Income Tax (Trading and Other Income) Act 2005

Finance (No. 2) Act 1992 (c. 48) U.K.

452 U.K. The Finance (No. 2) Act 1992 is amended as follows.

453 (1) Amend section 40A (revenue nature of expenditure on master versions of films) as follows. U.K.

(2) In subsection (1)—

(a) for “the purposes of the Tax Acts” substitute “ corporation tax purposes ”, and

(b) after “section 40D below” insert “ or section 143 of ITTOIA 2005 (corresponding income tax provision) ”.

(3) In subsection (2) for “the purposes of the Tax Acts” substitute “ corporation tax purposes ”.

(4) In the definition of “expenditure of a revenue nature” in subsection (4)(a) after “chargeable to” insert “ corporation ”.

454 (1) Amend section 40B (allocation of expenditure to periods) as follows. U.K.

(2) In subsection (1) for “person” substitute “ company within the charge to corporation tax ”.

(3) In subsection (2) after “section 40D below” insert “ or section 143 of ITTOIA 2005 ”.

(4) In subsection (3)(b) for “up for a period—” to the end substitute “ up for a period, the accounting period of the company. ”

(5) In subsection (6) for “made—” to the end substitute “ made not later than two years after the end of the relevant period to which the claim relates. ”

(6) In subsection (7)(b) at the end insert “ or section 135 of ITTOIA 2005 (income tax provision corresponding to this section) ”.

455 U.K. In section 40C(1) (cases where section 40B does not apply) after “section 42 below” insert “ or under any of sections 138 to 140 of ITTOIA 2005 (corresponding income tax provisions) ”.

456 (1) Amend section 40D (election for sections 40A and 40B not to apply) as follows. U.K.

(2) In subsection (1)(a) after “this section” insert “ or under section 143 of ITTOIA 2005 ”.

(3) In subsection (2)(a)(i) for “a person who carries” substitute “ a company within the charge to corporation tax carrying ”.

(4) In subsection (4) for “given—” to the end substitute “ given not later than two years after the end of the relevant period in which the master version of the film is completed. ”

(5) In subsection (7) at the end insert “ or any of that expenditure is deducted under any of sections 137 to 140 of ITTOIA 2005 (corresponding income tax provisions) ”.

457 (1) Amend section 41 (relief for preliminary expenditure) as follows. U.K.

(2) In subsection (1)—

(a) for “tax purposes”, in the first place where it occurs, substitute “ the purposes of corporation tax ”,

(b) for “a person” substitute “ a company within the charge to corporation tax ”,

(c) for “that person” substitute “ the company ”,

(d) for “him” substitute “ it ”, and

(e) after “section 40D above” insert “ or section 143 of ITTOIA 2005 ”.

F1 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) In subsection (7)—

(a) after “this section” insert “ or section 137 of ITTOIA 2005 (corresponding income tax provision) ”, and

(b) for “tax purposes” substitute “ the purposes of corporation tax ”.

Textual Amendments

F1 Sch. 1 para. 457(3) repealed (31.1.2013) by Statute Law (Repeals) Act 2013 (c. 2), s. 3(2), Sch. 1 Pt. 10 Group 1

458 (1) Amend section 42 (relief for production or acquisition expenditure) as follows. U.K.

(2) In subsection (1)—

(a) for “tax purposes” substitute “ the purposes of corporation tax ”,

(b) for “a person” substitute “ a company ”,

(c) for “that person” substitute “ the company ”,

(d) after “section 40B above” insert “ or section 135 of ITTOIA 2005 ”, and

(e) after “section 40D above” insert “ or section 143 of ITTOIA 2005 ”.

(3) In subsection (4)—

(a) in paragraph (b) after “section 41 above” insert “ or section 137 of ITTOIA 2005 ”,

(b) in paragraph (c) after “this section” insert “ or any provision of Chapter 9 of Part 2 of ITTOIA 2005 ”.

F2 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) In subsection (7) after “section 40B above” insert “ or section 135 of ITTOIA 2005 ”.

Textual Amendments

F2 Sch. 1 para. 458(4) repealed (31.1.2013) by Statute Law (Repeals) Act 2013 (c. 2), s. 3(2), Sch. 1 Pt. 10 Group 1

459 U.K. In section 43(1) after the definition of “expenditure of a revenue nature” insert—

““ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005,”.

460 U.K. Omit section 59 (furnished accommodation).

461 U.K. Omit Schedule 10 (furnished accommodation).