House of Commons portcullis
House of Commons
Session 2010 - 11
Internet Publications
Other Bills before Parliament

Finance (No.2) Bill


Finance (No.2) Bill
Schedule 6 — Consortium claims for group relief

53

 

Schedule 6

Section 12

 

Consortium claims for group relief

Introductory

1          

Chapter 4 of Part 5 of CTA 2010 (claims for group relief) is amended as

follows.

5

Ability to claim group relief where link company established in the EEA

2          

In section 129 (overview of Chapter), in subsection (2), for “Sections 130 to

134” substitute “Sections 130 to 134A”.

3          

In section 130(2) (group relief claims on amounts surrenderable under

Chapter 2), in Requirement 3—

10

(a)   

in paragraph (c), for “section 133(1), (3) and (4)” substitute “section

133(1) and (3) to (8)”, and

(b)   

in paragraph (d), for “section 133(2), (3) and (4)” substitute “section

133(2) to (8)”.

4     (1)  

Section 133 (conditions to be met for consortium claims for group relief) is

15

amended as follows.

      (2)  

In subsection (1)—

(a)   

omit the “and” at the end of paragraph (e), and

(b)   

for paragraph (f) substitute—

“(f)   

the surrendering company and the claimant company

20

are both UK related, and

(g)   

the link company is UK related or established in the

EEA.”

      (3)  

In subsection (2)—

(a)   

omit the “and” at the end of paragraph (e), and

25

(b)   

for paragraph (f) substitute—

“(f)   

the surrendering company and the claimant company

are both UK related, and

(g)   

the link company is UK related or established in the

EEA.”

30

      (4)  

After subsection (4) insert—

“(5)   

Subsection (6) applies where the link company—

(a)   

is established in the EEA, but

(b)   

is not UK related.

(6)   

Neither consortium condition 2 nor consortium condition 3 is met

35

unless the link company is a member of the same group of

companies as the other company mentioned in subsection (1)(d) or

(2)(d) without the involvement of a relevant company.

(7)   

A “relevant company” is a company that is not established in the

EEA.

40

 
 

Finance (No.2) Bill
Schedule 6 — Consortium claims for group relief

54

 

(8)   

For the purposes of subsection (6) a company (“A”) is a member of

the same group of companies as another company (“B”) without the

involvement of a relevant company if—

(a)   

in a case where A is the 75% subsidiary of B, B owns at least

75% of A’s ordinary share capital otherwise than through a

5

relevant company,

(b)   

in a case where B is the 75% subsidiary of A, A owns at least

75% of B’s ordinary share capital otherwise than through a

relevant company, and

(c)   

in a case where neither company is the 75% subsidiary of the

10

other but both are 75% subsidiaries of a third company, the

third company—

(i)   

is not a relevant company, and

(ii)   

owns at least 75% of A’s ordinary share capital, and at

least 75% of B’s ordinary share capital, otherwise than

15

through a relevant company.”

5          

After section 134 (meaning of “UK related” company) insert—

“134A   

Companies “established in the EEA”

(1)   

For the purposes of section 133 a company is established in the EEA

if—

20

(a)   

it is constituted under the law of the United Kingdom or an

EEA territory, and

(b)   

it has its registered office, central administration or principal

place of business within the European Economic Area.

(2)   

In this section “EEA territory”, in relation to any time, means a

25

territory outside the United Kingdom that is within the European

Economic Area at that time.”

6     (1)  

Section 146 (maximum amount of group relief in consortium claims) is

amended as follows.

      (2)  

In subsection (3)—

30

(a)   

omit the “and” at the end of paragraph (a), and

(b)   

after that paragraph insert—

“(aa)   

assuming that the link company was UK related,

and”.

      (3)  

In subsection (6), at the end insert “, assuming that the link company was UK

35

related.”

      (4)  

In subsection (8)—

(a)   

omit the “and” at the end of the definition of “consortium claim”, and

(b)   

at the end insert “, and

“UK related”, in relation to a company, has the meaning

40

given by section 134.”

Limitations on group relief based on proportion of voting power held by company

7     (1)  

Section 143 (which makes provision limiting the amount of group relief that

is available in cases where the surrendering company is owned by a

consortium) is amended as follows.

45

 
 

Finance (No.2) Bill
Schedule 6 — Consortium claims for group relief

55

 

      (2)  

In subsection (3)—

(a)   

omit the “and” at the end of paragraph (b), and

(b)   

at the end of paragraph (c) insert “, and

(d)   

the proportion of the voting power in the

surrendering company that is directly possessed by

5

the claimant company.”

      (3)  

In subsection (4)(a), for “paragraphs (a) to (c)” substitute “paragraphs (a) to

(d)”.

8     (1)  

Section 144 (which makes provision limiting the amount of group relief that

is available in cases where the claimant company is owned by a consortium)

10

is amended as follows.

      (2)  

In subsection (3)—

(a)   

omit the “and” at the end of paragraph (b), and

(b)   

at the end of paragraph (c) insert “, and

(d)   

the proportion of the voting power in the claimant

15

company that is directly possessed by the

surrendering company.”

      (3)  

In subsection (4)(a), for “paragraphs (a) to (c)” substitute “paragraphs (a) to

(d)”.

