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
625

      (3)
In paragraph 11A for sub-paragraph (3) substitute—
    “(3)
In sub-paragraph (2) “property deriving its value from land” has
the meaning given by section 188(3) of ITA 2007”.
      (4)
In paragraph 23—
(a)
in sub-paragraph (4)(c)—
5
(i)
for “section 344(2) of ICTA (company reconstructions:
supplemental)” substitute “section 942 of CTA 2010 (options
for purposes of ownership condition)”, and
(ii)
for the words from “section 343” to the end substitute
“section 941 of that Act (trade transfers without change of
10
ownership: ownership condition)”,
(b)
in sub-paragraph (6) for “section 416(2) to (6) of ICTA” substitute
“sections 450 and 451 of CTA 2010”,
(c)
in sub-paragraph (8) in the definition of “associate”—
(i)
for “in section 417(3) and (4) of ICTA” substitute “by section
15
448 of CTA 2010”, and
(ii)
for “those subsections as they apply” substitute “that section
as it applies”, and
(d)
in sub-paragraph (8) in the definition of “director” for “section 417(5)
of ICTA” substitute “section 452 of CTA 2010”.
20
      (5)
In paragraph 29(4)—
(a)
in the definition of “close company”—
(i)
for “section 414(1)(a) of ICTA” substitute “section 442(a) of
CTA 2010”,
(ii)
for “section 415 of ICTA” substitute “sections 446 and 447 of
25
CTA 2010”, and
(b)
in the definition of “participator” for “section 417(1) of ICTA”
substitute “section 454 of CTA 2010”.
      (6)
In paragraph 59 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
30
989 of ITA 2007”.
Finance Act 2003 (c. 14)
400
The Finance Act 2003 is amended as follows.
401
In section 44(11) (contract and conveyance) for “Section 839 of the Taxes Act
1988” substitute “Section 1122 of the Corporation Tax Act 2010”.
35
402
In section 45(6) (contract and conveyance: effect of transfer of rights) for
“Section 839 of the Taxes Act 1988” substitute “Section 1122 of the
Corporation Tax Act 2010”.
403
In section 45A(10) (contract providing for conveyance to third party: effect
of transfer of rights) for “Section 839 of the Taxes Act 1988” substitute
40
“Section 1122 of the Corporation Tax Act 2010”.
404
In section 53(2) (deemed market value where transaction involves connected
company) for “Section 839 of the Taxes Act 1988” substitute “Section 1122 of
the Corporation Tax Act 2010”.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
626

405
In section 54(3)(b) (exceptions from deemed market value rule) for “section
839(3) of the Taxes Act 1988” substitute “section 1122(6) of the Corporation
Tax Act 2010”.
406
In section 73AB(4) (sections 71A to 72A: arrangements to transfer control of
financial institution) for “Section 840 of the Taxes Act 1988” substitute
5
“Section 1124 of the Corporation Tax Act 2010”.
407
In section 75A(5)(b) (anti-avoidance) for “section 839 of the Taxes Act 1988”
substitute “section 1122 of the Corporation Tax Act 2010”.
408
In section 101(6) (unit trust schemes) for “Section 469A of the Taxes Act 1988
(court common investment funds treated as authorised unit trusts)”
10
substitute “Section 620 of the Corporation Tax Act 2010 (court investment
funds treated as authorised unit trusts)”.
409
In section 108(1) (linked transactions) for “Section 839 of the Taxes Act 1988”
substitute “Section 1122 of the Corporation Tax Act 2010”.
410
Omit section 148 (meaning of “permanent establishment”).
15
411
Omit section 150 (non-resident companies: assessment, collection and
recovery of corporation tax).
412
Omit section 152 (non-resident companies: transactions carried out through
broker, investment manager or Lloyd’s agent).
413   (1)
Amend section 195 (companies acquiring their own shares) as follows.
20
      (2)
In subsection (8)(e) for “Part 6 of the Taxes Act 1988” substitute “Part 23 of
the Corporation Tax Act 2010”.
      (3)
In subsection (11)(a) for “section 254 of the Taxes Act 1988” substitute
“section 1115 of the Corporation Tax Act 2010”.
414
In Schedule 4 (stamp duty land tax: chargeable consideration) in paragraph
25
1(2) for “Section 839 of the Taxes Act 1988” substitute “Section 1122 of the
Corporation Tax Act 2010”.
415
In Schedule 6A (relief for certain acquisitions of residential property) in
paragraph 10 for “Section 839 of the Taxes Act 1988” substitute “Section 1122
of the Corporation Tax Act 2010”.
30
416   (1)
Amend Schedule 7 (stamp duty land tax: group relief etc) as follows.
      (2)
In paragraph 1—
(a)
in sub-paragraph (4) for “section 838(5) to (10) of the Taxes Act 1988”
substitute “sections 1155 to 1157 of the Corporation Tax Act 2010”,
and
35
(b)
for sub-paragraph (6) substitute—
    “(6)
Chapter 6 of Part 5 of the Corporation Tax Act 2010 (group
relief: equity holders and profits or assets available for
distribution) applies for the purposes of sub-paragraphs
(3)(b) and (c) above as it applies for the purposes of section
40
151(4)(a) and (b) of that Act.
     (6A)
In that Chapter as it applies for the purposes of sub-
paragraphs (3)(b) and (c) above, sections 171(1)(b) and (3),

