|
| |
|
(b) | has (before 1 April 2010) made an election under paragraph 13 of |
| |
| |
(2) | An election by a company under this paragraph— |
| |
(a) | must be made before the end of the period of 30 days beginning with |
| |
the first day of the first accounting period of the company beginning |
| 5 |
on or after 21 July 2009, and |
| |
| |
14 | In relation to an accounting period beginning before 21 July 2009 (and |
| |
ending on or after 1 April 2010), Chapter 4 of Part 2 has effect in relation to |
| |
| 10 |
(a) | with the omission of sections 12 to 16, |
| |
(b) | with the omission of section 17(2), (3) and (5), |
| |
(c) | with the substitution of the following for section 10(2) and (3)— |
| |
“(2) | The translation must be made by reference to the appropriate |
| |
| 15 |
(3) | The appropriate exchange rate is— |
| |
(a) | the average exchange rate for the current accounting |
| |
| |
(b) | an appropriate spot rate of exchange for the |
| |
transaction in question.”, and |
| 20 |
(d) | with the substitution of the following for section 11(2) to (4)— |
| |
“(2) | The translation must be made by reference to the appropriate |
| |
| |
(3) | The appropriate exchange rate is— |
| |
(a) | the average exchange rate for the current accounting |
| 25 |
| |
(b) | an appropriate spot rate of exchange for the |
| |
transaction in question.” |
| |
15 | This Schedule has effect in relation to the company as if the following |
| |
paragraphs were substituted for paragraphs 11 and 12— |
| 30 |
“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 equivalent, |
| 35 |
(b) | the translation is for the purpose of calculating a loss |
| |
arising in an accounting period beginning on or after 21 |
| |
| |
(c) | the loss is to be a carried-back amount that is to be carried |
| |
back to an accounting period beginning before 21 July |
| 40 |
| |
(2) | Section 12 (sterling equivalents: carried-back amounts) does not |
| |
have effect in relation to the loss. |
| |
(3) | The translation must be made by reference to— |
| |
(a) | the average exchange rate for the accounting period |
| 45 |
mentioned in sub-paragraph (1)(b), or |
| |
|
| |
|
| |
|
(b) | the rate mentioned in sub-paragraph (4). |
| |
| |
(a) | if the amount to be translated relates to a single |
| |
transaction, an appropriate spot rate of exchange for the |
| |
| 5 |
(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 |
| |
| |
(5) | In this paragraph “carried-back amount” has the same meaning as |
| 10 |
in Chapter 4 of Part 2 (see section 17(2)). |
| |
12 (1) | This paragraph applies if— |
| |
(a) | a loss arises in an accounting period beginning on or after |
| |
21 July 2009 (and ending on or after 1 April 2010), |
| |
(b) | the loss is to be a carried-back amount that is to be carried |
| 15 |
back to an accounting period beginning before 21 July |
| |
| |
(c) | apart from this paragraph section 14 would require the |
| |
| |
(2) | Section 14 does not have effect in relation to the loss. |
| 20 |
(3) | In this paragraph “carried-back amount” has the same meaning as |
| |
in Chapter 4 of Part 2 (see section 17(2)).” |
| |
16 | In relation to profits or losses arising in accounting periods of the company |
| |
ending before 1 April 2010, an election under paragraph 13 has the effect that |
| |
it would have had if it had been made under paragraph 13 of Schedule 18 to |
| 25 |
FA 2009 (assuming that that paragraph had not been repealed by this Act). |
| |
| |
Loss relief (other than share loss relief) |
| |
Carry forward loss reliefs |
| |
17 (1) | The repeal by this Act of the superseded carry forward provisions does not |
| 30 |
alter the effect of those provisions so far as they determine— |
| |
| |
| |
| relief for any loss made (or treated as made) in an accounting period ending |
| |
on or before 31 March 2010 is to be given for an accounting period ending |
| 35 |
| |
(2) | But any relief for the loss (or any part of the loss) which is given for an |
| |
accounting period ending after that date is to be given in accordance with |
| |
the relevant provisions of Part 4 of this Act. |
