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291 | Statement of allocated exemptions: submission of revised statement |
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(1) | If the reporting body has submitted a statement of allocated exemptions under |
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section 290 or this section, it may submit a revised statement to HMRC. |
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(2) | A statement submitted under this section must be received by HMRC within |
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36 months of the end of the relevant period of account. |
| 5 |
(3) | A statement submitted under this section must comply with the requirements |
| |
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(4) | A statement submitted under this section— |
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(a) | must indicate the respects in which it differs from the previous |
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(b) | supersedes the previous statement. |
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292 | Statement of allocated exemptions: requirements |
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(1) | This section applies in relation to a statement of allocated exemptions |
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submitted under section 290 or 291. |
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(2) | The statement must be signed— |
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(a) | if an appointment under section 288 has effect in relation to the relevant |
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period of account, by the appropriate person in relation to the company |
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appointed under that section, or |
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(b) | if such an appointment does not have effect in relation to the relevant |
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period of account, by the appropriate person in relation to each |
| 20 |
company to which this Chapter applies. |
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(3) | The statement must show— |
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(a) | the tested expense amount, |
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(b) | the available amount, and |
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(c) | the total disallowed amount. |
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(a) | list one or more companies to which this Chapter applies, and |
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(b) | in relation to each listed company, specify one or more financing |
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income amounts for the relevant period of account that are to be |
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exempted, and give the relevant details in relation to each such amount. |
| 30 |
(5) | For this purpose “the relevant details” in relation to a financing income amount |
| |
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(a) | which of conditions A, B and C in section 314 is met in relation to the |
| |
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(b) | the relevant accounting period of the company in which the amount |
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would, apart from this Part, be brought into account for the purposes |
| |
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(6) | The sum of the amounts specified under subsection (4)(b) must not exceed the |
| |
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(a) | the total disallowed amount, and |
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(b) | the tested income amount (see Chapter 8). |
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(7) | In this section “the appropriate person”, in relation to a company, means— |
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(a) | the proper officer of the company, or |
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|
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|
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|
(b) | such other person as may for the time being have the express, implied |
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or apparent authority of the company to act on its behalf for the |
| |
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(8) | Subsections (3) and (4) of section 108 of TMA 1970 (responsibility of company |
| |
officers: meaning of “proper officer”) apply for the purposes of this section as |
| 5 |
they apply for the purposes of that section. |
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(9) | For the meaning of “financing income amount”, see Chapter 7. |
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293 | Statement of allocated exemptions: effect |
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A financing income amount of a company to which this Chapter applies that is |
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specified in a statement of allocated exemptions under section 292(4)(b) is not |
| 10 |
to be brought into account by the company for the purposes of corporation tax. |
| |
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(1) | This section applies if— |
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(a) | a company to which this Chapter applies has delivered a company tax |
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return for a relevant accounting period, and |
| 15 |
(b) | as a result of the submission of a revised statement of allocated |
| |
exemptions under section 291— |
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(i) | there is a change in the amount of profits on which corporation |
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tax is chargeable for the period, or |
| |
(ii) | any other information contained in the return is incorrect. |
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(2) | The company is treated as having amended its company tax return for the |
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accounting period so as to reflect the change mentioned in subsection (1)(b)(i) |
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or to correct the information mentioned in subsection (1)(b)(ii). |
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295 | Power to make regulations about statement of allocated exemptions |
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The Commissioners may by regulations make further provision about a |
| 25 |
statement of allocated exemptions including, in particular, provision— |
| |
(a) | about the form of a statement and the manner in which it is to be |
| |
| |
(b) | requiring a person to give information to HMRC in connection with a |
| |
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(c) | as to circumstances in which a statement that is not received by the time |
| |
specified in section 290(2) or 291(2) is to be treated as if it were so |
| |
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(d) | as to circumstances in which a statement that does not comply with the |
