Corporation Tax Bill

House of Commons

Session 2009 - 10
Internet Publications
Other Bills before Parliament

Corporation Tax Bill

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
589

Oil Taxation Act 1975 (c. 22)
160
The Oil Taxation Act 1975 is amended as follows.
161   (1)
Amend section 3 (allowance of expenditure) as follows.
      (2)
In subsection (1DB)(b) for “section 492(1) of the Income and Corporation
Taxes Act 1988” substitute “the definition of “oil-related activities” in section
5
274 of CTA 2010”.
      (3)
In subsection (2)—
(a)
for the words from “subsection (1) of section 492” to “that subsection
or section” substitute “section 16 of ITTOIA 2005 or section 279 of
CTA 2010 consists of activities carried on by the participator that fall
10
within the definition of “oil-related activities” in section 16(2) of
ITTOIA 2005 or section 274 of CTA 2010 or which would have so
consisted if those sections”, and
(b)
for “(within the meaning of the Taxes Acts)” substitute “(as defined
by section 1119 of CTA 2010)”.
15
162   (1)
Amend section 5 (allowance of abortive exploration expenditure) as follows.
      (2)
In subsection (7)(b) for “section 839 of the Taxes Act” substitute “section 1122
of CTA 2010”.
      (3)
In subsection (8)(b) for “section 838 of the Taxes Act” substitute “Chapter 3
of Part 24 of CTA 2010”.
20
163
In section 6(4)(b) (allowance of unrelievable loss from abandoned field) for
“section 838 of the Taxes Act” substitute “Chapter 3 of Part 24 of CTA 2010”.
164
In section 21(2) (citation etc)—
(a)
at the appropriate place insert—
““CTA 2010” means the Corporation Tax Act 2010;”, and
25
(b)
omit the definition of “the Taxes Act”.
165   (1)
Amend Schedule 3 (petroleum revenue tax: miscellaneous provisions) as
follows.
      (2)
In paragraph 1(2) for “Section 839 of the Taxes Act” substitute “Section 1122
of CTA 2010”.
30
      (3)
In paragraph 2A(2)(b) for “section 839 of the Taxes Act” substitute “section
1122 of CTA 2010”.
      (4)
In paragraph 5(2) for “section 500 of the Taxes Act”, in each place, substitute
“sections 299 to 301 of CTA 2010”.
      (5)
In paragraph 5(5) for “section 840 of the Taxes Act” substitute “section 1124
35
of CTA 2010”.
166   (1)
Amend Schedule 4 (provisions supplementary to sections 3 and 4) as
follows.
      (2)
In paragraph 2(2) for “section 839 of the Taxes Act” substitute “section 1122
of CTA 2010”.
40
      (3)
In paragraph 4(8) for “Section 839 of the Taxes Act” substitute “Section 1122
of CTA 2010”.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
590

      (4)
In paragraph 7(2) for “Section 839 of the Taxes Act” substitute “Section 1122
of CTA 2010”.
167
In Schedule 5 (allowance of expenditure) in paragraph 2B(2) for “section 839
of the Taxes Act” substitute “section 1122 of CTA 2010”.
Alcoholic Liquor Duties Act 1979 (c. 4)
5
168
In section 36B(8) of the Alcoholic Liquor Duties Act 1979 (interpretation of
provisions relating to small brewery beer) for “section 839 of the Income and
Corporation Taxes Act 1988” substitute “section 1122 of the Corporation Tax
Act 2010”.
Finance Act 1980 (c. 48)
10
169
The Finance Act 1980 is amended as follows.
170
In section 107(7) (transmedian fields) after “meaning of” insert “Part 8 of the
Corporation Tax Act 2010 or”.
171   (1)
Amend Schedule 17 (transfers of interests in oil fields) as follows.
      (2)
In paragraph 13(3) for “section 839 of the Taxes Act 1988” substitute “section
15
1122 of the Corporation Tax Act 2010”.
      (3)
In paragraph 16(3) for “section 838 of the Taxes Act 1988” substitute
“Chapter 3 of Part 24 of the Corporation Tax Act 2010”.
Betting and Gaming Duties Act 1981 (c. 63)
172
The Betting and Gaming Duties Act 1981 is amended as follows.
20
173
In section 20(6)(a) (expenditure on bingo winnings) for “section 839 of the
Income and Corporation Taxes Act 1988” substitute “section 1122 of the
Corporation Tax Act 2010”.
174
In section 21(7) (gaming machine licences) for “Section 839 of the Income and
Corporation Taxes Act 1988” substitute “Section 1122 of the Corporation Tax
25
Act 2010”.
Finance Act 1982 (c. 39)
175
The Finance Act 1982 is amended as follows.
176
In section 134(1) (alternative valuation of ethane used for petrochemical
purposes) after “provision of the principal Act” substitute “, in Part 8 of the
30
Corporation Tax Act 2010”.
177   (1)
In Schedule 19 (supplementary provisions relating to APRT) omit paragraph
10(7).
      (2)
Sub-paragraph (1) has effect for corporation tax purposes only.
Finance Act 1983 (c. 28)
35
178
In Schedule 8 to the Finance Act 1983 (reliefs for exploration and appraisal
expenditure) in paragraph 11(2) for “Section 839 of the Income and

