• Accessibility
• Email alerts
• RSS feeds
• Contact us

House of Commons

Session 2008 - 09 Internet Publications Other Bills before Parliament

Corporation Tax Bill

Corporation Tax Bill xxii
Chapter 15
Tax avoidance
Introduction
440    Overview of Chapter
Unallowable purposes and tax relief schemes
441    Loan relationships for unallowable purposes
442    Meaning of “unallowable purpose”
443    Restriction of relief for interest where tax relief schemes involved
Transactions not at arm’s length: general
444    Transactions not at arm’s length: general
445    Disapplication of section 444 where Schedule 28AA to ICTA applies
446    Bringing into account adjustments made under Schedule 28AA to ICTA
Transactions not at arm’s length: exchange gains and losses
447    Exchange gains and losses on debtor relationships: loans disregarded under
Schedule 28AA to ICTA
448    Exchange gains and losses on debtor relationships: equity notes where holder
associated with issuer
449    Exchange gains and losses on creditor relationships: no corresponding debtor
relationship
450    Meaning of “corresponding debtor relationship”
451    Exception to section 449 where loan exceeds arm’s length amount
452    Exchange gains and losses where loan not on arm’s length terms
Connected parties deriving benefit from creditor relationships
453    Connected parties deriving benefit from creditor relationships
Tax advantages from resetting interest rates ("reset bonds")
454    Application of fair value accounting: reset bonds etc
Disposals for consideration not fully recognised by accounting practice
455    Disposals for consideration not fully recognised by accounting practice
Chapter 16
Non-trading deficits
456    Introduction to Chapter
457    Basic rule for deficits: carry forward to accounting periods after deficit period
458    Claim to carry forward deficit to later accounting periods
459    Claim to set off deficit against profits of deficit period or earlier periods
460    Time limits and procedure for claims under section 459(1)
461    Claim to set off deficit against other profits for the deficit period
Corporation Tax Bill xxiii
462    Claim to carry back deficit to earlier accounting periods
463    Profits available for relief under section 462
Chapter 17
Priority rules
464    Priority of this Part for corporation tax purposes
465    Exclusion of distributions except in tax avoidance cases
Chapter 18
General and supplementary provisions
Connections between persons
466    Companies connected for an accounting period
467    Connections where partnerships are involved
468    Connection between companies to be ignored in some circumstances
469    Creditors who are financial traders
470    Section 469: supplementary provisions
471    Creditors who are insurance companies carrying on BLAGAB
472    Meaning of “control”
473    Meaning of “major interest”
474    Treatment of connected companies and partnerships for section 473
475    Meaning of expressions relating to exchange gains and losses
Other general definitions
476    Other definitions
Part 6
Relationships treated as loan relationships etc
Chapter 1
Introduction
477    Overview of Part
Chapter 2
Relevant non-lending relationships
Introduction: meaning of “relevant non-lending relationship” etc
478    Relevant non-lending relationships: introduction
479    Relevant non-lending relationships not involving discounts
480    Relevant non-lending relationships involving discounts
Application of Part 5 to relevant non-lending relationships
481    Application of Part 5 to relevant non-lending relationships
Corporation Tax Bill xxiv
482    Miscellaneous rules about amounts to be brought into account because of this
Chapter
Meaning of “money debt” and “interest” in this Chapter
483    Exchange gains and losses: amounts treated as money debts
484    Provision not at arm’s length: meaning of “interest” and “money debt”
Exclusions
485    Exclusion of debts where profits or losses within Part 7 or 8
486    Exclusion of exchange gains and losses in respect of tax debts etc
Chapter 3
OEICs, unit trusts and offshore funds
Introduction
487    Overview of Chapter
488    Meaning of “open-ended investment company” etc
489    Meaning of “offshore fund” etc
Holdings in OEICs, unit trusts and offshore funds treated as creditor relationship rights
490    Holdings in OEICs, unit trusts and offshore funds treated as creditor
relationship rights
491    Holding coming within section 490: opening valuations
492    Disregard of investments made and liabilities incurred with avoidance
intention etc
The qualifying investments test
493    The qualifying investments test
494    Meaning of “qualifying investments”
495    Qualifying holdings
496    Meaning of “hedging relationship”
Power to change investments that are qualifying investments
497    Power to change investments that are qualifying investments
Chapter 4
Building Societies
498    Building society dividends and interest
Chapter 5
Industrial and provident societies
499    Industrial and provident society payments treated as interest under loan
relationship
Corporation Tax Bill xxv
500    Exclusion of interest where failure to make return
Chapter 6
Alternative finance arrangements
Introduction
501    Introduction to Chapter
502    Meaning of “financial institution”
Arrangements that are alternative finance arrangements
503    Purchase and resale arrangements
504    Diminishing shared ownership arrangements
505    Deposit arrangements
506    Profit share agency arrangements
507    Investment bond arrangements
508    Provision not at arm’s length: exclusion of arrangements from sections 503 to
507
Treatment as loan relationships
