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
673

     (20)
In the entry for “local authority”, in the second column, for “section 842A of
ICTA” substitute “section 1130 of CTA 2010”.
     (21)
In the entry for “mortgage”, in the second column, for “section 1320(1)”
substitute “section 1166(1) of CTA 2010”.
     (22)
In the entry for “non-UK resident”, in the second column, for “section 1319”
5
substitute “section 1119 of CTA 2010”.
     (23)
In the entry for “oil and gas exploration and appraisal”, in the second
column, for “section 837B of ICTA” substitute “section 1134 of CTA 2010”.
     (24)
In the entry for “open-ended investment company”, in the second column,
for “section 468A(2) of ICTA” substitute “section 613 of CTA 2010”.
10
     (25)
In the entry for “permanent establishment”, in the second column, for
“section 832(1) of ICTA and section 148 of FA 2003” substitute “section 1119
of CTA 2010”.
     (26)
In the entry for “personal representatives”, in the second column, for
“section 968” substitute “section 1119 of CTA 2010”.
15
     (27)
In the entry for “qualifying distribution”, in the second column, for “section
14(2) of ICTA (as applied by section 832(1) of that Act)” substitute “section
1136 of CTA 2010”.
     (28)
Omit the entry for “qualifying policy”.
     (29)
In the entry for “recognised stock exchange”, in the second column, for
20
“section 841(1) of ICTA” substitute “section 1137 of CTA 2010”.
     (30)
In the entry for “registered pension scheme”, in the second column, for
“section 832(1) of ICTA” substitute “section 1119 of CTA 2010”.
     (31)
In the entry for “research and development”, in the second column, for
“section 837A of ICTA” substitute “section 1138 of CTA 2010”.
25
     (32)
In the entry for “retail prices index”, in the second column, for “section 1319”
substitute “section 1119 of CTA 2010”.
     (33)
In the entry for “statutory insolvency arrangement”, in the second column,
for “section 834(1) of ICTA” substitute “section 1319”.
     (34)
In the entry for “51% subsidiary”, in the second column, for “section
30
838(1)(a) of ICTA” substitute “section 1154(2) of CTA 2010”.
     (35)
In the entries for “75% subsidiary” and “75% subsidiary (in Chapter 8 of Part
8)”, in the second column, for “section 838(1)(b) of ICTA” substitute “section
1154(3) of CTA 2010”.
     (36)
In the entry for “surrender”, in the second column, for “section 1320(1)”
35
substitute “section 1166(1) of CTA 2010”.
     (37)
In the entry for “tax advantage”, in the second column, for “section 840ZA of
ICTA” substitute “section 1139 of CTA 2010”.
     (38)
In the entry for “tax year”, in the second column, for “section 1319”
substitute “section 1119 of CTA 2010”.
40

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
674

     (39)
In the entry for “the tax year 2009-10 etc”, in the second column, for “section
1319” substitute “section 1119 of CTA 2010 (see entry for “the tax year 2010-
11”)”.
     (40)
In the entry for “total profits”, in the second column, for “section 834C of
ICTA” substitute “section 1119 of CTA 2010”.
5
     (41)
In the entry for “UK generally accepted accounting practice”, in the second
column, for “section 832(1) of ICTA and section 50(4) of FA 2004” substitute
“section 1119 of CTA 2010”.
     (42)
In the entry for “UK resident”, in the second column, for “section 1319”
substitute “section 1119 of CTA 2010”.
10
     (43)
In the entry for “umbrella company”, in the second column, for “section
468A(4) of ICTA” substitute “section 615 of CTA 2010”.
     (44)
In the entry for “unit holder”, in the second column, for “section 468(6) of
ICTA (as applied by section 832(1) of that Act)” substitute “section 1119 of
CTA 2010”.
15
     (45)
In the entry for “unit trust scheme”, in the second column, for “section 1007
of ITA 2007 (as applied by section 832(1) of ICTA)” substitute “section 1119
of CTA 2010”.
     (46)
In the entry for “United Kingdom”, in the second column, for “section 830(1)
of ICTA” substitute “section 1170 of CTA 2010”.
20
     (47)
In the entry for “within the charge to tax”, in the second column, for “section
832(1) of ICTA” substitute “section 1167 of CTA 2010”.
Saving Gateway Accounts Act 2009 (c. 8)
693
In section 9(2) of the Saving Gateway Accounts Act 2009 (statements etc) for
“Section 234A of the Income and Corporation Taxes Act 1988 (c. 1) (duty to
25
provide statement of distribution) does not” substitute “Sections 1104 to
1108 of the Corporation Tax Act 2010 (duty to provide tax certificate) do
not”.
Finance Act 2009 (c. 10)
694
The Finance Act 2009 is amended as follows.
30
695
In section 7(3) (charge and main rates for financial year 2010) for “same
meaning as in Chapter 5 of Part 12 of ICTA (see section 502(1) and (1A) of
that Act)” substitute “meaning given by section 276 of CTA 2010”.
696
In section 8(4) (small companies’ rates and fractions for financial year 2009)
for “same meaning as in Chapter 5 of Part 12 of ICTA (see section 502(1) and
35
(1A) of that Act)” substitute “meaning given by section 276 of CTA 2010”.
697
Omit section 38 (corporation tax: foreign currency accounting).
698
In section 45(6) (power to enable dividends of investment trusts to be taxed
as interest)—
(a)
in the definition of “company” for “section 842 of ICTA” substitute
40
“Chapter 4 of Part 24 of CTA 2010 (see section 1165(1) of that Act)”,
(b)
in the definition of “investment trust” for “section 842(1) of ICTA”
substitute “section 1158 of CTA 2010”, and

