provision continues to be expressed by reference to Case VI

of Schedule D, it has effect as if it treated the amounts as losses incurred in a

transaction in respect of which the person is within the charge to corporation

25

tax under a provision to which section 834A of ICTA applies.

Schedule 3

Section 1326

 

Repeals and revocations

Part 1

30

Repeals and revocations on 1 April 2009

 

Reference

Extent of repeal or revocation

 
 

Taxes Management Act 1970

Section 12AE.

 
 

(c. 9)

Section 19(2).

 
  

Section 31(3).

 

35

  

In section 42(7)—

 
  

(a)   

in paragraph (a) the words “84, 91B,

 
  

101(2)” and “504, 531”,

 
  

(b)   

paragraph (b), and

 
  

(c)   

the “and” immediately after paragraph

 

40

  

(e).

 
  

In section 71(1), the words from “Subject to” to

 
  

“companies),”.

 
 
 

Corporation Tax Bill
Schedule 3 — Repeals and revocations
Part 1 — Repeals and revocations on 1 April 2009

783

 
 

Reference

Extent of repeal or revocation

 
 

Taxes Management Act 1970

In section 90—

 
 

(c. 9)—cont.

(a)   

in subsection (1), paragraph (b) and the

 
  

“and” immediately before that

 
  

paragraph, and

 

5

  

(b)   

subsection (2).

 
  

In the first column of the Table in section 98—

 
  

(a)   

the entry relating to section 38(5) of

 
  

ICTA,

 
  

(b)   

the entry relating to section 588(7) of

 

10

  

ICTA, and

 
  

(c)   

the entry relating to paragraph 10 of

 
  

Schedule 5 to ICTA.

 
  

In the second column of the Table in section

 
  

98—

 

15

  

(a)   

the entry relating to section 577(4) of

 
  

ICTA, and

 
  

(b)   

the entry relating to section 588(6) of

 
  

ICTA.

 
  

In Schedule 3, in paragraph 10, the word

 

20

  

“102(1),”.

 
 

Oil Taxation Act 1975 (c. 22)

In section 3(2), in the first sentence, the words

 
  

“under subsection (2) of section 579 of the

 
  

Taxes Act or”, and “that subsection or”.

 
 

Income and Corporation Taxes

In section 6—

 

25

 

Act 1988 (c. 1)

(a)   

subsections (1) to (3),

 
  

(b)   

in subsection (4), the words from “,

 
  

sections” to “248”, and

 
  

(c)   

subsection (4A).

 
  

Section 8.

 

30

  

In section 9—

 
  

(a)   

subsections (1) to (4),

 
  

(b)   

in subsection (5), the words “, by virtue

 
  

of this section or otherwise,”, and

 
  

(c)   

subsection (6).

 

35

  

Section 11(1) to (2A).

 
  

Section 11AA.

 
  

Section 12(1) to (7ZA) and (9).

 
  

Section 15.

 
  

Section 18.

 

40

  

Sections 21A to 21C.

 
  

In section 24—

 
  

(a)   

in subsection (1), the definition of

 
  

“premium”,

 
  

(b)   

subsections (2) to (4),

 

45

  

(c)   

in subsection (5), the definitions of

 
  

“intermediate landlord”, “premium” and

 
  

“reversion”, and

 
  

(d)   

subsection (6)(a).

 
  

Section 30.

 

50

  

Sections 31ZA to 31ZC.

 
  

Sections 34 to 40.

 
 
 

Corporation Tax Bill
Schedule 3 — Repeals and revocations
Part 1 — Repeals and revocations on 1 April 2009

784

 
 

Reference

Extent of repeal or revocation

 
 

Income and Corporation Taxes

In section 42, subsection (1)(a) and the “or”

 
 

Act 1988 (c. 1)—cont.

immediately after it.

 
  

Section 46.

 
  

Section 53.

 

5

  

Section 55.

 
  

Section 70.

 
  

Section 70A.

 
  

Section 72.

 
  

Section 74.

 

10

  

Sections 75 to 75B.

 
  

In section 76(7), in Step 3 the entries relating

 
  

to—

 
  

(a)   

paragraph 4(4)(b) of Schedule 11 to FA

 
  

1996,

 

15

  

(b)   

paragraph 23 of Schedule 22 to FA 2001,

 
  

(c)   

paragraph 13(2) of Schedule 12 to FA

 
  

2002, and

 
  

(d)   

paragraph 36(3) of Schedule 29 to that

 
  

Act.

 

20

  

Sections 76A and 76B.

 
  

Sections 79 to 79B.

 
  

Sections 82A to 84.

 
  

In section 84A—

 
  

(a)   

in subsection (2), in paragraph (a) the

 

25

  

words “Schedule D or”, paragraph (b)

 
  

and the “or” immediately before it, and

 
  

paragraph (c), and

 
  

(b)   

subsection (3ZA)(b).

 
  

Sections 85 to 85B.

 

30

  

Sections 86 to 88.

 
  

Sections 88D to 95.

 
  

Sections 97 to 106.

 
  

Section 110.

 
  

Section 111(1).

 

35

  

Sections 114 and 115.

 
  

Section 116(5).

 
  

Section 118ZA.

 
  

Sections 119 to 122.

 
  

Section 125.

 

40

  

Section 128(2) and (3).

 
  

In section 130, the words ““company with

 
  

investment business” means any company

 
  

whose business consists wholly or partly in

 
  

the making of investments”.

 

45

  

Section 208.

