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Index to Corporation Tax Bill

Bill 1—EN (I)                                                   54/5 Part 11: Charitable companies etc Chapter 1: Introduction Clause 466: Overview of Part Clause 467: Meaning of “charitable company” Clause 468: Meaning of “eligible body” Clause 469: Conditions for qualifying as a scientific research association Clause 470: Meaning of “research and development” in section 469. Chapter 2: Gifts and other payments Clause 471: Gifts qualifying for gift aid relief: income tax treated as paid Clause 472: Gifts qualifying for gift aid relief: corporation tax liability and exemption Clause 473: Gifts of money from companies: corporation tax liability and exemption Clause 474: Payments from other charities: corporation tax liability and exemption Clause 475: Gifts qualifying for gift aid relief: income tax treated as paid and exemption Clause 476: Gifts of money from companies: exemption Clause 477: Gifts of money from companies: exemption Chapter 3: Other exemptions Clause 478: Exemption for profits etc of charitable trades Clause 479: Meaning of “charitable trade” Clause 480: Exemption for profits of small-scale trades Clause 481: Exemption from charges under provisions to which section 1173 applies Clause 482: Condition as to trading and miscellaneous incoming resources Clause 483: Exemption for profits from fund-raising events Clause 484: Exemption for profits from lotteries Clause 485: Exemption for property income etc Clause 486: Exemption for investment income and non-trading profits from loan relationships Clause 487: Exemption for public revenue dividends Clause 488: Exemption for certain miscellaneous income Clause 489: Exemption for income from estates in administration Clause 490: Eligible bodies Clause 491: Scientific research associations Chapter 4: Restrictions on exemptions Clause 492: Restrictions on exemptions Clause 493: The non-exempt amount Clause 494: Attributing income to the non-exempt amount Clause 495: How income is attributed to the non-exempt amount Clause 496: Meaning of “non-charitable expenditure” Clause 497: Section 496: supplementary Clause 498: Section 496(1)(d): meaning of expenditure Clause 499: Section 496(1)(d): accounting period in which certain expenditure treated as incurred Clause 500: Section 496(1)(d): payment to body outside the UK Clause 501: Section 496(1)(g) and (h): investments and loans Clause 502: Transactions with substantial donors Clause 503: Meaning of “relievable gift” Clause 504: Non-charitable expenditure in substantial donor transactions Clause 505: Adjustment if section 504(1) and (2) applied to single transaction Clause 506: Section 504: certain payments and benefits to be ignored Clause 507: Transactions: exceptions Clause 508: Donors: exceptions Clause 509: Connected charities Clause 510: Substantial donor transactions: supplementary Clause 511: Approved charitable investments Clause 512: Securities which are approved charitable investments Clause 513: Conditions to be met for some securities Clause 514: Approved charitable loans Clause 515: Excess expenditure treated as non-charitable expenditure of earlier periods Clause 516: Rules for attributing excess expenditure to earlier periods Clause 517: Adjustments in consequence of section 515 Part 12: Real Estate Investment Trusts Chapter 1: Introduction Clause 519: “Property rental business” Clause 520: “UK property rental business” of non-UK companies Clause 521: “UK company” and “non-UK company” Clause 522: “Residual business” Chapter 2: Requirements for being a UK REIT Clause 524: Notice for a company to become a UK REIT Clause 525: Notice under section 523 or 524: supplementary Clause 526: Duration of status as UK REIT Clause 527: Being a UK REIT in relation to an accounting period Clause 528: Conditions for company Clause 529: Conditions as to property rental business Clause 530: Condition as to distribution of profits Clause 531: Conditions as to balance of business Clause 532: Financial statements for group UK REITs Clause 533: Financial statements: supplementary Chapter 3: Tax treatment of profits and gains of UK REITs Clause 535: Gains Chapter 4: Entering the UK REIT regime Clause 537: Effects of entry: CAA 2001 Clause 538: Entry charge Clause 539: Calculation of the notional amount Clause 540: Election to treat notional income as arising in