Corporation Tax Bill

House of Commons

Session 2009 - 10
Internet Publications
Other Bills before Parliament

Corporation Tax Bill

Corporation Tax Bill
Part 13 — Other special types of company etc
Chapter 7 — Co-operative housing associations
325

(2)
In the case of a housing association in Northern Ireland, the power to approve
housing associations for the purposes of this Chapter is exercisable by the
Department for Social Development.
(3)
An approval given for the purposes of this Chapter—
(a)
has effect from the date specified by the approving authority (which
5
may be earlier or later than the date on which the approval is given),
and
(b)
may be revoked by the approving authority.
(4)
See also paragraph 80 of Schedule 2 (concurrent exercise by the Secretary of
State of certain functions exercisable by the Welsh Ministers).
10
645
Tests to be satisfied by the association
(1)
The authority mentioned in section 644(1) or (2) must not approve a housing
association unless it is satisfied that the association satisfies each of tests A to E.
(2)
Test A is that the association is—
(a)
a housing association within the meaning of the Housing Associations
15
Act 1985 (see section 1(1) of that Act), or
(b)
a housing association within the meaning of Part 2 of the Housing
(Northern Ireland) Order 1992 (S.I. 1725 (N.I. 15)) (see Article 3 of that
Order).
(3)
Test B is that the association is a society registered or treated as registered
20
under the Industrial and Provident Societies Act 1965 or the Industrial and
Provident Societies Act (Northern Ireland) 1969 (c. 24 (N.I.)).
(4)
Test C is that the rules of the association—
(a)
restrict membership to persons who are tenants or prospective tenants
of the association, and
25
(b)
preclude the granting or assignment of tenancies to persons other than
members.
(5)
Test D is that the association satisfies any other requirements prescribed by—
(a)
the Secretary of State as regards England and Scotland,
(b)
the Welsh Ministers as regards Wales, or
30
(c)
the Department for Social Development as regards Northern Ireland.
(6)
Test E is that the association will comply with any conditions that may be
prescribed by—
(a)
the Secretary of State as regards England and Scotland,
(b)
the Welsh Ministers as regards Wales, or
35
(c)
the Department for Social Development as regards Northern Ireland.
646
Delegation of powers to the Regulator of Social Housing
(1)
In relation to a housing association which is a registered provider of social
housing (see section 80(2) of the Housing and Regeneration Act 2008) the
Secretary of State may delegate to the Regulator of Social Housing any of the
40
Secretary of State’s functions under section 644 or 645.
(2)
The functions may be delegated—
(a)
to any extent that the Secretary of State specifies, and

Corporation Tax Bill
Part 13 — Other special types of company etc
Chapter 7 — Co-operative housing associations
326

(b)
subject to any conditions that the Secretary of State specifies.
647
Claims under section 642 or 643
(1)
A claim under section 642 or 643 must be made—
(a)
within two years after the end of the accounting period to which it
relates, or
5
(b)
if it relates to part of an accounting period, within two years after the
end of that accounting period.
(2)
A housing association must not make a claim under section 642 or 643 for an
accounting period or part of an accounting period unless—
(a)
the requirements in subsection (3) were complied with during that
10
period or part, or
(b)
the association reasonably considers that those requirements were
substantially complied with during that period or part.
(3)
The requirements are that—
(a)
no property belonging to the association was let otherwise than to a
15
member of the association,
(b)
only persons who were then members of the association occupied
(whether solely or jointly with another person) any property, or any
part of any property, let by the association,
(c)
the association satisfied each of tests A to C in section 645 and complied
20
with any conditions that were in force by virtue of section 645(6), and
(d)
any covenants required to be included in grants of tenancies by those
conditions were observed.
(4)
If a member of a housing association dies and another person occupies a
property, or part of a property, in accordance with the member’s will or the
25
provisions applicable on the member’s intestacy, that person’s occupation
during the first 6 months after the death does not infringe the requirement in
subsection (3)(b).
648
Adjustments of liability
(1)
If an adjustment of a housing association’s liability to corporation tax is
30
necessary as a result of a claim under section 642, the adjustment may be made
by an assessment, by repayment of tax or otherwise.
(2)
A housing association’s liability to corporation tax may be adjusted by means
of assessments or otherwise if—
(a)
a claim by the housing association under section 642 or 643 is included
35
in a company tax return,
(b)
an enquiry is made into the tax return, and
(c)
an amendment is made to the tax return as a result of the enquiry.
(3)
A housing association’s liability to corporation tax may be adjusted by means
of assessments or otherwise if—
40
(a)
an enquiry is made under paragraph 5 of Schedule 1A to TMA 1970 into
a claim made by the association under section 642 or 643, or into an
amendment of such a claim, and
(b)
an amendment is made to the claim as a result of the enquiry.

