Corporation Tax Bill

House of Commons

Session 2009 - 10
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Other Bills before Parliament

Corporation Tax Bill

Corporation Tax Bill
Part 25 — Definitions for purposes of Act and final provisions
575

(3)
An order under this section may amend, repeal or revoke any provision made
by or under an Act.
(4)
An order under this section may contain provision having retrospective effect.
(5)
An order under this section may contain incidental, supplemental,
consequential and transitional provision and savings.
5
(6)
In subsection (3) “Act” includes an Act of the Scottish Parliament and Northern
Ireland legislation.
1179
Power to undo changes
(1)
The Treasury may by order make provision, in relation to a case in which the Treasury
consider that a provision of this Act changes the effect of the law, for the purpose of
10
returning the effect of the law to what it would have been if this Act had not been
passed.
(2)
The power conferred by subsection (1) may not be exercised after 31 March
2013.
(3)
An order under this section may amend, repeal or revoke any provision made
15
by or under—
(a)
this Act, or
(b)
any other Act.
(4)
An order under this section may contain provision having retrospective effect.
(5)
An order under this section may contain incidental, supplemental,
20
consequential and transitional provision and savings.
(6)
In subsection (3)(b) “Act” includes an Act of the Scottish Parliament and
Northern Ireland legislation.
1180
Transitional provisions and savings
(1)
Schedule 2 (transitional provisions and savings) has effect.
25
(2)
The Treasury may by order make transitional or saving provision in
connection with the coming into force of this Act.
(3)
An order under subsection (2) may contain provision having retrospective
effect.
(4)
The following (which provide for negative resolution procedure in relation to
30
Treasury orders under certain enactments) do not apply in relation to an order
under subsection (2)—
(a)
section 828(3) of ICTA (orders under the Corporation Tax Acts before 1
April 2010),
(b)
section 287(3) of TCGA 1992 (orders under enactments relating to the
35
taxation of chargeable gains), and
(c)
section 1014(4) of ITA 2007 (orders under the Income Tax Acts).
1181
Repeals and revocations
(1)
Schedule 3 (repeals and revocations, including of spent enactments) has effect.

Corporation Tax Bill
Part 25 — Definitions for purposes of Act and final provisions
576

(2)
The repeals and revocations specified in Part 2 of Schedule 3 have effect for
corporation tax purposes only.
1182
Index of defined expressions
(1)
Schedule 4 (index of defined expressions that apply for the purposes of this
Act) has effect.
5
(2)
That Schedule lists the places where some of the expressions used in this Act
are defined or otherwise explained.
1183
Extent
(1)
This Act extends to England and Wales, Scotland and Northern Ireland (but
see subsection (2)).
10
(2)
An amendment, repeal or revocation contained in Schedule 1 or 3 has the same
extent as the provision amended, repealed or revoked.
1184
Commencement
(1)
This Act comes into force on 1 April 2010 and has effect—
(a)
for corporation tax purposes, for accounting periods ending on or after
15
that day, and
(b)
for income tax and capital gains tax purposes, for the tax year 2010-11
and subsequent tax years.
(2)
Subsection (1) does not apply to the following provisions (which therefore
come into force on the day on which this Act is passed)—
20
(a)
section 1178,
(b)
section 1179,
(c)
section 1180(2) to (4),
(d)
section 1183,
(e)
this section, and
25
(f)
section 1185.
(3)
Subsection (1) is subject to Schedule 2.
(4)
The reference in subsection (1)(a) to corporation tax includes amounts due or
chargeable as if they were corporation tax.
1185
Short title
30
This Act may be cited as the Corporation Tax Act 2010.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 1 — Income and Corporation Taxes Act 1988
577

Schedules
Schedule 1
Section 1177

Minor and consequential amendments
Part 1
Income and Corporation Taxes Act 1988
5
1
The Income and Corporation Taxes Act 1988 is amended as follows.
2
Omit section 6(4) (the charge to corporation tax and exclusion of income tax
and capital gains tax).
3
Omit section 7 (treatment of certain payments and repayment of income
tax).
10
4
Omit section 11(3) and (4) (companies not resident in the United Kingdom).
5
Omit sections 13 to 13A (small companies’ relief).
6
Omit section 14 (qualifying distributions).
7     (1)
Omit section 24 (which has come to apply only for the interpretation of
section 780 of ICTA).
15
      (2)
Sub-paragraph (1) has effect for corporation tax purposes only.
8
Omit section 56(3)(c) (exemption for transactions in deposits).
9     (1)
Amend section 76 (expenses of insurance companies) as follows.
      (2)
In subsection (7) at Step 5 for “set off under section 393A or 403(1)” substitute
“relieved under section 37 of CTA 2010 or under Chapter 4 of Part 5 of that
20
Act”.
      (3)
In subsection (9)—
(a)
in Rule B for “section 834(4) (apportionment on time basis)”
substitute “section 1172 of CTA 2010 (apportionment to different
periods)”, and
25
(b)
in Rule C for “section 834(4) (apportionment on time basis)”
substitute “section 1172 of CTA 2010 (apportionment to different
periods)”.
      (4)
In subsection (15) after the definition of “expenses payable” insert—
““profits” means income and chargeable gains.”
30
10
In section 76ZK(8) (contributions to local enterprise organisations etc) for
“Section 839 (“connected person”)” substitute “Section 1122 of CTA 2010
(connected persons)”.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 1 — Income and Corporation Taxes Act 1988
578

