Corporation Tax Bill

House of Commons

Session 2009 - 10
Internet Publications
Other Bills before Parliament

Corporation Tax Bill

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
618

(b)
in paragraph (b) for “Part 3 of that Schedule” substitute “Chapter 4
of that Part”.
353
In section 355(6) (buildings for miners etc: carry-back of balancing
allowances) for “section 393A(1) of ICTA” substitute “section 37 of CTA
2010”.
5
354
In section 362(2) (meaning of “husbandry”) for “section 154(3) of FA 1995
(meaning for general” substitute “section 1125(6) of CTA 2010 (meaning for
corporation”.
355
In section 416B(5) (expenditure incurred by company for purposes of a ring
fence trade) for “section 501A of the Taxes Act 1988” substitute “section
10
330(1) of CTA 2010”.
356
In section 420(b) (meaning of “disposal receipt”) after “or” insert “section 918
of CTA 2010 (cases where expenditure taken into account under Part 2, 5 or
8 of this Act) or”.
357
In section 476(1)(b) (disposal value of patent rights) after “or” insert “section
15
918 of CTA 2010 (cases where expenditure taken into account under Part 2,
5 or 8 of this Act) or”.
358
In section 505(1) (qualifying dwelling-houses: exclusions), in paragraph (a)
of exclusion 1, for “section 488 of ICTA” substitute “Chapter 7 of Part 13 of
CTA 2010”.
20
359
After section 560 insert—
“560A
Transfers of trade without a change of ownership
(1)
This Act has effect subject to Chapter 1 of Part 22 of CTA 2010 (unless
section 561 or 561A below applies in relation to the transfer in
question).
25
(2)
See, in particular, section 948 of that Act.”
360
In section 561(5) (transfer of division of UK business) for the words from
“section 343(2)” to the end substitute “section 948 of CTA 2010 (modified
application of CAA 2001 in relation to trade transfers without a change of
ownership) does not apply”.
30
361
In section 561A(2) (transfer of asset by reason of cross-border merger) for
paragraph (c) substitute—
“(c)
section 948 of CTA 2010 (modified application of CAA 2001
in relation to trade transfers without a change of ownership)
does not apply.”
35
362
In section 575A(1) (section 575: supplementary) in the definition of “control”
for “section 416 of ICTA” substitute “sections 450 and 451 of CTA 2010”.
363
In section 577(1) (other definitions), in the definition of “dual resident
investing company”, for the words from “section 404” to the end of that
definition substitute “section 949 of CTA 2010 (dual resident investing
40
companies);”.
364   (1)
Amend Schedule A1 (first-year tax credits) as follows.
      (2)
In paragraph 1—
(a)
in sub-paragraph (4) for the words from “entitled” to the end

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
619

substitute “entitled to make—
(a)
a claim under section 642 or 643 of
CTA 2010 (reliefs for co-operative
housing associations),
(b)
a claim under section 651 or 652 of
5
CTA 2010 (reliefs for self-build
societies), or
(c)
a relevant claim under Part 11 of CTA
2010 (charitable companies etc).”, and
(b)
after sub-paragraph (4) insert—
10
    “(5)
For the purposes of sub-paragraph (4)(c) a claim under
Part 11 of CTA 2010 is a relevant claim unless—
(a)
it is a claim for exemption under—
(i)
section 475 or 476 (reliefs for certain
heritage bodies etc),
15
(ii)
section 480 (exemption for profits of small-
scale trades), or
(iii)
section 481 (exemption from charges under
provisions to which section 1173 of CTA
2010 applies), or
20
(b)
the company is entitled to make it only by virtue of
section 490 (application of exemptions to certain
heritage bodies etc).”
      (3)
In paragraph 5(2) for “section 392A of ICTA (UK property business losses)
applies” substitute “sections 62 and 63 of CTA 2010 (UK property business
25
losses) apply (see section 64 of that Act)”.
      (4)
In paragraph 6(2)—
(a)
for “section 392B of ICTA” substitute “section 66 of CTA 2010”, and
(b)
after “applies” insert “(see section 67 of that Act)”.
      (5)
In paragraph 11—
30
(a)
in sub-paragraph (2)(a) for “section 393A(1)(a) of ICTA to set the loss
against profits of whatever description” substitute “section 37(3)(a)
of CTA 2010 to deduct the loss from total profits”,
(b)
in sub-paragraph (2)(b) for “section 393A(1)(b) or 393B(3) of that Act
(losses set against” substitute “section 37(3)(b) or 42 of that Act
35
(losses deducted from”,
(c)
in sub-paragraph (2)(c) for “section 403(1)” substitute “Part 5”,
(d)
in sub-paragraph (2)(e) for “section 400” substitute “Chapter 7 of Part
4”,
(e)
in sub-paragraph (3)(a) for “section 393(1) of ICTA” substitute
40
“section 45 of CTA 2010”,
(f)
in sub-paragraph (3)(b) for “section 393A(1)(b) or 393B(3)” substitute
“section 37(3)(b) or 42”, and
(g)
in sub-paragraph (3)(c) for “section 395” substitute “section 53”.
      (6)
In paragraph 12—
45
(a)
in sub-paragraph (2)(a) for “section 392A(1) of ICTA to set the loss
against profits of whatever description” substitute “section 62(1) to
(3) of CTA 2010 to deduct the loss from total profits”,

