Corporation Tax Act 2009

Valid from 01/04/2009

Finance Act 2006 (c. 25) U.K.

675 U.K. The Finance Act 2006 is amended as follows.

676 U.K. Omit sections 31 to 41 (provisions about films, in particular film tax relief).

677 U.K. In section 42(2) (film tax relief: further provisions) omit—

(a) “Part 1 deals with entitlement to the relief;”, and

(b) “Part 4 is about provisional entitlement to relief”.

678 U.K. Omit sections 43 to 45 (film losses).

679 U.K. At the end of each of sections 46 and 47 insert—

“(6) The provisions of sections 1181 to 1187 of CTA 2009 apply for the purposes of this section as if this section were contained in Part 15 of that Act.”

680 U.K. Omit sections 48 to 50 (sound recordings).

681 U.K. Omit section 52 (films: application of provisions to certain films already in production).

682 U.K. Omit section 53(2) (films and sound recordings: commencement etc).

683 U.K. In section 97 (beneficial loans to employees)—

(a) in subsection (1)(a) after “2005” insert “ or section 503 or 504 of CTA 2009 ”,

(b) in subsection (2)(b)(i) after “section 47” insert “ of FA 2005 or section 503 of CTA 2009 ”, and

(c) in subsection (2)(b)(ii) after “section 47A” insert “ of FA 2005 or section 504 of CTA 2009 ”.

684 U.K. In section 104(1) (property rental business)—

(a) in paragraph (a)—

(i) for “Schedule A business” substitute “ UK property business ”, and

(ii) for “section 832(1) of ICTA” substitute “ section 205 of CTA 2009 ”, and

(b) in paragraph (b) for “section 70A(4) of ICTA” substitute “ section 206 of that Act ”.

685 U.K. In section 112 (entry charge) for subsection (1) substitute—

“(1) A company to which this Part applies shall be chargeable under the charge to corporation tax on income on an amount of notional income calculated in accordance with subsection (3).”

686 U.K. In section 115(4) (profit: financing-cost ratio)—

(a) in paragraph (a) for “Chapter 2 of Part 4 of FA 1996” and “section 103(1A) and (1B)” substitute “ Part 5 of CTA 2009 ” and “ section 475 ” respectively,

(b) in paragraph (b) for “that Chapter” substitute “ that Part ”, and

(c) in paragraph (c) for “under Schedule 26 to FA 2002” substitute “ in accordance with Part 7 of CTA 2009 ”.

687 U.K. In section 117(3)(b) (cancellation of tax advantage) omit “under Case VI of Schedule D”.

688 (1) Amend section 120 (calculation of profits) as follows. U.K.

(2) For subsection (2) substitute—

“(2) Profits (of any kind) are calculated in the same way as profits of a UK property business are calculated for the purposes of the charge to tax under Chapter 2 of Part 4 of CTA 2009 (as to which see, in particular, section 210 of that Act).”

(3) In subsection (3) for the words from the beginning to “(Schedule A:” substitute “ Section 211(1) of CTA 2009 (property businesses: ”.

(4) For subsection (4)(c) substitute—

“(c) “embedded derivatives” is to be read in accordance with section 584 or 586 (as the case may be) of CTA 2009, and

(d) “the host contract” means—

(i) the rights and liabilities within section 584(1)(b)(ii) of CTA 2009, or

(ii) the rights and liabilities within section 586(1)(b)(ii) of that Act,

as the case may be.”

(5) In subsection (5)—

(a) for “Schedule 26 to FA 2002” substitute “ Part 7 of CTA 2009 ”, and

(b) for “paragraph 4(2)(b)” substitute “ section 589(2)(b) and (c) of that Act ”.

689 (1) Amend section 121 (distributions: liability to tax) as follows. U.K.

(2) In subsection (1)(a) for “Schedule A business” substitute “ UK property business (within the meaning of section 205 of CTA 2009) ”.

(3) In subsection (2)(a) for “Schedule A business” substitute “ UK property business (within the meaning of section 205 of CTA 2009) ”.

