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House of Commons

Session 2009 - 10 Internet Publications Other Bills before Parliament

Corporation Tax Bill

Corporation Tax Bill vi
Chapter 2
Surrender of company’s losses etc for an accounting period
Introduction
98    Overview of Chapter
Basic provisions about surrendering losses and other amounts
99    Surrendering of losses and other amounts
100    Meaning of “trading loss”
101    Meaning of “capital allowance excess”
102    Meaning of “UK property business loss”
103    Meaning of “management expenses”
104    Meaning of “non-trading loss on intangible fixed assets”
Restrictions on losses and other amounts that may be surrendered
105    Restriction on surrender of losses etc within section 99(1)(d) to (g)
106    Restriction on losses etc surrenderable by UK resident
107    Restriction on losses etc surrenderable by non-UK resident
108    Meaning of “non-UK profits”
109    Restriction on losses etc surrenderable by dual resident
110    Restriction on surrender of losses etc from alternative finance arrangements
Chapter 3
Surrenders made by non-UK resident company resident or trading in the EEA
Introduction
111    Overview of Chapter
112    EEA related definitions
Basic provisions about surrendering losses and other amounts
113    Steps to determine extent to which loss etc can be surrendered
Conditions that must be met
114    The equivalence condition
115    The EEA tax loss condition: companies resident in EEA territory
116    The EEA tax loss condition: companies not resident in EEA territory
117    The qualifying loss condition: general
118    The qualifying loss condition: relief for current and previous periods
119    The qualifying loss condition: relief for future periods
120    The qualifying loss condition: non-UK tax relief in another territory
121    The precedence condition
Other rules, assumptions and exclusions
122    Assumptions to be made in recalculating EEA amount
123    Assumptions as to UK residence
Corporation Tax Bill vii
124    Assumptions as to places in which activities carried on
125    Assumptions as to accounting periods
126    Assumptions in relation to capital allowances
127    Amounts excluded because of certain arrangements
128    Rules for recalculating EEA amount
Chapter 4
Claims for group relief
Introduction
129    Overview of Chapter
Surrenderable amounts under Chapter 2
130    Group relief claims on amounts surrenderable under Chapter 2
131    The group condition
132    Consortium condition 1
133    Consortium conditions 2 and 3
134    Meaning of “UK related” company
Surrenderable amounts under Chapter 3
135    Group relief claims on amounts surrenderable under Chapter 3
136    The EEA group condition
Giving of group relief
137    Deduction from total profits
General limitation on amount of group relief to be given
138    Limitation on amount of group relief applying to all claims
139    Unused part of the surrenderable amounts
140    Unrelieved part of claimant company’s available total profits
141    Sections 139 and 140: supplementary
142    Meaning of “the overlapping period”
Limitations on group relief if claim based on consortium condition 1, 2 or 3
143    Condition 1: surrendering company owned by consortium
144    Condition 1: claimant company owned by consortium
145    Conditions 2 and 3: limitations in sections 143 and 144
146    Conditions 2 and 3: companies in link company’s group
147    Conditions 1 and 2: surrenderable amounts including trading loss
148    Conditions 1 and 2: surrendering company in group of companies
149    Conditions 1 and 3: claimant company in group of companies
Corporation Tax Bill viii
Chapter 5
Subsidiaries, groups and consortiums
Introduction
150    Overview of Chapter
Explanations of terms
151    Meaning of “75% subsidiary” and “90% subsidiary”
152    Groups of companies
153    Companies owned by consortiums and members of consortiums
Arrangements for transfers of companies
154    Arrangements for transfer of member of group of companies etc
155    Arrangements for transfer of company owned by consortium etc
156    Sections 154 and 155: supplementary
Chapter 6
Equity holders and profits or assets available for distribution
Introduction
157    Introduction to Chapter
Equity holders
158    Meaning of “equity holder”
159    Use of relevant company’s assets
160    Meaning of “ordinary shares”
161    Meaning of “restricted right to dividends”
162    Meaning of “normal commercial loan”
163    Normal commercial loans: company’s results or value of assets
164    Sections 160 and 162: supplementary
Company’s entitlement to profits or assets available for distribution: basic provisions
165    Proportion of profits available for distribution to which company is entitled
166    Proportion of assets available for distribution to which company is entitled
167    Profits or assets available for distribution and entitlement: supplementary
168    Meaning of “the relevant accounting period”
Company’s entitlement to profits or assets available for distribution: supplementary
169    Application and interpretation of sections 170 to 182
170    Shares or securities with limited rights
171    Shares or securities with temporary rights
172    Company A’s proportion if shares etc have temporary rights
173    Cases in which option arrangements are in place
