PART IV PROVISIONS RELATING TO THE SCHEDULE D CHARGE
CHAPTER V COMPUTATIONAL PROVISIONS
Deductions
74 General rules as to deductions not allowable.
F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
75Expenses of management: companies with investment business
F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
75AF5Accounting period to which expenses of management are referable
F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
75BF6Amounts reversing expenses of management deducted: charge to tax
F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C1C2C4C5C676F90Expenses of insurance companies
1
In computing for the purposes of corporation tax the profits for any accounting period of a company—
a
which carries on life assurance business, and
b
which is F94charged to tax in respect of that business under the I minus E basis,
F111sections 1219 to 1223 of CTA 2009 (expenses of management of a company's investment business) do not apply in computing the profits of that business, but a deduction for expenses payable (the “expenses deduction”) is to be allowed in accordance with the following provisions of this section.
F95. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
The expenses deduction is to be made from so much of the income and gains of the accounting period referable to basic life assurance and general annuity business as remains after any deduction falling to be made by virtue of F112section 388 of CTA 2009 (basic rule: deficit set off against income and gains of deficit period).
3
For the purposes of this section “expenses payable” means expenses brought into account in line 12, 22 or 25 of Form 40 (the revenue account) in the periodical return of the company for a period of account, but does not include any of the amounts falling within subsection (4), (5) or (6) below.
4
The amounts falling within this subsection are the following—
a
reinsurance premiums,
b
refunds of premiums,
c
profit commissions and profit participations (however described),
d
expenses or other amounts payable, to the extent that the company’s purpose in incurring the liability to make the payment is not a business or other commercial purpose of the company.
For the purposes of paragraph (d) above, it is not one of the business or commercial purposes of a company to incur a liability to pay an amount of commission or other expenses which exceeds the amount which it could reasonably be expected to pay if the company were charged to tax under F113section 35 of CTA 2009 (charge on trade profits) in respect of its life assurance business.
5
The amounts falling within this subsection are any amounts payable in connection with a policy or contract to—
a
a policy holder or annuitant under the policy or contract (except where the policy holder is an insurance company),
b
any other person who is entitled to receive benefits under the policy or contract,
c
any person acting on behalf of a person falling within paragraph (a) or (b) above,
d
the personal representatives of a deceased person who fell within paragraphs (a) to (c) above.
6
The amounts falling within this subsection are expenses of a capital nature.
But this subsection does not apply in the case of an amount which, by virtue of any provision of the Tax Acts other than this section, falls to be treated for the purposes of this section as expenses payable which fall to be brought into account at Step 1 in subsection (7) below (the reference to Step 1 being express in the provision).
C37
The amount of the expenses deduction for an accounting period is found by taking the following steps—
Step 1
Find so much of the expenses payable as are—
- a
attributable to basic life assurance and general annuity business (see subsection (8) below), and
- b
referable to the accounting period (see subsection (9) below).
- a
Step 2
Reduce each of the amounts found at Step 1 by excluding so much of the amount as is—
- a
deductible F114in computing, for corporation tax purposes, the profits of a UK property business,
- b
deductible by virtue of section 85(2B) of the Finance Act 1989, F108. . .
- c
deductible by virtue of F115section 272 of CTA 2009 in computing income from the letting of rights to work minerals in the United Kingdom, F109or
- d
required to be deducted by subsection (9A) below.
- a
Step 3
Find the amounts (so far as not included at Step 1) which fall to be treated for the purposes of this section as expenses payable for the accounting period by virtue of any of the following provisions—
section 432AB(3) (Schedule A loss or an overseas property business loss referable to basic life assurance and general annuity business);
section 437(1A) (relief for income element of new annuities);
F96. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
paragraph 16(1) of Schedule 7 to the Finance Act 1991 (transitional relief for old annuities);
F116. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
section 256(2)(a) of the Capital Allowances Act (capital allowances on plant and machinery used in the management of life assurance business);
F116. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F116. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F96. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F116. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F117section 391(3)(b) of CTA 2009 (carried forward non-trading deficit on loan relationships);
section 1080(2) of CTA 2009 (30% additional deduction for qualifying R&D expenditure of company carrying on life assurance business);
section 1161 of CTA 2009 (150% relief for remediation expenditure on contaminated land owned by company carrying on life assurance business).