Corporation Tax Bill
Part 13 — Other special types of company etc
Chapter 8 — Self-build societies
327

(4)
Adjustments under subsection (2) or (3) may be made for all relevant
accounting periods.
649
Power to make further provision
(1)
The Secretary of State may by statutory instrument make regulations with
respect to England and Scotland for the purpose of carrying out the provisions
5
of this Chapter.
(2)
The Welsh Ministers may by statutory instrument make regulations with
respect to Wales for the purpose of carrying out the provisions of this Chapter.
(3)
The Department for Social Development may make regulations with respect to
Northern Ireland for the purpose of carrying out the provisions of this Chapter.
10
(4)
Regulations made under subsection (3) are a statutory rule for the purposes of
the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)).
(5)
If any regulations under this section prescribe requirements for the purposes
of section 645(5) or conditions for the purposes of section 645(6)—
(a)
any requirements or conditions previously prescribed under section
15
645(5) or (6) are to cease to have effect when the regulations come into
force, and
(b)
no further exercise may be made of the power under section 645(5) or
(6) to prescribe requirements or conditions otherwise than by
regulations.
20
(6)
The reference in section 647(3)(c) to conditions that were in force by virtue of
section 645(6) includes conditions prescribed for the purposes of section 645(6)
under subsection (5) above.
Chapter 8
Self-build societies
25
650
Meaning of “self-build society”
(1)
Subsections (2) and (3) give the meaning of “self-build society” in this Chapter.
(2)
In England, Scotland and Wales “self-build society” has the same meaning as
in the Housing Associations Act 1985 (see section 1(3) of that Act).
(3)
In Northern Ireland “self-build society” has the same meaning as in Part 2 of
30
the Housing (Northern Ireland) Order 1992 (S.I. 1725 (N.I. 15)) (see Article 3 of
that Order).
651
Disregard of rent from members
(1)
If a self-build society makes a claim under this section for an accounting period or part
of an accounting period during which the society was approved for the purposes of this
35
Chapter, rent to which the society was entitled from its members for the accounting
period or part of an accounting period is ignored for tax purposes.
(2)
In this section “rent” includes any amounts to which a self-build society is
entitled in respect of the occupation of any of its land.

Corporation Tax Bill
Part 13 — Other special types of company etc
Chapter 8 — Self-build societies
328