11
Omit section 116 (arrangements for transferring relief).
12
Omit sections 118 to 118ZD (restrictions on relief for losses made by certain
partners).
13
In section 187(10) (interpretation of sections 185 and 186 etc) for “section
834(1)” substitute “section 1119 of CTA 2010”.
5
14
Omit Chapter 2 of Part 6 (matters which are distributions).
15
Omit Chapter 3 of Part 6 (matters which are not distributions).
16
Omit section 231 (tax credits for certain recipients of qualifying
distributions).
17
Omit section 231AA (no tax credit for borrower under stock lending
10
arrangement or interim holder under repurchase agreement).
18
Omit section 231AB (no tax credit for original owner under repurchase
agreement in respect of certain manufactured dividends).
19
In section 231B(12) (consequences of certain arrangements to pass on the
value of a tax credit), in the definition of “tax advantage”, for “section
15
840ZA” substitute “section 1139 of CTA 2010”.
20
Omit section 234 (information relating to distributions).
21
Omit section 234A (information relating to distributions: further
provisions).
22
Omit Chapter 6 of Part 6 (miscellaneous and supplemental).
20
23
In section 337A (computation of company’s profits or income: exclusion of
general deductions) omit subsection (1).
24
Omit section 338 (charges on income deducted from total profits).
25
Omit section 338A (meaning of “charges on income”).
26
Omit section 339 (charges on income: donations to charity).
25
27
Omit section 342 (tax on company in liquidation).
28
Omit section 342A (tax on companies in administration).
29
Omit section 343 (company reconstructions without a change of ownership).
30
Omit section 343ZA (transfers of trade to obtain balancing allowances).
31
Omit section 343A (company reconstructions involving business of leasing
30
plant or machinery).
32
Omit section 344 (company reconstructions: supplemental).
33
In section 369(6) (mortgage interest payable under deduction of tax) for the
words from the beginning to “applies” substitute “Sections 967(2) and 968(2)
of CTA 2010 do not apply to a payment of relevant loan interest to which this
35
section applies, but any person by whom such a payment”.
34
Omit Chapter 2 of Part 10 (loss relief).
35
Omit section 397 (restriction of loss relief in case of farming and market
gardening).

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 1 — Income and Corporation Taxes Act 1988
579

36
In section 398 (transactions in deposits) for “section 396” substitute “section
91 of CTA 2010”.
37
Omit section 399 (dealings in commodity futures).
38
Omit section 400 (write-off of government investment).
39
Omit Chapter 4 of Part 10 (group relief).
5
40
Omit Chapter 1 of Part 11 (close companies: interpretation).
41
Omit Chapter 2 of Part 11 (close companies: charges to tax in connection
with loans).
42
In section 431G(4) (company carrying on life assurance business) for “set-off
under section 393A or section 403(1)” substitute “relieved under section 37
10
of CTA 2010 or under Chapter 4 of Part 5 of that Act”.
43    (1)
Amend section 432A (apportionment of income and gains) as follows.
      (2)
In subsection (1ZA)—
(a)
in paragraph (b) for “section 121(1)(a) of the Finance Act 2006”
substitute “section 548(5) of CTA 2010”, and
15
(b)
in paragraph (j) for “section 834A” substitute “section 1173 of CTA
2010”.
      (3)
In subsection (1ZB)(f) for “section 834A” substitute “section 1173 of CTA
2010”.
44
In section 432AB(5) (losses from UK property business or overseas property
20
business) for “sections 392A and 503, or section 392B, (loss relief)” substitute
“Chapter 4 of Part 4 of CTA 2010 (loss relief: property losses)”.
45
In section 434(3A) (franked investment income etc)—
(a)
for “subsection (7) of section 13” substitute “section 32(1) of CTA
2010 (which relates to relief for small companies)”, and
25
(b)
for “that section” substitute “Part 3 of that Act”.
46    (1)
Amend section 434A (computation of losses and limitation on relief) as
follows.
      (2)
In subsection (2)(b) for sub-paragraphs (i) and (ii) substitute—
“(i)
under section 37 of CTA 2010, or
30
(ii)
under Chapter 4 of Part 5 of CTA 2010,”.
      (3)
In subsection (3)—
(a)
for paragraph (a) substitute—
“(a)
under Chapter 2, 4 or 6 of Part 4 of CTA 2010 (loss
relief) or under Part 5 (group relief) of that Act,”, and
35
(b)
in paragraph (aa) for “amount which is a charge on income for the
purposes of corporation tax” substitute “qualifying charitable
donation”.
      (4)
In subsection (4)—
(a)
for “section 403” (in both places) substitute “section 105 of CTA
40
2010”, and
(b)
for “gross profits” substitute “total profits”.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 1 — Income and Corporation Taxes Act 1988
580

