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House of Commons

Session 2009 - 10 Internet Publications Other Bills before Parliament

Corporation Tax Bill

Corporation Tax Bill xli
Part 21
Leasing arrangements: finance leases and loans
Chapter 1
Introduction
Introduction
895    Overview of Part
Meaning of expressions about rent
896    Normal rent
897    Accountancy rental earnings
898    Rental earnings
Chapter 2
Finance leases with return in capital form
Introduction
899    Arrangements to which this Chapter applies
900    Purposes of this Chapter
Leases to which this Chapter applies
901    Application of this Chapter
902    The conditions referred to in section 901(1)
903    Provisions supplementing section 902
904    The arrangements and circumstances referred to in section 902(8)
Current lessor taxed by reference to accountancy rental earnings
905    Current lessor taxed by reference to accountancy rental earnings
Reduction of taxable rent by cumulative rental excesses
906    Reduction of taxable rent by cumulative rental excesses: introduction
907    Meaning of “accountancy rental excess” and “cumulative accountancy rental
excess”
908    Reduction of taxable rent by the cumulative accountancy rental excess
909    Meaning of “normal rental excess” and “cumulative normal rental excess”
910    Reduction of taxable rent by the cumulative normal rental excess
Relief for bad debts by reduction of cumulative rental excesses
911    Relief for bad debts: reduction of cumulative accountancy rental excess
912    Recovery of bad debts following reduction under section 911
913    Relief for bad debts: reduction of cumulative normal rental excess
914    Recovery of bad debts following reduction under section 913
Corporation Tax Bill xlii
Effect of disposals
915    Effect of disposals of leases: general
916    Assignments on which neither a gain nor a loss accrues
Capital allowances: clawback of major lump sum
917    Effect of capital allowances: introduction
918    Cases where expenditure taken into account under Part 2, 5 or 8 of CAA 2001
919    Cases where expenditure taken into account under other provisions of CAA
2001
920    Capital allowances deductions: waste disposal and cemeteries
921    Capital allowances deductions: films
922    Contributors to capital expenditure
Schemes to which this Chapter does not at first apply
923    Pre-26 November 1996 schemes where this Chapter does not at first apply
924    Post-25 November 1996 schemes to which Chapter 3 applied first
Chapter 3
Other finance leases
Introduction
925    Introduction to Chapter
926    Purpose of this Chapter
Current lessor taxed by reference to accountancy rental earnings
927    Leases to which this Chapter applies
928    Current lessor taxed by reference to accountancy rental earnings
Application of provisions of Chapter 2 for purposes of this Chapter
929    Application of provisions of Chapter 2 for purposes of this Chapter
Chapter 4
Supplementary provisions
930    Pre-26 November 1996 schemes and post-25 November 1996 schemes
931    Time apportionment where periods of account do not coincide
932    Periods of account and related periods of account and accounting periods
933    Connected persons
934    Assets which represent the leased asset
935    Parent undertakings and consolidated group accounts
936    Assessments and adjustments
937    Interpretation of Part
Corporation Tax Bill xliii
Part 22
Miscellaneous provisions
Chapter 1
Transfers of trade without a change of ownership
Introduction
938    Overview of Chapter
939    Meaning of “transfer of a trade” and related expressions
Transfers to which Chapter applies
940    Transfers to which Chapter applies
941    The ownership condition
942    Options that may be applied for the purposes of the ownership condition
943    The tax condition
Effect of Chapter in relation to transfers to which it applies
944    Modified application of Chapter 2 of Part 4
945    Cases in which predecessor retains more liabilities than assets
946    Rules for determining “L”
947    Rules for determining “A”
948    Modified application of CAA 2001
949    Dual resident investing companies
950    Transfers of trades involving business of leasing plant or machinery
Supplementary
951    Part of trade treated as separate trade
952    Apportionment if part of trade treated as separate trade
953    Application of Chapter to further transfers of a trade
Chapter 2
Transfers of trade to obtain balancing allowances
954    Transfer of activities on complete cessation of trade
955    Transfer of activities on part cessation of trade
956    Apportionment if part of trade treated as separate trade
957    Chapter 2: supplementary
Chapter 3
Transfer of relief within partnerships
958    Application
959    Arrangements for transfer of relief
960    Restrictions on use of reliefs
961    Non-trading profits and losses
962    Interpretation of Chapter
Corporation Tax Bill xliv
Chapter 4
Surrender of tax refund within group
963    Power to surrender tax refund
964    Effects of surrender of tax refund
965    Interest on tax overpaid or underpaid
966    Payments for surrendered tax refunds
Chapter 5
Set off of income tax deductions against corporation tax
967    Deductions from payments received by UK resident companies
968    Deductions from payments received by non-UK resident companies
Chapter 6
Collection etc of tax from UK representatives of non-UK resident companies
969    Introduction to Chapter
970    Obligations and liabilities in relation to corporation tax