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
620

(b)
in sub-paragraph (2)(b) for “section 403(1)” substitute “Part 5”,
(c)
in sub-paragraph (2)(d) for “section 400 of ICTA” substitute “Chapter
7 of Part 4 of CTA 2010”, and
(d)
in sub-paragraph (3) for “section 392A(2) of ICTA” substitute
“section 62(5) of CTA 2010”.
5
      (7)
In paragraph 13—
(a)
in sub-paragraph (2) for “section 400 of ICTA” substitute “Chapter 7
of Part 4 of CTA 2010”, and
(b)
in sub-paragraph (3) for “section 392B(1) of ICTA” substitute “section
66 of CTA 2010”.
10
      (8)
In paragraph 14(4)(b) for “set of against the loss under section 400 of ICTA”
substitute “set off against the loss under Chapter 7 of Part 4 of CTA 2010”.
      (9)
In paragraph 15(2)—
(a)
in paragraph (a) for “section 403(1) of ICTA” substitute “Part 5 of
CTA 2010”, and
15
(b)
in paragraph (b) for “section 400” substitute “Chapter 7 of Part 4”.
     (10)
In paragraph 16(2)(b) for “section 400 of ICTA” substitute “Chapter 7 of Part
4 of CTA 2010”.
     (11)
In paragraph 20—
(a)
in sub-paragraph (a) for “section 393 of ICTA” substitute “section 45
20
of CTA 2010”,
(b)
in sub-paragraph (c) for “section 392A(2) of ICTA” substitute
“section 62(5) of CTA 2010”, and
(c)
in sub-paragraph (d) for “section 392B of ICTA” substitute “section
66 of CTA 2010”.
25
365   (1)
Amend Schedule 1 (abbreviations and defined expressions) as follows.
      (2)
In Part 1 at the end insert—

“CTA 2010
The Corporation Tax Act 2010”

      (3)
In Part 2 of Schedule 1 (defined expressions)—
(a)
in the entry for “body of persons”, in the second column, for “section
30
832(1) of ICTA” substitute “section 1119 of CTA 2010”,
(b)
in the entry for “the charge to corporation tax on income”, in the
second column, for “section 834(1) of ICTA” substitute “section 1119
of CTA 2010”,
(c)
in the entry for “dual resident investing company”, in the second
35
column, for “section 404 of ICTA” substitute “section 949 of CTA
2010”,
(d)
in the entry for “offshore installation”, in the second column, for
“section 837C of ICTA” substitute “section 1132 of CTA 2010”,
(e)
in the entry for “overseas property business”, in the second column,
40
for “section 834B of ICTA” substitute “section 1119 of CTA 2010”,
(f)
in the entry for “Tax”, in the second column, for “section 832(3) of
ICTA” substitute “section 1119 of CTA 2010”,

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
621

(g)
in the entry for “UK property business”, in the second column, for
“section 834B of ICTA” substitute “section 1119 of CTA 2010”,
(h)
in the entry for “United Kingdom”, in the second column, for
“section 830(1) of ICTA” substitute “section 1170 of CTA 2010”, and
(i)
in the entry for “within the charge to tax”, in the second column, for
5
“section 832(1) of ICTA” substitute “section 1167 of CTA 2010”.
Finance Act 2001 (c. 9)
366
In Schedule 30 to the Finance Act 2001 (stamp duty: land in disadvantaged
areas) in paragraph 2(5)(b) for “section 839 of the Taxes Act 1988” substitute
“section 1122 of the Corporation Tax Act 2010”.
10
Trustee Act (Northern Ireland) 2001 (c. 14 (N.I.))
367
In section 19(3) of the Trustee Act (Northern Ireland) 2001 for “section 840 of
the Income and Corporation Taxes Act 1988 (c. 1)” substitute “section 1124
of the Corporation Tax Act 2010”.
Finance Act 2002 (c. 23)
15
368
The Finance Act 2002 is amended as follows.
369
Omit section 57(1) (community investment tax relief).
370
Omit section 58 (relief for community amateur sports clubs).
371
In section 63(2)(a) (first year allowances for expenditure wholly for a ring
fence trade) for “section 501A of the Taxes Act 1988 (inserted by section 91
20
of this Act)” substitute “section 330(1) of the Corporation Tax Act 2010”.
372
In section 113(4)(b) (stamp duty: withdrawal of relief for company
acquisitions) for “section 416 of the Taxes Act 1988” substitute “sections 450
and 451 of the Corporation Tax Act 2010”.
373
Omit Schedule 16 (community investment tax relief).
25
374
Omit Schedule 18 (relief for community amateur sports clubs).
375
In paragraph 8(4) of Schedule 34 (stamp duty: recovery of group relief from
another group company or controlling director)—
(a)
for the definition of “director” substitute—
““director”, in relation to a company, has the meaning
30
given by section 67(1) and (2) of the Income Tax
(Earnings and Pensions) Act 2003 and includes any
person falling within section 452(1) of the
Corporation Tax Act 2010;”, and
(b)
in the definition of “controlling director” for “section 416 of the Taxes
35
Act 1988” substitute “sections 450 and 451 of the Corporation Tax Act
2010”.
376
In Schedule 35 (stamp duty: withdrawal of relief for company acquisitions:
supplementary provisions)—
(a)
in paragraph 5(2) for “section 417(7) to (9) of the Taxes Act 1988”
40
substitute “section 453 of the Corporation Tax Act 2010”, and