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
591

Corporation Taxes Act 1988” substitute “Section 1122 of the Corporation Tax
Act 2010”.
Oil Taxation Act 1983 (c. 56)
179
The Oil Taxation Act 1983 is amended as follows.
180
In section 6(4A)(b) (amounts which are not chargeable tariff receipts) for
5
“section 492(1) of the Income and Corporation Taxes Act 1988” substitute
“the definition of “oil-related activities” in section 274 of the Corporation Tax
Act 2010”.
181
In section 15(4) (interpretation etc) for “Section 839 of the Taxes Act”
substitute “Section 1122 of the Corporation Tax Act 2010”.
10
182
In paragraph 8(2B)(b) of Schedule 1 (allowable expenditure: use of new asset
otherwise than in connection with taxable field) for “section 492(1) of the
Income and Corporation Taxes Act 1988” substitute “the definition of “oil-
related activities” in section 274 of the Corporation Tax Act 2010”.
183   (1)
Amend Schedule 2 (supplemental provisions as to receipts from qualifying
15
assets) as follows.
      (2)
In paragraph 11(2) for “section 500 of the Taxes Act” substitute “sections 299
to 301 of the Corporation Tax Act 2010”.
      (3)
In paragraph 11(3)(a) for “section 416 of the Taxes Act” substitute “sections
450 and 451 of the Corporation Tax Act 2010”.
20
      (4)
In paragraph 12(1) for “section 500 of the Taxes Act” substitute “sections 299
to 301 of the Corporation Tax Act 2010”.
Finance Act 1984 (c. 43)
184
The Finance Act 1984 is amended as follows.
185
In section 113(8) (restriction on PRT reliefs) for “section 838 of the Taxes Act
25
1988” substitute “Chapter 3 of Part 24 of the Corporation Tax Act 2010”.
186   (1)
Amend section 115 (information relating to sales at arm’s length and market
value of oil) as follows.
      (2)
In subsection (2) for “section 840 of the Taxes Act 1988” substitute “section
1124 of the Corporation Tax Act 2010”.
30
      (3)
In subsection (7) for “section 838 of the Taxes Act 1988” substitute “Chapter
3 of Part 24 of the Corporation Tax Act 2010”.
Inheritance Tax Act 1984 (c. 51)
187
The Inheritance Tax Act 1984 is amended as follows.
188   (1)
Amend section 23 (gifts to charities) as follows.
35
      (2)
In subsection (1) at the end insert “or registered clubs”.
      (3)
In subsection (5)—
(a)
at the beginning insert “In the case of any property which is given to
charities,”, and

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
592

(b)
after “in relation to” insert “the”.
      (4)
After that subsection insert—
“(5A)
In the case of any property which is given to a registered club,
subsection (1) above shall not apply in relation to the property if it or
any part of it may become applicable for purposes other than—
5
(a)
the purposes of the club in question;
(b)
the purposes of another registered club;
(c)
the purposes of the governing body of an eligible sport for the
purposes of which the club in question exists; or
(d)
charitable purposes.”
10
      (5)
For subsection (6) substitute—
“(6)
For the purposes of this section—
(a)
property is given to charities if it becomes the property of
charities or is held on trust for charitable purposes only; and
(b)
property is given to registered clubs if it becomes the
15
property of registered clubs or is held on trust for purposes of
registered clubs only;