Step 4
Give effect to the provisions specified in Step 3 by adding together—
- a
so much of the amounts found at Step 1 as remains after making any reductions at Step 2, and
- b
the amounts found at Step 3,
- a
and then deduct the amount of any reversal (wherever brought into account) of an expense included at Step 1 in a previous period,
to give Subtotal 1.
Step 5
If the whole or any part of a loss arising to the company in respect of its life assurance business in the accounting period is set off under section 393A or 403(1)—
- a
find the amount (“amount L”) that is equal to so much of the loss as, in the aggregate, is so set off,
- b
find the F97 amount (“amount S”) by which any losses for that period under section F98436A fall to be reduced under section 434A(2)(b),
- c
from amount L deduct amount S, to give the adjusted loss deduction,
- a
then reduce Subtotal 1 by deducting from it the adjusted loss deduction,
to give Subtotal 2.
Step 6
Give effect to subsection (6) of section 86 of the Finance Act 1989 (spreading of acquisition expenses) by—
- a
finding the amount that is equal to six-sevenths of the adjusted amount of the acquisition expenses (within the meaning of that section) for the accounting period, and
- b
deducting that amount from Subtotal 2,
- a
to give Subtotal 3.
Step 7
Add together the following amounts—
- a
Subtotal 3, and
- b
any amounts carried forward to the accounting period under subsection (12) or (13) below (unrelieved excesses from earlier accounting periods),
- a
to give Subtotal 4.
Step 8
Give effect to subsections (8) and (9) of section 86 of the Finance Act 1989 (fraction of adjusted amount of acquisition expenses for earlier accounting periods) by adding together—
- a
Subtotal 4, and
- b
any amounts which are to be relieved under this section by virtue of those subsections,
- a
to give the F99expenses deduction.
Step 9
F100. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Step 10: the amount of the expenses deduction
F100. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
For the purposes of Step 1, the expenses that are attributable to basic life assurance and general annuity business are the expenses which are attributable to that business in accordance with proper internal accounting practice.
In this subsection “proper internal accounting practice” means the practice of insurance companies in allocating all the expenses of the company to particular categories of business in accordance with any applicable requirements of—
a
generally accepted accounting practice, F91. . .
b
the Prudential Sourcebook (Insurers)F92, or
c
the F93Insurance Prudential Sourcebook.
9
The following rules have effect for determining for the purposes of Step 1 the expenses that are referable to an accounting period.
Rule A
Where a period of account coincides with an accounting period, the expenses brought into account for the period of account are the expenses referable to the accounting period.
Rule B
Where—
a
two or more accounting periods fall within the same period of account, and
b
that period of account is longer than 12 months,
section 834(4) (apportionment on time basis) is to apply.
Rule C
In any other case where two or more accounting periods fall within the same period of account, the expenses referable to any of those accounting periods are the expenses that would have been referable to that accounting period if—
a
the accounting period had coincided with a period of account, and
b
a separate periodical return had been made for that period of account,
and section 834(4) (apportionment on time basis) is not to apply.
Rule D
Rules A to C are subject to any provision of the Corporation Tax Acts which provides for an amount to be treated as expenses payable for, or referable to, a particular period.
F1109A
The amount required to be deducted at paragraph (d) of Step 2 is the total of the amounts (if any) arrived at under subsection (9C) below in relation to the fronting reinsurance contracts (if any) made by the company.
9B
A fronting reinsurance contract is a contract of reinsurance forming part of a fronting reinsurance arrangement; and a fronting reinsurance arrangement is an arrangement under which the company—
a
enters into a contract constituting term assurance with a person, and
b
reinsures all, or substantially all, of the liabilities under that contract with a reinsurer which—
i
does not meet the BLAGAB group reinsurance conditions in paragraph 1(3) of Schedule 19ABA to this Act, and
ii
is connected with that person or with a person entitled to commission from the company in respect of the contract.
9C
The amount referred to in subsection (9A) above in relation to any fronting reinsurance contract made by the company is the relevant reinsurance fraction of so much of the amount found at Step 1 as relates to policies and contracts which are relevant reinsured policies and contracts in relation to the fronting reinsurance contract.
9D
For the purposes of subsection (9C) above “the relevant reinsurance fraction” is—
where—
RL is so much of TL as is reinsured under the fronting reinsurance contract, and
TL is the amount of the total liabilities under the relevant reinsured policies and contracts at the end of the accounting period.
