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
674

(b)
in sub-paragraph (2) for “section 834A(2) of ICTA” substitute
“section 1173(2) of CTA 2010”.
      (3)
In paragraph 147(2) for “section 834A of ICTA” substitute “section 1173 of
CTA 2010”.
704   (1)
Amend Schedule 4 (index of defined expressions) as follows.
5
      (2)
In the following entries, in the second column, for “section 834(1) of ICTA”
substitute “section 1119 of CTA 2010”—
(a)
“accounting period”,
(b)
“income”,
(c)
“registered industrial and provident society”, and
10
(d)
“venture capital trust”.
      (3)
In the following entries, in the second column, for “section 832(1) of ICTA”
substitute “section 1119 of CTA 2010”—
(a)
“body of persons”,
(b)
“building society”,
15
(c)
“capital allowance”,
(d)
“chargeable period”,
(e)
“company (except in Chapters 13 and 14 of Part 5, Chapters 9 and 10
of Part 7, Chapter 8 of Part 8 and Chapter 1 of Part 11)”,
(f)
“distribution”,
20
(g)
“for accounting purposes”,
(h)
“notice”,
(i)
“ordinary share capital”,
(j)
“period of account”,
(k)
“registered pension scheme”,
25
(l)
“trade”, and
(m)
“tribunal”.
      (4)
In the entry for “assignment”, in the second column, for “section 1320(1)”
substitute “section 1166(1) of CTA 2010”.
      (5)
In the entry for “associate (in Parts 5 and 6)”, in the second column, for
30
“section 417(3) of ICTA” substitute “section 448 of CTA 2010”.
      (6)
In the entry for “associate (in Chapter 12 of Part 8)”, in the second column,
for “section 417(3) of ICTA” substitute “section 448 of CTA 2010”.
      (7)
In the entry for “authorised unit trust”, in second column, for “section 468(6)
of ICTA (as applied by section 832(1) of that Act)” substitute “Chapter 2 of
35
Part 13 of CTA 2010 (as applied by section 1119 of that Act)”.
      (8)
In the entry for “basic rate”, in the second column, for “section 1319”
substitute “section 1119 of CTA 2010”.
      (9)
In the entry for “charity”, in the second column, for “section 1319” substitute
“section 1119 of CTA 2010”.
40
     (10)
In the entry for “close company”, in the second column, for “sections 414 and
415 of ICTA” substitute “Chapter 2 of Part 10 of CTA 2010”.
     (11)
In the entry for “connected (in the context of “connected person” or one
person being “connected” with another) (except in Chapter 12 of Part 8)”, in

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
675

the second column, for “section 839 of ICTA” substitute “section 1122 of CTA
2010”.
     (12)
In the entry for “control (except in Part 5, Chapter 12 of Part 8 and Chapter
1 of Part 11)”, in the second column, for “section 840 of ICTA” substitute
“section 1124 of CTA 2010”.
5
     (13)
In the entry for “estate in land (in relation to any land in Scotland)”, in the
second column, for “section 832(1) of ICTA” substitute “section 1166(1) of
CTA 2010”.
     (14)
In the entry for “farming”, in the second column, for “section 1317”
substitute “section 1125 of CTA 2010”.
10
     (15)
In the entry for “forestry”, in the second column, for “section 1317(3)”
substitute “section 1125(3) of CTA 2010”.
     (16)
In the entry for “generally accepted accounting practice”, in the second
column, for “section 832(1) of ICTA and section 50(1) of FA 2004” substitute
“section 1119 of CTA 2010”.
15
     (17)
In the entry for “grossing up”, in the second column, for “section 1318”
substitute “section 1128 of CTA 2010”.
     (18)
In the entry for “international accounting standards”, in the second column,
for “section 832(1) of ICTA and section 50(2) of FA 2004” substitute “section
1119 of CTA 2010”.
20
     (19)
In the entry for “investment trust”, in the second column, for “section 842 of
ICTA” substitute “section 1158 of CTA 2010”.
     (20)
In the entry for “local authority”, in the second column, for “section 842A of
ICTA” substitute “section 1130 of CTA 2010”.
     (21)
In the entry for “mortgage”, in the second column, for “section 1320(1)”
25
substitute “section 1166(1) of CTA 2010”.
     (22)
In the entry for “non-UK resident”, in the second column, for “section 1319”
substitute “section 1119 of CTA 2010”.
     (23)
In the entry for “oil and gas exploration and appraisal”, in the second
column, for “section 837B of ICTA” substitute “section 1134 of CTA 2010”.
30
     (24)
In the entry for “open-ended investment company”, in the second column,
for “section 468A(2) of ICTA” substitute “section 613 of CTA 2010”.
     (25)
In the entry for “permanent establishment”, in the second column, for
“section 832(1) of ICTA and section 148 of FA 2003” substitute “section 1119
of CTA 2010”.
35
     (26)
In the entry for “personal representatives”, in the second column, for
“section 968” substitute “section 1119 of CTA 2010”.
     (27)
In the entry for “qualifying distribution”, in the second column, for “section
14(2) of ICTA (as applied by section 832(1) of that Act)” substitute “section
1136 of CTA 2010”.
40
     (28)
Omit the entry for “qualifying policy”.
     (29)
In the entry for “recognised stock exchange”, in the second column, for
“section 841(1) of ICTA” substitute “section 1137 of CTA 2010”.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
676