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
622

(b)
in paragraph 9(4) for paragraph (c) substitute—
“(c)
“director”, in relation to a company, has the
meaning given by section 67(1) and (2) of the
Income Tax (Earnings and Pensions) Act 2003 and
includes any person falling within section 452(1) of
5
the Corporation Tax Act 2010;”.
377
In Schedule 37 (supplementary provisions) in paragraph 2(4)(b) for “section
839 of the Taxes Act 1988” substitute “section 1122 of the Corporation Tax
Act 2010”.
Income Tax (Earnings and Pensions) Act 2003 (c. 1)
10
378
The Income Tax (Earnings and Pensions) Act 2003 is amended as follows.
379
In section 24(6)(b) (limit on chargeable overseas earnings where duties of
associated employment performed in UK) for “of section 416 of ICTA”
substitute “given by sections 450 and 451 of CTA 2010”.
380
In section 51(5) (conditions of liability where intermediary is a partnership)
15
for “section 417(1) of ICTA” substitute “section 454 of CTA 2010”.
381
In section 60(1)(a) (meaning of associate) for “section 417(3) and (4) of ICTA”
substitute “section 448 of CTA 2010”.
382
In section 61(1) (interpretation) in the definition of “associated company” for
“section 416 of ICTA” substitute “section 449 of CTA 2010”.
20
383   (1)
Amend section 68 (meaning of “material interest” in a company) as follows.
      (2)
In subsection (2) for “such associates” substitute “other such associates”.
      (3)
In subsection (3) for “such associates” substitute “other such associates”.
      (4)
In subsection (4)—
(a)
in the definition of “associate”—
25
(i)
for “section 417(3) of ICTA” substitute “section 448 of CTA
2010”,
(ii)
for “section 417(3)”, in the second place, substitute “section
448(1)”, and
(b)
in the definition of “participator” for “section 417(1) of ICTA”
30
substitute “section 454 of CTA 2010”.
384
In section 230(4)(c) (the approved amount for mileage allowance payments)
for “of section 416 of ICTA” substitute “given by section 449 of CTA 2010”.
385
In section 357(2) (business entertainment and gifts: exception where
employer’s expenses disallowed)—
35
(a)
omit “section 505(1)(e) of ICTA or”, and
(b)
after “2007” insert “or section 478 of CTA 2010”.
386
In section 421H(2) (meaning of “employee-controlled” etc) for “same
meaning as, by virtue of section 416 of ICTA, it has for the purposes of Part
11 of ICTA” substitute “meaning given by section 449 of CTA 2010”.
40
387
In section 446A(3)(b) (application of Chapter) for “section 402(6) of ICTA”
substitute “section 183(1) of CTA 2010”.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
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388
In section 446K(3)(b) (application of Chapter) for “section 402(6) of ICTA”
substitute “section 183(1) of CTA 2010”.
389
In section 459(3) (transfer of intellectual property by controlled company)
for “of section 416 of ICTA” substitute “given by sections 450 and 451 of CTA
2010”.
5
390
In section 479(9)(b) (amount of gain realised on occurrence of chargeable
event) for “section 402(6) of ICTA” substitute “section 183(1) of CTA 2010”.
391
In section 493(3) (no charge on acquisition of dividend shares) for “Section
234A(4) of ICTA” substitute “Section 1105(3) of CTA 2010”.
392
In section 538(4) (share conversions excluded for the purposes of section 536)
10
in the definition of “associated company” for “same meaning as, by virtue of
section 416 of ICTA, it has for the purposes of Part 11 of ICTA” substitute
“meaning given by section 449 of CTA 2010”.
393
In section 549(4)(a) (application of Chapter) for “same meaning as in section
417(3) and (4) of ICTA (expressions relating to close companies)” substitute
15
“meaning given by section 448 of CTA 2010 (close companies: meaning of
“associate”)”.
394
In section 714(2) (meaning of “donations”), in the definition of “charity”, for
“section 507 of ICTA” substitute “section 468 of CTA 2010”.
395   (1)
Amend Schedule 1 (abbreviations and defined expressions) as follows.
20
      (2)
At the end of Part 1 insert—

