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
603

(a)
in sub-paragraph (9)—
(i)
for “section 416 of the Taxes Act” substitute “sections 450 and
451 of CTA 2010”,
(ii)
for “section 416(6)” substitute “section 451(4) to (6) of CTA
2010”,
5
(b)
in sub-paragraph (10)—
(i)
for “section 416 of the Taxes Act” substitute “section 449 of
CTA 2010”,
(ii)
for “section 416(6)” substitute “section 451(4) to (6) of CTA
2010”, and
10
(c)
in sub-paragraph (11) in the definition of “participator” for “section
417(1) of the Taxes Act” substitute “section 454 of CTA 2010”.
265   (1)
Amend Schedule 5AA (meaning of “scheme of reconstruction”) as follows.
      (2)
In paragraph 4(3) for “Section 840 of the Taxes Act” substitute “Section 1124
of CTA 2010”.
15
      (3)
In paragraph 8(1) for “section 832(1) of the Taxes Act” substitute “section
1119 of CTA 2010”.
266
In paragraph 19(1) of Schedule 5B (interpretation)—
(a)
in the definition of “51 per cent. subsidiary” for “section 838 of the
Taxes Act” substitute “Chapter 3 of Part 24 of CTA 2010”, and
20
(b)
in the definition of “associate” for “subsections (3) and (4) of section
417 of the Taxes Act if in those subsections” substitute “section 448 of
CTA 2010 if in that section”.
267   (1)
Amend Schedule 7AC (exemptions for disposals by companies with
substantial shareholdings) as follows.
25
      (2)
In paragraph 5(6) for “section 768 of the Taxes Act” substitute “section 673 of
CTA 2010”.
      (3)
In paragraph 8 for sub-paragraphs (2) and (3) substitute—
    “(2)
Chapter 6 of Part 5 of CTA 2010 (group relief: equity holders and
profits or assets available for distribution) applies for the purposes
30
of sub-paragraph (1) as it applies for the purposes of the
provisions mentioned in section 157(1) of that Act, but as if in that
Part sections 171(1)(b) and (3), 173, 174 and 176 to 181 were
omitted.”
      (4)
In paragraph 17(3) for “section 838 of the Taxes Act” substitute “Chapter 3 of
35
Part 24 of CTA 2010”.
      (5)
In paragraph 26(4)—
(a)
for “section 838 of the Taxes Act” substitute “Chapter 3 of Part 24 of
CTA 2010”, and
(b)
for “that section” substitute “that Chapter”.
40
Finance (No.2) Act 1992(c. 48)
268   (1)
The Finance (No.2) Act 1992 is amended as follows.
      (2)
Omit section 66 (banks etc in compulsory liquidation).

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
604

      (3)
Omit Schedule 12 (banks etc in compulsory liquidation).
      (4)
This paragraph has effect for corporation tax purposes only.
Charities Act 1993 (c. 10)
269
The Charities Act 1993 is amended as follows.
270   (1)
Amend section 10 (disclosure of information to Commission) as follows.
5
      (2)
In subsection (2)(c) at the end insert “or a relevant claim for exemption has
at any time been made under Part 11 of the Corporation Tax Act 2010”.
      (3)
After subsection (2) insert—
“(2A)
For the purposes of subsection (2)(c) above a claim for exemption
made under Part 11 of the Corporation Tax Act 2010 is a relevant
10
claim if it is neither—
(a)
a claim for exemption under section 475, 476 or 477 (reliefs for
eligible bodies and scientific research organisations), nor
(b)
a claim made by virtue of section 490 or section 491
(application of exemptions to eligible bodies and scientific
15
research organisations).”
271   (1)
Amend section 25A (meaning of “Scottish recognised body” and “Northern
Ireland charity”) as follows.
      (2)
In subsection (1)—
(a)
omit “section 505 of the Income and Corporation Taxes Act 1988 or”,
20
and
(b)
after “2007” insert “, or that qualifying relief is due under Part 11 of
the Corporation Tax Act 2010,”.
      (3)
In subsection (2)—
(a)
omit “section 505 of the Income and Corporation Taxes Act 1988 or”,
25
and
(b)
after “2007” insert “, or that qualifying relief is due under Part 11 of
the Corporation Tax Act 2010,”.
      (4)
After subsection (2) insert—
“(3)
For the purposes of this section relief under any provision of Part 11
30
of the Corporation Tax Act 2010 other than—
(a)
section 480 (exemption for profits of small-scale trades), and
(b)
section 481 (exemption from charges under provisions to
which section 1173 applies),

is qualifying relief under that Part.”
35
Finance Act 1993 (c. 34)
272
The Finance Act 1993 is amended as follows.
273
Omit sections 92 to 92E (which set out rules about the currency in which
profits or losses of a company are calculated and expressed for corporation
tax purposes).
40
274
In section 193(6) (tariff receipts) for “section 839 of the Taxes Act 1988”
substitute “section 1122 of the Corporation Tax Act 2010”.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
605

