285(1)Amend section 696 (absolute interests in residue) as follows.U.K.
(2)In subsection (1) for “person who” substitute “ company which ”.
(3)In subsection (2)—
(a)for “person”, wherever it occurs, substitute “ company ”, and
(b)at the end add “; and references to the residuary income of a company for an accounting period are to be construed in accordance with subsection (8)”.
(4)In subsection (3)—
(a)for “all tax” substitute “ corporation tax ”,
(b)for “person” substitute “ company ”, and
(c)for “year of assessment” substitute “ accounting period ”.
(5)In subsection (3A)—
(a)for “person”, in both places where it occurs, substitute “ company ”,
(b)at the end of paragraph (b) insert “ (whether or not the company was a company liable to corporation tax at the time of payment) ”, and
(c)for “year of assessment” substitute “ accounting period ”.
(6)In subsection (3B) for—
(a)“person”, in both places where it occurs,
(b)“year of assessment”, in both places where it occurs,
(c)“years of assessment”,
(d)“each year”,
(e)“his”, in both places where it occurs, and
(f)“that year”, wherever it occurs in paragraph (a) and (b),
substitute “ company ”, “ accounting period ”, “ accounting periods ”, “ each accounting period ”, “ its ” and “ that accounting period ” respectively.
(7)In subsection (4) for “person”, “any year” and “that year” substitute “ company ”, “ any accounting period ” and “ that accounting period ” respectively.
(8)In subsection (5) for—
(a)“person”, in both places where it occurs, and
(b)“year of assessment”,
substitute “ company ” and “ accounting period ” respectively.
(9)In subsection (6)—
(a)for “person” substitute “ company ”,
(b)for “year” substitute “ accounting period ”, and
(c)omit the words from “and shall” to the end of the subsection.
(10)In subsection (7) for—
(a)“person”,
(b)“income tax for any year”,
(c)“that year”, and
(d)“him”, in both places where it occurs,
substitute “ company ”, “ corporation tax for any accounting period ”, “ the relevant year of assessment ” and “ it ” respectively.
(11)In subsection (8) omit the words from the beginning to “this section”.
(12)After subsection (8) insert—
“(9)In subsection (7) “the relevant year of assessment”, in relation to an amount deemed to have been paid to a company as income for an accounting period by virtue of this section, means the year of assessment for which the amount would have been deemed to have been paid as income if references in subsections (3) to (6) to accounting periods were references to years of assessment.”