Corporation Tax Act 2009

SCHEDULES

Section 1322

SCHEDULE 1 U.K. Minor and consequential amendments

Part 1 U.K. Income and Corporation Taxes Act 1988

1 U.K. The Income and Corporation Taxes Act 1988 (c. 1) is amended as follows.

2 (1) Amend section 6 (the charge to corporation tax and exclusion of income tax and capital gains tax) as follows. U.K.

(2) Omit subsections (1) to (3).

(3) In subsection (4) omit the words from “, sections” to “248”.

(4) Omit subsection (4A).

3 U.K. Omit section 8 (general scheme of corporation tax).

4 (1) Amend section 9 (computation of income: application of income tax principles) as follows. U.K.

(2) Omit subsections (1) to (4).

(3) In subsection (5) omit “, by virtue of this section or otherwise,”.

(4) Omit subsection (6).

5 U.K. In section 11 (companies not resident in United Kingdom) omit subsections (1) to (2A).

6 U.K. Omit section 11AA (determination of profits attributable to permanent establishment).

7 U.K. Omit section 12(1) to (7ZA) and (9) (basis of, and periods for, assessment).

8 U.K. Omit section 15 (Schedule A).

9 U.K. Omit section 18 (Schedule D).

10 U.K. Omit section 21A (computation of amount chargeable under Schedule A).

11 U.K. Omit section 21B (application of other rules applicable to Case I of Schedule D).

12 U.K. Omit section 21C (the Schedule A charge and mutual business).

13 (1) Amend section 24 (construction of Part 2) as follows. U.K.

(2) In subsection (1)—

(a) after “lessee or a lessor;” insert “ and ”, and

(b) omit the definition of “premium”.

(3) Omit subsections (2) to (4).

(4) In subsection (5) omit the definitions of “intermediate landlord”, “premium” and “reversion”.

(5) Omit subsection (6)(a).

14 U.K. Omit section 30 (expenditure on making sea walls).

15 U.K. Omit sections 31ZA to 31ZC (deductions for expenditure on energy-saving items).

16 U.K. Omit sections 34 to 39 (premiums, leases at undervalue etc).

17 U.K. Omit section 40 (tax treatment of receipts and outgoings on sale of land).

18 (1) Amend section 42 (appeals against determinations under sections 34 to 36 of ICTA etc) as follows. U.K.

(2) Omit subsection (1)(a) and the “or” immediately after it.

(3) In the title omit “sections 34 to 36 or”.

19 U.K. Omit section 46 (savings certificates and tax reserve certificates).

20 U.K. Omit section 53 (farming and other commercial occupation of land (except woodlands)).

21 U.K. Omit section 55 (mines, quarries and other concerns).

22 (1) Amend section 56 (transactions in deposits with and without certificates or in debts) as follows. U.K.

(2) In subsection (2) for the words from “annual” to the end substitute “ an amount to which the charge to corporation tax on income applies ”.

(3) In subsection (4B) for “Chapter II of Part IV of the Finance Act 1996” and “that Chapter” substitute “ Part 5 of CTA 2009 ” and “ that Part ” respectively.

23 U.K. Omit section 70 (basis of assessment etc).

24 U.K. Omit section 70A (Case V income from land outside UK).

25 U.K. Omit section 72 (apportionments etc for purposes of Cases I, II and VI).

26 U.K. Omit section 74 (general rules as to deductions not allowable).

27 U.K. Omit section 75 (expenses of management: companies with investment business).

28 U.K. Omit section 75A (accounting period to which expenses of management are referable).

29 U.K. Omit section 75B (amounts reversing expenses of management deducted: charge to tax).

30 (1) Amend section 76 (expenses of insurance companies) as follows. U.K.

(2) In subsection (1) for “section 75 is not to apply” substitute “ sections 1219 to 1223 of CTA 2009 (expenses of management of a company's investment business) do not apply ”.

(3) In subsection (2) for the words from “paragraph 4(2)” to the end substitute “ section 388 of CTA 2009 (basic rule: deficit set off against income and gains of deficit period) ”.

(4) In subsection (4) for “Case I of Schedule D” substitute “ section 35 of CTA 2009 (charge on trade profits) ”.

(5) At Step 2 in subsection (7)—

(a) in paragraph (a) for “in computing income for the purposes of Schedule A” substitute “ in computing, for corporation tax purposes, the profits of a UK property business ”, and

(b) in paragraph (c) for “section 121(3)” substitute “ section 272 of CTA 2009 ”.