275
In paragraph 5(1) of Schedule 20A (interpretation) in the definition of
“control” for “section 416 of the Taxes Act 1988” substitute “sections 450 and
451 of the Corporation Tax Act 2010”.
Finance Act 1994 (c. 9)
276
The Finance Act 1994 is amended as follows.
5
277
In section 52A(8) (certain fees to be treated as premiums under higher rate
contracts) for “section 839 of the Taxes Act 1988” substitute “section 1122 of
the Corporation Tax Act 2010”.
278
In section 219(4B) (Lloyd’s underwriters: corporations etc: taxation of
profits) for “section 231(1) of the Taxes Act 1988” substitute “section 1109 of
10
the Corporation Tax Act 2010”.
279
In section 227A(5) (restriction of group relief) for “section 402(2) or (3) of the
Taxes Act 1988” substitute “section 131 (the group condition), section 132
(consortium condition 1) or section 133 (consortium conditions 2 and 3) of
the Corporation Tax Act 2010”.
15
280
In Schedule 6A (premiums liable to tax at the higher rate) in paragraph 1(2)
for “section 839 of the Taxes Act 1988” substitute “section 1122 of the
Corporation Tax Act 2010”.
Value Added Tax Act 1994 (c. 23)
281
In the following provisions of the Value Added Tax Act 1994, for “section
20
839 of the Taxes Act” substitute “section 1122 of the Corporation Tax Act
2010”—
(a)
section 43(2C)(b) (groups of companies),
(b)
paragraph 1(4) of Schedule 6 (valuation: special cases),
(c)
paragraph 1(5) of Schedule 7 (valuation of acquisitions from other
25
Member States: special cases),
(d)
in Part 2 of Schedule 8 (zero-rating), Note (4B) to Group 8 (transport),
(e)
in Part 2 of Schedule 9 (exemptions)—
(i)
Note (6) to Group 2 (insurance), and
(ii)
Note (17) to Group 10 (sports etc), and
30
(f)
paragraph 34(2) of Schedule 10 (buildings and land).
Finance Act 1995 (c. 4)
282
The Finance Act 1995 is amended as follows.
283   (1)
Amend section 151 (lease or tack: associated bodies) as follows.
      (2)
In subsection (10A)—
35
(a)
for “Schedule 18 to the Income and Corporation Taxes Act 1988”
substitute “Chapter 6 of Part 5 of the Corporation Tax Act 2010”, and
(b)
for “paragraphs (a) and (b) of section 413(7)” substitute “section
151(4)(a) and (b)”.
      (3)
In subsection (10B) for “paragraphs 5(3) and 5B to 5E of Schedule 18 to the
40
Income and Corporation Taxes Act 1988” substitute “sections 171(1)(b) and
(3), 173, 174 and 176 to 178 of the Corporation Tax Act 2010”.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
606

      (4)
In subsection (10C) for “section 840 of the Income and Corporation Taxes Act
1988” substitute “section 1124 of the Corporation Tax Act 2010”.
284   (1)
Amend section 152 (open-ended investment companies) as follows.
      (2)
In subsection (3)(b) for the words from “of Chapters” to the end substitute
“in relation to open-ended investment companies, or in relation to payments
5
falling to be treated as the distributions of such companies, of any of the
following provisions of Part 23 of the Corporation Tax Act 2010—
“(i)
any provision of Chapter 2, except section 1000(2),
(ii)
sections 1030 to 1048,
(iii)
section 1049(1) and (3),
10
(iv)
sections 1059 to 1063, and
(v)
Chapter 5.”
      (3)
In subsection (6), in the definition of “umbrella scheme”, for “section 468 of
the Taxes Act 1988” substitute “section 619 of the Corporation Tax Act 2010”.
      (4)
In subsection (7)(a) for “section 468 of the Taxes Act 1988)” substitute
15
“sections 616 and 619(3) of the Corporation Tax Act 2010)”.
285
In section 154(1) (short rotation coppice) omit the words “the Corporation
Tax Acts and”.
286
In paragraph 17(6)(a) of Schedule 22 (interpretation) for “section 416 of the
Taxes Act 1988” substitute “sections 450 and 451 of the Corporation Tax Act
20
2010”.
Finance Act 1996 (c. 8)
287
The Finance Act 1996 is amended as follows.
288
Omit section 175 (transactions in securities).
289
In paragraph 11(2D) of Schedule 15 (other adjustments in case of chargeable
25
assets etc) for paragraphs (a) and (b) substitute—
“(a)
sections 450 and 451 of the Corporation Tax Act 2010
(meaning of control) apply as they apply for the purposes
of Part 10 of that Act;
(b)
subject to paragraph (c) below, “associate” and
30
“participator” have the same meaning as in that Part (see
sections 448 and 454 of that Act);”.
Broadcasting Act 1996 (c. 55)
290   (1)
Schedule 7 to the Broadcasting Act 1996 (transfer schemes) is amended as
follows.
35
      (2)
In paragraph 12(2) for “section 343 of the Taxes Act 1988 (company
reconstructions” substitute “Chapter 1 of Part 22 of the Corporation Tax Act
2010 (transfers of trade”.
      (3)
In paragraph 16 for “section 839 of the Taxes Act 1988” substitute “section
1122 of the Corporation Tax Act 2010”.
40
      (4)
In paragraph 20(1) for “subsection (1) or (2) of section 410 of the Taxes Act
1988” substitute “section 154(3) or 155(3) of the Corporation Tax Act 2010”.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
607

