|
| |
|
(a) | in subsection (5)(b) for “acquired any plant or machinery in |
| |
circumstances in which this paragraph applies” substitute “acquires |
| |
any plant or machinery directly or indirectly from a person who is |
| |
connected with the partnership”, and |
| |
| 5 |
(7) | In section 417 (partner company’s income and other companies’ matching |
| |
expense) omit subsection (8). |
| |
(8) | Omit section 420 (exception: companies carrying on business ceasing to |
| |
| |
(9) | In section 424 (the amount of expense)— |
| 10 |
(a) | in subsection (1)(c) for “is greater at the end than at the start of” |
| |
substitute “increases at any time on”, |
| |
(b) | in subsection (1)(d) after “the increase”, in both places, insert “at any |
| |
| |
(c) | for subsection (3) substitute— |
| 15 |
“(3) | The appropriate percentage is the percentage of the other |
| |
company’s percentage share in the profits or loss of the |
| |
business immediately after the change that is wholly |
| |
attributable to the change.” |
| |
| 20 |
| |
Exceptions to the charge under section 455 |
| |
69 (1) | The reference in section 456(4)(b) to other outstanding loans and advances |
| |
does not include a loan or advance made before 31 March 1971 unless it was |
| |
made for the purpose of purchasing a dwelling which was or was to be the |
| 25 |
borrower’s only or main residence. |
| |
(2) | Condition A in section 456(4) is not to be treated as met if such of the other |
| |
outstanding loans and advances within section 456(4)(b) as were made |
| |
before 31 March 1971 together exceed £10,000. |
| |
(3) | The reference in section 456(7) to a loan or advance does not include one |
| 30 |
made before 31 March 1971. |
| |
| |
| |
| |
70 | The repeal by this Act of section 56(3)(c) of ICTA (exemption from |
| 35 |
corporation tax for profits and gains arising to charitable company from |
| |
transactions in deposits) does not affect the application of that provision in |
| |
relation to the disposal or exercise of— |
| |
(a) | a right to receive an amount stated in a certificate of deposit (as |
| |
defined by section 56(5) of ICTA), or interest on such an amount, or |
| 40 |
(b) | a right under an arrangement of a kind mentioned in section 56A(1) |
| |
| |
|
| |
|
| |
|
| if the right was in existence before 1 April 1996. |
| |
Exemption for investment income |
| |
71 | In relation to distributions paid before 1 July 2009 section 486 has effect as if |
| |
subsection (2) provided as follows— |
| |
“(2) | The income referred to in subsection (1) is— |
| 5 |
(a) | profits which are charged to tax under section 299 of CTA |
| |
2009 (non-trading profits from loan relationships), |
| |
(b) | a dividend of a non-UK resident company, and |
| |
(c) | income treated for the purposes of Chapter 5 of Part 10 of |
| |
CTA 2009 (distributions from unauthorised unit trusts) as |
| 10 |
received by a unit trust holder from a scheme to which |
| |
section 972 of that Act applies (unauthorised unit trust |
| |
| |
| and as if subsection (3) were omitted, |
| |
| and as if in subsection (4) the reference to subsection (2)(c) were a reference |
| 15 |
to subsection (2)(b) and (c). |
| |
Exemption for certain miscellaneous income |
| |
72 (1) | In relation to distributions paid before 1 July 2009 section 488 has effect as if |
| |
the income mentioned in subsection (3) included relevant foreign |
| |
| 20 |
(2) | In this paragraph “relevant foreign distribution” means a distribution of a |
| |
non-UK resident company which is not chargeable under Chapter 2 of Part |
| |
10 of CTA 2009 (dividends of non-UK resident companies). |
| |
Transactions with substantial donors |
| |
73 | Section 496(1)(e) and (f) and sections 502 to 510 (non-charitable expenditure: |
| 25 |
transactions with substantial donors) do not have effect in relation to— |
| |
(a) | a transaction occurring before 22 March 2006, or |
| |
(b) | a transaction entered into in pursuance of a contract made before 22 |
| |