9E
For the purposes of subsections (9B) and (9C) above policies and contracts are relevant reinsured policies and contracts in relation to a fronting reinsurance contract if—
a
they are attributable to the company's basic life assurance and general annuity business, and
b
any or all of the risks under them are reinsured under the fronting reinsurance contract.
10
F101. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
F101. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
Where for any accounting period—
a
the amount of the expenses deduction (see F102Step 8), exceeds
b
the amount from which that deduction is to be made (see subsection (2) above),
the excess is to be carried forward to the next accounting period F103 for which the company is charged to tax in respect of its life assurance business under the I minus E basis and brought into account for that period in accordance with Step 7.
F10413
Where for any accounting period excess adjusted Case I profits are charged to tax under section 85A of the Finance Act 1989, an amount equal to the profits is to be carried forward to the next accounting period for which the company is charged to tax in respect of its life assurance business under the I minus E basis and brought into account for that period in accordance with Step 7.
14
F105. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15
F84Payments for restrictive undertakings
76ZAPayments for restrictive undertakings
1
This section applies if a payment—
a
is treated as earnings of an employee by virtue of section 225 of ITEPA 2003 (payments for restrictive undertakings), and
b
is made, or treated as made for the purposes of section 226 of that Act (valuable consideration given for restrictive undertakings), by a company in relation to which section 76 applies.
2
The payment is treated as expenses payable which fall to be brought into account at Step 1 in section 76(7), so far as it otherwise would not be.
F85Seconded employees
S. 76ZB and cross-heading inserted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 32 (with Sch. 2 Pts. 1, 2)
76ZBEmployees seconded to charities and educational establishments
1
This section applies if a company to which section 76 applies makes the services of a person employed for the purposes of the company's life assurance business available to—
a
a charity, or
b
an educational establishment,
on a basis that is stated and intended to be temporary.
2
Expenses of the employer that are attributable to the employee's employment during the period of the secondment are treated as expenses payable which fall to be brought into account at Step 1 in section 76(7).
3
In this section—
“educational establishment” has the same meaning as in section 70 of CTA 2009, and
“the period of the secondment” means the period for which the employee's services are made available to the charity or educational establishment.
F86Counselling and retraining expenses
S. 76ZC and cross-heading inserted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 33 (with Sch. 2 Pts. 1, 2)
76ZCCounselling and other outplacement services
1
This section applies if—
a
a company carrying on life assurance business (“the employer”) incurs counselling expenses,
b
the expenses are incurred in relation to a person (“the employee”) who holds or has held an office or employment under the employer, and
c
the relevant conditions are met.
2
The expenses are brought into account under section 76 as expenses payable (so far as they otherwise would not be).
3
In this section “counselling expenses” means expenses incurred—
a
in the provision of services to the employee in connection with the cessation of the office or employment,
b
in the payment or reimbursement of fees for such provision, or
c
in the payment or reimbursement of travelling expenses in connection with such provision.
4
In this section “the relevant conditions” means—
a
conditions A to D for the purposes of section 310 of ITEPA 2003 (employment income exemptions: counselling and other outplacement services), and
b
in the case of travel expenses, condition E for those purposes.
F776ZDRetraining courses
1
This section applies if—
a
a company carrying on life assurance business (“the employer”) incurs training course expenses,
b
they are incurred in relation to a person (“the employee”) who holds or has held an office or employment under the employer, and
c
the relevant conditions are met.
2
The expenses are brought into account under section 76 as expenses payable (so far as they otherwise would not be).
3
In this section—
“retraining course expenses” means expenses incurred in the payment or reimbursement of retraining course expenses within the meaning given by section 311(2) of ITEPA 2003, and
“the relevant conditions” means—
- a
the conditions in subsections (3) and (4) of section 311 of ITEPA 2003 (employment income exemptions: retraining courses), and
- b
in the case of travel expenses, the conditions in subsection (5) of that section.
- a
F8C776ZERetraining courses: recovery of tax
1
This section applies if—
a
an employer's liability to corporation tax for an accounting period is determined on the assumption that it is entitled by virtue of section 76ZD to bring an amount into account in determining the amount of a deduction to be made under section 76, and
b
without section 76ZD the employer would not have been so entitled.
