|
| |
|
“new standards” means accounting standards which reflect one or more |
| |
| |
“old standards” means accounting standards disregarding any leasing |
| |
| |
| 5 |
| |
(b) | TCGA 1992 and all other enactments relating to capital gains |
| |
| |
“UK GAAP” means UK generally accepted accounting practice as defined |
| |
in section 997(2) of ITA 2007 and section 1127(2) of CTA 2010. |
| 10 |
(12) | This section has effect in relation to any period (including any period falling |
| |
wholly or partly before the day on which this Act is passed) in respect of which |
| |
a change to a leasing accounting standard which occurs on or after 1 January |
| |
2011 may or must be adopted by any person for accounting purposes. |
| |
54 | Leasing companies: withdrawal of election |
| 15 |
(1) | In section 398A(1)(a) of CTA 2010 (election out of qualifying change of |
| |
ownership), after “day”)” insert “before 23 March 2011”. |
| |
(2) | The amendment made by this section is to be treated as having come into force |
| |
| |
55 | Companies with small profits: associated companies |
| 20 |
(1) | For section 27 of CTA 2010 (meaning of “associated company”: attribution to |
| |
persons of rights and powers of their partners) substitute— |
| |
“27 | Attribution to persons of rights and powers of their associates |
| |
(1) | This section applies if— |
| |
(a) | it is necessary to determine in accordance with section 25(4) and |
| 25 |
(5) whether a company is an associated company of another |
| |
| |
(b) | the relationship between the two companies is not one of |
| |
substantial commercial interdependence. |
| |
(2) | In the application of section 451 (meaning of “control”: rights to be |
| 30 |
attributed) for the purposes of the determination, any person to whom |
| |
rights and duties fall to be attributed under subsections (4) and (5) of |
| |
that section is to be treated, for the purposes of those subsections, as |
| |
| |
(3) | The Treasury may by order prescribe factors that are to be taken into |
| 35 |
account in determining whether a relationship between two companies |
| |
amounts to substantial commercial interdependence for the purposes |
| |
| |
(2) | The amendment made by this section has effect in relation to accounting |
| |
periods ending on or after 1 April 2011. |
| 40 |
(3) | But a company may elect that the amendment made by this section is of no |
| |
effect in relation to an accounting period that begins before that date. |
| |
(4) | An election under subsection (3) must be made within one year from the end |
| |
of the accounting period to which it relates. |
| |
|
| |
|
| |
|
(5) | The first order under section 27(3) of CTA 2010 (as substituted by subsection |
| |
(1) of this section) may be made so as to have effect in relation to accounting |
| |
periods ending on or after 1 April 2011. |
| |
56 | Insurance companies: apportionment of amounts brought into account |
| |
(1) | In section 432C of ICTA (section 432B apportionment: non-participating |
| 5 |
funds), in subsection (9), for the words from “D is” to the end substitute— |
| |
| |
(a) | the mean of the opening and closing liabilities of the |
| |
relevant business so far as referable to basic life |
| |
assurance and general annuity business (but taking that |
| 10 |
mean to be nil if it would otherwise be below nil), |
| |
reduced (but not below nil) by the mean of the opening |
| |
and closing net values of any assets linked to that |
| |
category of business, and |
| |
(b) | the mean of the opening and closing liabilities of the |
| 15 |
relevant business so far as referable to PHI business (but |
| |
taking that mean to be nil if it would otherwise be below |
| |
nil), reduced (but not below nil) by the mean of the |
| |
opening and closing net values of any assets linked to |
| |
that category of business.” |
| 20 |
(2) | The amendment made by this section has effect in relation to periods of |
| |
account beginning on or after 1 January 2011. |
| |
(3) | For the purposes of section 432CA of ICTA, where the current period of |
| |
account begins on or after 1 January 2011, the reference in subsection (4) to |
| |
section 432C is a reference to that section as amended by this section even if the |
| 25 |
applicable appropriate period of account began before that date. |
| |
(4) | In subsection (3), “current period of account”, “appropriate period of account” |
| |
and “applicable” have the meaning given by section 432CA of ICTA. |
| |
57 | Tonnage tax: capital allowances in respect of ship leasing |
| |
(1) | Part 10 of Schedule 22 to FA 2000 (companies within tonnage tax: capital |
| 30 |
allowances in respect of ship leasing) is amended as follows. |
| |
(2) | In paragraph 94 (quantitative restrictions on allowances)— |
| |
(a) | in sub-paragraph (3)(a), for “a rate of 20% per annum” substitute “the |
| |
rate determined under sub-paragraph (3A)”, |
| |
(b) | in sub-paragraph (3)(b), for “a rate of 10% per annum” substitute “the |
| 35 |
rate specified in section 104D(1) of the Capital Allowances Act 2001”, |
| |
(c) | after sub-paragraph (3) insert— |
| |
“(3A) | The rate mentioned in sub-paragraph (3)(a) is— |
| |
(a) | if the rate of the writing down allowance to which the |
| |
lessor would be entitled in respect of the expenditure |
| 40 |
