Finance Act 2012

Corporation Tax Act 2010 U.K.

215 U.K. CTA 2010 is amended as follows.

216 U.K. In section 17(3) (interpretation of Chapter: meaning of “carried-forward amount”)—

(a) in paragraph (f), for “section 76(12) or (13) of ICTA (certain expenses of insurance companies)” substitute “ section 73 or 93 of FA 2012 for use at step 5 in section 76 of that Act (the I - E basis for insurance companies) ”, and

(b) omit paragraph (g).

217 U.K. In section 54(2) (non-UK resident company: receipts of interest, dividends or royalties), for the words from “any of these provisions—” to the end substitute “ section 37 or 45 ”.

218 U.K. In Chapter 4 of Part 4 (property losses), after section 67A insert—

“Insurance companies U.K.

67B Exclusion in the case of property businesses of insurance companies

(1) This Chapter does not apply for the purpose of applying the I - E rules in relation to a loss made by an insurance company in any of its separate UK property businesses or overseas property businesses within section 86(4) of FA 2012.

(2) But in the case of a loss which is referable, in accordance with Chapter 4 of Part 2 of that Act, to the company's basic life assurance and general annuity business, see section 87(3) and (4) of that Act.”

219 U.K. In section 606(5) (groups), in the definition of “insurance company”, for “section 431(2) of ICTA” substitute “ section 65 of FA 2012 ”.

220 (1) Section 783 (treatment of payer of manufactured dividend) is amended as follows. U.K.

(2) In subsection (6), for the words from “as if” to the end substitute “ for the purposes of section 76 of FA 2012 as a deemed BLAGAB management expense for the accounting period in which it is paid. ”

(3) In subsection (7)—

(a) in paragraph (a), for “under section 432A of ICTA” substitute “ in accordance with Chapter 4 of Part 2 of FA 2012 ”, and

(b) in paragraph (b), for “under section 432A of ICTA” substitute “ in accordance with that Chapter ”.

221 (1) Section 785 (treatment of payer: REITs) is amended as follows. U.K.

(2) In subsection (4), for the words from “as if” to the end substitute “ for the purposes of section 76 of FA 2012 as a deemed BLAGAB management expense for the accounting period in which it is paid. ”

(3) In subsection (5)(b), for “under section 432A of ICTA” substitute “ in accordance with Chapter 4 of Part 2 of FA 2012 ”.

222 (1) Section 791 (treatment of payer of manufactured overseas dividend) is amended as follows. U.K.

(2) In subsection (6), for the words from “as if” to the end substitute “ for the purposes of section 76 of FA 2012 as a deemed BLAGAB management expense for the accounting period in which it is paid. ”

(3) In subsection (7)—

(a) in paragraph (a), for “under section 432A of ICTA” substitute “ in accordance with Chapter 4 of Part 2 of FA 2012 ”, and

(b) in paragraph (b), for “under section 432A of ICTA” substitute “ in accordance with that Chapter ”.

223 U.K. In section 799(5) (manufactured payments under arrangements with unallowable purpose), for paragraph (a) substitute—

“(a) section 77(4)(e) or (f) of FA 2012 (ordinary BLAGAB management expenses: excluded amounts),”.

224 U.K. In section 835(2) (transferor or associate becomes liable for payment of rent), for paragraph (c) substitute—

“(c) a deduction is allowed for the payment by taking it into account in the calculation at step 1 of section 76 of FA 2012 (management expenses of insurance companies carrying on basic life assurance and general annuity business).”

225 U.K. In section 836(2) (transferor or associate becomes liable for payment other than rent), for paragraph (c) substitute—

“(c) a deduction is allowed for the payment by taking it into account in the calculation at step 1 of section 76 of FA 2012 (management expenses of insurance companies carrying on basic life assurance and general annuity business).”

226 (1) Section 839 (deduction under section 76 of ICTA not to exceed commercial rent) is amended as follows. U.K.

(2) In subsection (1), for “the deduction under section 76 of ICTA allowed for” substitute “ the amount to be taken into account as mentioned in section 835(2)(c) or 836(2)(c) in respect of ”.

(3) In subsection (3), for “The deduction” substitute “ The amount of the payment to be taken into account ”.

(4) In the heading, omit “under section 76 of ICTA”.

227 (1) Section 840 (carrying forward parts of payments) is amended as follows. U.K.

(2) In subsection (2), for “allowed as a deduction under section 76 of ICTA is not allowed” substitute “ taken into account as mentioned in section 835(2)(c) or 836(2)(c) is not taken into account ”.

(3) In subsection (4), for “a deduction under section 76 of ICTA” substitute “ the calculation at step 1 of section 76 of FA 2012 ”.

(4) In subsection (5), for “allowed as a deduction under section 76 of ICTA” substitute “ taken into account in the calculation at step 1 of section 76 of FA 2012 ”.

228 U.K. In section 860 (relevant corporation tax relief), for paragraph (d) (but not the “and” at the end of that paragraph) substitute—

“(d) a deduction of an amount which for the purposes of section 73 of FA 2012 is an amount of adjusted BLAGAB management expenses of an insurance company for an accounting period,”.

229 U.K. In section 886 (relevant tax relief), for paragraph (c) substitute—

“(c) a deduction of an amount which for the purposes of section 73 of FA 2012 is an amount of adjusted BLAGAB management expenses of an insurance company for an accounting period,”.

230 U.K. In section 1171(2) (powers under orders and regulations excluded from general provision)—

(a) omit the “and” before paragraph (g), and

(b) after that paragraph insert “, and

(h) Parts 2 and 3 of FA 2012.”

231 U.K. In section 1173(2) (miscellaneous charges), in Part 3 of the table, omit—

(a) the entry relating to section 436A(1) of ICTA,

(b) the entry relating to section 442A(1) of ICTA,

(c) the entry relating to section 85(1) of FA 1989, and

(d) the entry relating to section 85A(1) of FA 1989.