|
| |
|
(6) | Neither consortium condition 2 nor consortium condition 3 is met |
| |
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 |
| 5 |
| |
(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 |
| 10 |
75% of A’s ordinary share capital otherwise than through a |
| |
| |
(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 |
| |
| 15 |
(c) | in a case where neither company is the 75% subsidiary of the |
| |
other but both are 75% subsidiaries of a third company, the |
| |
| |
(i) | is not a relevant company, and |
| |
(ii) | owns at least 75% of A’s ordinary share capital, and at |
| 20 |
least 75% of B’s ordinary share capital, otherwise than |
| |
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 |
| 25 |
| |
(a) | it is constituted under the law of the United Kingdom or an |
| |
| |
(b) | it has its registered office, central administration or principal |
| |
place of business within the European Economic Area. |
| 30 |
(2) | In this section “EEA territory”, in relation to any time, means a |
| |
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 |
| |
| 35 |
| |
(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, |
| |
| 40 |
(3) | In subsection (6), at the end insert “, assuming that the link company was UK |
| |
| |
| |
(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 |
| |
| |
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 |
| 5 |
is available in cases where the surrendering company is owned by a |
| |
consortium) is amended as follows. |
| |
| |
(a) | omit the “and” at the end of paragraph (b), and |
| |
(b) | at the end of paragraph (c) insert “, and |
| 10 |
(d) | the proportion of the voting power in the |
| |
surrendering company that is directly possessed by |
| |
| |
(3) | In subsection (4)(a), for “paragraphs (a) to (c)” substitute “paragraphs (a) to |
| |
| 15 |
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) |
| |
| |
| |
(a) | omit the “and” at the end of paragraph (b), and |
| 20 |
(b) | at the end of paragraph (c) insert “, and |
| |
(d) | the proportion of the voting power in the claimant |
| |
company that is directly possessed by the |
| |
| |
(3) | In subsection (4)(a), for “paragraphs (a) to (c)” substitute “paragraphs (a) to |
| 25 |
| |
Limitations on group relief where arrangements preventing control are in place |
| |
9 | After section 146 insert— |
| |
“146A | Conditions 1 and 2: surrendering company not controlled by claimant |
| |
| 30 |
(1) | This section applies if— |
| |
(a) | the claimant company makes a claim for group relief based |
| |
on consortium condition 1, |
| |
(b) | it is the surrendering company that is owned by the |
| |
| 35 |
(c) | during any part of the overlapping period, arrangements |
| |
within subsection (3) are in place which enable a person to |
| |
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. |
| 40 |
(2) | This section also applies if— |
| |
(a) | the claimant company makes a claim for group relief based |
| |
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 |
| |
consortium, from controlling the surrendering company. |
| 5 |
(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 |
| |
| 10 |
(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 |
| 15 |
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 |
| |
| |
(6) | Section 1139 (“tax advantage”) applies for the purposes of this |
| 20 |
| |
146B | Conditions 1 and 3: claimant company not controlled by surrendering |
| |
| |
(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 claimant company that is owned by the consortium, |
| |
| |
(c) | during any part of the overlapping period, arrangements |
| |
within subsection (3) are in place which enable a person to |
| 30 |
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 |
| 35 |
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 |
| 40 |
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 |
| 45 |
| |
|
| |
|
| |
|
(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 |
| |
claimant company’s total profits for the overlapping period were |
| 5 |
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 |
| |
| |
(6) | Section 1139 (“tax advantage”) applies for the purposes of this |
| 10 |
| |
| |
10 | The amendments made by this Schedule have effect in relation to accounting |
| |
periods beginning on or after 12 July 2010. |
| |
| 15 |
| |
First-year allowances for zero-emission goods vehicles |
| |
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— |
| |
| | expenditure on zero-emission goods vehicles,”. |
| | 20 |
|
3 | After section 45D insert— |
| |
“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 |
| |
| 25 |
(b) | it is incurred on the provision of a zero-emission goods |
| |
| |
(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 |
| 30 |
| |
(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. |
| |
| |
“goods vehicle” means a mechanically propelled road vehicle |
| 35 |
which is of a design primarily suited for the conveyance of |
| |
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 |
| |
the charge to income tax, 6 April 2010; |
| |
“zero-emission goods vehicle” means a goods vehicle which |
| 5 |
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, |
| |
as goods vehicles for the purposes of this section. |
| |
(5) | This section is subject to section 45DB. |
| 10 |
45DB | Exclusions from allowances under section 45DA |
| |
(1) | Expenditure incurred by a person is not first-year qualifying |
| |
expenditure under section 45DA if it is within subsection (2), (4) or |
| |
| |
(2) | Expenditure is within this subsection if, at the time a claim is made |
| 15 |
under section 3 for a section 45DA allowance in respect of the |
| |
expenditure, the person who incurred the expenditure is, or forms |
| |
part of, an undertaking within subsection (3). |
| |
(3) | An undertaking is within this subsection if one or both of the |
| |
following conditions are met— |
| 20 |
(a) | it is reasonable to assume that the undertaking would be |
| |
