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Corporation Tax Bill


Corporation Tax Bill

viii

 

Chapter 5

Subsidiaries, groups and consortiums

Introduction

150   

Overview of Chapter

Explanations of terms

151   

Meaning of “75% subsidiary” and “90% subsidiary”

152   

Groups of companies

153   

Companies owned by consortiums and members of consortiums

Arrangements for transfers of companies

154   

Arrangements for transfer of member of group of companies etc

155   

Arrangements for transfer of company owned by consortium etc

156   

Sections 154 and 155: supplementary

Chapter 6

Equity holders and profits or assets available for distribution

Introduction

157   

Introduction to Chapter

Equity holders

158   

Meaning of “equity holder”

159   

Use of relevant company’s assets

160   

Meaning of “ordinary shares”

161   

Meaning of “restricted right to dividends”

162   

Meaning of “normal commercial loan”

163   

Normal commercial loans: company’s results or value of assets

164   

Sections 160 and 162: supplementary

Company’s entitlement to profits or assets available for distribution: basic provisions

165   

Proportion of profits available for distribution to which company is entitled

166   

Proportion of assets available for distribution to which company is entitled

167   

Profits or assets available for distribution and entitlement: supplementary

168   

Meaning of “the relevant accounting period”

Company’s entitlement to profits or assets available for distribution: supplementary

169   

Application and interpretation of sections 170 to 182

170   

Shares or securities with limited rights

171   

Shares or securities with temporary rights

172   

Company A’s proportion if shares etc have temporary rights

173   

Cases in which option arrangements are in place

174   

Company A’s proportion if option arrangements in place

175   

Cases in which both sections 170 and 172 apply

 
 

Corporation Tax Bill

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176   

Cases in which both sections 170 and 174 apply

177   

Cases in which both sections 172 and 174 apply

178   

Cases in which sections 170, 172 and 174 all apply

179   

Cases in which surrendering or claimant company is non-UK resident

180   

Company A’s proportion if non-UK resident involved

181   

Assumptions to be applied if non-UK resident company involved

182   

Assets etc referable to UK trade

Chapter 7

Miscellaneous provisions and interpretation of Part

Miscellaneous

183   

Payments for group relief

184   

References to “allowance” in CAA 2001

Interpretation

185   

“Trading company” and “holding company”

186   

When activities of a company are double taxation exempt

187   

“Non-UK tax”

188   

Other definitions

Part 6

Charitable donations relief

Chapter 1

Nature of relief

189   

Relief for qualifying charitable donations

190   

Qualifying charitable donations: meaning

Chapter 2

Certain payments to charity

Qualifying payments

191   

Qualifying payments

192   

Condition as to repayment

193   

Associated acquisition etc

194   

Distributions

195   

Associated benefits

196   

Associated benefits: meaning

197   

Restrictions on associated benefits

198   

Payments and benefits linked to periods of less than 12 months

Payment attributed to earlier period

199   

Payment attributed to earlier accounting period

 
 

Corporation Tax Bill

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Interpretation

200   

Company wholly owned by a charity

201   

Associated persons

202   

“Charity”

Chapter 3

Certain disposals to charity

Amounts treated as qualifying charitable donations

203   

Certain disposals of investments

204   

Meaning of qualifying investment

205   

Meaning of qualifying interest in land

206   

The relievable amount

207   

Incidental costs of making disposal

208   

Consideration

Value of net benefit to charity

209   

Value of net benefit to charity

210   

Market value of qualifying investments

211   

Meaning of “disposal-related obligation”

212   

Meaning and amount of “disposal-related liability”

Special provisions about qualifying interests in land

213   

Certificate required from charity

214   

Qualifying interests in land held jointly

215   

Calculation of relievable amount etc where joint disposal of interest in land

216   

Disqualifying events

Interpretation

217   

“Charity”

Part 7

Community investment tax relief

Chapter 1

Introduction

CITR

218   

Meaning of “CITR”

219   

Eligibility for CITR

220   

Form and amount of CITR

Miscellaneous

221   

Meaning of “making an investment”

222   

Determination of “the invested amount”

 
 

Corporation Tax Bill

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223   

Meaning of “the 5 year period” and “the investment date”

