MiscellaneousU.K.
65 Commercial woodlands.U.K.
Schedule 6 to this Act (which abolishes the charge to tax under Schedule B and makes other provision with respect to the occupation of commercial woodlands) shall have effect.
66 Company residence.U.K.
(1)Subject to the provisions of Schedule 7 to this Act, a company which is incorporated in the United Kingdom shall be regarded for the purposes of the Taxes Acts as resident there; and accordingly, if a different place of residence is given by any rule of law, that place shall no longer be taken into account for those purposes.
(2)For the purposes of the Taxes Acts, a company which—
(a)is no longer carrying on any business; or
(b)is being wound up outside the United Kingdom,
shall be regarded as continuing to be resident in the United Kingdom if it was so regarded for those purposes immediately before it ceased to carry on business or, as the case may be, before any of its activities came under the control of a person exercising functions which, in the United Kingdom, would be exercisable by a liquidator.
(3)In this section “the Taxes Acts” has the same meaning as in the Taxes Management Act 1970.
(4)This section and Schedule 7 to this Act shall be deemed to have come into force on 15th March 1988.
Modifications etc. (not altering text)
Marginal Citations
[66AResidence of SEU.K.
(1)This section applies to an SE which transfers its registered office to the United Kingdom (in accordance with Article 8 of Council Regulation (EC) 2157/2001 on the Statute for a European Company (Societas Europaea)).
(2)Upon registration in the United Kingdom the SE shall be regarded for the purposes of the Taxes Acts as resident in the United Kingdom; and accordingly, if a different place of residence is given by any rule of law, that place shall not be taken into account for those purposes.
(3)The SE shall not cease to be regarded as resident in the United Kingdom by reason only of the subsequent transfer from the United Kingdom of its registered office.
(4)In this section “the Taxes Acts” has the same meaning as in the Taxes Management Act 1970.]
67. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.
68 Priority share allocations for employees etc.U.K.
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69 Share options: loans.U.K.
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70 Charities: payroll deduction scheme.U.K.
(1)In section 202(7) of the Taxes Act 1988 (which limits to £120 the deductions attracting relief) for “ £120” there shall be substituted “ £240 ”.
(2)This section shall have effect for the year 1988-89 and subsequent years of assessment.
71 Unit trusts: relief on certain payments.U.K.
Section 469 of the Taxes Act 1988 (taxation of unauthorised and certain other unit trusts) shall have effect, and shall be deemed always to have had effect, with the insertion of the following subsections after subsection (5)—
“(5A)Subsection (5B) below applies where for any year of assessment—
(a)the trustees are (or, apart from this subsection, would be) chargeable under section 350 with tax on payments treated as made by them under subsection (3) above, and
(b)there is an uncredited surplus in the case of the scheme.
(5B)Where this subsection applies, the amount on which the trustees would otherwise be so chargeable shall be reduced—
(a)if the surplus is greater than that amount, to nil, or
(b)if it is not, by an amount equal to the surplus.
(5C)For the purposes of subsections (5A) and (5B) above whether there is an uncredited surplus for a year of assessment in the case of a scheme (and, if so, its amount) shall be ascertained by—
(a)determining, for each earlier year of assessment in which the income on which the trustees were chargeable to tax by virtue of subsection (2) above exceeded the amount treated by subsection (3) above as annual payments received by the unit holders, the amount of the excess,
(b)aggregating the amounts determined in the case of the scheme under paragraph (a) above, and
(c)deducting from that aggregate the total of any reductions made in the case of the scheme under subsection (5B) above for earlier years of assessment.
(5D)The references in subsection (5C)(a) above to subsections (2) and (3) above include references to subsections (2) and (3) of section 354A of the 1970 Act.”
72 Entertainment of overseas customers.U.K.
(1)Subsection (2) of section 577 of the Taxes Act 1988 (which excepts the entertainment of overseas customers from the general rule that entertainment expenses are not deductible for tax purposes) shall not have effect in relation to entertainment provided on or after 15th March 1988.
(2)Subsection (1) above shall not apply where the expenses incurred or the assets used in providing the entertainment were incurred or used under a contract entered into before 15th March 1988.
73 Consideration for certain restrictive undertakings.U.K.
(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)Notwithstanding anything in section 74 of the Taxes Act 1988, [any payment which is treated as earnings of an employee by virtue of section 225 of the Income Tax (Earnings and Pensions) Act 2003 (payments for restrictive undertakings)] , and which is paid or treated as paid by a [company] carrying on a trade, profession or vocation, may be deducted as an expense in computing the profits or gains of the trade, profession or vocation for the purposes of [corporation tax] .
[(3)Any payment which is treated as earnings of an employee by virtue of section 225 of the Income Tax (Earning and Pensions) Act 2003—
(a)if paid or treated as paid by company with investment business, shall be treated for the purposes of section 75 of the Taxes Act 1988 as an expense of management to the extent that it otherwise would not be;
(b)if paid or treated as paid by a company in relation to which section 76 of that Act applies, shall be treated as expenses payable falling to be brought into account at Step 1 in subsection (7) of that section to the extent that it otherwise would not be.]
(4)This section has effect in relation to sums paid or treated as paid in respect of the giving of, or the total or partial fulfilment of, undertakings given on or after 9th June 1988.
Textual Amendments
Modifications etc. (not altering text)
74. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.
75 Premiums for leases etc.U.K.
Sections 39(3) and 780(5) of, and Schedule 2 to, the Taxes Act 1988 (top-slicing relief where premiums for leases etc. chargeable to income tax) shall not have effect for the year 1988-89 or any subsequent year of assessment.
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