| |
(3) | In this paragraph “the superseded carry forward provisions” means— |
| 40 |
(a) | sections 392A, 392B, 393 and 396 of ICTA, and |
| |
(b) | any provision inserting or amending, or affecting the application of, |
| |
any of the above provisions. |
| |
|
| |
|
| |
|
Trade loss relief against total profits |
| |
18 (1) | This paragraph applies for the purposes of section 37 if any of the accounting |
| |
periods covered by subsection (3)(b) of that section (including, if relevant, as |
| |
modified by section 39 or 40) ends on or before 31 March 2010. |
| |
(2) | Relief for the loss can be given for the accounting periods ending on or |
| 5 |
| |
(3) | If relief is to be given for those periods, the relief is given in the way in which |
| |
it would have been given under section 393A(1) of ICTA ignoring this Act. |
| |
19 (1) | This paragraph applies for the purposes of section 42 if any of the accounting |
| |
periods covered by subsection (3) of that section ends on or before 31 March |
| 10 |
| |
(2) | Relief for the loss can be given for the accounting periods ending on or |
| |
| |
(3) | If relief is to be given for those periods, the relief is given in the way in which |
| |
it would have been given under section 393B of ICTA ignoring this Act. |
| 15 |
Transfers of trade to obtain relief |
| |
20 | Section 41 has effect in relation to cessations of a trade on or after 21 May |
| |
| |
Dealings in commodity futures |
| |
21 | Section 52(1)(c) does not cover arrangements made wholly before 6 April |
| 20 |
| |
Leasing contracts and company reconstructions |
| |
22 | Section 53(1)(a) does not cover contracts entered into before 6 March 1973. |
| |
Reliefs for limited partners not to exceed contribution to the firm |
| |
23 | The relief covered by section 56(4) includes— |
| 25 |
(a) | relief given for a loss under section 338, 393A or 403 of ICTA, and |
| |
(b) | any amount that, ignoring this Act, would have been included in the |
| |
company’s aggregate amount in relation to the trade for the |
| |
purposes of section 118 of ICTA as a result of paragraph 23(3) of |
| |
| 30 |
Reliefs for members of LLPs not to exceed contribution to the LLP |
| |
24 (1) | The relief covered by section 59(4) includes relief given for a loss under |
| |
section 338, 393A or 403 of ICTA. |
| |
| |
(a) | the amounts of loss covered by subsection (1)(b) include amounts of |
| 35 |
loss which, as a result of section 118 of ICTA (as applied by section |
| |
118ZB of that Act), are not relieved under section 338, 393A or 403 of |
| |
| |
|
| |
|
| |
|
(b) | in subsections (3) and (4) references to section 61 include references |
| |
to section 118ZD of ICTA, and |
| |
(c) | the relief covered by subsection (3)(b) includes relief under section |
| |
338, 393A or 403 of ICTA. |
| |
Loss relief against miscellaneous income: Case VI losses under ICTA |
| 5 |
25 (1) | This paragraph applies to any loss made by a company in a transaction if— |
| |
(a) | the transaction was of such a nature that, if any profits had arisen |
| |
from it, the company would have been liable under ICTA to |
| |
corporation tax in respect of the profits under Case VI of Schedule D |
| |
(see section 18 of ICTA) for an accounting period ending before 1st |
| 10 |
| |
| |
(i) | did not fall within section 34, 35 or 36 of ICTA (lease |
| |
| |
(ii) | was not a disposal made after 31 March 2007 to which |
| 15 |
Chapter 5 of Part 17 of that Act (offshore funds) applied. |
| |
(2) | So far as relief for the loss has not been previously given, the loss is to be |
| |
treated as a loss to be carried forward and relieved in accordance with |
| |
| |
Write-off of government investment |
| 20 |
26 | Section 92(1) does not cover government investment written off before 6 |
| |
| |
| |
Losses on disposal of shares |
| |
| 25 |
27 (1) | In relation to new shares issued before 1 April 2010, section 74(2) applies |
| |
with the omission of “This is subject to section 87(3).” |
| |
(2) | In this paragraph “new shares” is to be read in accordance with section 87. |
| |