Limitations on group relief where arrangements preventing control are in place

20

9          

After section 146 insert—

“146A   

Conditions 1 and 2: surrendering company not controlled by claimant

company etc

(1)   

This section applies if—

(a)   

the claimant company makes a claim for group relief based

25

on consortium condition 1,

(b)   

it is the surrendering company that is owned by the

consortium, and

(c)   

during any part of the overlapping period, arrangements

within subsection (3) are in place which enable a person to

30

prevent the claimant company, either alone or together with

one or more other companies that are members of the

consortium, from controlling the surrendering company.

(2)   

This section also applies if—

(a)   

the claimant company makes a claim for group relief based

35

on consortium condition 2, and

(b)   

during any part of the overlapping period, arrangements

within subsection (3) are in place which enable a person to

prevent the link company, either alone or together with one

or more other companies that are members of the

40

consortium, from controlling the surrendering company.

(3)   

Arrangements are within this subsection if—

(a)   

the company, either alone or together with one or more other

companies that are members of the consortium, would

control the surrendering company, but for the existence of

45

the arrangements, and

 
 

Finance (No.2) Bill
Schedule 6 — Consortium claims for group relief

56

 

(b)   

the arrangements form part of a scheme the main purpose, or

one of the main purposes, of which is to enable the claimant

company to obtain a tax advantage under this Chapter.

(4)   

The group relief to be given on the claim is to be determined as if the

surrenderable amount for the overlapping period were 50% of what

5

it would be but for this section (see section 139(2) to determine the

surrenderable amount for the overlapping period).

(5)   

In this section “the overlapping period” is to be read in accordance

with section 142.

(6)   

Section 1139 (“tax advantage”) applies for the purposes of this

10

section.

146B    

Conditions 1 and 3: claimant company not controlled by surrendering

company etc

(1)   

This section applies if—

(a)   

the claimant company makes a claim for group relief based

15

on consortium condition 1,

(b)   

it is the claimant company that is owned by the consortium,

and

(c)   

during any part of the overlapping period, arrangements

within subsection (3) are in place which enable a person to

20

prevent the surrendering company, either alone or together

with one or more other companies that are members of the

consortium, from controlling the claimant company.

(2)   

This section also applies if—

(a)   

the claimant company makes a claim for group relief based

25

on consortium condition 3, and

(b)   

during any part of the overlapping period, arrangements

within subsection (3) are in place which enable a person to

prevent the link company, either alone or together with one

or more other companies that are members of the

30

consortium, from controlling the claimant company.

(3)   

Arrangements are within this subsection if—

(a)   

the company, either alone or together with one or more other

companies that are members of the consortium, would

control the claimant company, but for the existence of the

35

arrangements, and

(b)   

the arrangements form part of a scheme the main purpose, or

one of the main purposes, of which is to enable the claimant

company to obtain a tax advantage under this Chapter.

(4)   

The group relief to be given on the claim is to be determined as if the

40

claimant company’s total profits for the overlapping period were

50% of what they would be but for this section (see section 140(2) to

determine the total profits for the overlapping period).

(5)   

In this section “the overlapping period” is to be read in accordance

with section 142.

45

(6)   

Section 1139 (“tax advantage”) applies for the purposes of this

section.”

 
 

Finance (No.2) Bill
Schedule 7 — First-year allowances for zero-emission goods vehicles

57

 

Commencement

10         

The amendments made by this Schedule have effect in relation to accounting

periods beginning on or after 12 July 2010.

Schedule 7

Section 18

 

First-year allowances for zero-emission goods vehicles

5

1          

CAA 2001 is amended as follows.

2          

In section 39 (first-year allowances available for certain types of qualifying

expenditure only), at the appropriate place in the list insert—

 

“section 45DA

expenditure on zero-emission goods vehicles,”.

 

3          

After section 45D insert—

10

“45DA   

 Expenditure on zero-emission goods vehicles

(1)   

Expenditure is first-year qualifying expenditure if—

(a)   

it is incurred in the period of 5 years beginning with the

relevant date,

(b)   

it is incurred on the provision of a zero-emission goods

15

vehicle,

(c)   

the vehicle is unused and not second-hand,

(d)   

the vehicle is registered, and

(e)   

the expenditure is not excluded by section 46 (general

exclusions).

20

(2)   

For the purposes of subsection (1)(d) it does not matter whether the

vehicle is first registered before or after the expenditure is incurred.

(3)   

In this section—

“goods vehicle” means a mechanically propelled road vehicle

which is of a design primarily suited for the conveyance of

25

goods or burden of any description;

“the relevant date” means—

(a)   

in the case of expenditure incurred by a person within

the charge to corporation tax, 1 April 2010, and

(b)   

in the case of expenditure incurred by a person within

30

the charge to income tax, 6 April 2010;

“zero-emission goods vehicle” means a goods vehicle which

cannot in any circumstances emit CO2 by being driven.

(4)   

The Treasury may by order amend this Chapter so as to provide for

specified descriptions of vehicles to be treated, or not to be treated,

35

as goods vehicles for the purposes of this section.

(5)   

This section is subject to section 45DB.

 
 

 
previous section contents continue
 
House of Commons home page Houses of Parliament home page House of Lords home page search page enquiries

© Parliamentary copyright 2010
Revised 30 September 2010