(4) In subsection (3)(a) for the words from “dealer” to the end substitute “ person who is charged to tax under Part 3 of CTA 2009 (trading income) in respect of distributions made by companies that are received in the course of a trade not consisting of insurance business, ”.

(5) Omit subsection (4).

(6) In subsection (6)—

(a) in paragraph (a) for “Schedule A business” substitute “ UK property business (within the meaning of section 205 of CTA 2009) ”, and

(b) in paragraph (c) for “section 70A(4) of ICTA” substitute “ section 206 of CTA 2009 ”.

690 U.K. In section 136(2) (availability of group reliefs) for paragraphs (d) to (f) substitute—

“(d) Chapters 4 and 6 to 8 of Part 5 of CTA 2009 (loan relationships),

(e) Part 7 of that Act (derivative contracts), and

(f) Part 8 of that Act (intangible fixed assets).”

691 U.K. In section 139(2) (manufactured dividends), in the provision substituted for paragraph 2(2) of Schedule 23A to ICTA, in sub-paragraph (2B)(b) for “section 75 of this Act” substitute “ Chapter 2 of Part 16 of CTA 2009 ”.

692 U.K. In section 179 (interpretation) after the definition of “CAA 2001” insert—

““CTA 2009” means the Corporation Tax Act 2009;”.

693 U.K. Omit Schedule 4 (taxation of activities of film production company).

694 U.K. In Schedule 5 (film tax relief: further provisions)—

(a) omit Part 1 (entitlement to film tax relief),

(b) omit paragraphs 24 and 25, and

(c) omit Part 4 (provisional entitlement to relief).

695 (1) Amend Schedule 10 (sale etc of lessor companies etc) as follows. U.K.

(2) In paragraph 5(1) after “trade” insert “ carried on wholly or partly in the United Kingdom ” and for “Case I of Schedule D” substitute “ Chapter 2 of Part 3 of CTA 2009 ”.

(3) In paragraph 23(5) for the words from “means the business” to the end substitute “ means the business the profits or losses of which are determined, in relation to the company, under section 1259 of CTA 2009. ”

(4) In paragraph 28(2) for paragraphs (a) and (b) substitute “ any matter that would be taken into account in determining under section 1262 of CTA 2009 (but without regard to sections 1263 and 1264 of that Act) the company's share at that time of the profits or loss of the business. ”

(5) In paragraph 38(9)—

(a) in paragraph (a) for “(Schedule A losses)” substitute “ (UK property business losses) ”, and

(b) in paragraph (d) for “(Case VI losses)” substitute “ (losses from miscellaneous transactions) ”.

696 (1) Amend Schedule 15 (accountancy change: spreading of adjustment), Part 2 (corporation tax) as follows. U.K.

(2) In paragraph 9(1), in the words after paragraph (c), for “section 64 of and Schedule 22 to FA 2002” substitute “ Chapter 14 of Part 3 of or section 262 of CTA 2009 ”.

(3) In paragraph 10(5)(a) for “Schedule 22 to FA 2002” substitute “ Chapter 14 of Part 3 of or section 262 of CTA 2009 ”.

(4) In paragraph 11(1)(b) for “section 12(7ZA) of ICTA” substitute “ section 10 of CTA 2009 ”.

(5) In paragraph 12(1)(b) for “section 12(7) of ICTA” substitute “ section 12 of CTA 2009 ”.

(6) In paragraph 14(1)(b) for “Schedule A business” substitute “ UK property business ”.

697 (1) Amend Schedule 16 (real estate investment trusts: excluded business and income) as follows. U.K.

(2) In paragraph 4 for “Schedule A” substitute “ Chapter 3 of Part 4 of CTA 2009 ”.

(3) In paragraph 13 for “section 118ZA(4) of ICTA” substitute “ section 1273(4) of CTA 2009 ”.

698 (1) Amend Schedule 17 (group real estate investment trusts: modifications) as follows. U.K.

(2) In paragraph 11(1)(d)(ii) for “a charge to corporation tax under Case VI of Schedule D” substitute “ the charge to corporation tax on income ”.

(3) In paragraph 32(1)(b) for “or as profits of a Schedule A business” substitute “ or as profits of a UK property business under Chapter 3 of Part 4 of CTA 2009 ”.