instalments Chapter 5: Assets etc Clause 542: Disapplication of certain provisions Clause 543: Profit: financing-cost ratio Clause 544: Meaning of “property profits” and “property financing costs” Clause 545: Cancellation of tax advantage Clause 546: Appeal against notice under section 545 Clause 547: Funds awaiting reinvestment Chapter 6: Distributions Clause 549: Distributions: supplementary Clause 550: Attribution of distributions Clause 551: Tax consequences of distribution to holder of excessive rights Clause 552: “The section 552 amount” Clause 553: Meaning of “holder of excessive rights” Clause 554: Regulations: distributions to holders of excessive rights Chapter 7: Gains etc Clause 556: Disposal of assets Clause 557: Movement of assets into ring fence Clause 558: Demergers: disposal of asset Clause 559: Demergers: company leaving group UK REIT Clause 560: Interpretation of Chapter Chapter 8: Breach of conditions in Chapter 2 Clause 562: Breach of conditions C and D in section 528 (conditions for company) Clause 563: Breach of conditions as to property rental business Clause 564: Breach of condition as to distribution of profits Clause 565: “The section 565 amount” Clause 566: Breach of condition B in section 531 in accounting period 1 Clause 567: Meaning of “the notional amount” Clause 568: Breach of balance of business conditions after accounting period 1 Clause 569: Chapter subject to section 572 Chapter 9: Leaving the UK REIT regime Clause 571: Termination by notice: group or company Clause 572: Termination by notice: officer of Revenue and Customs Clause 573: Notice under section 572: tax advantage Clause 574: Notice under section 572: serious breach Clause 575: Notice under section 572: breach of conditions as to property rental business Clause 576: Notice under section 572: breach of conditions as to balance of business Clause 577: Notice under section 572: multiple breaches of conditions in Chapter 2 Clause 578: Automatic termination for breach of certain conditions in section 528 Clause 579: Effects of cessation: corporation tax Clause 580: Effects of cessation: CAA 2001 Clause 581: Early exit by notice Clause 582: Early exit Chapter 10: Joint ventures Clause 584: Meaning of “joint venture company” and “joint venture group” Clause 585: Meaning of “venturing group” and “venturing company” Clause 586: Notice for Part to apply: joint venture company Clause 587: Notice for Part to apply: joint venture group Clause 588: Effect of notice under section 586 Clause 589: Effect of notice under section 587 Clause 590: Duration of notice under section 586 or 587 Clause 591: Conditions as to balance of business Clause 592: Joint venture groups: financial statements Clause 593: Financial statements under section 532: joint venture groups Clause 594: Modifications of Chapter 3 Clause 595: Joint venture company liable for additional charge Clause 596: Member of joint venture group liable for additional charge Clause 597: Cases where no additional charge due Clause 598: Chapter 10: supplementary Chapter 11: Part 12: supplementary Clause 600: Power to make regulations about cases involving related persons Clause 601: Availability of group reliefs Clause 602: Effect of deemed disposal and reacquisition Clause 603: Regulations Clause 604: Property rental business: exclusion of listed business Clause 605: Property rental business: exclusion of business producing listed income Clause 606: Groups Clause 607: Meaning of “entry” and “cessation” etc Clause 608: References to assets Clause 609: Definitions Part 13: Other special types of company etc Chapter 1: Corporate beneficiaries under trusts Clause 610: Discretionary payments by trustees to companies Clause 611: Income tax provisions to apply in relation to trustees’ expenses Chapter 2: Authorised investment funds Clause 612: Overview of Chapter Clause 613: Meaning of “open-ended investment company” Clause 614: Applicable corporation tax rate Clause 615: Umbrella companies Clause 616: Meaning of “authorised unit trust” and “unit holder” Clause 617: Authorised unit trust treated as UK resident company Clause 618: Applicable corporation tax rate Clause 619: Umbrella schemes Clause 620: Court investment funds Chapter 3: Unauthorised unit trusts Clause 621: Treatment of income Clause 622: Treatment of capital expenditure Chapter 4: Securitisation companies Clause 623: Meaning of “securitisation