 House of Commons |
Session 2009-10 Publications on the internet Other Bills before Parliament Bill Home Page |
| Corporation Tax Bill |
|
CORPORATION TAX BILL EXPLANATORY NOTES [VOLUME II] The Explanatory Notes are divided into four volumes. Volume I contains the Introduction to the Bill and Notes on clauses 1 to 465 of the Bill. Volume II contains Notes on clauses 466 to 937 of the Bill Volume III contains Notes on clauses 938 to 1185 of and Schedules 1 to 4 to the Bill Volume IV contains Annexes to the Notes. CORPORATION TAX BILL —————————— EXPLANATORY NOTES - VOLUME 2 (CLAUSES 466 TO 937) TABLE OF CONTENTS Part 11: Charitable companies etc 186 Chapter 1: Introduction 186 Clause 466: Overview of Part 186 Clause 467: Meaning of “charitable company” 186 Clause 468: Meaning of “eligible body” 186 Clause 469: Conditions for qualifying as a scientific research association 186 Clause 470: Meaning of “research and development” in section 469. 186 Chapter 2: Gifts and other payments 187 Clause 471: Gifts qualifying for gift aid relief: income tax treated as paid 187 Clause 472: Gifts qualifying for gift aid relief: corporation tax liability and exemption 187 Clause 473: Gifts of money from companies: corporation tax liability and exemption 188 Clause 474: Payments from other charities: corporation tax liability and exemption 188 Clause 475: Gifts qualifying for gift aid relief: income tax treated as paid and exemption 188 Clause 476: Gifts of money from companies: exemption 189 Clause 477: Gifts of money from companies: exemption 189 Chapter 3: Other exemptions 189 Clause 478: Exemption for profits etc of charitable trades 189 Clause 479: Meaning of “charitable trade” 189 Clause 480: Exemption for profits of small-scale trades 190 Clause 481: Exemption from charges under provisions to which section 1173 applies 190 Clause 482: Condition as to trading and miscellaneous incoming resources 191 Clause 483: Exemption for profits from fund-raising events 192 Clause 484: Exemption for profits from lotteries 192 Clause 485: Exemption for property income etc 192 Clause 486: Exemption for investment income and non-trading profits from loan relationships 193 Clause 487: Exemption for public revenue dividends 194 Clause 488: Exemption for certain miscellaneous income 194 Clause 489: Exemption for income from estates in administration 194 Clause 490: Eligible bodies 194 Clause 491: Scientific research associations 195 Chapter 4: Restrictions on exemptions 195 Clause 492: Restrictions on exemptions 195 Clause 493: The non-exempt amount 196 Clause 494: Attributing income to the non-exempt amount 196 Clause 495: How income is attributed to the non-exempt amount 196 Clause 496: Meaning of “non-charitable expenditure” 197 Clause 497: Section 496: supplementary 197 Clause 498: Section 496(1)(d): meaning of expenditure 197 Clause 499: Section 496(1)(d): accounting period in which certain expenditure treated as incurred 197 Clause 500: Section 496(1)(d): payment to body outside the UK 198 Clause 501: Section 496(1)(g) and (h): investments and loans 198 Clause 502: Transactions with substantial donors 198 Clause 503: Meaning of “relievable gift” 198 Clause 504: Non-charitable expenditure in substantial donor transactions 198 Clause 505: Adjustment if section 504(1) and (2) applied to single transaction 199 Clause 506: Section 504: certain payments and benefits to be ignored 199 Clause 507: Transactions: exceptions 199 Clause 508: Donors: exceptions 199 Clause 509: Connected charities 200 Clause 510: Substantial donor transactions: supplementary 200 Clause 511: Approved charitable investments 200 Clause 512: Securities which are approved charitable investments 201 Clause 513: Conditions to be met for some securities 202 Clause 514: Approved charitable loans 202 Clause 515: Excess expenditure treated as non-charitable expenditure of earlier periods 202 Clause 516: Rules for attributing excess expenditure to earlier periods 203 Clause 517: Adjustments in consequence of section 515 203 Part 12: Real Estate Investment Trusts 203 Chapter 1: Introduction 204 Clause 518: Introduction to Part 204 Clause 519: “Property rental business” 204 Clause 520: “UK property rental business” of non-UK companies 205 Clause 521: “UK company” and “non-UK company” 205 Clause 522: “Residual business” 205 Chapter 2: Requirements for being a UK