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House of Commons

Session 2008 - 09 Internet Publications Other Bills before Parliament

Corporation Tax Bill

Corporation Tax Bill xv
Chapter 10
Supplementary
Priority rules
287    Provisions which must be given priority over this Part
288    Priority between Chapters within this Part
Other supplementary provisions
289    Effect of company starting or ceasing to be within charge to corporation tax
290    Overseas property businesses and overseas land: adaptation of rules
291    Meaning of “lease” and “premises”
Part 5
Loan Relationships
Chapter 1
Introduction
Introduction
292    Overview of Part
293    Construction of references to profits or losses from loan relationships
294    Matters treated as loan relationships
How profits and deficits from loan relationships are dealt with
295    General rule: profits arising from loan relationships chargeable as income
296    Profits and deficits to be calculated using credits and debits given by this Part
297    Trading credits and debits to be brought into account under Part 3
298    Meaning of trade and purposes of trade
299    Charge to tax on non-trading profits
300    Method of bringing non-trading deficits into account
301    Calculation of non-trading profits and deficits from loan relationships: non-
trading credits and debits
Chapter 2
Basic definitions
302    “Loan relationship”, “creditor relationship”, “debtor relationship”
303    “Money debt”
304    “Related transaction”
305    Payments, interest, rights and liabilities under a loan relationship
Corporation Tax Bill xvi
Chapter 3
The credits and debits to be brought into account: general
Introduction
306    Overview of Chapter
General principles about the bringing into account of credits and debits
307    General principles about the bringing into account of credits and debits
Amounts recognised in determining a company’s profit or loss
308    Amounts recognised in determining a company’s profit or loss
309    Companies without GAAP-compliant accounts
310    Power to make regulations about recognised amounts
311    Amounts not fully recognised for accounting purposes: introduction
312    Determination of credits and debits where amounts not fully recognised
Accounting bases
313    Basis of accounting: “amortised cost basis”, “fair value accounting” and “fair
value”
314    Power to make regulations about changes from amortised cost basis
Adjustments on change of accounting policy
315    Introduction to sections 316 to 319
316    Change of accounting policy involving change of value
317    Carrying value
318    Change of accounting policy following cessation of loan relationship
319    General power to make regulations about changes in accounting policy
Rules differing from generally accepted accounting practice
320    Credits and debits treated as relating to capital expenditure
321    Credits and debits recognised in equity
322    Release of debts: cases where credits not required to be brought into account
323    Meaning of expressions relating to insolvency etc
324    Restriction on debits resulting from revaluation
325    Restriction on credits resulting from reversal of disallowed debits
326    Writing off government investments
327    Disallowance of imported losses etc
Exchange gains and losses
328    Exchange gains and losses
Pre-loan relationship, abortive and pre-trading expenses
329    Pre-loan relationship and abortive expenses
330    Debits in respect of pre-trading expenditure
Corporation Tax Bill xvii
Company ceasing to be party to loan relationship
331    Company ceasing to be party to loan relationship
332    Repo, stock lending and other transactions
Company moving abroad
333    Company ceasing to be UK resident
334    Non-UK resident company ceasing to hold loan relationship for UK
permanent establishment
Chapter 4
Continuity of treatment on transfers within groups or on reorganisations
Application of this Chapter
335    Introduction to Chapter
336    Transfers of loans on group transactions
337    Transfers of loans on insurance business transfers
338    Meaning of company replacing another as party to loan relationship
339    Issues of new securities on certain cross-border reorganisations
Continuity of treatment: transfer of loan at notional carrying value
340    Group transfers and transfers of insurance business: transfer at notional
carrying value
341    Transferor using fair value accounting
342    Issues of new securities on reorganisations: disposal at notional carrying
value
343    Receiving company using fair value accounting
Transferee leaving group after replacing transferor as party to loan relationship
344    Introduction
345    Transferee leaving group otherwise than because of exempt distribution
346    Transferee leaving group because of exempt distribution
Disapplication of Chapter where transferor party to avoidance
347    Disapplication of Chapter where transferor party to avoidance
Chapter 5
Connected companies relationships: introduction and general
348    Introduction: meaning of “connected companies relationship”
349    Application of amortised cost basis to connected companies relationships
350    Companies beginning to be connected
351    Companies ceasing to be connected
352    Disregard of related transactions
Corporation Tax Bill xviii
Chapter 6
Connected companies relationships: impairment losses and releases of debts
Introduction
353    Introduction to Chapter
Exclusion of debits for impaired or released connected companies debts
354    Exclusion of debits for impaired or released connected companies debts
355    Cessation of connection
356    Exception to section 354: swapping debt for equity
357    Exception to section 354: insolvent creditors