     (30)
In the entry for “registered pension scheme”, in the second column, for
“section 832(1) of ICTA” substitute “section 1119 of CTA 2010”.
     (31)
In the entry for “research and development”, in the second column, for
“section 837A of ICTA” substitute “section 1138 of CTA 2010”.
     (32)
In the entry for “retail prices index”, in the second column, for “section 1319”
5
substitute “section 1119 of CTA 2010”.
     (33)
In the entry for “statutory insolvency arrangement”, in the second column,
for “section 834(1) of ICTA” substitute “section 1319”.
     (34)
In the entry for “51% subsidiary”, in the second column, for “section
838(1)(a) of ICTA” substitute “section 1154(2) of CTA 2010”.
10
     (35)
In the entries for “75% subsidiary” and “75% subsidiary (in Chapter 8 of Part
8)”, in the second column, for “section 838(1)(b) of ICTA” substitute “section
1154(3) of CTA 2010”.
     (36)
In the entry for “surrender”, in the second column, for “section 1320(1)”
substitute “section 1166(1) of CTA 2010”.
15
     (37)
In the entry for “tax advantage”, in the second column, for “section 840ZA of
ICTA” substitute “section 1139 of CTA 2010”.
     (38)
In the entry for “tax year”, in the second column, for “section 1319”
substitute “section 1119 of CTA 2010”.
     (39)
In the entry for “the tax year 2009-10 etc”, in the second column, for “section
20
1319” substitute “section 1119 of CTA 2010 (see entry for “the tax year 2010-
11”)”.
     (40)
In the entry for “total profits”, in the second column, for “section 834C of
ICTA” substitute “section 1119 of CTA 2010”.
     (41)
In the entry for “UK generally accepted accounting practice”, in the second
25
column, for “section 832(1) of ICTA and section 50(4) of FA 2004” substitute
“section 1119 of CTA 2010”.
     (42)
In the entry for “UK resident”, in the second column, for “section 1319”
substitute “section 1119 of CTA 2010”.
     (43)
In the entry for “umbrella company”, in the second column, for “section
30
468A(4) of ICTA” substitute “section 615 of CTA 2010”.
     (44)
In the entry for “unit holder”, in the second column, for “section 468(6) of
ICTA (as applied by section 832(1) of that Act)” substitute “section 1119 of
CTA 2010”.
     (45)
In the entry for “unit trust scheme”, in the second column, for “section 1007
35
of ITA 2007 (as applied by section 832(1) of ICTA)” substitute “section 1119
of CTA 2010”.
     (46)
In the entry for “United Kingdom”, in the second column, for “section 830(1)
of ICTA” substitute “section 1170 of CTA 2010”.
     (47)
In the entry for “within the charge to tax”, in the second column, for “section
40
832(1) of ICTA” substitute “section 1167 of CTA 2010”.