REIT 206 Clause 523: Notice for a group of companies to become a UK REIT 206 Clause 524: Notice for a company to become a UK REIT 207 Clause 525: Notice under section 523 or 524: supplementary 207 Clause 526: Duration of status as UK REIT 208 Clause 527: Being a UK REIT in relation to an accounting period 208 Clause 528: Conditions for company 208 Clause 529: Conditions as to property rental business 208 Clause 530: Condition as to distribution of profits 209 Clause 531: Conditions as to balance of business 210 Clause 532: Financial statements for group UK REITs 210 Clause 533: Financial statements: supplementary 211 Chapter 3: Tax treatment of profits and gains of UK REITs 211 Clause 534: Profits 211 Clause 535: Gains 212 Chapter 4: Entering the UK REIT regime 213 Clause 536: Effects of entry: corporation tax 213 Clause 537: Effects of entry: CAA 2001 214 Clause 538: Entry charge 214 Clause 539: Calculation of the notional amount 214 Clause 540: Election to treat notional income as arising in instalments 215 Chapter 5: Assets etc 215 Clause 541: Ring-fencing of property rental business 215 Clause 542: Disapplication of certain provisions 215 Clause 543: Profit: financing-cost ratio 216 Clause 544: Meaning of “property profits” and “property financing costs” 216 Clause 545: Cancellation of tax advantage 217 Clause 546: Appeal against notice under section 545 217 Clause 547: Funds awaiting reinvestment 217 Chapter 6: Distributions 218 Clause 548: Distributions: liability to tax 218 Clause 549: Distributions: supplementary 219 Clause 550: Attribution of distributions 219 Clause 551: Tax consequences of distribution to holder of excessive rights 219 Clause 552: “The section 552 amount” 220 Clause 553: Meaning of “holder of excessive rights” 220 Clause 554: Regulations: distributions to holders of excessive rights 220 Chapter 7: Gains etc 220 Clause 555: Assets: change of use 220 Clause 556: Disposal of assets 221 Clause 557: Movement of assets into ring fence 221 Clause 558: Demergers: disposal of asset 222 Clause 559: Demergers: company leaving group UK REIT 222 Clause 560: Interpretation of Chapter 222 Chapter 8: Breach of conditions in Chapter 2 222 Clause 561: Notice of breach of relevant Chapter 2 condition 222 Clause 562: Breach of conditions C and D in section 528 (conditions for company) 222 Clause 563: Breach of conditions as to property rental business 223 Clause 564: Breach of condition as to distribution of profits 223 Clause 565: “The section 565 amount” 223 Clause 566: Breach of condition B in section 531 in accounting period 1 224 Clause 567: Meaning of “the notional amount” 224 Clause 568: Breach of balance of business conditions after accounting period 1 224 Clause 569: Chapter subject to section 572 225 Chapter 9: Leaving the UK REIT regime 225 Clause 570: Overview of Chapter 225 Clause 571: Termination by notice: group or company 225 Clause 572: Termination by notice: officer of Revenue and Customs 225 Clause 573: Notice under section 572: tax advantage 225 Clause 574: Notice under section 572: serious breach 226 Clause 575: Notice under section 572: breach of conditions as to property rental business 226 Clause 576: Notice under section 572: breach of conditions as to balance of business 226 Clause 577: Notice under section 572: multiple breaches of conditions in Chapter 2 226 Clause 578: Automatic termination for breach of certain conditions in section 528 227 Clause 579: Effects of cessation: corporation tax 227 Clause 580: Effects of cessation: CAA 2001 227 Clause 581: Early exit by notice 228 Clause 582: Early exit 228 Chapter 10: Joint ventures 228 Clause 583: Overview of Chapter 228 Clause 584: Meaning of “joint venture company” and “joint venture group” 228 Clause 585: Meaning of “venturing group” and “venturing company” 228 Clause 586: Notice for Part to apply: joint venture company 229 Clause 587: Notice for Part to apply: joint venture group 229 Clause 588: Effect of notice under section 586 230 Clause 589: Effect of notice under section 587 230 Clause 590: Duration of notice under section 586 or 587 231 Clause 591: Conditions as to balance of business 231 Clause 592: Joint venture groups: financial statements 231 Clause 593: Financial statements under section 532: joint venture groups 232 Clause 594: Modifications of Chapter 3 232 Clause 595: Joint venture company