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
675

(c)
in paragraph (a) of the definition of “prospective investment trust”
for “section 842 of ICTA (investment trusts)” substitute “section 1158
of CTA 2010 (meaning of “investment trust”)”.
699
Omit section 90 (supplementary charge: reduction for certain new oil fields).
700
In section 126(1) (interpretation) at the appropriate place insert—
5
““CTA 2010” means the Corporation Tax Act 2010,”.
701
In Schedule 3 (VAT: supplementary charge and orders changing rate) in
paragraph 8 for “Section 839 of ICTA” substitute “Section 1122 of CTA 2010”.
702   (1)
Amend paragraph 3 of Schedule 6 (temporary extension of carry back of
losses) as follows.
10
      (2)
For sub-paragraph (1) substitute—
    “(1)
Sections 37(3)(b) and 38(1) and (3) of CTA 2010 (trade loss relief
against profits of same or earlier accounting period) have effect in
relation to any loss to which this paragraph applies as if the
references to 12 months were references to 3 years (but subject as
15
follows).”
      (3)
In sub-paragraph (4) for “set off under section 393A of ICTA” substitute
“relieved under section 37 of CTA 2010”.
      (4)
For sub-paragraph (6) substitute—
    “(6)
The reference in subsection (2) of section 40 of CTA 2010 to the loss
20
mentioned in subsection (1)(a) of that section (so far as not a
terminal loss and so far as not exceeding the allowance mentioned
in subsection (1)(b) of that section) (“the section 40 loss”) has effect
in relation to a relevant accounting period as a reference to so
much of the section 40 loss as exceeds that which can be set off
25
under section 37 by virtue of this paragraph.”
703
Omit Schedule 18 (corporation tax: foreign currency accounting).
704
In Schedule 22 (offshore funds) in paragraph 14(2) for “Section 828(3) of
ICTA” substitute “Section 1171(4) of CTA 2010”.
705
Omit paragraphs 1 to 6 of Schedule 25 (transfer of income streams: company
30
transferors).
706   (1)
Amend Schedule 33 (long funding leases of films) as follows.
      (2)
In paragraph 3 for “paragraphs 1 and” substitute “paragraph”.
      (3)
In paragraph 5(1) omit “Section 502B of ICTA or”.
      (4)
In paragraph 6(1) omit “section 502B(2) of ICTA or”.
35
      (5)
In paragraph 7 omit “Section 502C of ICTA or”.
      (6)
In paragraph 8(1) omit “section 502D of ICTA or”.
      (7)
In paragraph 9(b) omit “section 502B of ICTA or”.
707
In Schedule 35 (pensions: special annual allowance charge) in paragraph
23(2) for “section 838 of ICTA” substitute “Chapter 3 of Part 24 of CTA 2010”.
40

Corporation Tax Bill
Schedule 2 — Transitionals and savings etc
Part 1 — General provisions
676