March 2006 (otherwise than in pursuance of a variation on or after |
| |
| 30 |
74 | For the purposes of section 502 a person may meet the definition of |
| |
“substantial donor” by reference to gifts made at a time before this Act comes |
| |
| |
75 | In relation to times before 23 April 2009, section 502(2)(b) has effect with the |
| |
substitution of “£100,000” for “£150,000”. |
| 35 |
76 | Until paragraph 15 of Schedule 9 to the Housing and Regeneration Act 2008 |
| |
comes into force, section 508 (donors: exceptions) has effect as if subsection |
| |
(2)(a) and the “or” immediately after it were omitted. |
| |
Non-charitable expenditure |
| |
77 (1) | This paragraph applies if, as a result of sections 515 to 517, an amount of |
| 40 |
expenditure for an accounting period ending after 31 March 2010 or any |
| |
subsequent accounting period (“the carry back accounting period”) is |
| |
|
| |
|
| |
|
treated as non-charitable expenditure for an accounting period beginning |
| |
before 22 March 2006 or any earlier accounting period. |
| |
(2) | The amount of relief or exemption to be disallowed in respect of the |
| |
accounting period beginning before 22 March 2006 or any earlier accounting |
| |
period is not to exceed the amount which would have been disallowed in |
| 5 |
respect of that period if— |
| |
(a) | sections 515 to 517 had not applied in relation to the carry back |
| |
| |
(b) | the amount of expenditure for the carry back accounting period to be |
| |
treated as non-charitable expenditure for an earlier accounting |
| 10 |
period had instead been calculated in accordance with the provisions |
| |
mentioned in sub-paragraph (3). |
| |
(3) | Those provisions are— |
| |
(a) | sections 505 and 506 of ICTA, and |
| |
(b) | Part 3 of Schedule 20 to that Act, |
| 15 |
| as those provisions would have had effect in relation to the carry back |
| |
accounting period if the amendments made to them by section 55 of FA 2006 |
| |
had not been made and the amendments made to them by this Act had not |
| |
| |
| 20 |
Real Estate Investment Trusts |
| |
Notice under section 523 or 524 |
| |
78 (1) | This paragraph applies in relation to accounting periods beginning before 22 |
| |
| |
(2) | Section 525 has effect as if for subsections (2) to (9) there were substituted— |
| 25 |
“(2) | Subsection (3) applies if the company giving the notice— |
| |
(a) | does not expect to meet condition D in section 528 on the first |
| |
day of accounting period 1, merely because the company’s |
| |
shares have not been listed and dealt with on a recognised |
| |
stock exchange within the preceding 12 months, but |
| 30 |
(b) | reasonably expects to meet that condition throughout the rest |
| |
of accounting period 1 in reliance on section 446(1)(b). |
| |
(3) | If this subsection applies— |
| |
(a) | subsection (1)(c) does not apply, but |
| |
(b) | the notice must be accompanied by a statement by the |
| 35 |
company containing the assertions specified in subsection |
| |
| |
(4) | Those assertions are— |
| |
(a) | that conditions A, B, E and F in section 528 are reasonably |
| |
expected to be met in relation to the company throughout |
| 40 |
| |
(b) | that condition C in that section is reasonably expected to be |
| |
met in relation to the company for at least a part of the first |
| |
day of accounting period 1, and throughout the remainder of |
| |
| 45 |
|
| |
|
| |
|
(c) | that condition D in that section is reasonably expected to be |
| |
met in relation to the company throughout all of accounting |
| |
period 1 apart from the first day. |
| |
(5) | For the meaning of “accounting period 1”, see section 609.” |
| |
(3) | Section 577(7)(b) has effect as if “or (5) to (7)” were omitted. |
| 5 |
Property rental business: excluded business |
| |
79 (1) | In relation to any time before 6 July 2009, section 604 has effect with the |
| |
| |
(2) | In subsection (2) for class 3 substitute— |
| |
| | Letting of property if conditions A and B are met.
