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Amendments to the Commonwealth Development Corporation Bill [H.L.]
|Commonwealth Development Corporation Bill [H.L.] - |
Amendments to be debated in the House of Lords
[The page and line refer to Bill 60 as first printed for the Commons]
After Clause 19
|1||Insert the following new Clause--|
|(" . Schedule (Tax) shall have effect.")||Tax.|
|2||Page 11, line 28, leave out subsection (3)|
|3||Page 11, line 33, leave out subsection (4)|
|4||Page 14, line 36, at end insert--|
|("Status as investment company|
| 11A.--(1) Section 266 of the Companies Act 1985 (investment company) shall have effect with the omission of subsection (2)(d) in relation to any accounting reference period which--
(3) Paragraph 73(a) of Schedule 4 to the Companies Act 1985 (company accounts: investment company) shall be taken to be satisfied in relation to the financial year of the Corporation during which it first becomes an investment company.
(4) If at any time which falls within the exempt period and within the first period during which the Corporation is an investment company--
(5) In this paragraph--
After Schedule 2
|5||Insert the following new Schedule--|
|The exempt period|
| 1.--(1) The exempt period for the purposes of this Schedule shall begin with a day appointed by the Secretary of State by order made by statutory instrument.|
|Exemption from tax|
| 2.--(1) The Corporation shall not be chargeable to corporation tax on profits arising during the exempt period.|
(2) The Corporation shall not have a liability to tax by virtue of section 747(4)(a) of the Income and Corporation Taxes Act 1988 (controlled foreign companies) in respect of profits arising during the exempt period.
|Residence for tax purposes|
| 3.--(1) Sub-paragraph (2) shall apply if--
(3) The period shall end--
|Groups of companies, &c.|
| 4.--(1) The Corporation cannot be a member of a group of companies for the purposes of Chapter I of Part VI of the Taxation of Chargeable Gains Act 1992 (groups of companies) at any time during the exempt period.|
(2) Where a company ceases to be a member of a group of companies by virtue of sub-paragraph (1), section 179 of that Act shall not apply.
5.--(1) The Corporation cannot be a member of a group of companies for the purposes of Chapter IV of Part X of the Income and Corporation Taxes Act 1988 (group relief) at any time during the exempt period.
(2) The Corporation cannot be a surrendering company for the purposes of a consortium claim within the meaning of section 402(3) of that Act.
| 6.--(1) This paragraph applies where the Corporation makes a distribution during the exempt period.|
(2) The following provisions shall not apply in relation to the distribution--
(4) The distribution shall be treated as equivalent foreign income for the purposes of section 1A of that Act (rate of tax for income from savings and distributions).
(5) In this paragraph "distribution" has the same meaning as it has in the Corporation Taxes Acts by virtue of Chapter II of Part VI of the Income and Corporation Taxes Act 1988 (company distributions).")
|© Parliamentary copyright 1999||Prepared 16 July 1999|