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requirements of section 292 is to be treated as if it did so comply. |
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296 | Failure of reporting body to submit statement of allocated exemptions |
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(1) | This section applies if no statement of allocated exemptions is submitted under |
| |
section 290 that complies with the requirements of section 292. |
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(2) | Subject to the following provisions of this section, each financing income |
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amount for the relevant period of account of each company to which this |
| 40 |
Chapter applies is to be reduced to nil. |
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|
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|
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|
(3) | In this section “unrestricted reduction” means a reduction of a financing |
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income amount for the relevant period of account of a company to which this |
| |
Chapter applies, determined in accordance with subsection (2). |
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(4) | Subsection (5) applies if— |
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(a) | the total of the unrestricted reductions, exceeds |
| 5 |
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(i) | the total disallowed amount, and |
| |
(ii) | the tested income amount. |
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(5) | Each unrestricted reduction is to be reduced by—
|
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UR is the unrestricted reduction in question, |
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TUR is the total of the unrestricted reductions, and |
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X is the excess mentioned in subsection (4). |
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297 | Power to make regulations in relation to reductions under section 296 |
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(1) | The Commissioners may by regulations make provision for the purpose of |
| 15 |
securing that a company required under section 296 to reduce the amounts that |
| |
it brings into account in respect of financing income amounts for the relevant |
| |
period of account (“a company required to make default reductions”) has |
| |
sufficient information to determine their amount. |
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(2) | Provision that may be made in regulations under subsection (1) includes |
| 20 |
provision requiring one or more members of the worldwide group to send |
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specified information to a company required to make default reductions. |
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(3) | The Commissioners may by regulations make provision about cases in which |
| |
(whether as a result of non-compliance with regulations made under |
| |
subsection (1) or otherwise) a company required to make default reductions |
| 25 |
does not possess specified information. |
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(4) | Provision that may be made in regulations under subsection (3) includes |
| |
provision as to assumptions that may or must be made in determining the |
| |
amount of a reduction under section 296 of a financing income amount. |
| |
(5) | The Commissioners may by regulations make provision for determining a time |
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later than that determined under paragraph 15(4) of Schedule 18 to FA 1998 |
| |
(amendment of return by company) before which a company required to make |
| |
default reductions may amend its company tax return so as to reflect a |
| |
reduction under section 296. |
| |
(6) | In this section “specified” means specified in regulations under this section. |
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298 | Balancing payments between group companies: no tax charge or relief |
| |
(1) | This section applies if— |
| |
(a) | one or more financing income amounts of a company (“company A”) |
| |
for the relevant period of account are— |
| |
(i) | because of section 293, not brought into account, or |
| 40 |
(ii) | because of section 296, reduced, |
| |
|
| |
|
| |
|
(b) | one or more financing expense amounts of another company |
| |
(“company B”) for the relevant period of account are— |
| |
(i) | because of section 281, not brought into account, or |
| |
(ii) | because of section 284, reduced, |
| |
(c) | company A makes one or more payments (“the balancing payments”) |
| 5 |
| |
(d) | the sole or main reason for making the balancing payments is that the |
| |
conditions in paragraphs (a) and (b) are met. |
| |
(2) | To the extent that the sum of the balancing payments does not exceed the |
| |
amount specified in subsection (3), those payments— |
| 10 |
(a) | are not to be taken into account in computing profits or losses of either |
| |
company A or company B for the purposes of corporation tax, and |
| |
(b) | are not to be regarded as distributions for any of the purposes of the |
| |
| |
(3) | The amount mentioned in subsection (2) is the lower of— |
| 15 |
(a) | the sum of the financing income amounts mentioned in subsection |
| |
| |
(b) | the sum of the financing expense amounts mentioned in subsection |
| |
| |
| 20 |
Intra-group financing income where payer denied deduction |
| |
299 | Tax exemption for certain financing income received from EEA companies |
| |
(1) | A financing income amount of a company that is a member of the worldwide |
| |
group (“the recipient”) is not to be brought into account for the purposes of |
| |
| 25 |
(a) | it arises as a result of a payment by another company that is a member |
| |
of the worldwide group (“the payer”), |
| |
(b) | the payment is received during a period of account of the worldwide |
| |
group to which this Part applies, and |
| |
(c) | conditions A, B and C are met. |
| 30 |
(2) | Condition A is that, at the time the payment is received, the payer is a relevant |
| |
associate of the recipient (see section 300). |
| |
(3) | Condition B is that, at the time the payment is received— |
| |
(a) | the payer is tax-resident in an EEA territory (see section 301), and |
| |
(b) | the payer is liable to a tax of that territory that is chargeable by reference |
| 35 |
to profits, income or gains arising to the payer. |
| |
| |
(a) | qualifying EEA tax relief for the payment is not available to the payer |
| |
in the period in which the payment is made (“the current period”) or |
| |
any previous period (see section 302), and |
| 40 |
(b) | qualifying EEA tax relief for the payment is not available to the payer |
| |
in any period after the current period (see section 303). |
| |
(5) | For the meaning of “financing income amount”, see section 305. |
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|
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