Finance Act 2008

Section 111

SCHEDULE 35 Set off against oil profits: minor and consequential amendments

TMA 1970

1 In section 87A of TMA 1970 (interest on overdue corporation tax), in subsection (6)(a), after “set off” insert “(whether under section 393A(1) or 393B(3))”.

ICTA

2 ICTA is amended as follows.

3 In section 343 (company reconstructions without change of ownership), in subsection (3), after “section 393A(1)” insert “(including a case where section 393B applies)”.

4 In section 393 (losses other than terminal losses), in subsection (1), for the words after “cannot” substitute “be relieved under this subsection, or (if a claim is made under section 393A(1)) under section 393A(1) or 393B(3), against income or profits of an earlier accounting period.”

5 In section 393A (losses: set off against profits of the same, or an earlier, accounting period), after subsection (2C) insert—

“(2D) Section 393B makes further provision about setting off losses in cases where subsection (2C) applies.”

6 In section 768A (change in ownership: disallowance of carry back of trading losses), in subsection (1), after “section 393A(1)” insert “or 393B(3)”.

7 In section 826 (interest on tax overpaid), in subsection (7A)(b), after “set off” insert “(whether under section 393A(1) or 393B(3))”.

8 (1) Schedule 19B (petroleum extraction activities: exploration expenditure supplement) is amended as follows.

(2) In paragraph 1 (provision about the Schedule), in sub-paragraph (7)(b), after “section 393A” insert “or 393B”.

(3) In paragraph 17 (ring fence losses and qualifying E&A losses), in sub-paragraph (2)—

(a) the words after “assumed” become sub-paragraph (a), and

(b) at the end of that sub-paragraph insert “and—

(b) that (where appropriate) section 393B applies in relation to every such claim.”

9 (1) Schedule 19C (petroleum extraction activities: ring fence expenditure supplement) is amended as follows.

(2) In paragraph 1 (provision about the Schedule), in sub-paragraph (6)(b), after “section 393A” insert “or 393B”.

(3) In paragraph 17 (ring fence losses)—

(a) in sub-paragraph (2), for “assumption is” substitute “assumptions are”,

(b) in sub-paragraph (3), for “The assumption” substitute “The first assumption”, and

(c) after that sub-paragraph insert—

“(3A) The second assumption is that (where appropriate) section 393B applies in relation to every such claim under section 393A.”

FA 2000

10 (1) Schedule 20 to FA 2000 (tax relief for expenditure on research and development) is amended as follows.

(2) In paragraph 15 (entitlement to R&D tax credit)—

(a) in sub-paragraph (4)(b), after “section 393A(1)(b)” insert “or 393B(3)”, and

(b) in sub-paragraph (5)(b), after “section 393A(1)(b)” insert “or 393B(3)”.

(3) In paragraph 23 (treatment of deemed trading loss), in sub-paragraph (2), after “section 393A(1)(b)” insert “or 393B(3)”.