(6) At Step 3 in subsection (7)—

(a) omit the entries relating to—

(i) paragraph 4(4)(b) of Schedule 11 to the Finance Act 1996,

(ii) paragraph 23 of Schedule 22 to the Finance Act 2001,

(iii) paragraph 13(2) of Schedule 12 to the Finance Act 2002, and

(iv) paragraph 36(3) of Schedule 29 to that Act, and

(b) at the end insert—

“section 391(3)(b) of CTA 2009 (carried forward non-trading deficit on loan relationships);

section 1080(2) of CTA 2009 (30% additional deduction for qualifying R&D expenditure of company carrying on life assurance business);

section 1161 of CTA 2009 (150% relief for remediation expenditure on contaminated land owned by company carrying on life assurance business).”

31 U.K. After section 76 insert—

“Payments for restrictive undertakings U.K.

76ZA Payments for restrictive undertakings

(1) This section applies if a payment—

(a) is treated as earnings of an employee by virtue of section 225 of ITEPA 2003 (payments for restrictive undertakings), and

(b) is made, or treated as made for the purposes of section 226 of that Act (valuable consideration given for restrictive undertakings), by a company in relation to which section 76 applies.

(2) The payment is treated as expenses payable which fall to be brought into account at Step 1 in section 76(7), so far as it otherwise would not be.”

32 U.K. After section 76ZA insert—

“Seconded employees U.K.

76ZB Employees seconded to charities and educational establishments

(1) This section applies if a company to which section 76 applies makes the services of a person employed for the purposes of the company's life assurance business available to—

(a) a charity, or

(b) an educational establishment,

on a basis that is stated and intended to be temporary.

(2) Expenses of the employer that are attributable to the employee's employment during the period of the secondment are treated as expenses payable which fall to be brought into account at Step 1 in section 76(7).

(3) In this section—

• “educational establishment” has the same meaning as in section 70 of CTA 2009, and

• “the period of the secondment” means the period for which the employee's services are made available to the charity or educational establishment.”

33 U.K. After section 76ZB insert—

“Counselling and retraining expenses U.K.

76ZC Counselling and other outplacement services

(1) This section applies if—

(a) a company carrying on life assurance business (“the employer”) incurs counselling expenses,

(b) the expenses are incurred in relation to a person (“the employee”) who holds or has held an office or employment under the employer, and

(c) the relevant conditions are met.

(2) The expenses are brought into account under section 76 as expenses payable (so far as they otherwise would not be).

(3) In this section “counselling expenses” means expenses incurred—

(a) in the provision of services to the employee in connection with the cessation of the office or employment,

(b) in the payment or reimbursement of fees for such provision, or

(c) in the payment or reimbursement of travelling expenses in connection with such provision.

(4) In this section “the relevant conditions” means—

(a) conditions A to D for the purposes of section 310 of ITEPA 2003 (employment income exemptions: counselling and other outplacement services), and

(b) in the case of travel expenses, condition E for those purposes.”

34 U.K. After section 76ZC insert—

“76ZD Retraining courses

(1) This section applies if—

(a) a company carrying on life assurance business (“the employer”) incurs training course expenses,

(b) they are incurred in relation to a person (“the employee”) who holds or has held an office or employment under the employer, and

(c) the relevant conditions are met.

(2) The expenses are brought into account under section 76 as expenses payable (so far as they otherwise would not be).

(3) In this section—

• “retraining course expenses” means expenses incurred in the payment or reimbursement of retraining course expenses within the meaning given by section 311(2) of ITEPA 2003, and

• “the relevant conditions” means—

  (a)

  the conditions in subsections (3) and (4) of section 311 of ITEPA 2003 (employment income exemptions: retraining courses), and

  (b)

  in the case of travel expenses, the conditions in subsection (5) of that section.”

35 U.K. After section 76ZD insert—

“76ZE Retraining courses: recovery of tax

(1) This section applies if—

(a) an employer's liability to corporation tax for an accounting period is determined on the assumption that it is entitled by virtue of section 76ZD to bring an amount into account in determining the amount of a deduction to be made under section 76, and

(b) without section 76ZD the employer would not have been so entitled.

(2) If, subsequently—

(a) the condition in section 311(4)(a) of ITEPA 2003 is not met because of the employee's failure to begin the course within the period of one year after ceasing to be employed, or

(b) the condition in section 311(4)(b) of ITEPA 2003 is not met because of the employee's continued employment or re-employment,

an assessment of an amount or further amount of corporation tax due as a result of the condition not being met may be made under paragraph 41 of Schedule 18 to FA 1998.

(3) Such an assessment must be made before the end of the period of 6 years immediately following the end of the accounting period in which the failure to meet the condition occurred.