liable for additional charge 232 Clause 596: Member of joint venture group liable for additional charge 232 Clause 597: Cases where no additional charge due 233 Clause 598: Chapter 10: supplementary 233 Chapter 11: Part 12: supplementary 234 Clause 599: Calculation of profits 234 Clause 600: Power to make regulations about cases involving related persons 234 Clause 601: Availability of group reliefs 234 Clause 602: Effect of deemed disposal and reacquisition 235 Clause 603: Regulations 235 Clause 604: Property rental business: exclusion of listed business 235 Clause 605: Property rental business: exclusion of business producing listed income 235 Clause 606: Groups 235 Clause 607: Meaning of “entry” and “cessation” etc 235 Clause 608: References to assets 235 Clause 609: Definitions 236 Part 13: Other special types of company etc 236 Chapter 1: Corporate beneficiaries under trusts 236 Clause 610: Discretionary payments by trustees to companies 236 Clause 611: Income tax provisions to apply in relation to trustees’ expenses 237 Chapter 2: Authorised investment funds 237 Clause 612: Overview of Chapter 237 Clause 613: Meaning of “open-ended investment company” 238 Clause 614: Applicable corporation tax rate 238 Clause 615: Umbrella companies 238 Clause 616: Meaning of “authorised unit trust” and “unit holder” 238 Clause 617: Authorised unit trust treated as UK resident company 238 Clause 618: Applicable corporation tax rate 238 Clause 619: Umbrella schemes 239 Clause 620: Court investment funds 239 Chapter 3: Unauthorised unit trusts 239 Clause 621: Treatment of income 239 Clause 622: Treatment of capital expenditure 240 Chapter 4: Securitisation companies 240 Clause 623: Meaning of “securitisation company” 240 Clause 624: Power to make regulations about the taxation of securitisation companies 241 Clause 625: Regulations: supplementary 241 Chapter 5: Companies in liquidation or administration 241 Clause 626: Meaning of “final year”, “penultimate year” etc 241 Clause 627: Meaning of “rate of corporation tax” in case of companies with small profits 241 Clause 628: Company in liquidation: corporation tax rates 241 Clause 629: Company in liquidation: making of assessment to tax 242 Clause 630: Company in administration: corporation tax rates 242 Clause 631: Company in administration: making of assessment to tax 242 Clause 632: Meaning of rate being “fixed” or “proposed” 243 Clause 633: Exemption for interest on overpaid tax in final accounting period 243 Chapter 6: Banks etc in compulsory liquidation 243 Clause 634: Overview of Chapter 243 Clause 635: Application of Chapter 243 Clause 636: Charge to corporation tax on winding up receipts 243 Clause 637: Transfer of rights to payment 243 Clause 638: Allowable deductions 244 Clause 639: Election to carry back 244 Clause 640: Relationship of Chapter with other corporation tax provisions 244 Clause 641: Interpretation of Chapter 244 Chapter 7: Co-operative housing associations 244 Clause 642: Disregard of rent from members and of interest payable 244 Clause 643: Exemption for gains on a sale of property 245 Clause 644: Approval of housing associations 245 Clause 645: Tests to be satisfied by the association 245 Clause 646: Delegation of powers to the Regulator of Social Housing 246 Clause 647: Claims under section 642 or 643 246 Clause 648: Adjustments of liability 246 Clause 649: Power to make further provision 246 Chapter 8: Self-build societies 247 Clause 650: Meaning of “self-build society” 247 Clause 651: Disregard of rent from members 247 Clause 652: Exemption for gains on disposals of land to members 247 Clause 653: Approval of self-build societies 247 Clause 654: Delegation of powers to the Regulator of Social Housing 248 Clause 655: Claims under section 651 or 652 248 Clause 656: Adjustments of liability 248 Clause 657: Power to make further provision 248 Chapter 9: Community amateur sports clubs 249 Clause 658: Meaning of “community amateur sports club” and “registered club” 249 Clause 659: Meaning of “open to the whole community” 249 Clause 660: Meaning of “organised on an amateur basis” 250 Clause 661: Meaning of “eligible sport”, “qualifying purposes” etc 250 Clause 662: Exemption for UK trading income 250 Clause 663: Exemption for UK property income 250 Clause 664: Exemption for interest and gift aid income 250 Clause 665: Exemption for