      (5)
In paragraph 20(2) for “for the purposes of paragraph 5B of Schedule 18 to
the Taxes Act 1988” substitute “within the meaning given by section 173 of
the Corporation Tax Act 2010”.
      (6)
In paragraph 22(1) for “Section 779 of the Taxes Act 1988” substitute
“Sections 838 and 839 of the Corporation Tax Act 2010”.
5
      (7)
In paragraph 22(2)—
(a)
for “section 779 of the Taxes Act 1988” substitute “section 835 or 836
of the Corporation Tax Act 2010”, and
(b)
for “that section” substitute “section 847 of the Corporation Tax Act
2010”.
10
      (8)
In paragraph 23(1) for “Section 780 of the Taxes Act 1988” substitute
“Chapter 2 of Part 19 of the Corporation Tax Act 2010”.
      (9)
In paragraph 23(3) for “section 780 of the Taxes Act 1988” substitute
“Chapter 2 of Part 19 of the Corporation Tax Act 2010”.
     (10)
In paragraph 24(1)—
15
(a)
for “section 781 of the Taxes Act 1988” substitute “Chapter 4 of Part
19 of the Corporation Tax Act 2010”, and
(b)
for “an asset” substitute “a relevant asset”.
     (11)
In paragraph 24(2)—
(a)
for “Section 782 of the Taxes Act 1988” substitute “Section 865 of the
20
Corporation Tax Act 2010”, and
(b)
in paragraph (b)(ii) for “an asset” substitute “a relevant asset”.
Finance Act 1997 (c. 16)
291   (1)
Schedule 12 to the Finance Act 1997 (leasing arrangements: finance leases
and loans) is amended as follows.
25
      (2)
Omit paragraphs 1 to 7, 9 to 11, 13 and 14 (leasing arrangements where any
of the return on investment is in capital form).
      (3)
Omit paragraphs 15 to 17 (other finance leases).
      (4)
Omit paragraphs 20 to 30 (supplementary provisions).
      (5)
This paragraph has effect for corporation tax purposes only.
30
Finance Act 1998 (c. 36)
292   (1)
Schedule 18 to the Finance Act 1998 (company tax returns, assessments and
related matters) is amended as follows.
      (2)
In paragraph 1—
(a)
for “section 419(1) of the Taxes Act 1988” substitute “section 455 of
35
the Corporation Tax Act 2010”,
(b)
for “section 501A(1)” substitute “section 330(1)”, and
(c)
for “of that Act”, in the second place, substitute “of the Taxes Act
1988”.
      (3)
In paragraph 2(4)—
40