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
677

Saving Gateway Accounts Act 2009 (c. 8)
705
In section 9(2) of the Saving Gateway Accounts Act 2009 (statements etc) for
“Section 234A of the Income and Corporation Taxes Act 1988 (c. 1) (duty to
provide statement of distribution) does not” substitute “Sections 1104 to
1108 of the Corporation Tax Act 2010 (duty to provide tax certificate) do
5
not”.
Finance Act 2009 (c. 10)
706
The Finance Act 2009 is amended as follows.
707
In section 7(3) (charge and main rates for financial year 2010) for “same
meaning as in Chapter 5 of Part 12 of ICTA (see section 502(1) and (1A) of
10
that Act)” substitute “meaning given by section 276 of CTA 2010”.
708
In section 8(4) (small companies’ rates and fractions for financial year 2009)
for “same meaning as in Chapter 5 of Part 12 of ICTA (see section 502(1) and
(1A) of that Act)” substitute “meaning given by section 276 of CTA 2010”.
709
Omit section 38 (corporation tax: foreign currency accounting).
15
710
In section 45(6) (power to enable dividends of investment trusts to be taxed
as interest)—
(a)
in the definition of “company” for “section 842 of ICTA” substitute
“Chapter 4 of Part 24 of CTA 2010 (see section 1165(1) of that Act)”,
(b)
in the definition of “investment trust” for “section 842(1) of ICTA”
20
substitute “section 1158 of CTA 2010”, and
(c)
in paragraph (a) of the definition of “prospective investment trust”
for “section 842 of ICTA (investment trusts)” substitute “section 1158
of CTA 2010 (meaning of “investment trust”)”.
711
Omit section 90 (supplementary charge: reduction for certain new oil fields).
25
712
In section 126(1) (interpretation) at the appropriate place insert—
““CTA 2010” means the Corporation Tax Act 2010,”.
713
In Schedule 3 (VAT: supplementary charge and orders changing rate) in
paragraph 8 for “Section 839 of ICTA” substitute “Section 1122 of CTA 2010”.
714   (1)
Amend paragraph 3 of Schedule 6 (temporary extension of carry back of
30
losses) as follows.
      (2)
For sub-paragraph (1) substitute—
    “(1)
Sections 37(3)(b) and 38(1) and (3) of CTA 2010 (trade loss relief
against profits of same or earlier accounting period) have effect in
relation to any loss to which this paragraph applies as if the
35
references to 12 months were references to 3 years (but subject as
follows).”
      (3)
In sub-paragraph (4) for “set off under section 393A of ICTA” substitute
“relieved under section 37 of CTA 2010”.
      (4)
For sub-paragraph (6) substitute—
40
    “(6)
The reference in subsection (2) of section 40 of CTA 2010 to the loss
mentioned in subsection (1)(a) of that section (so far as not a
terminal loss and so far as not exceeding the allowance mentioned

Corporation Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments
678

in subsection (1)(b) of that section) (“the section 40 loss”) has effect
in relation to a relevant accounting period as a reference to so
much of the section 40 loss as exceeds that which can be set off
under section 37 by virtue of this paragraph.”
715
Omit Schedule 18 (corporation tax: foreign currency accounting).
5
716   (1)
Amend Schedule 22 (offshore funds) as follows.
      (2)
For paragraph 11(2) substitute—
“(2)
In section 1165 of the Corporation Tax Act 2010—
(a)
in subsection (1) for “section 99 of TCGA 1992 (application
of that Act to unit trust schemes)” substitute “sections 99
10
and 103A of TCGA 1992 (application of that Act to unit
trust schemes and to certain offshore funds)”, and
(b)
in subsection (3) for “section 99 of TCGA 1992” substitute
“sections 99 and 103A of TCGA 1992”.”
      (3)
In paragraph 14(2) for “Section 828(3) of ICTA” substitute “Section 1171(4) of
15
CTA 2010”.
717
Omit paragraphs 1 to 6 of Schedule 25 (transfer of income streams: company
transferors).
718   (1)
Amend Schedule 33 (long funding leases of films) as follows.
      (2)
In paragraph 3 for “paragraphs 1 and” substitute “paragraph”.
20
      (3)
In paragraph 5(1) omit “Section 502B of ICTA or”.
      (4)
In paragraph 6(1) omit “section 502B(2) of ICTA or”.
      (5)
In paragraph 7 omit “Section 502C of ICTA or”.
      (6)
In paragraph 8(1) omit “section 502D of ICTA or”.
      (7)
In paragraph 9(b) omit “section 502B of ICTA or”.
25
719
In Schedule 35 (pensions: special annual allowance charge) in paragraph
23(2) for “section 838 of ICTA” substitute “Chapter 3 of Part 24 of CTA 2010”.
720
Omit Schedule 44 (supplementary charge: reduction for certain new oil
fields).
721   (1)
Amend paragraph 18 of Schedule 46 (duties of senior accounting officers of
30
qualifying companies) as follows.
      (2)
In sub-paragraph (1) in the definition of “company”—
(a)
for “section 468A of ICTA” substitute “section 613 of CTA 2010”, and
(b)
for “section 842 of ICTA” substitute “section 1158 of CTA 2010”.
      (3)
In sub-paragraph (3) for “Section 838 of ICTA” substitute “Chapter 3 of Part
35
24 of CTA 2010”.
      (4)
In sub-paragraph (4) for “section” substitute “Chapter”.
722
In Schedule 53 (late payment interest) in paragraph 6 for “section 252(5) of
ICTA” substitute “section 1111(2) of CTA 2010”.
723
In Schedule 55 (penalty for failure to make returns etc) in paragraph 24(3)—
40