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
627

173, 174 and 176 to 178 of that Act are to be treated as
omitted.”
      (3)
In paragraph 2(5), in the definition of “control”, for “section 840 of the Taxes
Act 1988” substitute “section 1124 of the Corporation Tax Act 2010”.
      (4)
In paragraph 4ZA—
5
(a)
in sub-paragraph (7)(a) for “of section 417(7) to (9) of the Taxes Act
1988” substitute “given by section 453 of the Corporation Tax Act
2010”, and
(b)
in sub-paragraph (8) for “section 416 of the Taxes Act 1988”
substitute “sections 450 and 451 of the Corporation Tax Act 2010”.
10
      (5)
In paragraph 4A—
(a)
in sub-paragraph (3) for “section 416 of the Taxes Act 1988”
substitute “sections 450 and 451 of the Corporation Tax Act 2010”,
and
(b)
in sub-paragraph (3A)(a) for “of section 417(7) to (9) of the Taxes Act
15
1988” substitute “given by section 453 of the Corporation Tax Act
2010”.
      (6)
In paragraph 5(4)—
(a)
in the definition of “director” for “section 417(5) of the Taxes Act 1988
(read with subsection (6) of that section)” substitute “section 452(1)
20
of the Corporation Tax Act 2010”, and
(b)
in the definition of “controlling director” for “section 416 of the Taxes
Act 1988” substitute “sections 450 and 451 of the Corporation Tax Act
2010”.
      (7)
In paragraph 9(5)(b) for “section 416 of the Taxes Act 1988” substitute
25
“sections 450 and 451 of the Corporation Tax Act 2010”.
      (8)
In paragraph 10(6) for “section 417(7) to (9) of the Taxes Act 1988” substitute
“section 453 of the Corporation Tax Act 2010”.
      (9)
In paragraph 11(6)(b) for “section 416 of the Taxes Act 1988” substitute
“sections 450 and 451 of the Corporation Tax Act 2010”.
30
     (10)
In paragraph 12(5)—
(a)
in paragraph (a) for “section 417(5) of the Taxes Act 1988 (read with
subsection (6) of that section)” substitute “section 452(1) of the
Corporation Tax Act 2010”, and
(b)
in paragraph (b) for “section 416 of the Taxes Act 1988” substitute
35
“sections 450 and 451 of the Corporation Tax Act 2010”.
417   (1)
Amend Schedule 9 (stamp duty land tax: right to buy, shared ownership
leases etc) as follows.
      (2)
In paragraph 5(2B) for “Section 839 of the Taxes Act 1988” substitute “Section
1122 of the Corporation Tax Act 2010”.
40
      (3)
In paragraph 7(9) for “Section 839 of the Taxes Act 1988” substitute “Section
1122 of the Corporation Tax Act 2010”.
418   (1)
Amend Schedule 15 (stamp duty land tax: partnerships) as follows.
      (2)
In paragraph 12(3)(b) for “section 839(3) of the Taxes Act 1988” substitute
“section 1122(6) of the Corporation Tax Act 2010”.
45