|
| | 10 | | | Condition A is that the property is let— |
| | | | | (a) | by one member of a group to another, or |
| | | | | (b) | by a member of a group to a company the shares |
| | | | | in which are stapled to the shares of a member of |
| | | | | the group (see subsection (3)). |
| | 15 | | | Condition B is that the property would fall in accordance |
| | | | | with generally accepted accounting practice to be |
| | | | | described as owner-occupied (see subsection (3A).” |
| | |
|
(3) | For subsection (3) substitute— |
| |
“(3) | For the purposes of paragraph (b) of condition A in class 3, shares of |
| 20 |
one company (company A) are stapled to shares of another |
| |
(company B) if, in consequence of the nature of the rights attaching |
| |
to the shares of company A (including any terms or conditions |
| |
attaching to the right to transfer the shares) it is necessary or |
| |
advantageous for a person who has, disposes of or acquires shares of |
| 25 |
company A also to have, dispose of or acquire a holding of shares of |
| |
| |
(3A) | For the purposes of condition B in class 3, ignore the fact that a |
| |
property may fall to be described as owner-occupied merely because |
| |
of the provision by the company of services to an occupant who— |
| 30 |
(a) | is in exclusive occupation of the property, and |
| |
(b) | is not connected with a member of the group.” |
| |
| |
Co-operative housing associations and self-build societies |
| |
Concurrent exercise of functions |
| 35 |
80 | So far as any function of the Welsh Ministers under section 488 of ICTA (co- |
| |
operative housing associations) was immediately before 1 April 2010 |
| |
exercisable by the Welsh Ministers concurrently with the Secretary of State, |
| |
the corresponding function of the Welsh Ministers under section 644, 645 or |
| |
649 is exercisable concurrently with the Secretary of State. |
| 40 |
|
| |
|
| |
|
81 | So far as any function of the Welsh Ministers under section 489 of ICTA (self- |
| |
build societies) was immediately before 1 April 2010 exercisable by the |
| |
Welsh Ministers concurrently with the Secretary of State, the corresponding |
| |
function of the Welsh Ministers under section 653 or 657 is exercisable |
| |
concurrently with the Secretary of State. |
| 5 |
Delegation of functions to the Regulator of Social Housing |
| |
82 | Until paragraph 13 of Schedule 9 to the Housing and Regeneration Act 2008 |
| |
comes into force, section 646 has effect as if the following were substituted |
| |
| |
“(1) | In the case of a body registered as a social landlord in the register |
| 10 |
maintained by the Housing Corporation under Part 1 of the Housing |
| |
Act 1996, the Secretary of State may delegate to the Housing |
| |
Corporation any of the Secretary of State’s functions under section |
| |
| |
83 | Until paragraph 14 of Schedule 9 to the Housing and Regeneration Act 2008 |
| 15 |
comes into force, section 654 has effect with the substitution, in subsection |
| |
(1), of “the Housing Corporation” for “the Regulator of Social Housing”. |
| |
| |
Transactions in securities |
| |
Transactions in securities: general |
| 20 |
84 (1) | Part 15 (transactions in securities), so far as relating to the counteraction of |
| |
corporation tax advantages, applies— |
| |
(a) | whether or not the transaction or transactions in consequence of |
| |
which, or of the combined effect of which, the tax advantage has been |
| |
or will be obtained occur on or after 1 April 2010, and |
| 25 |
(b) | whether or not that advantage relates to an accounting period |
| |
ending on or after that date. |
| |
(2) | Sub-paragraph (1) does not affect section 746(5) (under which no |
| |
assessments may be made as a result of a counteraction notice later than 6 |
| |
years after the accounting period to which the tax advantage relates). |
| 30 |
(3) | No notification under section 703(9) of ICTA (notification that the |
| |
Commissioners for Her Majesty’s Revenue and Customs have reason to |
| |
believe that section 703 applies to a company in respect of one or more |
| |
specified transactions) may be given on or after 1 April 2010. |
| |
(4) | If notification under section 703(9) of ICTA has been given before that date, |
| 35 |
Chapter 1 of Part 17 of that Act (cancellation of corporation tax advantages |
| |
from certain transactions in securities) continues to apply in relation to the |
| |
cancellation of any tax advantage resulting from the transaction or |
| |
transactions specified in the notification, regardless of the date on which any |
| |
accounting period to which the tax advantage relates ends. |
| 40 |
(5) | This paragraph is to be interpreted as if it were part of Part 15. |
| |
|
| |
|
| |
|
Transactions in securities: meaning of relevant companies for the purposes of sections 737 and |
| |
| |
85 (1) | In its application to a transaction in securities that took place before 29 April |
| |