regarded as a firm in difficulty for the purposes of the |
| |
Community Guidelines on State Aid for Rescuing and |
| |
Restructuring Firms in Difficulty (2004/C 244/02); |
| |
(b) | the undertaking is subject to an outstanding recovery order |
| 25 |
made by virtue of Article 108(2) of the Treaty on the |
| |
Functioning of the European Union (Commission Decision |
| |
declaring aid illegal and incompatible with the common |
| |
| |
(4) | Expenditure is within this subsection if it is incurred for the purposes |
| 30 |
of a qualifying activity— |
| |
(a) | in the fishery or aquaculture sector, as covered by Council |
| |
Regulation (EC) No 104/2000, or |
| |
(b) | relating to the management of waste of undertakings. |
| |
(5) | In subsection (4)(b) the reference to waste of undertakings does not |
| 35 |
include waste of the person who incurred the expenditure or of any |
| |
other person forming part of the same undertaking as that person. |
| |
(6) | Expenditure is within this subsection to the extent that it is taken into |
| |
account for the purposes of a relevant grant, or relevant payment, |
| |
made towards that expenditure. |
| 40 |
(7) | A grant or payment is relevant if it is— |
| |
(a) | a notified State aid, other than an allowance under this Part, |
| |
| |
(b) | a grant or subsidy, other than a notified State aid, which the |
| |
Treasury by order declares to be relevant for the purposes of |
| 45 |
the withholding of a section 45DA allowance. |
| |
|
| |
|
| |
|
(8) | If a relevant grant or relevant payment towards the expenditure is |
| |
made after the making of a section 45DA allowance, the allowance is |
| |
to be withdrawn to that extent. |
| |
(9) | All such assessments and adjustments of assessments are to be made |
| |
as are necessary to give effect to subsection (8). |
| 5 |
(10) | Any such assessment or adjustment is not out of time if it is made |
| |
within 3 years of the end of the chargeable period in which the grant |
| |
| |
| |
“General Block Exemption Regulation” means Commission |
| 10 |
Regulation (EC) No. 800/2008 (General block exemption |
| |
| |
“management” and “waste” have the meaning given by Article |
| |
1 of Directive 2006/12/EC of the European Parliament and of |
| |
| 15 |
“notified State aid” means a State aid notified to and approved |
| |
by the European Commission; |
| |
“section 45DA allowance” means a first year allowance in |
| |
respect of expenditure that is first-year qualifying |
| |
expenditure under section 45DA; |
| 20 |
| |
(a) | an autonomous enterprise, or |
| |
(b) | an enterprise (not within paragraph (a)) and its |
| |
partner enterprises (if any) and its linked enterprises |
| |
| 25 |
and for this purpose “enterprise”, “autonomous enterprise”, |
| |
“partner enterprises” and “linked enterprises” have the |
| |
meaning given by Annex 1 to the General Block Exemption |
| |
| |
(12) | The Treasury may by order make such provision amending this |
| 30 |
section as appears to them appropriate for the purpose of giving |
| |
effect to any future amendments of or instrument replacing— |
| |
(a) | the General Block Exemption Regulation, |
| |
(b) | the Community Guidelines on State Aid for Rescuing and |
| |
Restructuring Firms in Difficulty (2004/C 244/02), |
| 35 |
(c) | Council Regulation (EC) No 104/2000, |
| |
(d) | Directive 2006/12/EC of the European Parliament and of the |
| |
| |
(e) | the Treaty on the Functioning of the European Union.” |
| |
4 | In section 46 (general exclusions applying to first-year qualifying |
| 40 |
expenditure), in subsection (1), at the appropriate place in the list insert— |
| |
| | (expenditure on zero-emission goods |
| | | | | | | |
|
5 (1) | Section 52 (first-year allowances) is amended as follows. |
| |
(2) | In subsection (3), at the appropriate place in the Table insert— |
| 45 |
|
| |
|
| |
|
| “Expenditure qualifying under section 45DA |
| | | | | (expenditure on zero-emission goods vehicles) |
| | | |
|
| |
(a) | omit the “and” at the end of the entry for section 210, and |
| |
(b) | after that entry insert— |
| 5 |
“ section 212T (cap on first-year allowances: zero- |
| |
emission goods vehicles), and”. |
| |
6 | After section 212S insert— |
| |
| |
Cap on first-year allowances: zero-emission goods vehicles |
| 10 |
212T | Cap on first-year allowances: zero-emission goods vehicles |
| |
(1) | A section 45DA allowance is not available in respect of expenditure |
| |
(“the current expenditure”) incurred by a person (“the investor”)— |
| |
(a) | if section 45DA allowances have previously been made in |
| |
respect of undertaking expenditure of 85 million euros, or |
| 15 |
(b) | (where paragraph (a) does not apply) if, and to the extent |
| |
| |
(i) | the undertaking expenditure in respect of which |
| |
section 45DA allowances have previously been made, |
| |
| 20 |
(ii) | the current expenditure, |
| |
| exceeds 85 million euros. |
| |
(2) | “Undertaking expenditure” means— |
| |
(a) | expenditure incurred by the investor, |
| |
(b) | if the investor is a partnership, expenditure incurred (at any |
| 25 |
time) by a person who is a partner enterprise forming part of |
| |
the investor at the time the current expenditure is incurred, |
| |
| |
(c) | if the investor and one or more other persons together form, |
| |
or have at any time formed, an undertaking, expenditure |
| 30 |
| |
(i) | incurred by that undertaking, or |
| |
(ii) | incurred by any of those other persons at a relevant |
| |
| |
(3) | Expenditure is incurred by a person at a “relevant time” if it is |
| 35 |
| |
(a) | at a time when the investor and the person are part of the |
| |
| |
(b) | at a time before the investor and the person became part of |
| |
the same undertaking (or, if they became part of the same |
| 40 |
undertaking on more than one occasion, before the last time). |
| |
(4) | For the purposes of subsection (1), expenditure incurred in a |
| |
currency other than the euro is to be converted into its equivalent in |
| |
|
| |
|