Corporation Tax Act 2009

Training courses for employees U.K.

137 (1) This paragraph applies if, without the repeal by this Act of section 588 of ICTA (training courses for employees)— U.K.

(a) section 588(5) of ICTA would operate in relation to an employee by virtue of paragraph (a) of that provision and paragraph 37 of Schedule 7 to ITEPA 2003 (savings in relation to tax years before 2003-04),

(b) section 588(5) of ICTA would operate in relation to an employer by virtue of paragraph (b) of that provision and paragraph 37 of Schedule 7 to ITEPA 2003, or

(c) section 588(6) F1 ... of ICTA would operate in relation to an employer by virtue of paragraph 37 of Schedule 7 to ITEPA 2003.

(2) That repeal does not apply in relation to—

(a) the operation of section 588(5) of ICTA in relation to the employee as mentioned in sub-paragraph (1)(a),

(b) the operation of section 588(5) of ICTA in relation to the employer as mentioned in sub-paragraph (1)(b), or

(c) the operation of section 588(6) F2 ... of ICTA in relation to the employer as mentioned in sub-paragraph (1)(c).

Textual Amendments

F1 Words in Sch. 2 para. 137(1)(c) omitted (13.8.2009) by virtue of Finance Act 2009, Schedule 47 (Consequential Amendments) Order 2009 (S.I. 2009/2035), art. 1, Sch. para. 59(a)

F2 Words in Sch. 2 para. 137(2)(c) omitted (13.8.2009) by virtue of Finance Act 2009, Schedule 47 (Consequential Amendments) Order 2009 (S.I. 2009/2035), art. 1, Sch. para. 59(a)

138 U.K. In the Table in section 98 of TMA 1970 (special returns etc)—

(a) the entry relating to section 588(6) of ICTA, F3 ...

F3 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

continue to have effect (despite the repeal by this Act of those entries) in relation to section 588(6) F4 ... as it has effect by virtue of paragraph 137.

Textual Amendments

F3 Sch. 2 para. 138(b) and preceding word omitted (13.8.2009) by virtue of Finance Act 2009, Schedule 47 (Consequential Amendments) Order 2009 (S.I. 2009/2035), art. 1, Sch. para. 59(b)

F4 Words in Sch. 2 para. 138 omitted (13.8.2009) by virtue of Finance Act 2009, Schedule 47 (Consequential Amendments) Order 2009 (S.I. 2009/2035), art. 1, Sch. para. 59(b)

139 (1) This paragraph applies if— U.K.

(a) at any time during the period beginning with 6 April 2003 and ending with 31 March 2009, a company (“the employer”) incurred expenditure in paying or reimbursing retraining course expenses within the meaning of section 311 of ITEPA 2003,

(b) the employer's liability to corporation tax for any accounting period has been determined (before or after 1 April 2009, and by assessment or otherwise) on the assumption that, by virtue only of subsection (3) (or subsections (3) and (4)) of section 588 of ICTA, the employer is entitled to a deduction on account of the expenditure, and

(c) before 1 April 2009, no assessment has been made under paragraph 41 of Schedule 18 to FA 1998 by virtue of section 588(5) of ICTA of an amount due in consequence of the failure by the person in respect of whom the expenditure was incurred to meet a condition of the kind mentioned in section 312(1)(b)(i) or (ii) of ITEPA 2003.

(2) Section 75 (retraining courses: recovery of tax) applies in relation to the employer as if the condition in subsection (1) of that section were met.

(3) [F5 Section 81(4) of FA 2012 (which, in the case of companies carrying on basic life assurance and general annuity business, applies section 75(2) to (4))] applies in relation to the employer as if the [F6 conditions in paragraphs (a) and (b) of that subsection] were met.

(4) In the application of section 75 of this Act [F7 (including as applied by section 81(4) of FA 2012)] to the employer, references to “the employee” are to the person in respect of whom the expenditure was incurred by the employer.

Textual Amendments

F5 Words in Sch. 2 para. 139(3) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 213(2)(a)

F6 Words in Sch. 2 para. 139(3) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 213(2)(b)

F7 Words in Sch. 2 para. 139(4) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 213(2)(c)