2
If, subsequently—
a
the condition in section 311(4)(a) of ITEPA 2003 is not met because of the employee's failure to begin the course within the period of one year after ceasing to be employed, or
b
the condition in section 311(4)(b) of ITEPA 2003 is not met because of the employee's continued employment or re-employment,
an assessment of an amount or further amount of corporation tax due as a result of the condition not being met may be made under paragraph 41 of Schedule 18 to FA 1998.
3
Such an assessment must be made before the end of the period of 6 years immediately following the end of the accounting period in which the failure to meet the condition occurred.
4
If subsection (2) applies, the employer must give an officer of Revenue and Customs a notice containing particulars of—
a
the employee's failure to begin the course,
b
the employee's continued employment, or
c
the employee's re-employment,
within 60 days of coming to know of it.
5
If an officer of Revenue and Customs has reason to believe that the employer has failed to give such a notice, the officer may by notice require the employer to provide such information as the officer may reasonably require for the purposes of this section about—
a
the failure to begin the course,
b
the continued employment, or
c
the re-employment.
6
A notice under subsection (5) may specify a time (not less than 60 days) within which the required information must be provided.
F87Redundancy payments etc
S. 76ZF and cross-heading inserted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 36 (with Sch. 2 Pts. 1, 2)
76ZFRedundancy payments and approved contractual payments
1
Sections 76ZG to 76ZI apply if—
a
a company to which section 76 applies (“the employer”) makes a redundancy payment or an approved contractual payment to another person (“the employee”), and
b
the payment is in respect of the employee's employment wholly in the employer's life assurance business or partly in the employer's life assurance business and partly in one or more other capacities.
2
For the purposes of this section and sections 76ZG to 76ZH “redundancy payment” means a redundancy payment payable under—
a
Part 11 of the Employment Rights Act 1996, or
b
Part 12 of the Employment Rights (Northern Ireland) Order 1996.
3
For the purposes of this section and those sections—
“contractual payment” means a payment which, under an agreement, an employer is liable to make to an employee on the termination of the employee's contract of employment, and
a contractual payment is “approved” if, in respect of that agreement, an order is in force under—
- a
section 157 of the Employment Rights Act 1996, or
- b
Article 192 of the Employment Rights (Northern Ireland) Order 1996.
- a
F976ZGPayments in respect of employment wholly in employer's business
1
This section applies if the payment is in respect of the employee's employment wholly in the employer's life assurance business.
2
The payment is treated as expenses payable which fall to be brought into account at Step 1 in section 76(7), so far as it otherwise would not be.
3
The amount brought into account by virtue of this section for an approved contractual payment must not exceed the amount which would have been due to the employee if a redundancy payment had been payable.
4
If the payment is referable to an accounting period beginning after the business has permanently ceased to be carried on, it is treated as referable to the last accounting period in which the business was carried on.
F1076ZHPayments in respect of employment in more than one capacity
1
This section applies if the payment is in respect of the employee's employment with the employer—
a
partly in the employer's life assurance business, and
b
partly in one or more other capacities.
2
The amount of the redundancy payment, or the amount which would have been due if a redundancy payment had been payable, is to be apportioned on a just and reasonable basis between—
a
the employment in the life assurance business, and
b
the employment in the other capacities.
3
The part of the payment apportioned to the employment in the life assurance business is treated as a payment in respect of the employee's employment wholly in the life assurance business for the purposes of section 76ZG.
F1176ZIAdditional payments
1
This section applies if the employer's business, or part of it, ceases (permanently) to be carried on and the employer makes a payment to the employee in addition to—
a
the redundancy payment, or
b
if an approved contractual payment is made, the amount that would have been due if a redundancy payment had been payable.
2
If—
a
the additional payment would not otherwise be regarded as expenses payable for the purposes of section 76, but
b
that is only because the business, or the part of the business, has ceased to be carried on,
the additional payment is regarded as expenses payable for the purposes of section 76.
3
So far as the additional payment would, apart from this subsection, be regarded as expenses payable for the purposes of Step 5 in subsection (7) of section 76, it is not to be so regarded for the purposes of that subsection (or of subsection (2) above so far as relating to section 76).
4
The amount treated under this section as expenses payable for the purposes of section 76 is limited to 3 times the amount of—
a
the redundancy payment, or
b
if an approved contractual payment is made, the amount that would have been due if a redundancy payment had been payable.
