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| Schedule 15, page 178, line 37, leave out sub-paragraph (3). |
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| Schedule 15, page 179, line 3, leave out from ‘not’ to ‘and’ in line 4 and insert |
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| Schedule 15, page 179, line 10, leave out sub-paragraph (3) and insert— |
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| | ‘(3) | For the purposes of this paragraph financial statements are “acceptable” if— |
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| | (a) | they are drawn up in accordance with international accounting |
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| | |
| | (b) | they meet such conditions relating to accounting standards, or |
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| | accounting principles or practice, as may be specified in regulations |
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| | made by the Commissioners, or |
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| | (c) | conditions A to C are met.’. |
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| Schedule 15, page 179, line 18, leave out ‘of the worldwide group for the period’. |
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| Schedule 15, page 179, line 20, after second ‘the’ insert ‘same’. |
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| Schedule 15, page 179, line 25, leave out from ‘the’ to ‘, and’ in line 26 and insert |
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| Schedule 15, page 179, line 28, leave out from ‘in’ to ‘drawn’ in line 29 and insert |
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| ‘IAS financial statements of the worldwide group for the same period, were such |
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| Schedule 15, page 179, line 32, leave out from first ‘the’ to ‘are’ and insert |
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| Schedule 15, page 180, line 17, at end insert— |
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| | ‘ (1A) | References in this Schedule to amounts disclosed in financial statements do not |
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| | include, in the case of an amount that— |
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| | (a) | is an amount mentioned in paragraph 55(1)(a) to (g), and |
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| | (b) | has been capitalised and is accordingly included in the balance sheet |
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| | comprised in the financial statements, |
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| | | any part of that amount that was included in a balance sheet comprised in |
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| | financial statements for an earlier period.’. |
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| Schedule 15, page 181, line 4, at end insert— |
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| | ‘“FSA Handbook” means the Handbook made by the Financial Services |
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| | Authority under FISMA 2000;’. |
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| Schedule 15, page 181, line 12, at end insert— |
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| | ‘ | In paragraph 5 of Schedule 28AA to ICTA (provision not at arm’s length), |
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| | after sub-paragraph (8) (as inserted by paragraph 14 of Schedule 14 to this Act) |
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| | “(9) | For the purposes of sub-paragraph (1), Schedule 15 to FA 2009 (tax |
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| | treatment of financing costs and income) is to be disregarded.”’. |
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| Schedule 15, page 181, line 15, after ‘group’ insert ‘— |
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| Schedule 15, page 181, line 15, at end insert ‘, or |
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| | (b) | to which paragraph 79 applies. |
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| | Anti-avoidance: change of period of account of worldwide group |
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| | 79 | This paragraph applies to a period of account of the worldwide group (“the |
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| | relevant period of account”) if— |
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| | (a) | the ultimate parent of the group changes the date to which financial |
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| | statements of the group are drawn up, |
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| | (b) | as a result of the change, the relevant period of account— |
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| | (i) | begins before 1 January 2010, and |
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| | (ii) | includes a period that would, if the change had not been made, |
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| | have fallen within a period of account beginning on or after |
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| | (c) | the main purpose, or one of the main purposes, of the ultimate parent |
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| | of the group in making the change is to secure that the first period of |
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| | account in relation to which this Schedule has effect does not include |
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| | any period falling within the relevant period of account.’. |
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| Schedule 15, page 181, line 15, at end insert— |
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| | (1) | An amount that would, apart from this paragraph, meet condition A, B or C in |
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| | paragraph 39 (definition of “financing expense amount”) does not meet that |
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| | condition if it is a debit that, but for a relevant enactment, would be brought |
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| | into account for the purposes of corporation tax in an accounting period |
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| | beginning before 1 January 2010. |
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| | (2) | For this purpose the following are “relevant enactments”— |
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| | (a) | section 373 of CTA 2009 (late interest treated as not accruing until |
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| | (b) | section 407 of that Act (postponement until redemption of debits for |
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| | connected companies’ deeply discounted securities), |
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| | (c) | section 409 of that Act (postponement until redemption of debits for |
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| | close companies’ deeply discounted securities), and |
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| | (d) | regulation 3A of the Loan Relationships and Derivative Contracts |
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| | (Change of Accounting Practice) Regulations 2004 (S.I. 2004/3271) |
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| | (prescribed debits and credits brought into account over prescribed |
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| | (3) | An amount that would, apart from this paragraph, meet condition A, B or C in |
