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Notices of Amendments: 4 June 2009                     

61

 

Finance Bill, continued

 
 

group’.

 

Mr Stephen Timms

 

141

 

Schedule  15,  page  178,  line  37,  leave out sub-paragraph (3).

 

Mr Stephen Timms

 

142

 

Schedule  15,  page  179,  line  3,  leave out from ‘not’ to ‘and’ in line 4 and insert

 

‘acceptable’.

 

Mr Stephen Timms

 

143

 

Schedule  15,  page  179,  line  10,  leave out sub-paragraph (3) and insert—

 

    ‘(3)  

For the purposes of this paragraph financial statements are “acceptable” if—

 

(a)    

they are drawn up in accordance with international accounting

 

standards,

 

(b)    

they meet such conditions relating to accounting standards, or

 

accounting principles or practice, as may be specified in regulations

 

made by the Commissioners, or

 

(c)    

conditions A to C are met.’.

 

Mr Stephen Timms

 

144

 

Schedule  15,  page  179,  line  18,  leave out ‘of the worldwide group for the period’.

 

Mr Stephen Timms

 

145

 

Schedule  15,  page  179,  line  20,  after second ‘the’ insert ‘same’.

 

Mr Stephen Timms

 

146

 

Schedule  15,  page  179,  line  25,  leave out from ‘the’ to ‘, and’ in line 26 and insert

 

‘financial statements’.

 

Mr Stephen Timms

 

147

 

Schedule  15,  page  179,  line  28,  leave out from ‘in’ to ‘drawn’ in line 29 and insert

 

‘IAS financial statements of the worldwide group for the same period, were such

 

statements’.

 

Mr Stephen Timms

 

148

 

Schedule  15,  page  179,  line  32,  leave out from first ‘the’ to ‘are’ and insert

 

‘financial statements’.

 

Mr Stephen Timms

 

149

 

Schedule  15,  page  180,  line  17,  at end insert—

 

‘ (1A)  

References in this Schedule to amounts disclosed in financial statements do not

 

include, in the case of an amount that—

 

(a)    

is an amount mentioned in paragraph 55(1)(a) to (g), and


 
 

Notices of Amendments: 4 June 2009                     

62

 

Finance Bill, continued

 
 

(b)    

has been capitalised and is accordingly included in the balance sheet

 

comprised in the financial statements,

 

            

any part of that amount that was included in a balance sheet comprised in

 

financial statements for an earlier period.’.

 

Mr Stephen Timms

 

150

 

Schedule  15,  page  181,  line  4,  at end insert—

 

‘“FSA Handbook” means the Handbook made by the Financial Services

 

Authority under FISMA 2000;’.

 

Mr Stephen Timms

 

151

 

Schedule  15,  page  181,  line  12,  at end insert—

 

‘          

In paragraph 5 of Schedule 28AA to ICTA (provision not at arm’s length),

 

after sub-paragraph (8) (as inserted by paragraph 14 of Schedule 14 to this Act)

 

insert—

 

  “(9)  

For the purposes of sub-paragraph (1), Schedule 15 to FA 2009 (tax

 

treatment of financing costs and income) is to be disregarded.”’.

 

Mr Stephen Timms

 

152

 

Schedule  15,  page  181,  line  15,  after ‘group’ insert ‘—

 

(a)    

’.

 

Mr Stephen Timms

 

153

 

Schedule  15,  page  181,  line  15,  at end insert ‘, or

 

(b)    

to which paragraph 79 applies.

 

Anti-avoidance: change of period of account of worldwide group

 

79         

This paragraph applies to a period of account of the worldwide group (“the

 

relevant period of account”) if—

 

(a)    

the ultimate parent of the group changes the date to which financial

 

statements of the group are drawn up,

 

(b)    

as a result of the change, the relevant period of account—

 

(i)    

begins before 1 January 2010, and

 

(ii)    

includes a period that would, if the change had not been made,

 

have fallen within a period of account beginning on or after

 

that date, and

 

(c)    

the main purpose, or one of the main purposes, of the ultimate parent

 

of the group in making the change is to secure that the first period of

 

account in relation to which this Schedule has effect does not include

 

any period falling within the relevant period of account.’.

 

Mr Stephen Timms

 

154

 

Schedule  15,  page  181,  line  15,  at end insert—


 
 

Notices of Amendments: 4 June 2009                     

63

 

Finance Bill, continued

 
 

‘Transitional provision

 

    (1)  

An amount that would, apart from this paragraph, meet condition A, B or C in

 

paragraph 39 (definition of “financing expense amount”) does not meet that

 

condition if it is a debit that, but for a relevant enactment, would be brought

 

into account for the purposes of corporation tax in an accounting period

 

beginning before 1 January 2010.

