Income and Corporation Taxes Act 1988U.K.
Valuation of trading stock at discontinuance of tradeU.K.
2(1)Section 100 of the Taxes Act 1988 is amended as follows.U.K.
(2)After subsection (1) insert—
“((1ZA))This section does not apply in relation to any trading stock if paragraph 1(2) of Schedule 28AA (provision not at arm’s length) has effect in relation to any provision made or imposed in relation to that stock and having effect in connection with the discontinuance of the trade.”.
Petroleum extraction activities: ring fence trade: charges on incomeU.K.
3(1)Section 494 of the Taxes Act 1988 (charges on income) is amended as follows.U.K.
(2)In subsection (2) (which restricts the loan relationship debits that may be brought into account in a manner resulting in reduction of ring fence profits)—
(a)at the end of paragraph (b) insert “ and ”;
(b)omit paragraph (d) (which imposes a restriction by reference to a reasonable commercial rate of return and is superseded by the application of paragraphs 1A and 1B of Schedule 28AA to the Taxes Act 1988 by virtue of paragraph 11 of that Schedule);
(c)omit the third sentence (which defines “net debit” for the purposes of paragraph (d)).
(3)Omit subsection (2B) (which relates to the net debit within the meaning of subsection (2)(d)).
Assumptions for calculating chargeable profits etc: transfer pricingU.K.
4U.K.In Schedule 24 to the Taxes Act 1988, paragraph 20 shall cease to have effect.