708
Omit Schedule 44 (supplementary charge: reduction for certain new oil
fields).
709   (1)
Amend paragraph 18 of Schedule 46 (duties of senior accounting officers of
qualifying companies) as follows.
      (2)
In sub-paragraph (1) in the definition of “company”—
5
(a)
for “section 468A of ICTA” substitute “section 613 of CTA 2010”, and
(b)
for “section 842 of ICTA” substitute “section 1158 of CTA 2010”.
      (3)
In sub-paragraph (3) for “Section 838 of ICTA” substitute “Chapter 3 of Part
24 of CTA 2010”.
      (4)
In sub-paragraph (4) for “section” substitute “Chapter”.
10
710
In Schedule 53 (late payment interest) in paragraph 6 for “section 252(5) of
ICTA” substitute “section 1111(2) of CTA 2010”.
711
In Schedule 55 (penalty for failure to make returns etc) in paragraph 24(3)—
(a)
for “subsection (4) of section 419 of ICTA” substitute “section 458 of
CTA 2010”, and
15
(b)
for “subsection (4A)” substitute “subsection (5)”.
712   (1)
Amend Schedule 61 (alternative finance investment bonds) as follows.
      (2)
In paragraph 4(4), in the definition of “connected”, for “section 839 of ICTA”
substitute “section 1122 of CTA 2010”.
      (3)
In paragraph 21(4), in the definition of “connected”, for “section 839 of
20
ICTA” substitute “section 1122 of CTA 2010”.
Schedule 2
Section 1180

Transitionals and savings etc
Part 1
General provisions
25
Continuity of the law: general
1
The repeal of provisions and their enactment in a rewritten form by this Act
does not affect the continuity of the law.
2
Paragraph 1 does not apply to any change made by this Act in the effect of
the law.
30
3
Any subordinate legislation or other thing which—
(a)
has been made or done, or has effect as if made or done, under or for
the purposes of a superseded enactment so far as it applied for
relevant tax purposes, and
(b)
is in force or effective immediately before the commencement of the
35
corresponding rewritten provision,

has effect after that commencement as if made or done under or for the
purposes of the rewritten provision.

Corporation Tax Bill
Schedule 2 — Transitionals and savings etc
Part 1 — General provisions
677

4     (1)
Any reference (express or implied) in this Act, another enactment or an
instrument or document to a rewritten provision is to be read as including,
in relation to times, circumstances or purposes in relation to which any
corresponding superseded enactment had effect for relevant tax purposes, a
reference to the superseded enactment so far as applying for those relevant
5
tax purposes.
      (2)
Any reference (express or implied) in this Act, another enactment or an
instrument or document to—
(a)
things done under or for the purposes of a rewritten provision, or
(b)
things falling to be done under or for the purposes of a rewritten
10
provision,

is to be read as including, in relation to times, circumstances or purposes in
relation to which any corresponding superseded enactment had effect for
relevant tax purposes, a reference to things done or falling to be done under
or for the purposes of the superseded enactment so far as applying for those
15
relevant tax purposes.
5     (1)
Any reference (express or implied) in any enactment, instrument or
document to a superseded enactment in its application for relevant tax
purposes is to be read, so far as is required for those relevant tax purposes,
as including, in relation to times, circumstances or purposes in relation to
20
which any corresponding rewritten provision has effect, a reference to the
rewritten provision.
      (2)
Any reference (express or implied) in any enactment, instrument or
document to—
(a)
things done under or for the purposes of a superseded enactment in
25
its application for relevant tax purposes, or
(b)
things falling to be done under or for the purposes of a superseded
enactment in its application for relevant tax purposes,

is to be read, so far as is required for those relevant tax purposes, as
including, in relation to times, circumstances or purposes in relation to
30
which any corresponding rewritten provision has effect, a reference to
things done or falling to be done under or for the purposes of the rewritten
provision.
6
Paragraphs 1 to 5 have effect instead of section 17(2) of the Interpretation Act
1978 (but are without prejudice to any other provision of that Act).
35
7
Paragraphs 4 and 5 apply only so far as the context permits.
General saving for old transitional provisions and savings
8     (1)
The repeal by this Act of a transitional or saving provision relating to the
coming into force of a provision rewritten in this Act does not affect the
operation of the transitional or saving provision, so far as it is not specifically
40
rewritten in this Act but remains capable of having effect in relation to the
corresponding provision of this Act.
      (2)
The repeal by this Act of an enactment previously repealed subject to
savings does not affect the continued operation of those savings.
      (3)
The repeal by this Act of a saving on the previous repeal of an enactment
45
does not affect the operation of the saving so far as it is not specifically
rewritten in this Act but remains capable of having effect.