47
In section 434AZA(1) (reduced loss relief for additions to non-profit funds)
for “section 393A or Chapter 4 of Part 10” substitute “section 37 of CTA 2010,
or under Part 5 of that Act,”.
48    (1)
Amend section 436A (gross roll-up business: separate charge on profits) as
follows.
5
      (2)
In subsection (5) for “Section 396” substitute “Section 91 of CTA 2010”.
      (3)
In subsection (6) for “section 396” substitute “section 91 of CTA 2010”
49    (1)
Amend section 440C (modifications for change of tax basis) as follows.
      (2)
In subsection (2) for “set off under section 393” substitute “relieved under
section 45 of CTA 2010”.
10
      (3)
In subsection (4)(c) for “section 393” substitute “section 45 of CTA 2010”.
50    (1)
Amend section 444A (transfers of business) as follows.
      (2)
In subsection (3) for the words from “in paragraphs (a) and (b)” to the end
substitute “mentioned in subsection (3YA) are satisfied in relation to the
business transferred”.
15
      (3)
After subsection (3) insert—
“(3YA)
The conditions are—
(a)
the ownership condition set out in section 941 of CTA 2010,
and
(b)
the tax condition set out in section 943 of that Act.”
20
51
In section 444AED(13) (clearance: no avoidance or group advantage) for
“Chapter 4 of Part 10” substitute “Part 5 of CTA 2010”.
52
Omit section 467 (exemption for trade unions and employers’ associations).
53
Omit section 468 (authorised unit trusts).
54
Omit section 468A (open-ended investment companies).
25
55
Omit section 469 (other unit trusts).
56
Omit section 469A (court common investment funds).
57
Omit section 477A (building societies: loan relationships).
58
Omit section 486 (industrial and provident societies and co-operative
associations).
30
59
Omit section 488 (co-operative housing associations).
60
Omit section 489 (self-build societies).
61
Omit section 490 (companies carrying on a mutual business or not carrying
on a business).
62
Omit section 492 (treatment of oil extraction activities etc for tax purposes).
35
63    (1)
Omit section 493 (valuation of oil disposed of or appropriated in certain
circumstances).
      (2)
The repeal of subsections (1) to (6) of that section has effect for corporation
tax purposes only.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 1 — Income and Corporation Taxes Act 1988
581

64
Omit sections 494 to 494A (loan relationships etc, sale and lease-back and
group relief).
65    (1)
Omit section 495 (regional development grants).
      (2)
Sub-paragraph (1) has effect for corporation tax purposes only.
66    (1)
Omit section 496 (tariff receipts and tax-exempt tariffing receipts).
5
      (2)
Sub-paragraph (1) has effect for corporation tax purposes only.
67
Omit section 496B (ring fence expenditure supplement).
68
Omit sections 500 to 501B (deduction of PRT, interest on repayment of PRT
and supplementary charge in respect of ring fence trades).
69    (1)
Omit section 502 (interpretation of Chapter 5).
10
      (2)
The repeal of subsections (1) and (2) of that section has effect for corporation
tax purposes only.
70
Omit Chapter 5A of Part 12 (special rules for long funding leases of plant or
machinery: corporation tax).
71
Omit section 503 (letting of furnished holiday accommodation).
15
72
Omit section 505 (charitable companies: general).
73
Omit section 506 (charitable and non-charitable expenditure).
74
Omit section 506A (transactions with substantial donors).
75
Omit section 506B (section 506A: exceptions).
76
Omit section 506C (sections 506A and 506B: supplemental).
20
77
Omit section 507 (the National Heritage Memorial Fund, the Historic
Buildings and Monuments Commission etc).
78
Omit section 508 (scientific research organisations).
79
Omit section 510 (agricultural societies).
80
Omit section 510A (European Economic Interest Groupings).
25
81
Omit section 511(7) (the Gas Council).
82
Omit section 513 (British Airways Board and National Freight Corporation).
83
Omit section 517 (issue departments of Reserve Bank of India and State Bank
of Pakistan).
84
Omit section 518 (harbour reorganisation schemes).
30
85
Omit section 519 (local authorities).
86
Omit section 519A (health service bodies).
87
In section 552A(11) (tax representatives) for “Section 839” substitute “Section
1122 of CTA 2010”.
88
Omit Chapter 5A of Part 13 (share loss relief).
35