apart from this paragraph is that specified in section |
| |
56(1) of the Capital Allowances Act 2001, that rate, |
| |
| |
(b) | otherwise, the rate specified in section 104D(1) of that |
| |
| 45 |
(d) | in sub-paragraph (4)— |
| |
|
| |
|
| |
|
(i) | omit the words “within each of those bands”, |
| |
(ii) | after “separate pools” insert “in accordance with sub-paragraph |
| |
| |
(iii) | omit the second sentence, and |
| |
(e) | after that sub-paragraph insert— |
| 5 |
“(4A) | The expenditure is to be allocated to the following pools— |
| |
(a) | to the extent that it is expenditure in respect of which |
| |
the lessor is entitled to writing down allowance at the |
| |
rate specified in section 56(1) of the Capital |
| |
Allowances Act 2001, a pool to be known as “the |
| 10 |
tonnage tax (main rate) pool”, and |
| |
(b) | to the extent that it is expenditure in respect of which |
| |
the lessor is entitled to writing down allowance at the |
| |
rate specified in section 104D(1) of that Act, a pool to |
| |
be known as “the tonnage tax (special rate) pool”.” |
| 15 |
| |
(a) | for “(4)” substitute “(4A)”, and |
| |
(b) | for “20%” substitute “tonnage tax (main rate)” and for “10%” substitute |
| |
“tonnage tax (special rate)”. |
| |
| 20 |
(a) | in sub-paragraphs (2) and (3), for “20%” substitute “tonnage tax (main |
| |
rate)” and for “10%” substitute “tonnage tax (special rate)”, and |
| |
(b) | in sub-paragraph (4), for “10%” substitute “tonnage tax (special rate)”. |
| |
(5) | In paragraph 98(8), for “20%” substitute “tonnage tax (main rate)” and for |
| |
“10%” substitute “tonnage tax (special rate)”. |
| 25 |
(6) | In paragraph 99 (quantitative restrictions: change of circumstances taking case |
| |
| |
(a) | in sub-paragraph (2), for “20%” substitute “tonnage tax (main rate)” |
| |
and for “10%” substitute “tonnage tax (special rate)”, |
| |
(b) | in sub-paragraph (4), for the words from “the whole of” to the end |
| 30 |
substitute “the amount that the tax written down value of the ship |
| |
would have been, at the time the change of circumstances occurs, had |
| |
paragraph 94 never applied.”, and |
| |
(c) | omit sub-paragraph (5). |
| |
(7) | In consequence of the amendments made by this section, omit section 80(5) to |
| 35 |
| |
(8) | The amendments made by this section have effect in relation to chargeable |
| |
periods ending on or after 1 January 2011. |
| |
(9) | But the amendments made by this section are of no effect in relation to |
| |
expenditure incurred before that date. |
| 40 |
58 | Transfer pricing: application of OECD principles |
| |
(1) | In section 164 of TIOPA 2010 (Part to be interpreted in accordance with OECD |
| |
principles), for subsection (4) substitute— |
| |
“(4) | In this section “the transfer pricing guidelines” means— |
| |
|
| |
|
| |
|
(a) | the version of the Transfer Pricing Guidelines for Multinational |
| |
Enterprises and Tax Administrations approved by the |
| |
Organisation for Economic Co-operation and Development |
| |
(OECD) on 22 July 2010, or |
| |
(b) | such other document approved and published by the OECD in |
| 5 |
place of that (or a later) version or in place of those Guidelines |
| |
as is designated for the time being by order made by the |
| |
| |
| including, in either case, such material published by the OECD as part |
| |
of (or by way of update or supplement to) the version or other |
| 10 |
document concerned as may be so designated.” |
| |
(2) | The amendment made by this section has effect (in relation to provision made |
| |
| |
(a) | for corporation tax purposes, for accounting periods beginning on or |
| |
| 15 |
(b) | for income tax purposes, for the tax year 2011-12 and subsequent tax |
| |
| |
| |
| In Part 8 of TIOPA 2010 (offshore funds), after section 363 insert— |
| |
“363A | Residence of offshore funds which are undertakings for collective |
| 20 |
investment in transferable securities |
| |
(1) | This section applies to an offshore fund (within the meaning of section |
| |
| |
(a) | is, for the purposes of the UCITS Directive, an undertaking for |
| |
collective investment in transferable securities, and |
| 25 |
(b) | is authorised pursuant to Article 5 of the UCITS Directive in a |
| |
Member State other than the United Kingdom. |
| |
| |
(a) | the offshore fund is a body corporate which, under the law of |
| |
the Member State in which it is authorised pursuant to Article 5 |
| 30 |
of the UCITS Directive, is treated as resident in that State for the |
| |
purposes of any tax imposed under that law on income, and |
| |
(b) | (apart from this section) the body corporate would be treated as |
| |
resident in the United Kingdom for the purposes of any |
| |
enactment (within the meaning of section 354) relating to |
| 35 |
income tax, corporation tax or capital gains tax, |
| |
| the body corporate is instead to be treated as if it were not resident in |
| |
| |
(3) | If, by virtue of section 99 or 103A of TCGA 1992, that Act applies in |
| |
relation to the offshore fund as if it were a company, that Act applies as |
| 40 |
if the company were neither resident nor ordinarily resident in the |
| |
United Kingdom (if it would not otherwise do so). |
| |
(4) | In this section “the UCITS Directive” means Directive 2009/65/EC of |
| |
the European Parliament and of the Council.” |
| |
|
| |
|