(4) If subsection (2) applies, the employer must give an officer of Revenue and Customs a notice containing particulars of—

(a) the employee's failure to begin the course,

(b) the employee's continued employment, or

(c) the employee's re-employment,

within 60 days of coming to know of it.

(5) If an officer of Revenue and Customs has reason to believe that the employer has failed to give such a notice, the officer may by notice require the employer to provide such information as the officer may reasonably require for the purposes of this section about—

(a) the failure to begin the course,

(b) the continued employment, or

(c) the re-employment.

(6) A notice under subsection (5) may specify a time (not less than 60 days) within which the required information must be provided.”

36 U.K. After section 76ZE insert—

“Redundancy payments etc U.K.

76ZF Redundancy payments and approved contractual payments

(1) Sections 76ZG to 76ZI apply if—

(a) a company to which section 76 applies (“the employer”) makes a redundancy payment or an approved contractual payment to another person (“the employee”), and

(b) the payment is in respect of the employee's employment wholly in the employer's life assurance business or partly in the employer's life assurance business and partly in one or more other capacities.

(2) For the purposes of this section and sections 76ZG to 76ZH “redundancy payment” means a redundancy payment payable under—

(a) Part 11 of the Employment Rights Act 1996, or

(b) Part 12 of the Employment Rights (Northern Ireland) Order 1996.

(3) For the purposes of this section and those sections—

• “contractual payment” means a payment which, under an agreement, an employer is liable to make to an employee on the termination of the employee's contract of employment, and

• a contractual payment is “approved” if, in respect of that agreement, an order is in force under—

  (a)

  section 157 of the Employment Rights Act 1996, or

  (b)

  Article 192 of the Employment Rights (Northern Ireland) Order 1996.”

37 U.K. After section 76ZF insert—

“76ZG Payments in respect of employment wholly in employer's business

(1) This section applies if the payment is in respect of the employee's employment wholly in the employer's life assurance business.

(2) The payment is treated as expenses payable which fall to be brought into account at Step 1 in section 76(7), so far as it otherwise would not be.

(3) The amount brought into account by virtue of this section for an approved contractual payment must not exceed the amount which would have been due to the employee if a redundancy payment had been payable.

(4) If the payment is referable to an accounting period beginning after the business has permanently ceased to be carried on, it is treated as referable to the last accounting period in which the business was carried on.”

38 U.K. After section 76ZG insert—

“76ZH Payments in respect of employment in more than one capacity

(1) This section applies if the payment is in respect of the employee's employment with the employer—

(a) partly in the employer's life assurance business, and

(b) partly in one or more other capacities.

(2) The amount of the redundancy payment, or the amount which would have been due if a redundancy payment had been payable, is to be apportioned on a just and reasonable basis between—

(a) the employment in the life assurance business, and

(b) the employment in the other capacities.

(3) The part of the payment apportioned to the employment in the life assurance business is treated as a payment in respect of the employee's employment wholly in the life assurance business for the purposes of section 76ZG.”

39 U.K. After section 76ZH insert—

“76ZI Additional payments

(1) This section applies if the employer's business, or part of it, ceases (permanently) to be carried on and the employer makes a payment to the employee in addition to—

(a) the redundancy payment, or

(b) if an approved contractual payment is made, the amount that would have been due if a redundancy payment had been payable.

(2) If—

(a) the additional payment would not otherwise be regarded as expenses payable for the purposes of section 76, but

(b) that is only because the business, or the part of the business, has ceased to be carried on,

the additional payment is regarded as expenses payable for the purposes of section 76.

(3) So far as the additional payment would, apart from this subsection, be regarded as expenses payable for the purposes of Step 5 in subsection (7) of section 76, it is not to be so regarded for the purposes of that subsection (or of subsection (2) above so far as relating to section 76).

(4) The amount treated under this section as expenses payable for the purposes of section 76 is limited to 3 times the amount of—

(a) the redundancy payment, or

(b) if an approved contractual payment is made, the amount that would have been due if a redundancy payment had been payable.

(5) If the payment is referable to an accounting period beginning after the business or the part of the business has ceased to be carried on, it is treated as referable to the last accounting period in which the business, or the part concerned, was carried on.”

40 U.K. After section 76ZI insert—

“76ZJ Payments by the Government

(1) This section applies if—

(a) a redundancy payment or an approved contractual payment is payable by a company to which section 76 applies (“the employer”), and

(b) a payment to which subsection (2) applies is made in respect of the payment.