1996 or two or more transactions in securities the first of which took place |
| |
before that date, section 739(1)(b)(i) (meaning of “relevant company”) |
| 5 |
applies with the substitution for the words “included in the official UK list” |
| |
of the words “authorised to be dealt in on the Stock Exchange”. |
| |
(2) | In its application to a transaction in securities that took place before 1 |
| |
January 1997 or two or more transactions in securities the first of which took |
| |
place before that date, section 739(1) applies as if the companies referred to |
| 10 |
in paragraph (b) included companies none of whose shares or stocks are |
| |
dealt in on the Unlisted Securities Market regularly or from time to time. |
| |
(3) | In this paragraph “companies” and “transaction in securities” have the same |
| |
meaning as in Part 15 (see section 751). |
| |
| 15 |
| |
Transfers of income streams |
| |
86 | Chapter 1 of Part 16 does not have effect in relation to transfers before 22 |
| |
| |
Application of Chapter 2 of Part 16 (finance arrangements) to pre-6 June 2006 arrangements |
| 20 |
87 | Chapter 2 of Part 16 has no effect in relation to an arrangement made before |
| |
6 June 2006 so far as section 43B or 43D of ICTA applies to the arrangement |
| |
(sections 43B and 43D of ICTA contain provision about rent factoring: their |
| |
repeal by paragraph 1 of Schedule 6 to FA 2006 does not apply in relation to |
| |
pre-6 June 2006 transactions). |
| 25 |
Application of section 771 (finance arrangements: exceptions) |
| |
88 (1) | In relation to a transfer before 22 April 2009, section 771 has effect as if after |
| |
subsection (1) there were inserted— |
| |
“(1A) | For the purposes of subsection (1) the effect of section 785A of ICTA |
| |
(rent factoring of leases of plant or machinery) is to be disregarded.” |
| 30 |
(2) | If the arrangement mentioned in section 771 came into force before 1 October |
| |
2007, subsection (5)(b) of that section applies as if for “Schedule 13 to FA 2007 |
| |
or Chapter 10 of Part 6 of CTA 2009” there were substituted “paragraph 15 |
| |
of Schedule 9 to FA 1996”. |
| |
(3) | Paragraph 14(6) of Schedule 13 to FA 2007 (when an arrangement is in force) |
| 35 |
applies for the purposes of sub-paragraph (2) of this paragraph as for those |
| |
| |
(4) | In the case of plant or machinery which is the subject of a sale and finance |
| |
leaseback (as defined in section 221 of CAA 2001) where the date of the |
| |
transaction (within the meaning of that section) is before 9 October 2007, |
| 40 |
section 771(8) has effect as if at the end there were inserted “, but in applying |
| |
that section it is to be assumed that the words “and which are not a long |
| |
|
| |
|
| |
|
funding lease in the case of the lessor” were omitted from section 219(1)(b) |
| |
of that Act (meaning of “finance lease”)”. |
| |
(5) | In relation to transactions referred to in section 228A(2)(a) of CAA 2001 (as |
| |
substituted by paragraph 12 of Schedule 20 to FA 2008) and entered into |
| |
before 9 October 2007, section 771(9) has effect as if at the end there were |
| 5 |
inserted “with the modifications contained in section 228F of that Act”. |
| |
Application of section 779 (income-transfer under loan or credit transaction) |
| |
89 | In relation to a transfer before 22 April 2009, section 779(4) has effect as if— |
| |
(a) | after “if it” there were inserted “assigns,” and |
| |
(b) | after “forgoes it” there were inserted “(without a sale or transfer of |
| 10 |
| |
| |
Manufactured payments and repos |
| |
Manufactured dividends and manufactured overseas dividends: distributions paid before 1 July |
| |
| 15 |
90 (1) | In relation to distributions paid before 1 July 2009, Chapters 2 and 3 of Part |
| |
17 have effect with the following modifications. |
| |
(2) | Section 783 is omitted. |
| |
(3) | The following is substituted for section 784— |
| |
“784 | Manufactured dividends on shares |
| 20 |
(1) | This section applies if a person pays a manufactured dividend to |
| |
| |
(2) | The Corporation Tax Acts apply to in relation to— |
| |
(a) | the recipient of the manufactured dividend, and |
| |
(b) | companies claiming title through or under the recipient, |
| 25 |
| as if the manufactured dividend were a dividend on the shares. |
| |
(3) | If the payer is a UK resident company, the Corporation Tax Acts |
| |
apply in relation to the payer as if the manufactured dividend were |
| |
a dividend of the company. |
| |
(4) | Subsection (1) is subject to— |
| 30 |
(a) | section 786 (treatment of recipient: Real Estate Investment |
| |
| |
(b) | section 796 (manufactured dividends: amounts exceeding |
| |
underlying payments), and |
| |
(c) | section 803 (power to deal with special cases).” |
| 35 |
(4) | In section 786(1) “(instead of section 784(2))” is substituted for “instead of |
| |
| |
(5) | Section 787 is omitted. |
| |
(6) | In section 788(6)(a) “section 784(2)” is substituted for “section 784(1)”. |
| |
|
| |
|