chargeable gains 251 Clause 666: Exemptions reduced if non-qualifying expenditure incurred 251 Clause 667: Rules for attributing surplus amount to earlier periods etc 251 Clause 668: How income and gains are attributed 251 Clause 669: Asset ceasing to be held for qualifying purposes etc 251 Clause 670: Notification of HMRC decision 251 Clause 671: Appeals 252 Part 14: Change in company ownership 252 Chapter 1: Introduction 253 Clause 672: Overview of Part 253 Chapter 2: Disallowance of trading losses 253 Clause 673: Introduction to Chapter 253 Clause 674: Disallowance of trading losses 254 Clause 675: Disallowance of trading losses: calculation of balancing charges 255 Clause 676: Disallowance of trading losses where company reconstruction without change in ownership 255 Chapter 3: Company with investment business: restrictions on relief: general provision 256 Clause 677: Introduction to Chapter 256 Clause 678: Notional split of accounting period in which change in ownership occurs 257 Clause 679: Restriction on debits to be brought into account 257 Clause 680: Restriction on the carry forward of non-trading deficit from loan relationships 258 Clause 681: Restriction on relief for non-trading loss on intangible fixed assets 258 Clause 682: Restriction on the deduction of expenses of management 258 Clause 683: Disallowance of UK property business losses 259 Clause 684: Disallowance of overseas property business losses 259 Clause 685: Apportionment of amounts 259 Clause 686: Meaning of certain expressions in section 685 260 Clause 687: Adjustment to balancing charges if relief is restricted 260 Clause 688: Meaning of “significant increase in the amount of a company’s capital” 260 Clauses 689 and 690: Amount A; amount B 260 Clause 691: Meaning of “amount of capital” 260 Chapter 4: Company with investment business: restrictions on relief: asset transferred within group 261 Clause 692: Introduction to Chapter 262 Clause 693: Meaning of “amount of profits which represents a relevant gain” 262 Clause 694: Meaning of “the relevant provisions” 262 Clause 695: Notional split of accounting period in which change in ownership occurs 263 Clause 696: Restriction on debits to be brought into account 263 Clause 697: Restriction on the carry forward of non-trading deficit from loan relationships 264 Clause 698: Restriction on relief for non-trading loss on intangible fixed assets 264 Clause 699: Restrictions on the deduction of expenses of management 264 Clause 700: Disallowance of UK property business losses 264 Clause 701: Disallowance of overseas property business losses 265 Clause 702: Apportionment of amounts 265 Clause 703: Meaning of certain expressions in section 702 266 Chapter 5: Company without investment business: disallowance of property losses 266 Clause 704: Company carrying on UK property business 266 Clause 705: Company carrying on overseas property business 266 Chapter 6: Recovery of unpaid corporation tax 267 Clause 706: Meaning of “linked” person 268 Clause 707: Meaning of “control” 268 Clause 708: Rights to be attributed for the purposes of section 707 268 Clause 709: Meaning of “the relevant period” 268 Clause 710: Recovery of unpaid corporation tax for accounting period beginning before change 268 Clause 711: Conditions relating to company’s trade or business 269 Clause 712: Meaning of “a major change in the nature or conduct of a trade or business” 269 Clause 713: Recovery of unpaid corporation tax for accounting period ending on or after change 270 Clause 714: The expectation condition 270 Clause 715: Meaning of “transaction entered into in connection with change in ownership” 271 Clause 716: Interest 271 Clause 717: Effect of payment in pursuance of assessment under section 710 or 713 271 Clause 718: Meaning of “associated company” 271 Chapter 7: Meaning of “change in the ownership of a company” 271 Clause 719: Meaning of “change in the ownership of a company” 271 Clause 720: Section 719: supplementary 273 Clause 721: When things other than ordinary share capital may be taken into account: Chapters 2 to 5 273 Clause 722: When things other than ordinary share capital may be taken into account: Chapter 6 273 Clause 723: Changes in indirect ownership 273 Clause 724: Disregard of change in company ownership 274 Clause 725: Provision applying for the purposes of Chapters 2 to 5 274 Clause 726: Interpretation of Chapter 274 Chapter 8: Supplementary provision 274 Clauses 727 to 730: Extended time limit for assessment; provision of information about ownership of shares etc; meaning of “company with investment business”; meaning of “relevant non-trading debit” 274 Part 15: Transactions in securities 274 Clauses 731 to 734: Overview of Part; meaning of “corporation tax advantage”; company liable to counteraction of corporation tax advantages; exception where no tax avoidance object shown 275 Clause 735: Abnormal dividends used for exemptions or reliefs (circumstance A) 275 Clauses 736 to 738: Receipt of consideration representing company’s assets, future receipts or trading stock (circumstance C); receipt of consideration in connection with relevant company distribution (circumstance D); receipt of assets of relevant company (circumstance E) 276 Clause 739: Meaning of “relevant company” in sections 737 and 738 276 Clause 740: Abnormal dividends: general 276 Clauses 741 and 742: Abnormal dividends: the excessive return condition and the excessive accrual condition 276 Clauses 743 to 746: Preliminary notification that section 733 may apply, opposed notifications and counteraction notices 276 Clauses 747 to 751: Timing of assessments in section 738 cases; application for clearance of transactions; effect of clearance notification under section 748; appeals against counteraction notices; interpretation of Part 277 Part 16: Factoring of income etc 277 Chapter 1: Transfers of income streams 277 Clauses 752 to 757: Application of Chapter; value of transferred income treated as income; exception: amount otherwise taxed; exception: transfer by way of security; partnership shares; interpretation 277 Chapter 2: Finance arrangements 278 Clause 758: Type 1 finance arrangement defined 279 Clause 759: Certain tax consequences not to have effect 280 Clause 760: Payments treated as borrower’s income 280 Clause 761: Deemed loan relationship if borrower is a company 281 Clause 762: Deemed loan relationship if borrower is partnership with corporate member 281 Clause 763: Type 2 finance arrangement defined 281 Clause 764: Relevant change in relation to partnership 282 Clause 765: Certain tax consequences not to have effect 282 Clause 766: Deemed loan relationship 283 Clause 767: Type 3 finance arrangement defined 283 Clause 768: Certain tax consequences not to have effect 284 Clause 769: Deemed loan relationship 284 Clause 770: Exceptions: preliminary 284 Clause 771: Exceptions 284 Clause 772: Exceptions: relevant person 284 Clause 773: Power to make further exceptions 285 Clauses 774 to 776: Accounts; arrangements; assets 285 Chapter 3: Loan or credit transactions 285 Clause 777: Loan or credit transaction defined 285 Clause 778: Certain payments treated as interest 286 Clause 779: Tax charged on income transferred 286 Part 17: Manufactured payments and repos 286 Chapter 1: Introduction 287 Clause 780: Overview of Part 287 Clause 781: Key definitions 287 Chapter 2: Manufactured dividends 287 Clause 782: Meaning of “manufactured dividend” 287 Clause 783: Treatment of payer of manufactured dividend 287 Clause 784: Treatment of recipient of manufactured dividends 288 Clause 785: Treatment of payer: Real Estate Investment Trusts 288 Clause 786: Treatment of recipient: Real Estate Investment Trusts 288 Clause 787: Exemption of manufactured dividends 288 Clause 788: Statements about manufactured dividends 288 Clause 789: Powers about administrative provisions 288 Chapter 3: Manufactured overseas dividends 288 Clause 790: Meaning of “manufactured overseas dividend” 288 Clause 791: Treatment of payer of manufactured overseas dividend 289 Clause 792: Company receiving manufactured overseas dividend from UK resident etc 289 Clause 793: Section 792: amount treated as withheld 289 Clause 794: Company receiving manufactured overseas dividend from foreign payer 289 Clause 795: Exemption of manufactured overseas dividends 289 Chapter 4: Further provision about manufactured payments 289 Clauses 796 and 797: Manufactured dividends and manufactured overseas dividends: amounts exceeding underlying payments 290 Clause 798: Manufactured overseas dividends less than underlying payments 290 Clause 799: Manufactured payments under arrangements with unallowable purpose 290 Clause 800: Arrangements with an unallowable purpose 291 