company” Clause 624: Power to make regulations about the taxation of securitisation companies Clause 625: Regulations: supplementary Chapter 5: Companies in liquidation or administration Clause 626: Meaning of “final year”, “penultimate year” etc Clause 627: Meaning of “rate of corporation tax” in case of companies with small profits Clause 628: Company in liquidation: corporation tax rates Clause 629: Company in liquidation: making of assessment to tax Clause 630: Company in administration: corporation tax rates Clause 631: Company in administration: making of assessment to tax Clause 632: Meaning of rate being “fixed” or “proposed” Clause 633: Exemption for interest on overpaid tax in final accounting period Chapter 6: Banks etc in compulsory liquidation Clause 634: Overview of Chapter Clause 635: Application of Chapter Clause 636: Charge to corporation tax on winding up receipts Clause 637: Transfer of rights to payment Clause 638: Allowable deductions Clause 639: Election to carry back Clause 640: Relationship of Chapter with other corporation tax provisions Clause 641: Interpretation of Chapter Chapter 7: Co-operative housing associations Clause 642: Disregard of rent from members and of interest payable Clause 643: Exemption for gains on a sale of property Clause 644: Approval of housing associations Clause 645: Tests to be satisfied by the association Clause 646: Delegation of powers to the Regulator of Social Housing Clause 647: Claims under section 642 or 643 Clause 648: Adjustments of liability Clause 649: Power to make further provision Chapter 8: Self-build societies Clause 650: Meaning of “self-build society” Clause 651: Disregard of rent from members Clause 652: Exemption for gains on disposals of land to members Clause 653: Approval of self-build societies Clause 654: Delegation of powers to the Regulator of Social Housing Clause 655: Claims under section 651 or 652 Clause 656: Adjustments of liability Clause 657: Power to make further provision Chapter 9: Community amateur sports clubs Clause 658: Meaning of “community amateur sports club” and “registered club” Clause 659: Meaning of “open to the whole community” Clause 660: Meaning of “organised on an amateur basis” Clause 661: Meaning of “eligible sport”, “qualifying purposes” etc Clause 662: Exemption for UK trading income Clause 663: Exemption for UK property income Clause 664: Exemption for interest and gift aid income Clause 665: Exemption for chargeable gains Clause 666: Exemptions reduced if non-qualifying expenditure incurred Clause 667: Rules for attributing surplus amount to earlier periods etc Clause 668: How income and gains are attributed Clause 669: Asset ceasing to be held for qualifying purposes etc Clause 670: Notification of HMRC decision Clause 671: Appeals Part 14: Change in company ownership Chapter 1: Introduction Chapter 2: Disallowance of trading losses Clause 673: Introduction to Chapter Clause 674: Disallowance of trading losses Clause 675: Disallowance of trading losses: calculation of balancing charges Clause 676: Disallowance of trading losses where company reconstruction without change in ownership Chapter 3: Company with investment business: restrictions on relief: general provision Clause 677: Introduction to Chapter Clause 678: Notional split of accounting period in which change in ownership occurs Clause 679: Restriction on debits to be brought into account Clause 680: Restriction on the carry forward of non-trading deficit from loan relationships Clause 681: Restriction on relief for non-trading loss on intangible fixed assets Clause 682: Restriction on the deduction of expenses of management Clause 683: Disallowance of UK property business losses Clause 684: Disallowance of overseas property business losses Clause 685: Apportionment of amounts Clause 686: Meaning of certain expressions in section 685 Clause 687: Adjustment to balancing charges if relief is restricted Clause 688: Meaning of “significant increase in the amount of a company’s capital” Clauses 689 and 690: Amount A; amount B Clause 691: Meaning of “amount of capital” Chapter 4: Company with investment business: restrictions on relief: asset transferred within group Clause 692: Introduction to Chapter Clause 693: Meaning of “amount of profits which represents a relevant gain” Clause 694: Meaning of “the relevant provisions” Clause 695: Notional split of accounting period in which