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
608

(a)
for “section 419(4) of the Taxes Act 1988” substitute “section 458 of
the Corporation Tax Act 2010”, and
(b)
for “subsection (4A)” substitute “subsection (5)”.
      (4)
In paragraph 8(1)—
(a)
at the end of paragraph 1 of the first step insert “(see section 4(1) and
5
(2) of the Corporation Tax Act 2010)”,
(b)
in paragraph 1 of the second step for “section 13(2) of the Taxes Act
1988 (marginal small companies’ relief)” substitute “section 19, 20 or
21 of the Corporation Tax Act 2010 (marginal relief for companies
with small profits)”,
10
(c)
in paragraph 1B of the second step for “Part 5 of Schedule 16 to the
Finance Act 2002” substitute “Part 7 of the Corporation Tax Act
2010”,
(d)
in paragraph 1 of the third step for “section 419(1) of the Taxes Act
1988” substitute “section 455 of the Corporation Tax Act 2010”,
15
(e)
in paragraph 1A of the third step for “section 501A(1)” substitute
“section 330(1)”,
(f)
in paragraph 2 of the third step for “that Act” substitute “the Taxes
Act 1988”,
(g)
in paragraph 1 of the fourth step for “section 7(2) or 11(3) of the Taxes
20
Act 1988” substitute “section 967 or 968 of the Corporation Tax Act
2010”, and
(h)
in paragraph 2 of the fourth step for “that Act” substitute “the Taxes
Act 1988”.
      (5)
In paragraph 18(4)—
25
(a)
for “section 419(4) of the Taxes Act 1988” substitute “section 458 of
the Corporation Tax Act 2010”, and
(b)
for “subsection (4A)” substitute “subsection (5)”.
      (6)
In paragraph 22(3)(a)(i) for “section 234(1) of the Taxes Act 1988” substitute
“section 1100(1) of the Corporation Tax Act 2010”.
30
      (7)
In paragraph 23(3)(a)(i) for “section 234(1) of the Taxes Act 1988” substitute
“section 1100(1) of the Corporation Tax Act 2010”.
      (8)
In paragraph 66 for “Chapter IV of Part X of the Taxes Act 1988” substitute
“Part 5 of the Corporation Tax Act 2010”.
      (9)
In paragraph 68(4) for paragraph (b) substitute—
35
“(b)
consortium condition 1, 2 or 3 in sections 132 and 133 of the
Corporation Tax Act 2010 is satisfied in the case of the
claimant company and the surrendering company.”
     (10)
In paragraph 69(3) for “section 403 of the Taxes Act 1988” substitute “Part 5
of the Corporation Tax Act 2010”.
40
     (11)
In paragraph 70—
(a)
in sub-paragraph (1) for “A” substitute “In accordance with
Requirement 1 in section 130(2) of the Corporation Tax Act 2010 or
Requirement 1 in section 135(2) of that Act (as the case may be), a”,
and
45

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
609

(b)
after sub-paragraph (5) insert—
    “(6)
In this paragraph “consortium claim” means a claim for
group relief under Part 5 of the Corporation Tax Act 2010
based on consortium condition 1, 2 or 3 (see Requirement
3 in section 130(2) of that Act).”
5
     (12)
In paragraph 72(2)—
(a)
for “section 393(1) of the Taxes Act 1988” substitute “section 45 of the
Corporation Tax Act 2010”, and
(b)
for “section 393(1)” (in both places) substitute “section 45”.
     (13)
In paragraph 77A—
10
(a)
in sub-paragraph (1) for the words from “section 402(2A)” to the end
substitute “section 136 of the Corporation Tax Act 2010 being met
(claims for group relief based on the EEA group condition).”,
(b)
in sub-paragraph (2)(b) for the words from “its deemed” to the end
substitute “the accounting period that the company is assumed to
15
have under section 125 of the Corporation Tax Act 2010 for the
purpose of recalculating the EEA amount at Step 3 in section 113 of
that Act.”,
(c)
in sub-paragraph (8)(a) for the words from “subsection (2)(a)” to
“section 403G” substitute “Step 2 in section 113(2) of the Corporation
20
Tax Act 2010 and is not prevented from being surrendered by section
127”,
(d)
in sub-paragraph (8)(b) for “Part 2 of Schedule 18A to that Act”
substitute “Step 3 in section 113(2) of that Act”, and
(e)
in sub-paragraph (10) for “Part 2 of Schedule 18A to the Taxes Act
25
1988” substitute “Chapter 3 of Part 5 of the Corporation Tax Act
2010”.
Petroleum Act 1998 (c. 17)
293
In section 17E(7) of the Petroleum Act 1998 (section 17D: supplemental)—
(a)
for “subsections (2) to (5) of section 416 of the Income and
30
Corporation Taxes Act 1988” substitute “sections 450 and 451(1) to
(3) of the Corporation Tax Act 2010”, and
(b)
for “Part XI” substitute “Part 10”.
Regional Development Agencies Act 1998 (c. 45)
294
In section 38(10) of the Regional Development Agencies Act 1998
35
(corporation tax), in the definition of “unallowed tax losses”, for the words
from “tax losses” to the end substitute “carry-forward losses within the
meaning given by section 95 of the Corporation Tax Act 2010”.
Finance Act 1999 (c. 16)
295
The Finance Act 1999 is amended as follows.
40
296
In section 97 (supplementary provisions) in subsection (2)(a) for “section 839
of the Taxes Act 1988” substitute “section 1122 of the Corporation Tax Act
2010”.