Clause 801: Sections 799 and 800: supplementary 291 Clause 802: Powers about amounts representative of overseas dividends 291 Clause 803: Power to deal with special cases 291 Clause 804: Regulation-making powers: general 291 Chapter 5: Stock lending arrangements and repos 291 Clauses 805 to 807: “Stock lending arrangement”; section 805: supplementary; “creditor repo”, “creditor quasi-repo”, “debtor repo” and “debtor quasi-repo” 292 Clause 808: No tax credits for borrower under stock lending arrangement 292 Clause 809: No tax credits for lender under creditor repo or creditor quasi-repo 292 Clause 810: No tax credits for borrower under debtor repo or debtor quasi-repo 292 Clause 811: Arrangements between companies to make distributions 292 Clause 812: Deemed manufactured payments: stock lending arrangements 292 Chapter 6: Interpretation of Part 293 Clauses 813 and 814: The gross amount of a manufactured overseas dividend etc; other interpretation 293 Part 18: Transactions in land 293 Clauses 815 and 816: Introduction to Part; meaning of disposing of land 294 Clause 817: Priority of other tax provisions 294 Clause 818: Charge to tax on gains from transactions in land 294 Clauses 819 and 820: Gains obtained from land disposals in some circumstances; person obtaining gain 295 Clause 821: Company chargeable 295 Clauses 822 to 826: Method of calculating gain; transactions, arrangements, sales and realisations relevant for Part; tracing value; meaning of “another person”; valuations and apportionments 296 Clause 827 and 828: Gain attributable to period before intention to develop formed and disposals of shares in companies holding land as trading stock 296 Clauses 829 and 830: Cases where consideration receivable by person not assessed; certificates of tax paid etc 296 Clause 831: Clearance procedure 296 Clause 832: Power to obtain information 297 Clause 833: Interpretation of Part 297 Part 19: Sale and lease-back etc 297 Chapter 1: Payments connected with transferred land 298 Clause 834: Overview 298 Clause 835: Transferor or associate becomes liable for payment of rent 298 Clause 836: Transferor or associate becomes liable for payment other than rent 299 Clause 837: Relevant corporation tax relief 299 Clause 838: Relevant corporation tax relief: deduction not to exceed commercial rent 299 Clause 839: Deduction under section 76 of ICTA not to exceed commercial rent 300 Clause 840: Carrying forward parts of payments 300 Clause 841: Aggregation and apportionment of payments 300 Clause 842: Payments made for later periods 300 Clause 843: Exclusion of service charges etc 300 Clause 844: Commercial rent: comparison with rent under a lease 301 Clause 845: Commercial rent: comparison with payments other than rent 301 Clause 846: Lease and rent 301 Clause 847: Associated persons 301 Clause 848: Land outside the UK 301 Chapter 2: New lease of land after assignment or surrender 302 Clause 849: Overview 302 Clause 850: New lease after assignment or surrender 302 Clause 851: Taxation of consideration 303 Clause 852: Position where new lease does not include all original property 304 Clause 853: Relief for rent under new lease 304 Clause 854: New lease treated as ending 304 Clause 855: Position where rent reduces 305 Clause 856: Position where lease may be ended 305 Clause 857: Position where lease may be varied 305 Clause 858: Lease treated as ending: rentcharge 305 Clause 859: Lease varied to provide for increased rent 305 Clause 860: Relevant corporation tax relief 306 Clause 861: Linked persons 306 Clause 862: Lease, lessee, lessor and rent 306 Chapter 3: Leased trading assets 306 Clause 863: Overview of Chapter 307 Clause 864: Leased trading assets 307 Clause 865: Tax deduction not to exceed commercial rent 308 Clause 866: Long funding finance leases 308 Clauses 867 and 868: Commercial rent; lease 308 Clause 869: Relevant asset 308 Chapter 4: Leased assets: capital sums 308 Clause 870: Overview 309 Clause 871: Application of the Chapter 309 Clause 872: Payment under lease 309 Clause 873: Sum obtained 310 Clause 874: Charge to corporation tax 310 Clause 875: Hire-purchase agreements 311 Clause 876: Adjustments where sum obtained before payment made 312 Clause 877: Sum obtained in respect of interest 312 Clause 878: Sum obtained in respect of lessee’s interest 312 Clause 879: Disposal of interest to associate 