971    Exceptions
972    Interpretation of Chapter
Chapter 7
Recovery of unpaid corporation tax due from non-UK resident company
973    Introduction to Chapter
974    Case in which this Chapter applies
975    Meaning of “the relevant period”
976    Meaning of “related company”
977    Notice requiring payment of unpaid tax
978    Time limit for giving notice
979    Amount payable in consortium case
980    Chapter 7: supplementary
Chapter 8
Exemptions
Trade unions and employers’ associations
981    Exemption for trade unions and eligible employers’ associations
982    Qualifying income or gains
983    Meaning of “trade union” and “eligible employers’ association”
Local authorities etc
984    Local authorities and local authority associations
Corporation Tax Bill xlv
Health service bodies
985    Health service bodies
986    Meaning of “health service body”
987    NHS foundation trusts
Reserve Bank of India and State Bank of Pakistan
988    Issue departments of the Reserve Bank of India and the State Bank of Pakistan
Agricultural societies
989    Agricultural societies
Chapter 9
Other miscellaneous provisions
European Economic Interest Groupings
990    European Economic Interest Groupings
Harbour reorganisation schemes
991    Harbour reorganisation schemes: corporation tax
992    Harbour reorganisation schemes: capital allowances etc
993    Harbour reorganisation schemes: chargeable gains
994    Transfer of part of trade
995    Interpretation of sections 991 to 994
Groups: use of different accounting practices
996    Use of different accounting practices within a group of companies
Part 23
Company distributions
Chapter 1
Introduction
997    Overview of Part
Chapter 2
Matters which are distributions
Introduction
998    Overview of Chapter
999    Priority of negative rules
Corporation Tax Bill xlvi
Meaning of “distribution”
1000    Meaning of “distribution”
1001    Provisions related to paragraphs A to H in section 1000(1)
Distributions, other than dividends, in respect of shares
1002    Exceptions for certain transfers of assets or liabilities between a company and
its members
Redeemable share capital
1003    Redeemable share capital
Securities issued otherwise than for new consideration
1004    Securities issued otherwise than for new consideration
Distributions in respect of non-commercial securities
1005    Meaning of “non-commercial securities”
1006    Distributions exceeding consideration received for issue of security
1007    Securities issued at premium representing new consideration
1008    Consideration for issue of security exceeding amount of principal
Exceptions to section 1008
1009    Securities reflecting dividends on certain shares etc: exclusion of section 1008
1010    Meaning of “qualifying index” in section 1009
1011    Meaning of “associated company” in section 1009
1012    Hedging arrangements
1013    Exception to section 1012
1014    Meaning of “hedging arrangements”
Distributions in respect of special securities
1015    Meaning of “special securities”
1016    Meaning of “equity note” in section 1015
1017    Section 1015: other interpretation
1018    The principal secured: special securities
1019    Relevant alternative finance return
Transfers of assets or liabilities treated as distributions
1020    Transfers of assets or liabilities treated as distributions
1021    Section 1020: exceptions
Bonus issue following repayment of share capital
1022    Bonus issue following repayment of share capital treated as distribution
1023    Exceptions to section 1022(3)
Interpretation of references to repayment of share capital
1024    Premiums paid on redemption of share capital
Corporation Tax Bill xlvii
1025    Share capital issued at a premium representing new consideration
1026    Distributions following a bonus issue
1027    Cap on amount of distributions affected by section 1026
1028    Certain payments connected with exempt distributions
Chapter 3
Matters which are not distributions
Introduction
1029    Overview of Chapter
Distributions in a winding up
1030    Distribution in respect of share capital in a winding up
Distribution as part of a cross-border merger
1031    Distribution as part of a cross-border merger
Payments of interest
1032    Interest etc paid in respect of certain securities
Purchase of own shares
1033    Purchase by unquoted trading company of own shares
1034    Requirements as to residence
1035    Requirement as to period of ownership
1036    Determining the period of ownership
1037    Requirement as to reduction of seller’s interest as shareholder
1038    Section 1037: effect of entitlement to profits
1039    Requirements where purchasing company is a member of a group
1040    Determining whether interests as shareholders in a group are substantially
reduced
1041    Section 1040: effect of entitlement to profits
1042    Other requirements
1043    Relaxation of requirements in certain cases
Purchase of own shares: supplementary
1044    Advance clearance of payments by Commissioners
1045    Advance clearance: supplementary
1046    Information and returns
1047    Meaning of “group” and “51% subsidiary” in sections 1033 to 1047
1048    Sections 1033 to 1047: other interpretation
Stock dividends
1049    Stock dividends
1050    Application of section 1049 where bonus share capital is converted etc
1051    “Bonus share capital” and “in lieu of a cash dividend”
1052    Share capital to which section 1049 applies: returns

© Parliamentary copyright 2009	Revised 19 November 2009

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