“CTA 2010
The Corporation Tax Act 2010”

      (3)
In Part 2 in the entry for “Tax”, in the second column, for “section 832(3) of
ICTA (as applied by section 989 of ITA 2007)” substitute “section 989 of ITA
2007”.
25
396   (1)
Amend Schedule 2 (approved share incentive plans) as follows.
      (2)
In paragraph 20(4)—
(a)
in the definition of “close company”—
(i)
for “section 414(1)(a) of ICTA” substitute “section 442(a) of
CTA 2010”, and
30
(ii)
for “section 415 of ICTA” substitute “sections 446 and 447 of
CTA 2010”, and
(b)
in the definition of “participator” for “section 417(1) of ICTA”
substitute “section 454 of CTA 2010”.
      (3)
In paragraph 29(5) for “section 416(2) to (6) of ICTA” substitute “sections 450
35
and 451 of CTA 2010”.
      (4)
In paragraph 37(6) for “section 416 of ICTA” substitute “sections 450 and 451
of CTA 2010”.
      (5)
In paragraph 80(4)—
(a)
for the words from the beginning to “applies” substitute “Sections
40
1105 to 1108 of CTA 2010 (information relating to distributions to be
provided by nominee) apply”, and

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
624

(b)
for “section 234A(4)(b)” substitute “section 1105(1)(b) of that Act”.
      (6)
In paragraph 86(4)—
(a)
in paragraph (a) for “section 209(2)(c) of ICTA” substitute
“paragraph C or D in section 1000(1) of CTA 2010”,
(b)
in paragraph (b) for “section 210(1) of ICTA” substitute “section
5
1022(3) of CTA 2010”, and
(c)
in paragraph (c) for the words from “section 249” to the end
substitute “section 410 of ITTOIA 2005 (stock dividends) applies that
is issued in a case where subsection (2) or (3) of that section applies.”
      (7)
In paragraph 94(3) for “section 416(2) to (6) of ICTA” substitute “sections 450
10
and 451 of CTA 2010”.
      (8)
In paragraph 100 in the entry for “tax”, in the second column, for “section
832(3) of ICTA (as applied by section 989 of ITA 2007)” substitute “section
989 of ITA 2007”.
397   (1)
Amend Schedule 3 (approved SAYE option schemes) as follows.
15
      (2)
In paragraph 11(4)—
(a)
in paragraph (a) for “section 414(1)(a) of ICTA” substitute “section
442(a) of CTA 2010”, and
(b)
in paragraph (b) for “section 415 of ICTA” substitute “sections 446
and 447 of CTA 2010”.
20
      (3)
In paragraph 12(4) for “section 417(1) of ICTA” substitute “section 454 of
CTA 2010”.
      (4)
In paragraph 35(4) for “section 416(2) to (6) of ICTA” substitute “sections 450
and 451 of CTA 2010”.
      (5)
In paragraph 47(2) for “section 416(2) to (6) of ICTA” substitute “sections 450
25
and 451 of CTA 2010”.
      (6)
In paragraph 49 in the entry for “tax”, in the second column, for “section
832(3) of ICTA (as applied by section 989 of ITA 2007)” substitute “section
989 of ITA 2007”.
398   (1)
Amend Schedule 4 (approved CSOP schemes) as follows.
30
      (2)
In paragraph 9(4)—
(a)
in paragraph (a) for “section 414(1)(a) of ICTA” substitute “section
442(a) of CTA 2010”, and
(b)
in paragraph (b) for “section 415 of ICTA” substitute “sections 446
and 447 of CTA 2010”.
35
      (3)
In paragraph 10(4) for “section 417(1) of ICTA” substitute “section 454 of
CTA 2010”.
      (4)
In paragraph 35(2) for “section 416(2) to (6) of ICTA” substitute “sections 450
and 451 of CTA 2010”.
399   (1)
Amend Schedule 5 (enterprise management incentives) as follows.
40
      (2)
In paragraph 10(3) for “section 416(2) to (6) of ICTA” substitute “sections 450
and 451 of CTA 2010”.