5
If the payment is referable to an accounting period beginning after the business or the part of the business has ceased to be carried on, it is treated as referable to the last accounting period in which the business, or the part concerned, was carried on.
F1276ZJPayments by the Government
1
This section applies if—
a
a redundancy payment or an approved contractual payment is payable by a company to which section 76 applies (“the employer”), and
b
a payment to which subsection (2) applies is made in respect of the payment.
2
This subsection applies to—
a
payments made by the Secretary of State under section 167 of the Employment Rights Act 1996, and
b
payments made by the Department for Employment and Learning under Article 202 of the Employment Rights (Northern Ireland) Order 1996.
3
So far as the employer reimburses the Secretary of State or Department for the payment, sections 76ZG to 76ZI apply as if the payment were—
a
a redundancy payment, or
b
an approved contractual payment,
made by the employer.
F88Contributions to local enterprise organisations or urban regeneration companies
S. 76ZK and cross-heading inserted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 41 (with Sch. 2 Pts. 1, 2)
76ZKContributions to local enterprise organisations or urban regeneration companies
1
This section applies if a company to which section 76 applies (“the contributor”) incurs expenses in making a contribution (whether in cash or in kind)—
a
to a local enterprise organisation, or
b
to an urban regeneration company.
2
The expenses are treated for the purposes of section 76 as expenses payable which fall to be brought into account at Step 1 in section 76(7).
3
But if, in connection with the making of the contribution, the contributor or a connected person—
a
receives a disqualifying benefit of any kind, or
b
is entitled to receive such a benefit,
the amount treated in accordance with subsection (2) is restricted to the amount of the expenses less the value of the benefit.
4
For this purpose it does not matter whether a person receives, or is entitled to receive, the benefit—
a
from the local enterprise organisation or urban regeneration company concerned, or
b
from anyone else.
5
Subsection (6) applies if—
a
an amount has been brought into account in accordance with subsection (2), and
b
the contributor or a connected person receives a disqualifying benefit that is in any way attributable to the contribution.
6
The contributor is to be treated as receiving, when the benefit is received, an amount—
a
which is equal to the value of the benefit (so far as not brought into account in determining the amount of the deduction), and
b
to which the charge to corporation tax on income applies.
7
In this section—
“disqualifying benefit” means a benefit the expenses of obtaining which, if incurred by the contributor directly in a transaction at arm's length, would not be expenses payable for the purposes of section 76,
“local enterprise organisation” has the meaning given by section 83 of CTA 2009,
“urban regeneration company” has the meaning given by section 86 of CTA 2009.
8
Section 839 (“connected person”) applies for the purposes of subsections (3) and (5).
F89Unpaid remuneration
S. 76ZL and cross-heading inserted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 42 (with Sch. 2 Pts. 1, 2)
76ZLUnpaid remuneration
1
This section applies if—
a
an amount is charged in respect of employees' remuneration in the accounts for a period of a company to which section 76 applies,
b
the amount would apart from this section be brought into account under section 76 as expenses payable, and
c
the remuneration is not paid before the end of the period of 9 months immediately following the end of the period of account.
2
If the remuneration is paid after the end of that period of 9 months, the amount is brought into account for the period of account in which it is paid.
3
But—
a
subsection (2) is subject to section 86 of FA 1989 (spreading of relief for acquisition expenses), and
b
in interpreting that section the remuneration is treated as expenses payable which fall to be included at Step 1 in section 76(7) for the period of account in which the remuneration is paid.
4
The amount is not brought into account under section 76 as expenses payable if it is not paid.
F1376ZMUnpaid remuneration: supplementary
1
For the purposes of section 76ZL an amount charged in the accounts in respect of employees' remuneration includes an amount for which provision is made in the accounts with a view to its becoming employees' remuneration.
2
For the purposes of section 76ZL it does not matter whether an amount is charged for—
a
particular employments, or
b
employments generally.
3
If the profits of the company are calculated before the end of the 9 month period mentioned in section 76ZL(1)(c)—
a
it must be assumed, in making the calculation, that any remuneration which is unpaid when the calculation is made will not be paid before the end of that period, but
b
if the remuneration is subsequently paid before the end of that period, nothing in this subsection prevents the calculation being revised and any tax return being amended accordingly.