(2) This subsection applies to—

(a) payments made by the Secretary of State under section 167 of the Employment Rights Act 1996, and

(b) payments made by the Department for Employment and Learning under Article 202 of the Employment Rights (Northern Ireland) Order 1996.

(3) So far as the employer reimburses the Secretary of State or Department for the payment, sections 76ZG to 76ZI apply as if the payment were—

(a) a redundancy payment, or

(b) an approved contractual payment,

made by the employer.”

41 U.K. After section 76ZJ insert—

“Contributions to local enterprise organisations or urban regeneration companies U.K.

76ZK Contributions to local enterprise organisations or urban regeneration companies

(1) This section applies if a company to which section 76 applies (“the contributor”) incurs expenses in making a contribution (whether in cash or in kind)—

(a) to a local enterprise organisation, or

(b) to an urban regeneration company.

(2) The expenses are treated for the purposes of section 76 as expenses payable which fall to be brought into account at Step 1 in section 76(7).

(3) But if, in connection with the making of the contribution, the contributor or a connected person—

(a) receives a disqualifying benefit of any kind, or

(b) is entitled to receive such a benefit,

the amount treated in accordance with subsection (2) is restricted to the amount of the expenses less the value of the benefit.

(4) For this purpose it does not matter whether a person receives, or is entitled to receive, the benefit—

(a) from the local enterprise organisation or urban regeneration company concerned, or

(b) from anyone else.

(5) Subsection (6) applies if—

(a) an amount has been brought into account in accordance with subsection (2), and

(b) the contributor or a connected person receives a disqualifying benefit that is in any way attributable to the contribution.

(6) The contributor is to be treated as receiving, when the benefit is received, an amount—

(a) which is equal to the value of the benefit (so far as not brought into account in determining the amount of the deduction), and

(b) to which the charge to corporation tax on income applies.

(7) In this section—

• “disqualifying benefit” means a benefit the expenses of obtaining which, if incurred by the contributor directly in a transaction at arm's length, would not be expenses payable for the purposes of section 76,

• “local enterprise organisation” has the meaning given by section 83 of CTA 2009,

• “urban regeneration company” has the meaning given by section 86 of CTA 2009.

(8) Section 839 (“connected person”) applies for the purposes of subsections (3) and (5).”

42 U.K. After section 76ZK insert—

“Unpaid remuneration U.K.

76ZL Unpaid remuneration

(1) This section applies if—

(a) an amount is charged in respect of employees' remuneration in the accounts for a period of a company to which section 76 applies,

(b) the amount would apart from this section be brought into account under section 76 as expenses payable, and

(c) the remuneration is not paid before the end of the period of 9 months immediately following the end of the period of account.

(2) If the remuneration is paid after the end of that period of 9 months, the amount is brought into account for the period of account in which it is paid.

(3) But—

(a) subsection (2) is subject to section 86 of FA 1989 (spreading of relief for acquisition expenses), and

(b) in interpreting that section the remuneration is treated as expenses payable which fall to be included at Step 1 in section 76(7) for the period of account in which the remuneration is paid.

(4) The amount is not brought into account under section 76 as expenses payable if it is not paid.”

43 U.K. After section 76ZL insert—

“76ZM Unpaid remuneration: supplementary

(1) For the purposes of section 76ZL an amount charged in the accounts in respect of employees' remuneration includes an amount for which provision is made in the accounts with a view to its becoming employees' remuneration.

(2) For the purposes of section 76ZL it does not matter whether an amount is charged for—

(a) particular employments, or

(b) employments generally.

(3) If the profits of the company are calculated before the end of the 9 month period mentioned in section 76ZL(1)(c)—

(a) it must be assumed, in making the calculation, that any remuneration which is unpaid when the calculation is made will not be paid before the end of that period, but

(b) if the remuneration is subsequently paid before the end of that period, nothing in this subsection prevents the calculation being revised and any tax return being amended accordingly.

(4) For the purposes of this section and section 76ZL remuneration is paid when it—

(a) is treated as received by an employee for the purposes of ITEPA 2003 by section 18 or 19 of that Act (receipt of money and non-money earnings), or

(b) would be so treated if it were not exempt income.

(5) In this section and section 76ZL—

• “employee” includes an office-holder and “employment” therefore includes an office, and

• “remuneration” means an amount which is or is treated as earnings for the purposes of Parts 2 to 7 of ITEPA 2003.”

44 U.K. After section 76ZM insert—

“Car or motor cycle hire U.K.