and “donor” shall be construed accordingly.
(7)
For the purposes of this section “registered club” and “eligible sport”
have the same meaning as in Chapter 9 of Part 13 of the Corporation
20
Tax Act 2010.”
      (6)
In the title at the end insert “or registered clubs”.
189
In section 96 (preference shares disregarded) for “section 210(4) of the Taxes
Act 1988” substitute “section 1023(5) of the Corporation Tax Act 2010”.
190
In section 102(1) (interpretation), in the definition of “participator”, for “for
25
the purposes of Chapter I of Part XI of the Taxes Act 1988” substitute “within
the meaning given by section 454 of the Corporation Tax Act 2010”.
191
In Schedule 3, in the entry for “health service body”, for “section 519A of the
Income and Corporation Taxes Act 1988” substitute “section 986 of the
Corporation Tax Act 2010”.
30
Police and Criminal Evidence Act 1984 (c. 60)
192
In section 14(6) of the Police and Criminal Evidence Act 1984 (meaning of
“special procedure material”) for “section 302 of the Income and
Corporation Taxes Act 1970” substitute “section 449 of the Corporation Tax
Act 2010”.
35
Administration of Justice Act 1985 (c. 61)
193
In paragraph 36(3) of Schedule 2 to the Administration of Justice Act 1985—
(a)
omit from “section 778(3)” to “1988 and”, and
(b)
after “2007” insert “and section 832(5) and (6) of the Corporation Tax
Act 2010”.
40
Finance Act 1986 (c. 41)
194
The Finance Act 1986 is amended as follows.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
593

195
In section 76(6A) (acquisitions: further provisions about reliefs) for “section
416 of the Taxes Act 1988” substitute “sections 450 and 451 of the
Corporation Tax Act 2010”.
196
In section 80B(1) (intermediaries: supplementary) for “section 839 of the
Income and Corporation Taxes Act 1988” substitute “section 1122 of the
5
Corporation Tax Act 2010”.
197
In section 80D(2)(a) (repurchasers and stock lending: replacement stock on
insolvency) for “section 839 of the Taxes Act 1988” substitute “section 1122
of the Corporation Tax Act 2010”.
198
In section 88B(1) (intermediaries: supplementary) for “section 839 of the
10
Income and Corporation Taxes Act 1988” substitute “section 1122 of the
Corporation Tax Act 2010”.
199
In section 89AB(2)(a) (section 87: exception for repurchasers and stock
lending in case of insolvency) for “section 839 of the Taxes Act 1988”
substitute “section 1122 of the Corporation Tax Act 2010”.
15
200
In section 90(9)(b) (section 87: other exceptions) for “section 416 of the
Income and Corporation Taxes Act 1988” substitute “sections 450 and 451 of
the Corporation Tax Act 2010”.
Gas Act 1986 (c. 44)
201
In section 19E(4) of the Gas Act 1986 (sections 19A to 19D: supplemental)—
20
(a)
for “subsections (2) to (5) of section 416 of the Income and
Corporation Taxes Act 1988” substitute “sections 450 and 451(1) to
(3) of the Corporation Tax Act 2010”, and
(b)
for “Part XI of that Act” substitute “Part 10 of that Act”.
Finance Act 1987 (c. 16)
25
202
The Finance Act 1987 is amended as follows.
203
In Schedule 13 (relief for research expenditure) in paragraph 11(2) for
“Section 839 of the Taxes Act” substitute “Section 1122 of the Corporation
Tax Act 2010”.
204
In Schedule 14 (cross-field allowance) in paragraph 10(2) for “section 838 of
30
the Taxes Act” substitute “Chapter 3 of Part 24 of the Corporation Tax Act
2010”.
Local Government Finance Act 1988 (c. 41)
205
The Local Government Finance Act 1988 is amended as follows.
206
In section 43(6)(b) (occupied hereditaments: liability) for “Schedule 18 to the
35
Finance Act 2002” substitute “Chapter 9 of Part 13 of the Corporation Tax
Act 2010”.
207
In section 47(2)(ba) (discretionary relief) for “Schedule 18 to the Finance Act
2002” substitute “Chapter 9 of Part 13 of the Corporation Tax Act 2010”.
208
In section 67(10A) (interpretation: other provisions)—
40
(a)
for “Schedule 18 to the Finance Act 2002” substitute “Chapter 9 of
Part 13 of the Corporation Tax Act 2010”,