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| | paragraph 40 (definition of “financing income amount”) does not meet that |
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| | condition if it is a credit that, but for the regulation mentioned in sub-paragraph |
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| | (2)(d) of this paragraph, would be brought into account for the purposes of |
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| | corporation tax in an accounting period beginning before 1 January 2010.’. |
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| Schedule 16, page 182, line 32, at end insert ‘and |
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| | ( ) | in this Act, section 57(6).’. |
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| Schedule 16, page 183, line 4, after ‘17’ insert ‘, and Part 18,’. |
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| Schedule 16, page 187, line 29, at end insert— |
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| | Reduction in chargeable profits for certain financing income |
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| | Reduction in chargeable profits for certain financing income |
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| | 21 | ICTA is amended as follows. |
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| | 22 | In the following provisions, after “751A” insert “or 751AA”— |
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| | (a) | section 747(3A) and (5A) (imputation of chargeable profits and |
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| | creditable tax of controlled foreign companies), |
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| | (b) | section 749(10) (residence), |
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| | (c) | section 749A(9) (elections and designations under section 749: |
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| | supplementary provisions), and |
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| | (d) | section 750(3)(ab) (territories with a lower level of taxation). |
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| | 23 | After section 751A (reduction in chargeable profits for certain activities of |
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| | EEA business establishments) insert— |
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| | “751AA | Reduction in chargeable profits for certain financing income |
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| | (1) | This section applies if— |
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| | (a) | an apportionment under section 747(3) falls to be made as |
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| | regards an accounting period (“the relevant accounting |
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| | period”) of a controlled foreign company, |
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| | (b) | the chargeable profits of the controlled foreign company for |
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| | the relevant accounting period would, apart from this section, |
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| | include an amount of income in respect of a payment made by |
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| | another company (“the payer”), |
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| | (c) | the amount that the payer brings into account for the purposes |
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| | of corporation tax in respect of the payment is reduced (in part |
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| | or in full) by virtue of Part 3 of Schedule 15 to FA 2009 (tax |
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| | treatment of financing costs and income), and |
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| | (d) | a company resident in the United Kingdom (“the UK resident |
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| | company”) has a relevant interest in the controlled foreign |
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| | company in the relevant accounting period. |
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| | (2) | The UK resident company may make an application to the |
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| | Commissioners for Her Majesty’s Revenue and Customs for the |
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| | chargeable profits of the controlled foreign company for the relevant |
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| | accounting period (“the chargeable profits”) to be reduced by an |
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| | amount (“the specified amount”) specified in the application |
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| | |
| | (3) | If the Commissioners grant the application— |
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| | (a) | the chargeable profits are treated as reduced by the specified |
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| | (b) | the controlled foreign company’s creditable tax (if any) for |
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| | that period is treated as reduced by so much of that tax as, on |
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| | a just and reasonable basis, relates to the reduction in the |
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| | |
| | | for the purpose of applying section 747(3) to (5) for determining the |
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| | sum (if any) chargeable on the UK resident company under section |
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| | 747(4)(a) (but for no other purpose). |
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| | (4) | The Commissioners may grant the application only if they are satisfied |
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| | that the specified amount does not exceed the relevant amount. |
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| | (5) | In subsection (4) “the relevant amount” means the amount (if any) by |
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| | which it is just and reasonable that the chargeable profits should be |
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| | treated as reduced, having regard to the effect of Parts 3 and 4 of |
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| | Schedule 15 to FA 2009 on amounts brought into account for the |
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| | purposes of corporation tax by the payer, or any other company.” |
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| | 24 (1) | Section 751B (supplementary) is amended as follows. |
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| | (2) | In the heading, for “Section 751A” substitute “Sections 751A and 751AA”. |
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| | (3) | In subsections (1), (2), (3) (in each place) and (5), after “751A” insert “or |
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| | |
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| | (a) | after ““the relevant amount”” insert “— |
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| | (a) | in the case of an appeal in respect of the refusal of an |
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| | application under section 751A,”, and |
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| | (b) | after “mentioned in that subsection” insert “, and |
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|