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
628

      (3)
In paragraph 20(3)(b) for “section 839(3) of the Taxes Act 1988” substitute
“section 1122(6) of the Corporation Tax Act 2010”.
      (4)
In paragraph 39—
(a)
in sub-paragraph (1) for “Section 839 of the Taxes Act 1988”
substitute “Section 1122 of the Corporation Tax Act 2010”,
5
(b)
in sub-paragraph (2) for “subsection (4)” substitute “subsection (7)”,
and
(c)
in sub-paragraph (3) for “subsection (3)(c)” substitute “subsection
(6)(c) to (e)”.
419
In Schedule 17A (further provisions relating to leases) in paragraph 18A(6)
10
for “Section 839 of the Taxes Act 1988” substitute “Section 1122 of the
Corporation Tax Act 2010”.
420
In Schedule 20 (stamp duty: restriction to instruments relating to stock or
marketable securities) in paragraph 2(4)(b) for “section 839 of the Taxes Act
1988” substitute “section 1122 of the Corporation Tax Act 2010”.
15
421
Omit Schedule 26 (non-resident companies: transactions through broker,
investment manager or Lloyd’s agent).
Housing (Northern Ireland) Order 2003 (S.I. 2003/412 (N.I. 2))
422
In Article 85(2) of the Housing (Northern Ireland) Order 2003 for “Section
416 of the Income and Corporation Taxes Act 1988 (c. 1)” substitute “Section
20
449 of the Corporation Tax Act 2010”.
Finance Act 2004 (c. 12)
423
The Finance Act 2004 is amended as follows.
424
Omit section 50 (generally accepted accounting practice).
425
Omit section 51 (use of different accounting practices within a group of
25
companies).
426
In section 59(4) (contractors) for “section 343 of the Taxes Act 1988”
substitute “Chapter 1 of Part 22 of the Corporation Tax Act 2010”.
427
Omit section 83 (giving through the self-assessment return).
428
In section 273(9) (members liable as scheme administrator) for “section
30
417(5)(b) of ICTA” substitute “section 452(2)(b) of the Corporation Tax Act
2010”.
429
In section 307(2)(b) (meaning of “promoter”)—
(a)
for “section 840A of the Taxes Act 1988” substitute “section 1120 of
the Corporation Tax Act 2010”, and
35
(b)
for “section 209A(4)” substitute “section 1009(3)”.
430
In paragraph 4(2) of Schedule 11 (the compliance test) for “section 416(2) to
(6) of the Taxes Act 1988” substitute “sections 450 and 451 of the Corporation
Tax Act 2010”.
431   (1)
Amend Schedule 29A (taxable property held by investment-regulated
40
pension schemes) as follows.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
629

      (2)
In paragraph 17(3) for “section 416 of ICTA” substitute “sections 450 and 451
of the Corporation Tax Act 2010”.
      (3)
In paragraph 21(3)—
(a)
in paragraph (a)—
(i)
for “section 416 of ICTA” substitute “sections 450 and 451 of
5
the Corporation Tax Act 2010”,
(ii)
for “that section” substitute “those sections”, and
(b)
in paragraph (b)—
(i)
for “paragraph (b) of section 417(5)” substitute “section
452(2)(b)”,
10
(ii)
for “that paragraph” substitute “section 452(3) of that Act”.
      (4)
In paragraph 22(1) for the words from “is” to “that Part applies” substitute
“is a company which is, or is a member of, a UK REIT within the meaning of
Part 12 of the Corporation Tax Act 2010 (Real Estate Investment Trusts)”.
      (5)
In each of the following paragraphs for “Section 839 of ICTA” substitute
15
“Section 1122 of the Corporation Tax Act 2010”—
(a)
paragraph 10(4),
(b)
paragraph 19(8),
(c)
paragraph 21(5),
(d)
paragraph 22(3), and
20
(e)
paragraph 24(6).
432   (1)
Amend Schedule 36 (pension schemes: transitional provision and savings)
as follows.
      (2)
In paragraph 12(8A)(b) for “Chapter 4 of Part 10 of ICTA” substitute “Part 5
of the Corporation Tax Act 2010”.
25
      (3)
In paragraph 22(7J) for “Section 839 of ICTA” substitute “Section 1122 of the
Corporation Tax Act 2010”.
      (4)
In paragraph 37H(5) for “Section 839 of ICTA” substitute “Section 1122 of the
Corporation Tax Act 2010”.
Energy Act 2004 (c. 20)
30
433
The Energy Act 2004 is amended as follows.
434   (1)
Amend section 27 (tax exemption for NDA activities) as follows.
      (2)
In subsection (1)(b) for the words from “set off” to the end substitute
“relieved under section 37 or 45 of the Corporation Tax Act 2010 (relief for
trading losses) or surrendered as trading losses under Part 5 of that Act
35
(group relief).”
      (3)
In subsection (8), in the definition of “owned directly or indirectly”, for
“section 838 of the Income and Corporation Taxes Act 1988 (c. 1)” substitute
“Chapter 3 of Part 24 of the Corporation Tax Act 2010”.
435   (1)
Amend section 28 (taxation of activities of the Nuclear Decommissioning
40
Authority chargeable under miscellaneous provisions) as follows.
      (2)
In subsection (1)(a) for “section 834A of the Income and Corporation Taxes
Act 1988” substitute “section 1173 of the Corporation Tax Act 2010”.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
630