174    Company A’s proportion if option arrangements in place
175    Cases in which both sections 170 and 172 apply
Corporation Tax Bill ix
176    Cases in which both sections 170 and 174 apply
177    Cases in which both sections 172 and 174 apply
178    Cases in which sections 170, 172 and 174 all apply
179    Cases in which surrendering or claimant company is non-UK resident
180    Company A’s proportion if non-UK resident involved
181    Assumptions to be applied if non-UK resident company involved
182    Assets etc referable to UK trade
Chapter 7
Miscellaneous provisions and interpretation of Part
Miscellaneous
183    Payments for group relief
184    References to “allowance” in CAA 2001
Interpretation
185    “Trading company” and “holding company”
186    When activities of a company are double taxation exempt
187    “Non-UK tax”
188    Other definitions
Part 6
Charitable donations relief
Chapter 1
Nature of relief
189    Relief for qualifying charitable donations
190    Qualifying charitable donations: meaning
Chapter 2
Certain payments to charity
Qualifying payments
191    Qualifying payments
192    Condition as to repayment
193    Associated acquisition etc
194    Distributions
195    Associated benefits
196    Associated benefits: meaning
197    Restrictions on associated benefits
198    Payments and benefits linked to periods of less than 12 months
Payment attributed to earlier period
199    Payment attributed to earlier accounting period
Corporation Tax Bill x
Interpretation
200    Company wholly owned by a charity
201    Associated persons
202    “Charity”
Chapter 3
Certain disposals to charity
Amounts treated as qualifying charitable donations
203    Certain disposals of investments
204    Meaning of qualifying investment
205    Meaning of qualifying interest in land
206    The relievable amount
207    Incidental costs of making disposal
208    Consideration
Value of net benefit to charity
209    Value of net benefit to charity
210    Market value of qualifying investments
211    Meaning of “disposal-related obligation”
212    Meaning and amount of “disposal-related liability”
Special provisions about qualifying interests in land
213    Certificate required from charity
214    Qualifying interests in land held jointly
215    Calculation of relievable amount etc where joint disposal of interest in land
216    Disqualifying events
Interpretation
217    “Charity”
Part 7
Community investment tax relief
Chapter 1
Introduction
CITR
218    Meaning of “CITR”
219    Eligibility for CITR
220    Form and amount of CITR
Miscellaneous
221    Meaning of “making an investment”
222    Determination of “the invested amount”
Corporation Tax Bill xi
223    Meaning of “the 5 year period” and “the investment date”
224    Overview of other Chapters of Part
Chapter 2
Qualifying investments
225    Qualifying investments: introduction
226    Conditions to be met in relation to loans
227    Conditions to be met in relation to securities
228    Conditions to be met in relation to shares
229    Tax relief certificates
230    No pre-arranged protection against risks
Chapter 3
General conditions
231    No control of CDFI by investor
232    Investor must have beneficial ownership
233    Investor must not be accredited
234    No acquisition of share in partnership
235    No tax avoidance purpose
Chapter 4
Limitations on claims and attribution
Limitations on claims
236    Loans: no claim after disposal or excessive repayments or receipts of value
237    Securities or shares: no claim after disposal or excessive receipts of value
238    No claim after loss of accreditation by the CDFI
239    Accreditation of investor
Attribution
240    Attribution: general
241    Attribution: bonus shares
Chapter 5
Withdrawal or reduction of CITR
Introduction
242    Introduction to Chapter
Disposals
243    Disposal of loan during 5 year period
244    Disposal of securities or shares during 5 year period
Corporation Tax Bill xii
Repayment of loans
245    Repayment of loan capital during 5 year period
Receipts of value
246    Value received by investor during 6 year period: loans
247    Value received by investor during 6 year period: securities or shares
248    Receipts of insignificant value to be added together
249    When value is received
250    The amount of value received
251    Value received if there is more than one investment
252    Effect of receipt of value on future claims
253    Receipts of value by or from connected persons
CITR not due
254    CITR subsequently found not to have been due
Manner of withdrawal or reduction
255    Manner of withdrawal or reduction of CITR
Chapter 6
Supplementary and general
Alternative finance arrangements
256    Meaning of “loan” and “interest”
257    Purchase and resale arrangements
258    Deposit arrangements
259    Profit share agency arrangements
Miscellaneous
260    Information to be provided by the investor
261    Disclosure
262    Nominees
263    Application for postponement of tax pending appeal
264    Identification of securities or shares on a disposal
Definitions
265    Meaning of “issue of securities or shares”
266    Meaning of “disposal”
267    Construction of references to being “held continuously”
268    Meaning of “associate”
269    Minor definitions etc

© Parliamentary copyright 2009	Revised 19 November 2009

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