4
For the purposes of this section and section 76ZL remuneration is paid when it—
a
is treated as received by an employee for the purposes of ITEPA 2003 by section 18 or 19 of that Act (receipt of money and non-money earnings), or
b
would be so treated if it were not exempt income.
5
In this section and section 76ZL—
“employee” includes an office-holder and “employment” therefore includes an office, and
“remuneration” means an amount which is or is treated as earnings for the purposes of Parts 2 to 7 of ITEPA 2003.
F68Car or motor cycle hire
S. 76ZN and cross-heading inserted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 44 (with Sch. 2 Pts. 1, 2)
F11876ZNCar or motor cycle hire
1
Subsection (2) applies if—
a
in calculating the corporation tax to which a company is liable for an accounting period, an amount representing expenses incurred on the hiring of a car or motor cycle can be brought into account under section 76 as expenses payable,
b
the car or motor cycle is not a qualifying hire car or motor cycle, and
c
the retail price of the car or motor cycle when new exceeds £12,000.
2
The amount that would otherwise be capable of being brought into account as expenses payable is reduced by multiplying the amount by the fraction—
where RP is the retail price of the car or motor cycle when new.
3
Subsection (4) applies if an amount is reduced as a result of subsection (2), or a corresponding provision, and—
a
subsequently—
i
there is a rebate (however described) of the hire charges, or
ii
a debt in respect of any of the hire charges is released otherwise than as part of a statutory insolvency agreement, and
b
an amount is brought into account in respect of the rebate or release.
4
For the purposes of subsection (3)(b) an amount is brought into account in respect of a rebate of hire charges or the release of a debt if—
a
the amount of a reversal representing the rebate or release falls to be deducted under Step 4 in section 76(7), or
b
(in the case of a rebate of hire charges) an amount representing the rebate is chargeable under section 85(1) of the Finance Act 1989 (c. 26).
5
The amount that would otherwise be deductible as mentioned in subsection (4)(a) or chargeable as mentioned in subsection (4)(b) is reduced by multiplying it by the fraction set out in subsection (2).
6
In this section “corresponding provision” means—
a
section 56(2) of CTA 2009 (car or motor cycle hire: trade profits and property income),
b
section 1251(2) of CTA 2009 (car or motor cycle hire: companies with investment business), and
c
section 48(2) of ITTOIA 2005 (car or motor cycle hire: trade profits and property income).
7
The power under section 74(4) of CAA 2001 to increase or further increase the sums of money specified in Chapter 8 of Part 2 of CAA 2001 includes the power to increase or further increase the sum of money specified in subsection (1)(c) or (2).
8
In this section “car or motor cycle” and “qualifying hire car or motor cycle” have the meanings given by section 57 of CTA 2009.
F6976ZOHiring cars (but not motor cycles) with low CO2 emissions before 1 April 2013
1
Section 76ZN does not apply to expenses incurred on the hiring of a car with low CO2 emissions, or an electrically-propelled car, if—
a
the car was first registered on or after 17 April 2002, and
b
the period of hire begins before 1 April 2013 under a contract entered into before that date.
2
For this purpose—
“car with low CO2 emissions” has the meaning given by section 45D of CAA 2001, and
“electrically-propelled car” has the meaning given by that section.
F1476A Levies and repayments under the Financial Services and Markets Act 2000.
F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1676B Levies and repayments under the Financial Services and Markets Act 2000: investment companies.
F17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
77 Incidental costs of obtaining loan finance.
F18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
78 Discounted bills of exchange.
F19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
79 Contributions to local enterprise agencies.
F20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2179A Contributions to training and enterprise councils and local enterprise companies.
F22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2379BContributions to urban regeneration companies
F24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
80 Expenses connected with foreign trades etc.
F25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
81 Travel between trades etc.
F26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
82 Interest paid to non-residents.
F27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2882A Expenditure on research and development.
F29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3082B Payments to research associations, universities etc.
F31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
83 Patent fees etc. and expenses.
F32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3383A Gifts in kind to charities etc.
F34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
84 Gifts to educational establishments.
F35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3684A Costs of establishing share option or profit sharing schemes: relief.
1
Subsection (2) below applies where—
a
a company incurs expenditure on establishing a share option scheme which the Board approve and under which no employee or director obtains rights before such approval is given, or
b
a company incurs expenditure on establishing a profit sharing scheme which the Board approve and under which the trustees acquire no shares before such approval is given.