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
594

(b)
for “terminated”, in both places where it occurs, substitute
“cancelled”, and
(c)
for “termination” substitute “cancellation”.
209
In paragraph 7(9) of Schedule 5 (non-domestic rating: exemption) for
“section 416(2) to (6) of the Income and Corporation Taxes Act 1988”
5
substitute “sections 450 and 451 of the Corporation Tax Act 2010”.
Housing Act 1988 (c. 50)
210
In section 54(2)(c) of the Housing Act 1988 (tax relief grants) for “section 488
of the Income and Corporation Taxes Act 1988” substitute “Chapter 7 of Part
13 of the Corporation Tax Act 2010”.
10
Finance Act 1989 (c. 26)
211
The Finance Act 1989 is amended as follows.
212
In section 85A(4) (excess adjusted life assurance trade profits) for “set off
under section 393 of that Act” substitute “relieved under section 45 of the
Corporation Tax Act 2010”.
15
213
In section 88(4) (corporation tax: policy holders’ fraction of profits) for the
words from “section 13” to “that section)” substitute “Part 3 of the
Corporation Tax Act 2010 (companies with small profits) the augmented
profits and the taxable total profits (within the meaning of that Part)”.
214
Omit section 102 (surrender of tax refund etc within group).
20
215
In paragraph 16(2) of Schedule 5 (employee share ownership trusts)—
(a)
in paragraph (a) for “same meaning as in section 417(3) and (4) of the
Taxes Act 1988” substitute “meaning given by section 448 of the
Corporation Tax Act 2010”, and
(b)
in paragraph (c) for “same meaning as in Part XI of the Taxes Act
25
1988” substitute “meaning given by section 454 of the Corporation
Tax Act 2010”.
216
In Schedule 12 (close companies) omit paragraphs 1, 3 and 4.
Electricity Act 1989 (c. 29)
217
In section 58(8) of the Electricity Act 1989 (directions restricting the use of
30
certain information) for “section 839 of the Income and Corporation Taxes
Act 1988” substitute “section 1122 of the Corporation Tax Act 2010”.
Finance Act 1990 (c. 29)
218
Omit section 25(10) and (12) of the Finance Act 1990 (donations to charitable
companies by individuals).
35
Finance Act 1991 (c. 31)
219
The Finance Act 1991 is amended as follows.
220   (1)
Omit sections 62 to 65 (abandonment guarantees and abandonment
expenditure).

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
595

      (2)
Sub-paragraph (1) has effect for corporation tax purposes only.
221
In section 104(3) (abandonment guarantees) for “section 839 of the Taxes Act
1988” substitute “section 1122 of the Corporation Tax Act 2010”.
222
In section 112(7)(b) (apportionment of consideration for stamp duty
purposes) for “section 839 of the Taxes Act 1988” substitute “section 1122 of
5
the Corporation Tax Act 2010”.
Taxation of Chargeable Gains Act 1992 (c. 12)
223
The Taxation of Chargeable Gains Act 1992 is amended as follows.
224
In section 8(1) (company’s total profits to include chargeable gains) for
“section 400 of the Taxes Act” substitute “Chapter 7 of Part 4 of CTA 2010”.
10
225
In section 13(12) (attribution of gains to members of non-resident
companies) for “section 417(1) of the Taxes Act for the purposes of Part XI of
that Act (close companies)” substitute “section 454 of CTA 2010”.
226
In section 37 (consideration chargeable to tax on income) after subsection (5)
insert—
15
“(5A)
If—
(a)
because section 821(3) or (5) of CTA 2010 applies, the
company charged to tax under Part 18 of that Act
(transactions in land) is not the person (“C”) by whom the
gain was realised, and
20
(b)
the corporation tax has been paid,

for the purposes of this section the amount charged to that tax is
regarded as having been charged as the income of C.”
227
In section 39 (exclusion of expenditure by reference to tax on income) after
subsection (4) insert—
25
“(5)
If—
(a)
because section 821(3) or (5) of CTA 2010 applies, the
company charged to tax under Part 18 of that Act
(transactions in land) is not the person (“B”) by whom the
gain was realised, and
30
(b)
the corporation tax has been paid,

for the purposes of this section the amount charged to that tax is
regarded as having been charged as the income of B.”
228
In section 96(10) (payments by and to companies)—
(a)
in paragraph (a)—
35
(i)
for “section 416 of the Taxes Act” substitute “sections 450 and
451 of CTA 2010”, and
(ii)
for “section 416(6)” substitute “section 451(4) to (6) of CTA
2010”, and
(b)
in paragraph (b) for “section 417(1) of the Taxes Act” substitute
40
“section 454 of CTA 2010”.
229
In section 117(1) (meaning of qualifying corporate bond) for the words from
“sub-paragraph (5)” to the end substitute “section 162 of CTA 2010 if for
paragraphs (a) to (c) of subsection (2) of that section there were substituted