      (3)
In subsection (2)(b) for “section 834A of the Income and Corporation Taxes
Act 1988” substitute “section 1173 of the Corporation Tax Act 2010”.
436
In section 44(2) (extinguishment of BNFL losses for tax purposes)—
(a)
in paragraph (b) for “section 834A of the Income and Corporation
Taxes Act 1988” substitute “section 1173 of the Corporation Tax Act
5
2010”,
(b)
for paragraph (d) substitute—
“(d)
losses incurred by the company in carrying on a UK
property business (within the meaning given by
Chapter 2 of Part 4 of the Corporation Tax Act 2009)”,
10
(c)
in paragraph (e) for “section 392B(1) of that Act” substitute “section
66 of the Corporation Tax Act 2010”, and
(d)
for paragraph (f) substitute—
“(f)
any Type 4 carry-forward losses of the company
falling within section 95(1) of the Corporation Tax Act
15
2010;”.
437
In paragraph 3 of Schedule 4 (supplemental taxation provisions for exempt
activities)—
(a)
for “No charges on income incurred” substitute “No qualifying
charitable donations made”, and
20
(b)
for the words from “section 338” to the end substitute “Part 6 of the
Corporation Tax Act 2010”.
438   (1)
Amend Schedule 9 (taxation provisions relating to nuclear transfer schemes)
as follows.
      (2)
In paragraph 2(3)—
25
(a)
for the words from “Subsections” to “ownership)” substitute
“Sections 944 and 951 to 953 of the Corporation Tax Act 2010
(transfers of trade without a change of ownership)”, and
(b)
in paragraph (a) for “subsection (1) of that section” substitute
“Chapter 1 of Part 22 of that Act”.
30
      (3)
In paragraph 10 for “section 839 of the Taxes Act” substitute “section 1122 of
the Corporation Tax Act 2010”.
      (4)
For paragraph 17 substitute—
“17
Where Chapter 1 of Part 22 of the Corporation Tax Act 2010
(transfers of trade without a change of ownership) applies in
35
relation to a transfer to which this Part of this Schedule applies,
that Chapter has effect in relation to the transfer with the omission
of section 945”.
      (5)
In paragraph 21(1)(b) for “section 343 of the Taxes Act” substitute “Chapter
1 of Part 22 of the Corporation Tax Act 2010”.
40
      (6)
In paragraph 22 for “section 839 of the Taxes Act” substitute “section 1122 of
the Corporation Tax Act 2010”.
Companies (Audit, Investigations and Community Enterprise) Act 2004 (c. 27)
439   (1)
Section 54C of the Companies (Audit, Investigations and Community
Enterprise) Act 2004 (ceasing to be a community interest company and
45

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
631

becoming a charity: application and accompanying documents) is amended
as follows.
      (2)
In subsection (2)(c) for “section 505(1) of the Income and Corporation Taxes
Act 1988” substitute “a relevant provision of Part 11 of the Corporation Tax
Act 2010”.
5
      (3)
After subsection (3) insert—
“(3A)
For the purposes of subsection (2)(c) all the provisions of Part 11 of
the Corporation Tax Act 2010 under which exemption may be
claimed are relevant provisions except—
(a)
section 480 (exemption for profits of small-scale trades), and
10
(b)
section 481 (exemption from charges under provisions to
which section 1173 applies).”
Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc) Order 2004 (S.I. 2004/
2030)
440
The Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc)
15
Order 2004 is amended as follows.
441
Omit article 3 (transfer of functions to the Scottish Ministers).
442
Omit article 5 (modification of ICTA).
443
In article 6 (general modifications of enactments etc)—
(a)
in paragraph (1) for “article 3 or 4 of this Order” substitute “article 4
20
of this Order or section 644(1) or (3) or 645(1) of the Corporation Tax
Act 2010”,
(b)
in paragraph (2) for “articles” substitute “provisions”, and
(c)
in paragraph (3) for “those sections” substitute “sections 117 to 119 of
the 1998 Act” and for “them” substitute “those sections”.
25
Income Tax (Trading and Other Income) Act 2005 (c. 5)
444
The Income Tax (Trading and Other Income) Act 2005 is amended as
follows.
445
In section 100(4) (meaning of sale and lease-back arrangement) for “section
779(1) or (2) or 780(1) of ICTA” substitute “section 835(1) or (2) or 836(1) or
30
(2) of CTA 2010”.
446
In section 108(3) (gifts of trading stock to charities etc) for “paragraph 1 of
Schedule 18 to FA 2002 (relief for community” substitute “section 658 of CTA
2010 (community”.
447
For section 148D (lessor under long funding operating lease: periodic
35
deduction) substitute—
“148D
Lessor under long funding operating lease: periodic deduction
(1)
This section applies if a person carrying on a trade is the lessor of any
plant or machinery under a long funding operating lease for the
whole or part of a period of account.
40
(2)
A deduction is allowed in calculating the profits of the person for the
period of account for income tax purposes.