 

      (2)  

For this purpose the following are “relevant enactments”—

 

(a)    

section 373 of CTA 2009 (late interest treated as not accruing until

 

paid in some cases),

 

(b)    

section 407 of that Act (postponement until redemption of debits for

 

connected companies’ deeply discounted securities),

 

(c)    

section 409 of that Act (postponement until redemption of debits for

 

close companies’ deeply discounted securities), and

 

(d)    

regulation 3A of the Loan Relationships and Derivative Contracts

 

(Change of Accounting Practice) Regulations 2004 (S.I. 2004/3271)

 

(prescribed debits and credits brought into account over prescribed

 

period).

 

      (3)  

An amount that would, apart from this paragraph, meet condition A, B or C in

 

paragraph 40 (definition of “financing income amount”) does not meet that

 

condition if it is a credit that, but for the regulation mentioned in sub-paragraph

 

(2)(d) of this paragraph, would be brought into account for the purposes of

 

corporation tax in an accounting period beginning before 1 January 2010.’.

 

Mr Stephen Timms

 

155

 

Schedule  16,  page  182,  line  32,  at end insert ‘and

 

( )    

in this Act, section 57(6).’.

 

Mr Stephen Timms

 

156

 

Schedule  16,  page  183,  line  4,  after ‘17’ insert ‘, and Part 18,’.

 

Mr Stephen Timms

 

157

 

Schedule  16,  page  187,  line  29,  at end insert—

 

‘Part 3

 

Reduction in chargeable profits for certain financing income

 

Reduction in chargeable profits for certain financing income

 

21         

ICTA is amended as follows.

 

22         

In the following provisions, after “751A” insert “or 751AA”—

 

(a)    

section 747(3A) and (5A) (imputation of chargeable profits and

 

creditable tax of controlled foreign companies),

 

(b)    

section 749(10) (residence),

 

(c)    

section 749A(9) (elections and designations under section 749:

 

supplementary provisions), and

 

(d)    

section 750(3)(ab) (territories with a lower level of taxation).

 

23         

After section 751A (reduction in chargeable profits for certain activities of

 

EEA business establishments) insert—


 
 

Notices of Amendments: 4 June 2009                     

64

 

Finance Bill, continued

 
 

“751AA 

 Reduction in chargeable profits for certain financing income

 

(1)    

This section applies if—

 

(a)    

an apportionment under section 747(3) falls to be made as

 

regards an accounting period (“the relevant accounting

 

period”) of a controlled foreign company,

 

(b)    

the chargeable profits of the controlled foreign company for

 

the relevant accounting period would, apart from this section,

 

include an amount of income in respect of a payment made by

 

another company (“the payer”),

 

(c)    

the amount that the payer brings into account for the purposes

 

of corporation tax in respect of the payment is reduced (in part

 

or in full) by virtue of Part 3 of Schedule 15 to FA 2009 (tax

 

treatment of financing costs and income), and

 

(d)    

a company resident in the United Kingdom (“the UK resident

 

company”) has a relevant interest in the controlled foreign

 

company in the relevant accounting period.

 

(2)    

The UK resident company may make an application to the

 

Commissioners for Her Majesty’s Revenue and Customs for the

 

chargeable profits of the controlled foreign company for the relevant

 

accounting period (“the chargeable profits”) to be reduced by an

 

amount (“the specified amount”) specified in the application

 

(including to nil).

 

(3)    

If the Commissioners grant the application—

 

(a)    

the chargeable profits are treated as reduced by the specified

 

amount, and

 

(b)    

the controlled foreign company’s creditable tax (if any) for

 

that period is treated as reduced by so much of that tax as, on

 

a just and reasonable basis, relates to the reduction in the

 

chargeable profits,

 

    

for the purpose of applying section 747(3) to (5) for determining the

 

sum (if any) chargeable on the UK resident company under section

 

747(4)(a) (but for no other purpose).

 

(4)    

The Commissioners may grant the application only if they are satisfied

 

that the specified amount does not exceed the relevant amount.

 

(5)    

In subsection (4) “the relevant amount” means the amount (if any) by

 

which it is just and reasonable that the chargeable profits should be

 

treated as reduced, having regard to the effect of Parts 3 and 4 of

 

Schedule 15 to FA 2009 on amounts brought into account for the

 

purposes of corporation tax by the payer, or any other company.”

 

24  (1)  

Section 751B (supplementary) is amended as follows.

 

      (2)  

In the heading, for “Section 751A” substitute “Sections 751A and 751AA”.

 

      (3)  

In subsections (1), (2), (3) (in each place) and (5), after “751A” insert “or

 

751AA”.

 

      (4)  

In subsection (8)—

 

(a)    

after ““the relevant amount”” insert “—

 

(a)    

in the case of an appeal in respect of the refusal of an

 

application under section 751A,”, and

 

(b)    

after “mentioned in that subsection” insert “, and


 
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