509    Application of Part 5: general
510    Application of Part 5 to particular alternative finance arrangements
Meaning of “alternative finance return”
511    Purchase and resale arrangements
512    Diminishing shared ownership arrangements
513    Other arrangements
Treatment for other tax purposes
514    Exclusion of alternative finance return from consideration for sale of assets
515    Diminishing shared ownership arrangements not partnerships
516    Treatment of principal under profit sharing agency arrangements
517    Treatment of bond-holder under investment bond arrangements
518    Investment bond arrangements: treatment as securities
519    Investment bond arrangements: other provisions
520    Provision not at arm’s length: non-deductibility of relevant return
Power to extend this Chapter to other arrangements
521    Power to extend this Chapter to other arrangements
Chapter 7
Shares with guaranteed returns etc
Application of Part 5 to certain shares as rights under creditor relationship
522    Introduction to Chapter
523    Application of Part 5 to certain shares as rights under creditor relationship
Corporation Tax Bill xxvi
Shares subject to outstanding third party obligations
524    Shares subject to outstanding third party obligations
525    Meaning of “interest-like investment”
Non-qualifying shares
526    Non-qualifying shares
527    The increasing value condition
528    Regulations about income-producing assets
529    The redemption return condition
530    The redemption return condition: excepted shares
531    The redemption return condition: unallowable purposes
532    The associated transactions condition
533    Power to change conditions for non-qualifying shares
Consequences of section 523 applying or ceasing to apply
534    Amounts to be brought into account where section 523 applies
535    Shares ceasing to be shares to which section 523 applies
Chapter 8
Returns from partnerships
536    Introduction to Chapter
537    Payments in return for capital contribution to partnership
538    Change of partnership shares
Chapter 9
Manufactured interest etc
539    Introduction to Chapter
540    Manufactured interest treated as interest under loan relationship
541    Debits for deemed interest under stock lending arrangements disallowed
Chapter 10
Repos
Introduction
542    Introduction to Chapter
Creditor repos and creditor quasi-repos
543    Meaning of creditor repo
544    Meaning of creditor quasi-repo
545    Ignoring effect on lender etc of sale of securities
546    Charge on lender for finance return in respect of the advance
547    Repo under arrangement designed to produce quasi-interest: tax avoidance
Corporation Tax Bill xxvii
Debtor repos and debtor quasi-repos
548    Meaning of debtor repo
549    Meaning of debtor quasi-repo
550    Ignoring effect on borrower of sale of securities
551    Relief for borrower for finance charges in respect of the advance
General provisions
552    General provisions about arrangements
553    Persons buying or selling for others
554    Power to modify this Chapter
555    Cases where section 554 applies: non-standard repos
Interpretation
556    Meaning of securities and similar securities
557    Meaning of person receiving an asset
558    Interpretation of accounting expressions
559    Minor definitions
Chapter 11
Investment life insurance contracts
Introduction
560    Introduction to Chapter
561    Meaning of “investment life insurance contract”
Investment life assurance contracts treated as creditor relationships
562    Contract to be loan relationship
563    Increased non-trading credits for BLAGAB and EEA taxed contracts
564    Section 563: interpretation
565    Relevant amount where the relevant company uses fair value accounting
Old accounting period contracts
566    Introduction
567    Gains on deemed surrenders to be brought into account on related
transactions
568    Restriction on credits on old contracts: fair value accounting cases
569    Restriction on debits on old contracts: non-fair value accounting cases
Corporation Tax Bill xxviii
Part 7
Derivative contracts
Chapter 1
Introduction
Introduction
570    Overview of Part
How profits and losses from derivative contracts are dealt with
571    General rule: profits chargeable as income
572    Profits and losses to be calculated using credits and debits given by this Part
573    Trading credits and debits to be brought into account under Part 3
574    Non-trading credits and debits to be brought into account under Part 5
Chapter 2
Contracts to which this Part applies
Introduction
575    Overview of Chapter
Meaning of “derivative contract” and other basic definitions
576    “Derivative contract”
577    “Relevant contract”
578    Relevant contracts of a company and being party to such contracts
579    The accounting conditions
580    “Option”
581    “Future”
582    “Contract for differences”
583    “Underlying subject matter”
Cases where companies treated as parties to relevant contracts
584    Hybrid derivatives with embedded derivatives
585    Loan relationships with embedded derivatives
586    Other contracts with embedded derivatives
Other contracts etc treated as derivative contracts
587    Contract relating to holding in OEIC, unit trust or offshore fund
588    Associated transaction treated as derivative contract
Exclusions from derivative contracts
589    Contracts excluded because of underlying subject matter: general
590    Disregard of subordinate or small value underlying subject matter
591    Conditions A to E mentioned in section 589(5)

• A-Z index
• Glossary
• Contact us
• Freedom of Information
• Jobs
• Using this website
• Copyright