change in ownership occurs Clause 696: Restriction on debits to be brought into account Clause 697: Restriction on the carry forward of non-trading deficit from loan relationships Clause 698: Restriction on relief for non-trading loss on intangible fixed assets Clause 699: Restrictions on the deduction of expenses of management Clause 700: Disallowance of UK property business losses Clause 701: Disallowance of overseas property business losses Clause 702: Apportionment of amounts Clause 703: Meaning of certain expressions in section 702 Chapter 5: Company without investment business: disallowance of property losses Clause 704: Company carrying on UK property business Clause 705: Company carrying on overseas property business Chapter 6: Recovery of unpaid corporation tax Clause 706: Meaning of “linked” person Clause 707: Meaning of “control” Clause 708: Rights to be attributed for the purposes of section 707 Clause 709: Meaning of “the relevant period” Clause 710: Recovery of unpaid corporation tax for accounting period beginning before change Clause 711: Conditions relating to company’s trade or business Clause 712: Meaning of “a major change in the nature or conduct of a trade or business” Clause 713: Recovery of unpaid corporation tax for accounting period ending on or after change Clause 714: The expectation condition Clause 715: Meaning of “transaction entered into in connection with change in ownership” Clause 716: Interest Clause 717: Effect of payment in pursuance of assessment under section 710 or 713 Clause 718: Meaning of “associated company” Chapter 7: Meaning of “change in the ownership of a company” Clause 719: Meaning of “change in the ownership of a company” Clause 720: Section 719: supplementary Clause 721: When things other than ordinary share capital may be taken into account: Chapters 2 to 5 Clause 722: When things other than ordinary share capital may be taken into account: Chapter 6 Clause 723: Changes in indirect ownership Clause 724: Disregard of change in company ownership Clause 725: Provision applying for the purposes of Chapters 2 to 5 Clause 726: Interpretation of Chapter Chapter 8: Supplementary provision Part 15: Transactions in securities 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 Clause 735: Abnormal dividends used for exemptions or reliefs (circumstance A) 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) Clause 739: Meaning of “relevant company” in sections 737 and 738 Clause 740: Abnormal dividends: general Clauses 741 and 742: Abnormal dividends: the excessive return condition and the excessive accrual condition Clauses 743 to 746: Preliminary notification that section 733 may apply, opposed notifications and counteraction notices 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 Part 16: Factoring of income etc Chapter 1: Transfers of income streams 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 Chapter 2: Finance arrangements Clause 758: Type 1 finance arrangement defined Clause 759: Certain tax consequences not to have effect Clause 760: Payments treated as borrower’s income Clause 761: Deemed loan relationship if borrower is a company Clause 762: Deemed loan relationship if borrower is partnership with corporate member Clause 763: Type 2 finance arrangement defined Clause 764: Relevant change in relation to partnership Clause 765: Certain tax consequences not to have effect Clause 766: Deemed loan relationship Clause 767: Type 3 finance arrangement defined Clause 768: Certain tax consequences not to have effect Clause 769: Deemed loan relationship Clause 770: Exceptions: preliminary Clause 771: Exceptions Clause 772: Exceptions: relevant person Clause 773: Power to make further exceptions Clauses 774 to 776: Accounts; arrangements; assets Chapter 3: Loan or credit transactions Clause 777: Loan or credit transaction defined Clause 778: Certain payments treated as interest Clause 779: Tax charged on income transferred Part 17: Manufactured payments and repos Chapter 1: Introduction Clause 781: Key definitions Chapter 2: Manufactured dividends Clause 782: Meaning of “manufactured dividend” Clause 783: Treatment of payer of manufactured dividend Clause 784: Treatment of recipient of manufactured dividends Clause 785: Treatment of payer: Real Estate Investment Trusts Clause 786: Treatment of recipient: Real Estate Investment Trusts Clause 787: Exemption of manufactured dividends