Corporation Tax Bill
Schedule 2 — Transitionals and savings etc
Part 2 — Changes in the law
678

Interpretation
9     (1)
In this Part—
“enactment” includes subordinate legislation (within the meaning of
the Interpretation Act 1978),
“relevant tax purposes” means, in relation to a superseded enactment,
5
tax purposes for which the enactment has been rewritten by this Act,
and
“superseded enactment” means an earlier enactment which has been
rewritten by this Act for certain tax purposes (whether it applied
only for those purposes or for those and other tax purposes).
10
      (2)
References in this Part to the repeal of a provision include references to its
revocation and to its express or implied disapplication for corporation tax
purposes.
      (3)
References in this Part to tax purposes are not limited to corporation tax
purposes.
15
Part 2
Changes in the law
10    (1)
This paragraph applies if, in the case of any person—
(a)
a thing is done or an event occurs before 1 April 2010, and
(b)
because of a change in the law made by this Act, the corporation tax
20
consequences of that thing or event for the relevant period are
different from what they would otherwise have been.
      (2)
This paragraph also applies if, in the case of any person—
(a)
a thing is done or an event occurs before 6 April 2010, and
(b)
because of a change in the law made by this Act, the income tax
25
consequences of that thing or event for the relevant period are
different from what they would otherwise have been.
      (3)
If the person mentioned in sub-paragraph (1) or (2) so elects, this Act applies
with such modifications as may be necessary to secure that the corporation
tax or (as the case may be) income tax consequences for the relevant period
30
are the same as they would have been if the change in the law had not been
made.
      (4)
In sub-paragraphs (1) to (3) “the relevant period” means—
(a)
for corporation tax purposes, any accounting period beginning
before and ending on or after 1 April 2010, and
35
(b)
for income tax purposes, any period of account beginning before and
ending on or after 6 April 2010.
      (5)
If this paragraph applies in the case of two or more persons in relation to the
same thing or event, an election made under this paragraph by any one of
those persons is of no effect unless a corresponding election is made by the
40
other or each of the others.
      (6)
An election under this paragraph must be made—
(a)
for corporation tax purposes, not later than two years after the end of
the accounting period, and

Corporation Tax Bill
Schedule 2 — Transitionals and savings etc
Part 3 — Currency
679

(b)
for income tax purposes, on or before the first anniversary of the
normal self-assessment filing date for the tax year in which the
period of account ends.
Part 3
Currency
5
Sterling equivalent of certain losses carried back to an earlier period
11    (1)
This paragraph applies if—
(a)
a loss of a company (arising in an accounting period ending on or
after 1 April 2010) (“the loss”) is required by section 7, 8 or 9 to be
translated from a currency other than sterling into its sterling
10
equivalent, and
(b)
the loss is to be a carried-back amount that is to be carried back to an
accounting period beginning before 29 December 2007.
      (2)
Section 12 (sterling equivalents: carried-back amounts) does not have effect
in relation to the loss.
15
      (3)
The translation must be made by reference to—
(a)
the average exchange rate for the accounting period mentioned in
sub-paragraph (1)(b), or
(b)
the rate mentioned in sub-paragraph (4).
      (4)
That rate is—
20
(a)
if the amount to be translated relates to a single transaction, an
appropriate spot rate of exchange for the transaction, or
(b)
if the amount to be translated relates to more than one transaction, a
rate of exchange derived on a just and reasonable basis from
appropriate spot rates of exchange for those transactions.
25
      (5)
In this paragraph “carried-back amount” has the same meaning as in
Chapter 4 of Part 2 (see section 17(2)).
Adjustment of certain sterling losses carried back to an earlier period
12    (1)
This paragraph applies if—
(a)
a loss arises in an accounting period ending on or after 1 April 2010,
30
(b)
the loss is to be a carried-back amount that is to be carried back to an
accounting period beginning before 29 December 2007, and
(c)
apart from this paragraph section 14 would require the loss to be
adjusted.
      (2)
Section 14 does not have effect in relation to the loss.
35
      (3)
In this paragraph “carried-back amount” has the same meaning as in
Chapter 4 of Part 2 (see section 17(2)).
Right of company to elect for alternative provision to apply
13    (1)
Paragraphs 14, 15 and 16 apply if a company—
(a)
makes an election under this paragraph, or
40