(3)
The reference in subsection (2) to occupation includes occupation under a
licence.
652
Exemption for gains on disposals of land to members
(1)
This section applies if—
(a)
chargeable gains accrue to a self-build society on a disposal of land to a
5
member of the society,
(b)
the gains accrue in an accounting period or part of an accounting period
during which the society was approved for the purposes of this
Chapter, and
(c)
the society makes a claim under this section for that period or part of a
10
period.
(2)
No liability to corporation tax arises in respect of the gains.
653
Approval of self-build societies
(1)
The power to approve self-build societies for the purposes of this Chapter is
exercisable—
15
(a)
in relation to England and Scotland, by the Secretary of State,
(b)
in relation to Wales, by the Welsh Ministers, and
(c)
in relation to Northern Ireland, by the Department for Social
Development.
(2)
The authority mentioned in subsection (1) must not approve a self-build
20
society unless it is satisfied that the society—
(a)
is registered, or treated as being registered, as mentioned in subsection
(3),
(b)
satisfies any other requirements prescribed by or under regulations
under section 657, and
25
(c)
will comply with any conditions that may be prescribed by or under
regulations under that section.
(3)
The reference in subsection (2)(a) is to registration—
(a)
under the Industrial and Provident Societies Act 1965 (if the power is
exercisable by the Secretary of State or the Welsh Ministers), or
30
(b)
under the Industrial and Provident Societies Act (Northern Ireland)
1969 (c. 24 (N.I.)) (if the power is exercisable by the Department for
Social Development).
(4)
An approval given for the purposes of this Chapter—
(a)
has effect from the date specified by the approving authority (which
35
may be earlier or later than the date on which the approval is given),
and
(b)
may be revoked by the approving authority.
(5)
See also paragraph 81 of Schedule 2 (concurrent exercise by the Secretary of
State of certain functions exercisable by the Welsh Ministers).
40
654
Delegation of powers to the Regulator of Social Housing
(1)
The Secretary of State may delegate to the Regulator of Social Housing any
function of the Secretary of State under section 653 in a case where the function

Corporation Tax Bill
Part 13 — Other special types of company etc
Chapter 8 — Self-build societies
329

is exercisable in relation to a society whose registered office for the purposes of
the Industrial and Provident Societies Act 1965 is in England.
(2)
The function may be delegated—
(a)
to any extent that the Secretary of State specifies, and
(b)
subject to any conditions that the Secretary of State specifies.
5
655
Claims under section 651 or 652
(1)
A claim under section 651 or 652 must be made—
(a)
within two years after the end of the accounting period to which it
relates, or
(b)
if it relates to part of an accounting period, within two years after the
10
end of that accounting period.
(2)
A self-build society must not make a claim under section 651 or 652 for an
accounting period or part of an accounting period unless—
(a)
the requirements in subsection (3) were complied with during that
period or part, or
15
(b)
the society reasonably considers that those requirements were
substantially complied with during that period or part.
(3)
The requirements are that—
(a)
only persons who were then members of the society occupied (whether
solely or jointly with another person) any land, or any part of any land,
20
owned by the society,
(b)
the society complied with the requirement in section 653(2)(a), and
(c)
the society complied with any conditions that were in force by virtue of
section 653(2)(c).
(4)
If a member of a self-build society dies and another person occupies a property,
25
or part of a property, in accordance with the member’s will or the provisions
applicable on the member’s intestacy, that person’s occupation during the first
6 months after the death does not infringe the requirement in subsection (3)(a).
(5)
A claim under section 651 or 652 must be in the form (if any) prescribed by the
Commissioners for Her Majesty’s Revenue and Customs and contain any
30
details which they prescribe.
656
Adjustments of liability
(1)
If an adjustment of a self-build society’s liability to corporation tax is necessary
as a result of a claim under section 651, the adjustment may be made by an
assessment, by repayment of tax or otherwise.
35
(2)
A self-build society’s liability to corporation tax may be adjusted by means of
assessments or otherwise if—
(a)
a claim by the society under section 651 or 652 is included in a company
tax return,
(b)
an enquiry is made into the tax return, and
40
(c)
an amendment is made to the tax return as a result of the enquiry.
(3)
A self-build society’s liability to corporation tax may be adjusted by means of
assessments or otherwise if—

Corporation Tax Bill
Part 13 — Other special types of company etc
Chapter 9 — Community amateur sports clubs
330

