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Prospective

Part 1SScottish aggregates tax

Chapter 4SAdministration

Special casesS

29Groups of companiesS

(1)Where any bodies corporate are treated as members of a group by virtue of this section, for the purposes of this Part—

(a)any liability of a member of the group to pay tax is to be taken to be a liability of the representative member,

(b)the representative member is to be taken to carry out any taxable activities which a member of the group would carry out (apart from this section) by virtue of section 18(2),

(c)all members of the group are jointly and severally liable for any tax due from the representative member.

(2)Two or more bodies corporate are eligible to be treated as members of a group if the condition mentioned in subsection (3) is fulfilled and—

(a)one of them controls each of the others,

(b)one person (whether a body corporate or an individual) controls them all, or

(c)two or more individuals carrying on a business in partnership control them all.

(3)The condition is that the prospective representative member has an established place of business in the United Kingdom.

(4)Two or more bodies corporate eligible to be treated as members of a group may apply to Revenue Scotland to be so treated.

(5)An application under subsection (4) must set out which of the bodies corporate is to be the representative member.

(6)Where an application referred to in subsection (4) is made—

(a)the bodies corporate are to be treated as a group from the beginning of an accounting period, and

(b)the body corporate set out in the application is to be the representative member,

unless Revenue Scotland refuses the application.

(7)Where any bodies corporate are treated as members of a group, an application may be made to Revenue Scotland to the effect that—

(a)a further body eligible to be treated as a member of the group is to be included among the bodies treated in that way,

(b)a body corporate is to be excluded from the bodies so treated,

(c)another member of the group is to be substituted as the representative member, or

(d)the bodies corporate are no longer to be treated as members of a group.

(8)Where an application referred to in subsection (7) is made, Revenue Scotland may—

(a)grant the application with effect from such time as Revenue Scotland specifies by written notice to the members of the group, or

(b)refuse the application.

(9)Revenue Scotland may refuse an application under subsection (4) or (7) only if it appears to it necessary to do so for the protection of the revenue.

(10)An application under this section with respect to any bodies corporate—

(a)must be made by one of those bodies or by the person controlling them, and

(b)must be made—

(i)not less than 90 days before the date from which it is to take effect, or

(ii)at such later time as Revenue Scotland may allow.

(11)For the purposes of this section and section 32

(a)a body corporate is to be taken to control another body corporate if—

(i)it may, by virtue of an enactment, control that body's activities, or

(ii)it is that body's holding company within the meaning of section 1159 and schedule 6 of the Companies Act 2006 (meaning of “subsidiary” etc),

(b)an individual is or individuals are to be taken to control a body corporate if the individual or individuals would be that body's holding company within the meaning of the provisions mentioned in paragraph (a)(ii), were the individual or individuals a company.

Commencement Information

I1S. 29 not in force at Royal Assent, see s. 64(2)

30Notification of cessation of eligibility for group treatment or of having place of business in UKS

(1)Where—

(a)two or more bodies corporate are treated as members of a group for the purposes of this Part, and

(b)any of those bodies ceases to be eligible to be so treated,

the body corporate which ceases to be so eligible must notify Revenue Scotland immediately of that fact.

(2)A body corporate which is designated as representative member in relation to any other bodies corporate must not cease to have an established place of business in the United Kingdom without first notifying Revenue Scotland of that fact.

Commencement Information

I2S. 30 not in force at Royal Assent, see s. 64(2)

31Group treatment: change to application or notificationS

A body corporate which has made—

(a)an application under section 29(4) or (7), or

(b)a notification under section 30(1) or (2),

must notify Revenue Scotland immediately if any information contained in or provided in connection with that application or notification becomes inaccurate.

Commencement Information

I3S. 31 not in force at Royal Assent, see s. 64(2)

32Group treatment: substitution and terminationS

(1)Subsection (2) applies where—

(a)a body corporate ceases as from any time to be treated as a member of a group,

(b)immediately before that time, that body was the representative member,

(c)there are two or more other bodies corporate which continue after that time to be treated as members of the group, and

(d)no application under section 29(7)(c) in respect of any those other members of the group has been granted by Revenue Scotland.

(2)Revenue Scotland must, by notice to whichever of the bodies corporate mentioned in subsection (1)(c) as it thinks fit, substitute that body corporate as the representative member, as from the time mentioned in subsection (1)(a).

(3)Where—

(a)a body corporate is treated as a member of a group as being controlled by any person, and

(b)it appears to Revenue Scotland that it has ceased to be so controlled,

Revenue Scotland must, by notice given to that person, terminate that treatment from such date as may be specified in the notice.

(4)If it appears to Revenue Scotland necessary to do so for the protection of the revenue, it may, by notice given to any body corporate that is treated as a member of a group and to the representative member, terminate that treatment from such time as may be specified in the notice.

(5)The time specified in a notice under subsection (4) must not be a time before the day on which the notice is given to the representative member.

Commencement Information

I4S. 32 not in force at Royal Assent, see s. 64(2)

33Partnerships and unincorporated bodies etc.S

(1)The Scottish Ministers may by regulations make provision applying the requirements of this Part to cases where a business is carried on—

(a)in partnership, or

(b)by an unincorporated body.

(2)The registration under this Part of a partnership or an unincorporated body may be in the name of the firm or body concerned.

(3)In determining whether taxable activities are carried out by an unincorporated body, no account is to be taken of any change in its members.

(4)The registration under this Part of a body corporate carrying on a business in several divisions may be in the names of those divisions if—

(a)the body corporate requests it, and

(b)Revenue Scotland considers it appropriate.

Commencement Information

I5S. 33 not in force at Royal Assent, see s. 64(2)

34Bankruptcy etc.S

(1)The Scottish Ministers may by regulations, in relation to a person carrying on a business in a manner described in subsection (2), make provision—

(a)requiring the person carrying on the business to inform Revenue Scotland of the fact that the person is carrying on the business and of the event that has led to that person carrying it on,

(b)allowing the person carrying on the business to be treated, for the duration of a period specified in the regulations, as if that person were the other person mentioned in subsection (2),

(c)for securing continuity in the application of this Part where the person carrying on the business is so treated.

(2)The persons are—

(a)a person carrying on the business of another person who has—

(i)died,

(ii)become bankrupt, or

(iii)become incapacitated,

(b)a person carrying on the business of another person whose estate has been sequestrated,

(c)a person carrying on the business of another person which is in liquidation, receivership or administration.

Commencement Information

I6S. 34 not in force at Royal Assent, see s. 64(2)

35Transfer of business as a going concernS

(1)The Scottish Ministers may by regulations make provision for securing continuity in the application of this Part in cases where a business carried on by a person is transferred to another person as a going concern.

(2)Regulations under subsection (1) may include provision—

(a)requiring the transferor to inform Revenue Scotland of the transfer,

(b)providing for liabilities and duties under this Part of the transferor to become, to such extent as may be provided in the regulations, liabilities and duties of the transferee,

(c)providing for any right of either of them to repayment or credit in respect of tax to be satisfied by making a repayment or allowing a credit to the other,

(d)providing that no such provision as is mentioned in paragraph (b) or (c) is to have effect in relation to any transferor and transferee unless an application to that effect has been made by them under the regulations.

Commencement Information

I7S. 35 not in force at Royal Assent, see s. 64(2)