Clause 788: Statements about manufactured dividends Clause 789: Powers about administrative provisions Chapter 3: Manufactured overseas dividends Clause 790: Meaning of “manufactured overseas dividend” Clause 791: Treatment of payer of manufactured overseas dividend Clause 792: Company receiving manufactured overseas dividend from UK resident etc Clause 793: Section 792: amount treated as withheld Clause 794: Company receiving manufactured overseas dividend from foreign payer Clause 795: Exemption of manufactured overseas dividends Chapter 4: Further provision about manufactured payments Clauses 796 and 797: Manufactured dividends and manufactured overseas dividends: amounts exceeding underlying payments Clause 798: Manufactured overseas dividends less than underlying payments Clause 799: Manufactured payments under arrangements with unallowable purpose Clause 800: Arrangements with an unallowable purpose Clause 801: Sections 799 and 800: supplementary Clause 802: Powers about amounts representative of overseas dividends Clause 803: Power to deal with special cases Clause 804: Regulation-making powers: general Chapter 5: Stock lending arrangements and repos Clauses 805 to 807: “Stock lending arrangement”; section 805: supplementary; “creditor repo”, “creditor quasi-repo”, “debtor repo” and “debtor quasi-repo” Clause 808: No tax credits for borrower under stock lending arrangement Clause 809: No tax credits for lender under creditor repo or creditor quasi-repo Clause 810: No tax credits for borrower under debtor repo or debtor quasi-repo Clause 811: Arrangements between companies to make distributions Clause 812: Deemed manufactured payments: stock lending arrangements Chapter 6: Interpretation of Part Part 18: Transactions in land Clauses 815 and 816: Introduction to Part; meaning of disposing of land Clause 817: Priority of other tax provisions Clause 818: Charge to tax on gains from transactions in land Clauses 819 and 820: Gains obtained from land disposals in some circumstances; person obtaining gain Clause 821: Company chargeable 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 Clause 827 and 828: Gain attributable to period before intention to develop formed and disposals of shares in companies holding land as trading stock Clauses 829 and 830: Cases where consideration receivable by person not assessed; certificates of tax paid etc Clause 831: Clearance procedure Clause 832: Power to obtain information Clause 833: Interpretation of Part Part 19: Sale and lease-back etc Chapter 1: Payments connected with transferred land Clause 834: Overview Clause 835: Transferor or associate becomes liable for payment of rent Clause 836: Transferor or associate becomes liable for payment other than rent Clause 837: Relevant corporation tax relief Clause 838: Relevant corporation tax relief: deduction not to exceed commercial rent Clause 839: Deduction under section 76 of ICTA not to exceed commercial rent Clause 840: Carrying forward parts of payments Clause 841: Aggregation and apportionment of payments Clause 842: Payments made for later periods Clause 843: Exclusion of service charges etc Clause 844: Commercial rent: comparison with rent under a lease Clause 845: Commercial rent: comparison with payments other than rent Clause 846: Lease and rent Clause 847: Associated persons Clause 848: Land outside the UK Chapter 2: New lease of land after assignment or surrender Clause 849: Overview Clause 850: New lease after assignment or surrender Clause 851: Taxation of consideration Clause 852: Position where new lease does not include all original property Clause 853: Relief for rent under new lease Clause 854: New lease treated as ending Clause 855: Position where rent reduces Clause 856: Position where lease may be ended Clause 857: Position where lease may be varied Clause 858: Lease treated as ending: rentcharge Clause 859: Lease varied to provide for increased rent Clause 860: Relevant corporation tax relief Clause 861: Linked persons Clause 862: Lease, lessee, lessor and rent Chapter 3: Leased trading assets Clause 863: Overview of Chapter Clause 864: Leased trading assets Clause 865: Tax deduction not to exceed commercial rent Clause 866: Long funding finance leases Clauses 867 and 868: Commercial rent; lease Clause 869: Relevant asset Chapter 4: Leased assets: capital sums Clause 870: Overview Clause 871: Application of the Chapter Clause 