(a)
an enquiry is made under paragraph 5 of Schedule 1A to TMA 1970 into
a claim made by the society under section 651 or 652, or into an
amendment of such a claim, and
(b)
an amendment is made to the claim as a result of the enquiry.
(4)
Adjustments under subsection (2) or (3) may be made for all relevant
5
accounting periods.
657
Power to make further provision
(1)
The Secretary of State may by statutory instrument make regulations with
respect to England and Scotland for the purpose of carrying out the provisions
of this Chapter.
10
(2)
A statutory instrument containing regulations made under subsection (1) is
subject to annulment in pursuance of a resolution of the House of Commons.
(3)
The Welsh Ministers may by statutory instrument make regulations with
respect to Wales for the purpose of carrying out the provisions of this Chapter.
(4)
A statutory instrument containing regulations made under subsection (3) is
15
subject to annulment in pursuance of a resolution of the National Assembly for
Wales.
(5)
The Department for Social Development may make regulations with respect to
Northern Ireland for the purpose of carrying out the provisions of this Chapter.
(6)
Regulations made under subsection (5) are a statutory rule for the purposes of
20
the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)).
(7)
A statutory rule containing regulations made under subsection (5) is subject to
negative resolution within the meaning of section 41(6) of the Interpretation
Act (Northern Ireland) 1954 (c. 33 (N.I.)).
Chapter 9
25
Community amateur sports clubs
Basic concepts
658
Meaning of “community amateur sports club” and “registered club”
(1)
A club is entitled to be registered as a community amateur sports club if it is,
and is required by its constitution to be, a club which—
30
(a)
is open to the whole community (see section 659),
(b)
is organised on an amateur basis (see section 660), and
(c)
has as its main purpose the provision of facilities for, and the promotion
of participation in, one or more eligible sports (see section 661).
(2)
A club may apply to an officer of Revenue and Customs to be registered as a
35
community amateur sports club.
(3)
The officer must register the club as a community amateur sports club if
satisfied that the club is entitled to be registered.
(4)
The officer—

Corporation Tax Bill
Part 13 — Other special types of company etc
Chapter 9 — Community amateur sports clubs
331

(a)
may register the club with effect from such date as the officer may
specify (which may be before the date of the application), and
(b)
may cancel the club’s registration with effect from such date as the
officer may specify (which may be before the date of the decision to
cancel it) if no longer satisfied that the club is entitled to be registered.
5
(5)
Her Majesty’s Revenue and Customs may publish the names and addresses of
registered clubs.
(6)
In this Chapter a “registered club” means a club which is for the time being
registered as a community amateur sports club under this section.
659
Meaning of “open to the whole community”
10
(1)
A club is “open to the whole community” for the purposes of section 658 if—
(a)
its membership is open to all without discrimination,
(b)
its facilities are available to members without discrimination, and
(c)
its fees (if any) do not represent a significant obstacle to membership or
use of its facilities.
15
(2)
For the purposes of this section “discrimination” includes indirect
discrimination and (in particular) includes discrimination on the grounds of—
(a)
ethnicity or nationality,
(b)
religion or beliefs,
(c)
sexual orientation, or
20
(d)
sex, age or disability (except as a necessary consequence of the
requirements of a particular sport).
(3)
A club is not prevented from being “open to the whole community” for the
purposes of section 658 merely because it has different classes of membership
depending on—
25
(a)
the age of the member,
(b)
whether the member is a student,
(c)
whether the member is waged,
(d)
whether the member is a playing member, or
(e)
how far from the club the member lives,
30

or merely because it has restrictions on the days or times when different classes
of membership have access to its facilities.
660
Meaning of “organised on an amateur basis”
(1)
A club is “organised on an amateur basis” for the purposes of section 658 if—
(a)
it is non-profit making (see subsections (2) and (3)),
35
(b)
it provides for members and their guests only the ordinary benefits of
an amateur sports club (see subsections (4) and (5)), and
(c)
its constitution provides for any net assets on its dissolution to be
applied for approved sporting or charitable purposes (see subsections
(6) and (7)).
40
(2)
A club is “non-profit making” for the purposes of subsection (1) if its
constitution —
(a)
requires any surplus income or surplus gains to be reinvested in the
club, and