224   

Overview of other Chapters of Part

Chapter 2

Qualifying investments

225   

Qualifying investments: introduction

226   

Conditions to be met in relation to loans

227   

Conditions to be met in relation to securities

228   

Conditions to be met in relation to shares

229   

Tax relief certificates

230   

No pre-arranged protection against risks

Chapter 3

General conditions

231   

No control of CDFI by investor

232   

Investor must have beneficial ownership

233   

Investor must not be accredited

234   

No acquisition of share in partnership

235   

No tax avoidance purpose

Chapter 4

Limitations on claims and attribution

Limitations on claims

236   

Loans: no claim after disposal or excessive repayments or receipts of value

237   

Securities or shares: no claim after disposal or excessive receipts of value

238   

No claim after loss of accreditation by the CDFI

239   

Accreditation of investor

Attribution

240   

Attribution: general

241   

Attribution: bonus shares

Chapter 5

Withdrawal or reduction of CITR

Introduction

242   

Introduction to Chapter

Disposals

243   

Disposal of loan during 5 year period

244   

Disposal of securities or shares during 5 year period

 
 

Corporation Tax Bill

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Repayment of loans

245   

Repayment of loan capital during 5 year period

Receipts of value

246   

Value received by investor during 6 year period: loans

247   

Value received by investor during 6 year period: securities or shares

248   

Receipts of insignificant value to be added together

249   

When value is received

250   

The amount of value received

251   

Value received if there is more than one investment

252   

Effect of receipt of value on future claims

253   

Receipts of value by or from connected persons

CITR not due

254   

CITR subsequently found not to have been due

Manner of withdrawal or reduction

255   

Manner of withdrawal or reduction of CITR

Chapter 6

Supplementary and general

Alternative finance arrangements

256   

Meaning of “loan” and “interest”

257   

Purchase and resale arrangements

258   

Deposit arrangements

259   

Profit share agency arrangements

Miscellaneous

260   

Information to be provided by the investor

261   

Disclosure

262   

Nominees

263   

Application for postponement of tax pending appeal

264   

Identification of securities or shares on a disposal

Definitions

265   

Meaning of “issue of securities or shares”

266   

Meaning of “disposal”

267   

Construction of references to being “held continuously”

268   

Meaning of “associate”

269   

Minor definitions etc

 
 

Corporation Tax Bill

xiii

 

Part 8

Oil activities

Chapter 1

Introduction

270   

Overview of Part

Chapter 2

Basic definitions

271   

“Associated companies”

272   

“Oil extraction activities”

273   

“Oil rights”

274   

“Oil-related activities”

275   

“Ring fence income”

276   

“Ring fence profits”

277   

“Ring fence trade”

278   

Other definitions

Chapter 3

Deemed separate trade

279   

Oil-related activities treated as separate trade

Chapter 4

Calculation of profits

Oil valuation

280   

Disposal to be valued by reference to section 2(5A) of OTA 1975

281   

Valuation where market value taken into account under section 2 of OTA

1975

282   

Valuation where disposal not sale at arm’s length

283   

Valuation where excess of nominated proceeds

284   

Valuation where relevant appropriation but no disposal

285   

Valuation where appropriation to refining etc

Loan relationships

286   

Restriction on debits to be brought into account

287   

Restriction on credits to be brought into account

Sale and lease-back

288   

Sale and lease-back

 
 

Corporation Tax Bill

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Regional development grants

289   

Reduction of expenditure by reference to regional development grant

290   

Adjustment as a result of regional development grant

Tariff receipts etc

291   

Tariff receipts etc

Abandonment guarantees

292   

Expenditure on and under abandonment guarantees

293   

Relief for reimbursement expenditure under abandonment guarantees

294   

Payment under abandonment guarantee not immediately applied

295   

Amounts excluded from section 293(1)

Abandonment expenditure

296   

Introduction to sections 297 and 298

297   

Relief for expenditure incurred by a participator in meeting defaulter’s

abandonment expenditure

298   

Reimbursement by defaulter in respect of certain abandonment expenditure

Deduction of PRT in calculating income for corporation tax purposes

299   

Deduction of PRT in calculating income for corporation tax purposes

300   

Effect of repayment of PRT: general rule

301   

Effect of repayment of PRT: special rule

Interest on repayment of PRT or APRT

302   

Interest on repayment of PRT or APRT

Relief

303   

Management expenses

304   

Losses

305   

Group relief

306   

Capital allowances

Chapter 5

Ring fence expenditure supplement

Introduction

307   

Overview of Chapter

Application and interpretation

308   

Qualifying companies

309   

Accounting periods

310   

The relevant percentage

311   

Limit on number of accounting periods for which supplement may be

claimed

 
 

 
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Revised 28 January 2010