|
| |
|
3 (1) | Section 312 (determination of credits and debits where amounts not fully |
| |
recognised) is amended as follows. |
| |
(2) | For subsection (1A) substitute— |
| |
“(1A) | Subsection (1B) applies in a case where— |
| |
(a) | pursuant to the arrangements mentioned in section 311(2)(b), |
| 5 |
the company becomes, or is treated as becoming, a party to a |
| |
| |
(b) | an amount is (in accordance with generally accepted |
| |
accounting practice) not fully recognised for any period in |
| |
respect of the debtor relationship.” |
| 10 |
(3) | In subsection (1B) omit “by reference to which that condition is met”. |
| |
(4) | In subsection (3) for “But” substitute “But— |
| |
(a) | no debits are, as a result of this section, to be brought into |
| |
account by the company in respect of the creditor |
| |
relationship mentioned in section 311(2), and |
| 15 |
| |
4 | In section 440 (overview of Chapter 15), in subsection (2), omit the “and” at |
| |
the end of paragraph (e), and after paragraph (f) insert “, and |
| |
(g) | for rules about debits arising as a result of the derecognition |
| |
of creditor relationships, see section 455A.” |
| 20 |
5 | After section 455 insert— |
| |
| |
455A | Debits arising from derecognition of creditor relationships |
| |
(1) | This section applies where— |
| |
(a) | a company is at any time a party to tax avoidance |
| 25 |
| |
(b) | as a result of those arrangements, a creditor relationship to |
| |
which the company is party, or any part of such a |
| |
relationship, is (in accordance with generally accepted |
| |
accounting practice) derecognised by the company, and |
| 30 |
(c) | the company continues to be a party to the creditor |
| |
relationship immediately after the transaction or other event |
| |
giving rise to the derecognition. |
| |
(2) | No debit that would apart from this section be brought into account |
| |
by the company for the purposes of this Part as a result of the |
| 35 |
derecognition is to be so brought into account. |
| |
(3) | An amount that would be brought into account for the purposes of |
| |
this Part as respects any matter apart from this section— |
| |
(a) | is treated for the purposes of section 464(1) (priority of this |
| |
Part for corporation tax purposes) as if it were so brought into |
| 40 |
| |
(b) | accordingly, may not be brought into account for any other |
| |
corporation tax purposes as respects that matter. |
| |
|
| |
|
| |
|
(4) | For the purposes of this section a company is to be treated as a party |
| |
to a creditor relationship even though it has disposed of its rights |
| |
under the relationship to another person— |
| |
(a) | under a repo or stock lending arrangement, or |
| |
(b) | under a transaction which is treated as not involving any |
| 5 |
disposal as a result of section 26 of TCGA 1992 (mortgages |
| |
and charges not to be treated as disposals). |
| |
(5) | For the purposes of this section arrangements are “tax avoidance |
| |
arrangements” if the main purpose, or one of the main purposes, of |
| |
any party to the arrangements, in entering into them, is to obtain a |
| 10 |
| |
(6) | In subsection (5) “arrangements” includes any arrangements, |
| |
scheme or understanding of any kind, whether or not legally |
| |
enforceable, involving a single transaction or two or more |
| |
| 15 |
6 | In section 464 (priority of Part for corporation tax purposes), in subsection |
| |
(4), omit the “and” at the end of paragraph (a) and after paragraph (b) insert |
| |
| |
(c) | section 455A(3) (debits arising from derecognition of creditor |
| |
| 20 |
| |
7 | Part 7 of CTA 2009 (derivative contracts) is amended as follows. |
| |
8 (1) | Section 599A (amounts not fully recognised for accounting purposes) is |
| |
| |
| 25 |
(a) | at the end of paragraph (a) insert “and”, and |
| |
(b) | for paragraphs (b) and (c) substitute— |
| |
“(b) | as a result of tax avoidance arrangements to which the |
| |
company is at any time a party, an amount is (in |
| |
accordance with generally accepted accounting |
| 30 |
practice) not fully recognised for the period in respect |
| |
| |
(3) | Omit subsections (3) to (5B). |
| |
| |
(a) | in the opening words, omit “, a contribution to it or securities issued |
| 35 |
| |
(b) | in paragraphs (a) and (b), omit “, contribution or securities”. |
| |
(5) | After subsection (6) insert— |
| |
“(7) | For the purposes of this section arrangements are “tax avoidance |
| |
arrangements” if the main purpose, or one of the main purposes, of |
| 40 |
any party to the arrangements, in entering into them, is to obtain a |
| |
| |
| |
(a) | “arrangements” includes any arrangements, scheme or |
| |
understanding of any kind, whether or not legally |
| 45 |
|
| |
|
| |
|
enforceable, involving a single transaction or two or more |
| |
| |
(b) | “tax advantage” has the meaning given by section 1139 of |