Exclusion of credits for connected companies debts on release or reversal of impairments
358    Exclusion of credits on release of connected companies debts: general
359    Exclusion of credits on release of connected companies debts during
creditor’s insolvency
360    Exclusion of credits on reversal of impairments of connected companies debts
Deemed debt releases on impaired debts becoming held by connected company
361    Acquisition of creditor rights by connected company at undervalue
362    Parties becoming connected where creditor’s rights subject to impairment
adjustment
363    Companies connected for sections 361 and 362
Chapter 7
Group relief claims involving impaired or released consortium debts
364    Introduction to Chapter
365    Reduction of impairment loss debits where group relief claimed
366    Effect where credit for release brought into account on amortised cost basis
367    Reduction of credits exceeding impairment losses
368    Reduction of claims where there are earlier net consortium debits
369    Carry forward of claims where there are no net consortium debits
370    Group accounting periods
371    Interpretation
Chapter 8
Connected parties relationships: late interest
372    Introduction to Chapter
373    Late interest treated as not accruing until paid in some cases
374    Connection between debtor and person standing in position of creditor
375    Loans to close companies by participators etc
376    Interpretation of section 375
377    Party to loan relationship having major interest in other party
378    Loans by trustees of occupational pension schemes
379    Persons indirectly standing in the position of creditor
Corporation Tax Bill xix
Chapter 9
Partnerships involving companies
380    Partnerships involving companies
381    Determinations of credits and debits by company partners: general
382    Company partners using fair value accounting
383    Lending between partners and the partnership
384    Treatment of exchange gains and losses
385    Company partners’ shares where firm owns deeply discounted securities
Chapter 10
Insurance companies
Introduction
386    Overview of Chapter
Treatment of deficit on basic life assurance and general annuity business
387    Treatment of deficit on basic life assurance and general annuity business:
introduction
388    Basic rule: deficit set off against income and gains of deficit period
389    Claim to carry back deficit
390    Meaning of “available profits”
391    Carry forward of surplus deficit to next accounting period
Exclusion of loan relationships of members of Lloyd’s
392    Exclusion of loan relationships of members of Lloyd’s
Determination of questions requiring apportionments
393    General rules for some debtor relationships
394    Special rules for some debtor relationships
Chapter 11
Other special kinds of company
Investment trusts’ and venture capital trusts’ creditor relationships
395    Investment trusts: profits or losses of a capital nature
396    Venture capital trusts: profits or losses of a capital nature
Credit unions
397    Credit unions
Corporation Tax Bill xx
Chapter 12
Special rules for particular kinds of securities
Introduction
398    Overview of Chapter
Gilt-edged securities
399    Index-linked gilt-edged securities: basic rules
400    Index-linked gilt-edged securities: adjustments for changes in index
401    Gilt strips
402    Market value of securities
403    Meaning of “strip”
404    Restriction on deductions etc relating to FOTRA securities
405    Certain non-UK residents with interest on 3½% War Loan 1952 Or After
Deeply discounted securities: connected companies and close companies
406    Introduction
407    Postponement until redemption of debits for connected companies’ deeply
discounted securities
408    Companies connected for section 407
409    Postponement until redemption of debits for close companies’ deeply
discounted securities
410    Exceptions to section 409
411    Interpretation of section 409
412    Persons indirectly standing in the position of creditor
Funding bonds
413    Issue of funding bonds
414    Redemption of funding bonds
Derivatives
415    Loan relationships with embedded derivatives
416    Election for application of sections 415 and 585
417    Further provisions about elections under section 416
418    Loan relationships treated differently by connected debtor and creditor
419    Section 418: supplementary
Options etc
420    Assumptions where options etc apply
Chapter 13
European cross-border transfers of business
Introduction
421    Introduction to Chapter
Corporation Tax Bill xxi
Transfers of loan relationships at notional carrying value
422    Transfer of loan relationship at notional carrying value
423    Transferor using fair value accounting
424    Reorganisations involving loan relationships
425    Original holder using fair value accounting
Exception for tax avoidance cases
426    Tax avoidance etc
427    Procedure on application for clearance
428    Decision on application for clearance
Transparent entities
429    Disapplication of Chapter where transparent entities involved
Interpretation
430    Interpretation
Chapter 14
European cross-border mergers
Introduction
431    Introduction to Chapter
432    Meaning of “the transferee” and “transferor”
Transfers of loan relationships at notional carrying value
433    Transfer of loan relationship at notional carrying value
434    Transferor using fair value accounting
435    Reorganisations involving loan relationships
436    Original holder using fair value accounting
Exception for tax avoidance cases
437    Tax avoidance etc
Transparent entities
438    Disapplication of Chapter where transparent entities involved
Interpretation
439    Interpretation

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