312 Clause 880: Apportionment of payments made and of sums obtained 312 Clause 881: Manner of apportionment 312 Clause 882: Associates 313 Clause 883: Capital sum 313 Clause 884: Lease 313 Clause 885: Relevant asset 313 Clause 886: Relevant tax relief 313 Part 20: Tax avoidance involving leasing plant or machinery 313 Chapter 1: Restrictions on use of losses in leasing partnerships 313 Clause 887: When restrictions on leasing partnership losses under this Chapter apply 314 Clause 888: Restrictions on leasing partnership losses 314 Clause 889: Interpretation of Chapter 314 Chapter 2: Capital payments in respect of leases treated as income 314 Clause 890: Capital payments in respect of leases treated as income 315 Clause 891: Apportionments for leases of plant or machinery and other property 315 Clause 892: Deduction where failure to make relevant capital payment expected 315 Clause 893: Meaning in Chapter of “Capital payment”, “relevant capital payment” etc 315 Clause 894: Other interpretation of Chapter 316 Part 21: Leasing arrangements: finance leases and loans 316 Chapter 1: Introduction 317 Clause 895: Overview of Part 317 Clause 896: Normal rent 317 Clause 897: Accountancy rental earnings 317 Clause 898: Rental earnings 318 Chapter 2: Finance leases with return in capital form 318 Clause 899: Arrangements to which this Chapter applies 318 Clause 900: Purposes of this Chapter 318 Clause 901: Application of this Chapter 319 Clause 902: The conditions referred to in section 901(1) 319 Clause 903: Provisions supplementing section 902 320 Clause 904: The arrangements and circumstances referred to in section 902(8) 320 Clause 905: Current lessor taxed by reference to accountancy rental earnings 320 Clauses 906 to 910: Reduction of taxable rent by cumulative rental excesses 321 Clause 906: Reduction of taxable rent by cumulative rental excesses: introduction 321 Clause 907: Meaning of “accountancy rental excess” and “cumulative accountancy rental excess” 321 Clause 908: Reduction of taxable rent by the cumulative accountancy rental excess 321 Clause 909: Meaning of “normal rental excess” and “cumulative normal rental excess” 321 Clause 910: Reduction of taxable rent by the cumulative normal rental excess 321 Clauses 911 to 914: Relief for bad debts by reduction of cumulative rental excesses 322 Clause 911: Relief for bad debts: reduction of cumulative accountancy rental excess 322 Clause 912: Recovery of bad debts following reduction under section 911 322 Clause 913: Relief for bad debts: reduction of cumulative normal rental excess 323 Clause 914: Recovery of bad debts following reduction under section 913 323 Clause 915: Effect of disposals of leases: general 323 Clause 916: Assignments on which neither a gain nor a loss accrues 323 Clauses 917 to 922: Capital allowances: clawback of major lump sums 324 Clause 917: Effect of capital allowances: introduction 324 Clause 918: Cases where expenditure taken into account under Part 2, 5 or 8 of CAA 2001 324 Clause 919: Cases where expenditure taken into account under other provisions of CAA 2001 324 Clause 920: Capital allowances deductions: waste disposal and cemeteries 325 Clause 921: Capital allowances deductions: films 325 Clause 922: Contributors to capital expenditure 325 Clause 923: Pre-26 November 1996 schemes where this Chapter does not at first apply 325 Clause 924: Post-25 November 1996 schemes to which Chapter 3 applied first 326 Chapter 3: Other finance leases 326 Clause 925: Introduction to Chapter 326 Clause 926: Purpose of this Chapter 326 Clause 927: Leases to which this Chapter applies 327 Clause 928: Current lessor taxed by reference to accountancy rental earnings 327 Clause 929: Application of provisions of Chapter 2 for purposes of this Chapter 328 Chapter 4: Supplementary provisions 328 Clause 930: Pre-26 November 1996 schemes and post-25 November 1996 schemes 328 Clause 931: Time apportionment where periods of account do not coincide 328 Clause 932: Periods of account and related periods of account and accounting periods 328 Clause 933: Connected persons 328 Clause 934: Assets which represent the leased asset 328 Clause 935: Parent undertakings and consolidated group accounts 329 Clause 936: Assessments and adjustments 329 Clause 937: Interpretation of Part 329 |
| |
| © Parliamentary copyright 2009 | Prepared: 19 November 2009 |