2
In such a case the expenditure—
a
c
F124. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
In a case where—
a
subsection (2) above applies, and
b
the approval is given after the end of the period of nine months beginning with the day following the end of the period of account in which the expenditure is incurred,
F125for the purpose of applying subsection (2) above the expenditure shall be treated in accordance with subsection (3ZA) below.
F1263ZA
Where this subsection applies—
a
in applying subsection (2)(a) above, the expenditure shall be treated as incurred in the period of account in which the approval is given (and not the period of account mentioned in subsection (3)(b) above),
b
F127. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1283A
In this section, “share option scheme” means—
a
an SAYE option scheme within the meaning of the SAYE code (see section 516(4) of ITEPA 2003 (approved SAYE option schemes)), or
b
a CSOP scheme within the meaning of the CSOP code (see section 521(4) of that Act (approved CSOP schemes)).
4
References in this section to approving are to approving under Schedule 9 F129to this Act or under Schedule 3 or 4 to ITEPA 2003 (approved SAYE option schemes and approved CSOP schemes).
5
This section applies where the expenditure is incurred on or after 1st April 1991.
85 Payments to trustees of approved profit sharing schemes.
F37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3885A Costs of establishing employee share ownership trusts: relief.
F39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4085BApproved share incentive plans
F41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
86 Employees seconded to charities and educational establishments.
F42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4386A Charitable donations: contributions to agent’s expenses.
F44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
87 Taxable premiums etc.
F45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4687ASection 87(2) and (3) and reductions in receipts under ITTOIA 2005
F47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
88 Payments to Export Credit Guarantee Department.
F48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4988A Debts of overseas governments etc.
F50. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5188B Section 88A debts: restriction on deductions under section 74(j).
F52. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5388C Section 88A debts: restriction on other deductions.
F54. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5588DRestriction of deductions in respect of certain debts
F56. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
89Debts proving to be irrecoverable after discontinuance etc
F57. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
90 Additional payments to redundant employees.
F58. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
91 Cemeteries.
F59. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F6091A Waste disposal: restoration payments.
F61. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F6291B Waste disposal: preparation expenditure.
F63. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F6491BA Waste disposal: entitlement of successor to allowances.
F65. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F6691C Mineral exploration and access.
F67. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Treatment of regional development and other grants and debts released etc.
92 Regional development grants.
F70. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
93 Other grants under Industrial Development Act 1982 etc.
F71. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
94 Debts deducted and subsequently released.
F72. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
95F73Taxation of dealers in respect of distributions etc.
F74. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F7695ZATaxation of UK distributions received by insurance companies
1
If the total amount of relevant distributions received by a company in an accounting period exceeds £50,000, those distributions are to be taken into account in calculating for corporation tax purposes the profits of the company in that period (and accordingly F75section 1285 of CTA 2009 does not apply in relation to those distributions).
2
A company (“company A”) receives a “relevant distribution” if—
a
it receives a distribution made by a company resident in the United Kingdom (“company B”),
b
the value of the shares or stock in respect of which the distribution is made (“the holding”) is materially reduced by reason of the distribution,
c
a profit on the sale of the holding (to anyone other than company B) would be taken into account in calculating company A's profits in respect of relevant insurance business, and
d
either—
i
the holding amounts to, or is an ingredient in a holding amounting to, 10% of all holdings of the same class in company B, or
ii
the period between the acquisition by company A of the holding and that company first taking steps to dispose of the holding does not exceed 30 days.
3
In this section “relevant insurance business” means any kind of insurance business other than life assurance business.
4
Section 177(7) of TCGA 1992 (provision supplementing provision corresponding to subsection (2)(d)(i) above) applies for the purposes of subsection (2)(d)(i).
5
Section 731(4) below (interpretation of “taking steps to dispose of securities”) applies for the purposes of subsection (2)(d)(ii) as if the reference to the securities were to the holding.
Special provisions
95AF83 Creative artists: relief for fluctuating profits
F77. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
96 Farming and market gardening: relief for fluctuating profits.
F78. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
97 Treatment of farm animals etc.
F79. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F8098 Tied premises: receipts and expenses treated as those of trade.
F81. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
99 Dealers in land.
F82. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 76ZA and cross-heading inserted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 31 (with Sch. 2 Pts. 1, 2)