Qualifying trading companies |
| |
28 (1) | In relation to shares issued before 17 March 2004, section 78(2)(a) applies |
| 30 |
with the omission of sub-paragraph (iv) and the “and” immediately before |
| |
| |
(2) | In relation to shares issued before 7 March 2001, section 78(4)(b) applies with |
| |
the substitution for “at the relevant time” of “throughout the relevant |
| |
| 35 |
(3) | For the purposes of sub-paragraph (2), shares that were issued— |
| |
(a) | after 5 April 1998, but |
| |
| |
| are treated as having been issued on or after 7 March 2001 in respect of any |
| |
part of the relevant period which falls on or after that date. |
| 40 |
|
| |
|
| |
|
(4) | In relation to shares issued before 6 April 1998, section 78 applies with the |
| |
substitution for subsections (2) to (5) of— |
| |
“(2) | Condition A is that the company either— |
| |
(a) | is a trading company on the date of the disposal, or |
| |
(b) | has ceased to be a trading company at a time which is not |
| 5 |
more than 3 years before that date and has not since that time |
| |
been an excluded company or an investment company. |
| |
(3) | Condition B is that the company either— |
| |
(a) | has been a trading company for a continuous period of 6 |
| |
years ending on that date or at that time, or |
| 10 |
(b) | has been a trading company for a shorter continuous period |
| |
ending on that date or at that time and has not before the |
| |
beginning of that period been an excluded company or an |
| |
| |
(4) | Condition C is that none of the shares in the company has been listed |
| 15 |
on a recognised stock exchange at any time in the period— |
| |
(a) | beginning with the incorporation of the company or, if later, |
| |
12 months before the date on which the shares in question |
| |
| |
(b) | ending with the date on which the shares are disposed of. |
| 20 |
(5) | Condition D is that the company has been UK resident throughout |
| |
the period from its incorporation until the date of the disposal.” |
| |
| |
29 (1) | In relation to shares issued before 6 April 2007, section 79 applies with the |
| |
| 25 |
(a) | the omission of subsection (2), |
| |
(b) | in subsection (5), the omission of paragraph (d)(ii) and the “or” |
| |
immediately before it, and |
| |
(c) | the omission of subsection (6). |
| |
(2) | In relation to shares issued before 6 April 2000, section 79 applies with the |
| 30 |
substitution for the definition of “research and development” in subsection |
| |
| |
““research and development” means any activity which is |
| |
intended to result in a patentable invention (within the |
| |
meaning of the Patents Act 1977) or in a computer program.” |
| 35 |
(3) | Section 79 does not apply in relation to shares issued before 6 April 1998. |
| |
Ceasing to meet trading requirement because of administration or receivership |
| |
30 (1) | In relation to shares issued before 17 March 2004, section 80 applies with the |
| |
| |
(a) | in subsection (1), the omission of “merely” and the substitution for |
| 40 |
“the company or any of its subsidiaries” of “its”, |
| |
(b) | in subsection (2)(b), the omission of “concerned”, |
| |
(c) | in subsection (3)(a), the omission of “or any of its subsidiaries”, |
| |
(d) | in subsection (3)(b), the omission of “or any of its subsidiaries”, and |
| |
|
| |
|
| |
|
(e) | in subsection (4), the omission of “is”, in the second place where it |
| |
| |
(2) | In relation to an administration order the petition for which was presented |
| |
before 15 September 2003, section 80(2) applies with the substitution for |
| |
| 5 |
“(a) | the making of the order in question, and”. |
| |
(3) | In relation to shares issued before 21 March 2000, section 80 applies with the |
| |
omission of subsections (1) and (2). |
| |
(4) | Section 80 does not apply in relation to shares issued before 6 April 1998. |
| |
The control and independence requirement |
| 10 |
31 (1) | In relation to shares issued before 6 April 2007, section 81(1)(a) applies with |
| |
the omission of “of the company”. |
| |
(2) | In relation to shares issued before 21 March 2000, section 81 applies with the |
