PART XVII TAX AVOIDANCE
CHAPTER VI MISCELLANEOUS
Migration etc. of company
765 Migration etc. of companies.
F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2765A Movements of capital between residents of member States.
F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
766 Offences under section 765.
F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
767 Interpretation and commencement of sections 765 and 766.
F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Change in ownership of company
767AF19 Change in company ownership: corporation tax.
F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
767AAF20 Change in company ownership: postponed corporation tax.
F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
767B Change of company ownership: supplementary.
F8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
767CF21 Change in company ownership: information.
F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
768 Change in ownership of company: disallowance of trading losses.
F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F11768A Change in ownership: disallowance of carry back of trading losses.
F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
768BF22F13Change in ownership of company with investment business: deductions generally
F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
768C Deductions: asset transferred within group.
F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
768DF23 Change in ownership of company carrying on property business.
F16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
768EF24 Change in ownership of company with unused non-trading loss on intangible fixed assets
F17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
769 Rules for ascertaining change in ownership of company.
F18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transactions between associated persons
770AF26 Provision not at arm’s length.
F25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F26770 Sales etc. at an undervalue or overvalue.
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F26771Transactions by petroleum companies.
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F26772 Information for purposes of section 770, and appeals.
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F26773 Interpretation of sections 770 and 771.
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774 Transactions between dealing company and associated company.
M11
Subject to the provisions of this section, where—
a
a dealing company becomes entitled to a deduction, in computing the profits or gains of the company for tax purposes for any period, in respect of the depreciation in the value of any right subsisting against an associated company, being a non-dealing company; or
b
a dealing company makes any payment to such an associated company, being a payment in respect of which the dealing company is entitled to a deduction in computing its profits or gains for tax purposes for any period;
and the depreciation or payment is not brought into account in computing the profits or gains of the non-dealing company, that company shall be deemed to have received on the last day of the period income of an amount equal to the amount of the deduction and shall be chargeable F61to tax in respect thereof F62(in the case of corporation tax, under F63the charge to corporation tax on income).
2
Where the non-dealing company is carrying on a trade, the income referred to in subsection (1) above shall, if the company so elects, not be so chargeable but shall be deemed to have been a receipt of the trade, or, if the company is carrying on more than one trade, to have been a receipt of such one of the trades as the company may choose.
3
Where the non-dealing company is carrying on, or was formed to carry on a trade, then if—
a
either—
i
the right subsisting against it was a right to the repayment of moneys lent for meeting expenditure which has proved (in whole or in part) abortive, or
ii
the payment to the company was made for meeting such expenditure, and
b
that expenditure is such that the company is not entitled in respect of it to any allowance or deduction in computing losses or gains,
subsection (1) above shall not apply in so far as the expenditure proved abortive.
4
For the purposes of this section—
a
“company” includes any body corporate;
b
“dealing company” means a company dealing in securities, land or buildings and includes any company whose profits on the sale of securities, land or buildings are part of its trading profits;
c
“non-dealing company” means any company which is not a dealing company;
d
two or more companies shall be treated as associated companies if one has control of the other or others, or any person has control of both or all of them;
e
references to a company (“the first company”) having control of another company (“the second company”) shall be construed as references to the first company having control of the second company either by itself or in conjunction with any person having control over the first company, and “control” has the meaning given by F65section 1124 of CTA 2010;
f
“securities” includes shares and stock.
5
F64. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F60Factoring of income receipts etc
774AMeaning of “structured finance arrangement” for purposes of s.774B
F27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
774BDisregard of intended effects of arrangement involving disposals of assets
F28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
774CMeaning of “structured finance arrangement” for purposes of s.774D
F29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
774DDisregard of intended effects of arrangement involving change in relation to a partnership
F30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
774ESections 774B and 774D: exceptions
F31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
774FSections 774B and 774D: power to provide further exceptions
F32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
774GSections 774A to 774D: minor definitions etc
F33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other provisions
775 Sale by individual of income derived from his personal activities.
F34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
775AF56Transfers of rights to receive annual payments
F35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
776 Transactions in land: taxation of capital gains.
F36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
777 Provisions supplementary to F37section 776.
F38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
778 Power to obtain information.
F39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
779 Sale and leaseback: limitation on tax reliefs.
F40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
780 Sale and leaseback: taxation of consideration received.
F41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
781 Assets leased to traders and others.
F42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
782 Leased assets: special cases.
F43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
783 Leased assets: supplemental.
F44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
784 Leased assets subject to hire-purchase agreements.
F45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
785 Meaning of “asset”, “capital sum” and “lease” for purposes of sections 781 to 784.
F46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
785ZAF57Restrictions on use of losses: leasing partnerships
F47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
785ZBSection 785ZA: definitions
F48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
785AF58Rent factoring of leases of plant or machinery
F49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
785BF59Plant and machinery leases: capital receipts to be treated as income
F50. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
785CSection 785B: interpretation
F51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
785DSection 785B: lease of plant and machinery and other property
F52. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
785ESection 785B: expectation that relevant capital payment will not be paid
F53. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
786 Transactions associated with loans or credit.
F54. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
787 Restriction of relief for payments of interest.
F55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ss. 774A-774G and preceding cross-heading inserted (with effect in accordance with Sch. 6 para. 6(2)-(7) of the amending Act) by Finance Act 2006 (c. 25), Sch. 6 para. 6(1)