Corporation Tax Bill
Schedule 2 — Transitionals and savings etc
Part 1 — General provisions
679

(a)
for “subsection (4) of section 419 of ICTA” substitute “section 458 of
CTA 2010”, and
(b)
for “subsection (4A)” substitute “subsection (5)”.
724   (1)
Amend Schedule 61 (alternative finance investment bonds) as follows.
      (2)
In paragraph 4(4), in the definition of “connected”, for “section 839 of ICTA”
5
substitute “section 1122 of CTA 2010”.
      (3)
In paragraph 21(4), in the definition of “connected”, for “section 839 of
ICTA” substitute “section 1122 of CTA 2010”.
Schedule 2
Section 1180

Transitionals and savings etc
10
Part 1
General provisions
Continuity of the law: general
1
The repeal of provisions and their enactment in a rewritten form by this Act
does not affect the continuity of the law.
15
2
Paragraph 1 does not apply to any change made by this Act in the effect of
the law.
3
Any subordinate legislation or other thing which—
(a)
has been made or done, or has effect as if made or done, under or for
the purposes of a superseded enactment so far as it applied for
20
relevant tax purposes, and
(b)
is in force or effective immediately before the commencement of the
corresponding rewritten provision,

has effect after that commencement as if made or done under or for the
purposes of the rewritten provision.
25
4     (1)
Any reference (express or implied) in this Act, another enactment or an
instrument or document to a rewritten provision is to be read as including,
in relation to times, circumstances or purposes in relation to which any
corresponding superseded enactment had effect for relevant tax purposes, a
reference to the superseded enactment so far as applying for those relevant
30
tax purposes.
      (2)
Any reference (express or implied) in this Act, another enactment or an
instrument or document to—
(a)
things done under or for the purposes of a rewritten provision, or
(b)
things falling to be done under or for the purposes of a rewritten
35
provision,

is to be read as including, in relation to times, circumstances or purposes in
relation to which any corresponding superseded enactment had effect for
relevant tax purposes, a reference to things done or falling to be done under
or for the purposes of the superseded enactment so far as applying for those
40
relevant tax purposes.

Corporation Tax Bill
Schedule 2 — Transitionals and savings etc
Part 1 — General provisions
680

5     (1)
Any reference (express or implied) in any enactment, instrument or
document to a superseded enactment in its application for relevant tax
purposes is to be read, so far as is required for those relevant tax purposes,
as including, in relation to times, circumstances or purposes in relation to
which any corresponding rewritten provision has effect, a reference to the
5
rewritten provision.
      (2)
Any reference (express or implied) in any enactment, instrument or
document to—
(a)
things done under or for the purposes of a superseded enactment in
its application for relevant tax purposes, or
10
(b)
things falling to be done under or for the purposes of a superseded
enactment in its application for relevant tax purposes,

is to be read, so far as is required for those relevant tax purposes, as
including, in relation to times, circumstances or purposes in relation to
which any corresponding rewritten provision has effect, a reference to
15
things done or falling to be done under or for the purposes of the rewritten
provision.
6
Paragraphs 1 to 5 have effect instead of section 17(2) of the Interpretation Act
1978 (but are without prejudice to any other provision of that Act).
7
Paragraphs 4 and 5 apply only so far as the context permits.
20
General saving for old transitional provisions and savings
8     (1)
The repeal by this Act of a transitional or saving provision relating to the
coming into force of a provision rewritten in this Act does not affect the
operation of the transitional or saving provision, so far as it is not specifically
rewritten in this Act but remains capable of having effect in relation to the
25
corresponding provision of this Act.
      (2)
The repeal by this Act of an enactment previously repealed subject to
savings does not affect the continued operation of those savings.
      (3)
The repeal by this Act of a saving on the previous repeal of an enactment
does not affect the operation of the saving so far as it is not specifically
30
rewritten in this Act but remains capable of having effect.
Interpretation
9     (1)
In this Part—
“enactment” includes subordinate legislation (within the meaning of
the Interpretation Act 1978),
35
“relevant tax purposes” means, in relation to a superseded enactment,
tax purposes for which the enactment has been rewritten by this Act,
and
“superseded enactment” means an earlier enactment which has been
rewritten by this Act for certain tax purposes (whether it applied
40
only for those purposes or for those and other tax purposes).
      (2)
References in this Part to the repeal of a provision include references to its
revocation and to its express or implied disapplication for corporation tax
purposes.