 
  

Section 337.

 
  

In section 337A—

 
  

(a)   

subsection (1)(a), and

 
  

(b)   

subsection (2)(b) and the “and”

 

50

  

immediately before it.

 
  

In section 399, subsection (1B) and, in subsection

 
  

(3), the words “under Case VI of Schedule D”.

 
  

Section 401.

 
  

In section 414(1)(b), the words “within the

 

55

  

meaning of section 486(12)”.

 
 
 

Corporation Tax Bill
Schedule 3 — Repeals and revocations
Part 1 — Repeals and revocations on 1 April 2009

785

 
 

Reference

Extent of repeal or revocation

 
 

Income and Corporation Taxes

In section 431(2YC)(a), the words “under

 
 

Act 1988 (c. 1)—cont.

Schedule A or Case III, V or VI of Schedule

 
  

D”.

 
  

In section 434A(2A), the words from “which” to

 

5

  

“1996”.

 
  

In section 444AZA(2), the words “(a “Case I

 
  

loss”)”.

 
  

In section 444AZB(2), the words “(a “Case VI

 
  

loss”)”.

 

10

  

In section 444AEA—

 
  

(a)   

in subsection (1)(b), the words “Case I”,

 
  

(b)   

in subsection (3), the words “transferor’s

 
  

Case I”, and

 
  

(c)   

in subsection (4), the words “transferee’s

 

15

  

Case I”.

 
  

In section 444AECA—

 
  

(a)   

in subsection (1)(b), the words “Case I”,

 
  

(b)   

in subsection (3), the words “transferor’s

 
  

Case I”, and

 

20

  

(c)   

in subsection (4), the words “transferee’s

 
  

Case I”.

 
  

In section 444AF(5)(b), the words “under Case

 
  

VI of Schedule D”.

 
  

Section 469(4A) to (5) and (6).

 

25

  

Sections 472A and 473.

 
  

In section 475—

 
  

(a)   

in subsection (2), paragraph (b) and the

 
  

“and” immediately before it, and

 
  

(b)   

in subsection (4), the words from “or to

 

30

  

be brought” to the end.

 
  

In section 477A, subsections (3)(a) and (aa), (4)

 
  

and (10).

 
  

Section 477B.

 
  

In section 486—

 

35

  

(a)   

in subsection (1), the words from “but”

 
  

to the end,

 
  

(b)   

subsections (4) and (7),

 
  

(c)   

subsections (10) and (11), and

 
  

(d)   

in subsection (12) the definition of

 

40

  

“registered industrial and provident

 
  

society”.

 
  

Section 487.

 
  

Section 491.

 
  

Section 504.

 

45

  

In section 505(1)—

 
  

(a)   

paragraph (c)(iia), and

 
  

(b)   

in paragraph (d), the words “under

 
  

Schedule D”.

 
  

Section 509.

 

50

  

Sections 524 to 526.

 
  

Section 528.

 
  

Sections 531 to 533.

 
  

Section 558(5) and (6).

 
 
 

Corporation Tax Bill
Schedule 3 — Repeals and revocations
Part 1 — Repeals and revocations on 1 April 2009

786

 
 

Reference

Extent of repeal or revocation

 
 

Income and Corporation Taxes

In section 568(1), the words “section 74 of this

 
 

Act 1988 (c. 1)—cont.

Act or”.

 
  

In section 571(1), the words from “(in” to

 
  

“Schedule D)”.

 

5

  

Sections 577 to 580.

 
  

Section 582.

 
  

Section 584.

 
  

Sections 586 and 587.

 
  

Section 588.

 

10

  

Section 589A.

 
  

Section 589B(5).

 
  

Section 617.

 
  

Sections 695 to 698.

 
  

Section 699A.

 

15

  

In section 700—

 
  

(a)   

subsections (1) to (3),

 
  

(b)   

in subsection (4), the words “this Part

 
  

or”, and

 
  

(c)   

in subsection (5), paragraph (a), in

 

20

  

paragraph (b) the words “(a) or”, the

 
  

words from “deemed” to “this Part or”,

 
  

in the first place where they occur, and

 
  

the words “this Part or” in the second

 
  

place where they occur.

 

25

  

Sections 701 and 702.

 
  

In section 703(3), the words from “(the amount”

 
  

to “accordingly)”.

 
  

In section 768B(10), the words “and non-trading

 
  

deficits”.

 

30

  

In section 768C(9), the words “and non-trading

 
  

deficits”.

 
  

In section 779(13), paragraph (a) and in

 
  

paragraph (d) the words “75 or”.

 
  

In section 781—

 

35

  

(a)   

in subsection (1), the words from “(in” to

 
  

“Schedule D)”, and

 
  

(b)   

in subsection (4)(c), the words “75 or”.

 
  

In section 782(9), the words from “, and where”

 
  

to the end.

 

40

  

In section 787, subsection (1A), in subsection (2)

 
  

the words “or total profits” and subsection

 
  

(3).

 
  

In section 788(7), the words from “, and, in” to

 
  

the end.

 

45

  

In section 790(11), the words from “, and, in” to

 
  

the end.

 
  

In section 797A(2), the words “and gains”.

 
  

In section 806B(10), the definition of “the Case V

 
  

dividend”.

 

50

  

In section 806L(5)(b), the words “Case VI of

 
  

Schedule D by virtue of”.

 
  

Section 817.

 
  

In section 821(1)(a), the words “under under

 
  

Case III of Schedule D”.

 

55

 
 

 
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