872: Payment under lease Clause 873: Sum obtained Clause 874: Charge to corporation tax Clause 875: Hire-purchase agreements Clause 876: Adjustments where sum obtained before payment made Clause 877: Sum obtained in respect of interest Clause 878: Sum obtained in respect of lessee’s interest Clause 879: Disposal of interest to associate Clause 880: Apportionment of payments made and of sums obtained Clause 881: Manner of apportionment Clause 882: Associates Clause 883: Capital sum Clause 884: Lease Clause 885: Relevant asset Clause 886: Relevant tax relief Part 20: Tax avoidance involving leasing plant or machinery Chapter 1: Restrictions on use of losses in leasing partnerships Clause 887: When restrictions on leasing partnership losses under this Chapter apply Clause 888: Restrictions on leasing partnership losses Clause 889: Interpretation of Chapter Chapter 2: Capital payments in respect of leases treated as income Clause 890: Capital payments in respect of leases treated as income Clause 891: Apportionments for leases of plant or machinery and other property Clause 892: Deduction where failure to make relevant capital payment expected Clause 893: Meaning in Chapter of “Capital payment”, “relevant capital payment” etc Clause 894: Other interpretation of Chapter Part 21: Leasing arrangements: finance leases and loans Chapter 1: Introduction Clause 895: Overview of Part Clause 896: Normal rent Clause 897: Accountancy rental earnings Clause 898: Rental earnings Chapter 2: Finance leases with return in capital form Clause 899: Arrangements to which this Chapter applies Clause 900: Purposes of this Chapter Clause 901: Application of this Chapter Clause 902: The conditions referred to in section 901(1) Clause 903: Provisions supplementing section 902 Clause 904: The arrangements and circumstances referred to in section 902(8) Clause 905: Current lessor taxed by reference to accountancy rental earnings Clauses 906 to 910: Reduction of taxable rent by cumulative rental excesses Clause 906: Reduction of taxable rent by cumulative rental excesses: introduction Clause 907: Meaning of “accountancy rental excess” and “cumulative accountancy rental excess” Clause 908: Reduction of taxable rent by the cumulative accountancy rental excess Clause 909: Meaning of “normal rental excess” and “cumulative normal rental excess” Clause 910: Reduction of taxable rent by the cumulative normal rental excess Clauses 911 to 914: Relief for bad debts by reduction of cumulative rental excesses Clause 911: Relief for bad debts: reduction of cumulative accountancy rental excess Clause 912: Recovery of bad debts following reduction under section 911 Clause 913: Relief for bad debts: reduction of cumulative normal rental excess Clause 914: Recovery of bad debts following reduction under section 913 Clause 915: Effect of disposals of leases: general Clause 916: Assignments on which neither a gain nor a loss accrues Clauses 917 to 922: Capital allowances: clawback of major lump sums Clause 917: Effect of capital allowances: introduction Clause 918: Cases where expenditure taken into account under Part 2, 5 or 8 of CAA 2001 Clause 919: Cases where expenditure taken into account under other provisions of CAA 2001 Clause 920: Capital allowances deductions: waste disposal and cemeteries Clause 921: Capital allowances deductions: films Clause 922: Contributors to capital expenditure Clause 923: Pre-26 November 1996 schemes where this Chapter does not at first apply Clause 924: Post-25 November 1996 schemes to which Chapter 3 applied first Chapter 3: Other finance leases Clause 925: Introduction to Chapter Clause 926: Purpose of this Chapter Clause 927: Leases to which this Chapter applies Clause 928: Current lessor taxed by reference to accountancy rental earnings Clause 929: Application of provisions of Chapter 2 for purposes of this Chapter Chapter 4: Supplementary provisions Clause 930: Pre-26 November 1996 schemes and post-25 November 1996 schemes Clause 931: Time apportionment where periods of account do not coincide Clause 932: Periods of account and related periods of account and accounting periods Clause 933: Connected persons Clause 934: Assets which represent the leased asset Clause 935: Parent undertakings and consolidated group accounts Clause 936: Assessments and adjustments Clause 937: Interpretation of Part

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