| |
| |
(9) | For the purposes of this section a company is to be treated as a party |
| 5 |
to a derivative contract even though it has disposed of its rights and |
| |
liabilities under the contract to another person— |
| |
(a) | under a repo or stock lending arrangement, or |
| |
(b) | under a transaction which is treated as not involving any |
| |
disposal as a result of section 26 of TCGA 1992 (mortgages |
| 10 |
and charges not to be treated as disposals).” |
| |
9 (1) | Section 599B (determination of credits and debits where amounts not fully |
| |
recognised) is amended as follows. |
| |
(2) | After subsection (2) insert— |
| |
“(2A) | But no debits are, as a result of this section, to be brought into |
| 15 |
account by the company in respect of the derivative contract.” |
| |
(3) | After subsection (3) insert— |
| |
| |
(a) | the company is, or is treated as, a party to the contract at the |
| |
beginning of the period referred to in section 599A(1), and |
| 20 |
(b) | the fair value of the contract at that time is greater than the |
| |
carrying value of that contract at that time, |
| |
| a credit of an amount equal to the difference is to be brought into |
| |
account for that period for the purposes of this Part in respect of the |
| |
| 25 |
10 | In section 689 (overview of Chapter 11), in subsection (2), omit the “and” at |
| |
the end of paragraph (c), and after paragraph (d) insert “, and |
| |
(e) | for rules about debits arising as a result of the derecognition |
| |
of derivative contracts, see section 698A.” |
| |
11 | After section 698 insert— |
| 30 |
| |
698A | Debits arising from derecognition of derivative contracts |
| |
(1) | This section applies where— |
| |
(a) | a company is at any time a party to tax avoidance |
| |
| 35 |
(b) | as a result of those arrangements, a derivative contract to |
| |
which the company is party, or any part of such a contract, is |
| |
(in accordance with generally accepted accounting practice) |
| |
derecognised by the company, and |
| |
(c) | the company continues to be a party to the derivative contract |
| 40 |
immediately after the transaction or other event giving rise to |
| |
| |
(2) | No debit that would apart from this section be brought into account |
| |
by the company for the purposes of this Part as a result of the |
| |
derecognition is to be so brought into account. |
| 45 |
|
| |
|
| |
|
(3) | An amount that would be brought into account for the purposes of |
| |
this Part as respects any matter apart from this section— |
| |
(a) | is treated for the purposes of section 699(1) (priority of this |
| |
Part for corporation tax purposes) as if it were so brought into |
| |
| 5 |
(b) | accordingly, may not be brought into account for any other |
| |
corporation tax purposes as respects that matter. |
| |
(4) | For the purposes of this section a company is to be treated as a party |
| |
to a derivative contract even though it has disposed of its rights and |
| |
liabilities under the contract to another person— |
| 10 |
(a) | under a repo or stock lending arrangement, or |
| |
(b) | under a transaction which is treated as not involving any |
| |
disposal as a result of section 26 of TCGA 1992 (mortgages |
| |
and charges not to be treated as disposals). |
| |
(5) | For the purposes of this section arrangements are “tax avoidance |
| 15 |
arrangements” if the main purpose, or one of the main purposes, of |
| |
any party to the arrangements, in entering into them, is to obtain a |
| |
| |
| |
(a) | “arrangements” includes any arrangements, scheme or |
| 20 |
understanding of any kind, whether or not legally |
| |
enforceable, involving a single transaction or two or more |
| |
| |
(b) | “tax advantage” has the meaning given by section 1139 of |
| |
| 25 |
| |
12 | In consequence of the amendments made by this Schedule, omit— |
| |
(a) | in Schedule 30 to FA 2009, paragraph 2(1) to (6), and |
| |
(b) | in Schedule 5 to F(No.2)A 2010, paragraphs 1 and 3. |
| |
| 30 |
13 (1) | The amendments made by this Schedule have effect in relation to periods of |
| |
account beginning on or after 6 December 2010. |
| |
(2) | But, for the purposes of sub-paragraph (1), a period of account beginning |
| |
before, and ending on or after, 6 December 2010 is to be treated as if so much |
| |
of the period as falls before that date, and so much of the period as falls on |
| 35 |
or after that date, were separate periods of account. |
| |
(3) | The following provisions of CTA 2009 do not have effect where they apply |
| |
by reason of tax avoidance arrangements to which the company became a |
| |
party before 23 March 2011— |
| |
(a) | section 312(3)(a) (as inserted by paragraph 3(4) of this Schedule); |
| 40 |
(b) | section 599B(2A) (as inserted by paragraph 9(2) of this Schedule); |
| |
(c) | section 599B(4) (as inserted by paragraph 9(3) of this Schedule). |
| |
|
| |
|