| |
| |
(a) | the substitution for subsections (1) to (3) of— |
| 15 |
“(1) | The control element of the requirement is that— |
| |
(a) | the company must not control (or together with any |
| |
person connected with it control) another company or |
| |
have a 51% subsidiary, and |
| |
(b) | no arrangements must be in existence by virtue of |
| 20 |
which the company could fail to meet paragraph (a). |
| |
(2) | The independence element of the requirement is that— |
| |
(a) | the company must not be under the control of another |
| |
company (or another company and any other person |
| |
connected with that company) or be a 51% subsidiary |
| 25 |
| |
(b) | no arrangements must be in existence by virtue of |
| |
which the company could fail to meet paragraph (a). |
| |
(3) | This section is subject to section 87(3); and nothing in |
| |
subsection (1) prevents the company having one or more |
| 30 |
qualifying subsidiaries.”, and |
| |
(b) | in subsection (4) the omission of the definition of “arrangements” |
| |
and, in the definition of “control”, the omission of “, in subsection |
| |
(1)(a),” and the words “(but see section 1124 for the meaning of |
| |
“control” in subsection (2)(a)(ii))”. |
| 35 |
(3) | Section 81 does not apply in relation to shares issued before 6 April 1998. |
| |
The qualifying subsidiaries requirement |
| |
32 | Section 82 does not apply in relation to shares issued before 6 April 1998. |
| |
The property managing subsidiaries requirement |
| |
33 | Section 83 does not apply in relation to shares issued before 17 March 2004. |
| 40 |
|
| |
|
| |
|
The gross assets requirement |
| |
34 (1) | In relation to shares issued before 6 April 2006, section 84 applies with the |
| |
substitution in subsections (1) and (2)— |
| |
(a) | of “£15 million” for “£7 million”, and |
| |
(b) | of “£16 million” for “£8 million”. |
| 5 |
(2) | For the purposes of sub-paragraph (1) shares issued on or after 6 April 2006 |
| |
to a company which subscribed for them before 22 March 2006 are treated as |
| |
having been issued before 6 April 2006. |
| |
(3) | Section 84 does not apply in relation to shares issued before 6 April 1998. |
| |
The unquoted status requirement |
| 10 |
35 (1) | In relation to shares issued before 7 March 2001, section 85 applies with the |
| |
| |
(a) | the substitution for subsection (1) of— |
| |
“(1) | The unquoted status requirement is that the company must |
| |
be an unquoted company throughout the relevant period.”, |
| 15 |
(b) | the substitution for subsection (2) of— |
| |
“(2) | If the company is an unquoted company at the time when any |
| |
shares are issued, it is not treated for the purposes of this |
| |
section as ceasing to be an unquoted company in relation to |
| |
those shares at any subsequent time merely because any |
| 20 |
shares, stocks, debentures or other securities of the company |
| |
| |
(a) | listed on an exchange designated by an order made |
| |
for the purposes of section 184(3)(b) of ITA 2007, or |
| |
(b) | dealt in by any means designated by an order made |
| 25 |
for the purposes of section 184(3)(c) of ITA 2007, |
| |
| if the order was made after the shares were issued.”, and |
| |
(c) | in subsection (3) the substitution for the definition of “arrangements” |
| |
| |
““the relevant period” means the period— |
| 30 |
(a) | beginning with the incorporation of the |
| |
company or, if later, the date one year before |
| |
the issue of the shares in question, and |
| |
(b) | ending with the date of the disposal.” |
| |
(2) | For the purposes of sub-paragraph (1)(a) and (c), shares that were issued— |
| 35 |
(a) | after 5 April 1998, but |
| |
| |
| are treated as having been issued on or after 7 March 2001 in respect of any |
| |
part of the relevant period which falls on or after that date. |
| |
(3) | Section 85 does not apply in relation to shares issued before 6 April 1998. |
| 40 |
Power to amend requirements by Treasury order |
| |
36 | Section 86 does not apply in relation to shares issued before 6 April 1998. |
| |
|
| |
|