76Z Car or motor cycle hire

(1) Subsection (2) applies if—

(a) in calculating the corporation tax to which a company is liable for an accounting period, an amount representing expenses incurred on the hiring of a car or motor cycle can be brought into account under section 76 as expenses payable,

(b) the car or motor cycle is not a qualifying hire car or motor cycle, and

(c) the retail price of the car or motor cycle when new exceeds £12,000.

(2) The amount that would otherwise be capable of being brought into account as expenses payable is reduced by multiplying the amount by the fraction—

where RP is the retail price of the car or motor cycle when new.

(3) Subsection (4) applies if an amount is reduced as a result of subsection (2), or a corresponding provision, and—

(a) subsequently—

(i) there is a rebate (however described) of the hire charges, or

(ii) a debt in respect of any of the hire charges is released otherwise than as part of a statutory insolvency agreement, and

(b) an amount is brought into account in respect of the rebate or release.

(4) For the purposes of subsection (3)(b) an amount is brought into account in respect of a rebate of hire charges or the release of a debt if—

(a) the amount of a reversal representing the rebate or release falls to be deducted under Step 4 in section 76(7), or

(b) (in the case of a rebate of hire charges) an amount representing the rebate is chargeable under section 85(1) of the Finance Act 1989 (c. 26).

(5) The amount that would otherwise be deductible as mentioned in subsection (4)(a) or chargeable as mentioned in subsection (4)(b) is reduced by multiplying it by the fraction set out in subsection (2).

(6) In this section “corresponding provision” means—

(a) section 56(2) of CTA 2009 (car or motor cycle hire: trade profits and property income),

(b) section 1251(2) of CTA 2009 (car or motor cycle hire: companies with investment business), and

(c) section 48(2) of ITTOIA 2005 (car or motor cycle hire: trade profits and property income).

(7) The power under section 74(4) of CAA 2001 to increase or further increase the sums of money specified in Chapter 8 of Part 2 of CAA 2001 includes the power to increase or further increase the sum of money specified in subsection (1)(c) or (2).

(8) In this section “car or motor cycle” and “qualifying hire car or motor cycle” have the meanings given by section 57 of CTA 2009.”

F1 45 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Sch. 1 para. 45 omitted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 11 para. 64(b)

46 U.K. Omit section 76A (levies and repayments under FISMA 2000).

47 U.K. Omit section 76B (levies and repayments under the FISMA 2000: investment companies).

48 U.K. Omit section 79 (contributions to local enterprise agencies).

49 U.K. Omit section 79A (contributions to training and enterprise councils and local enterprise companies).

50 U.K. Omit section 79B (contributions to urban regeneration companies).

51 U.K. Omit section 82A (expenditure on research and development).

52 U.K. Omit section 82B (payments to research associations, universities etc).

53 U.K. Omit section 83 (patent fees etc and expenses).

54 U.K. Omit section 83A (gifts in kind to charities etc).

55 U.K. Omit section 84 (gifts to educational establishments).

56 (1) Amend section 84A (costs of establishing share option or profit sharing schemes: relief) as follows. U.K.

(2) In subsection (2)—

(a) in paragraph (a) omit “Schedule D or”,

(b) omit paragraph (b) and the “or” immediately before it, and

(c) omit paragraph (c).

(3) Omit subsection (3ZA)(b).

57 U.K. Omit section 85 (payments to trustees of approved profit sharing schemes).

58 U.K. Omit section 85A (costs of establishing employee share ownership trust: relief).

59 U.K. Omit section 85B (which introduces Schedule 4AA).

60 U.K. Omit section 86 (employees seconded to charities and educational establishments).

61 U.K. Omit section 86A (charitable donations: contributions to agent's expenses).

62 U.K. Omit sections 87 and 87A (taxable premiums etc).

63 U.K. Omit section 88 (payments to Export Credits Guarantee Department).

64 U.K. Omit section 88D (restriction of deductions in respect of certain debts).

65 U.K. Omit section 89 (debts proving to be irrecoverable after discontinuance etc).

66 U.K. Omit section 90 (additional payments to redundant employees).

67 U.K. Omit section 91 (cemeteries).

68 U.K. Omit section 91A (waste disposal: restoration payments).

69 U.K. Omit sections 91B and 91BA (waste disposal: preparation expenditure).

70 U.K. Omit section 91C (mineral exploration and access).

71 U.K. Omit section 92 (regional development grants).

72 U.K. Omit section 93 (other grants under Industrial Development Act 1982 etc).

73 U.K. Omit section 94 (debts deducted and subsequently released).

74 U.K. Omit section 95 (taxation of dealers in respect of distributions etc).

75 U.K. In section 95ZA(1) (taxation of UK distributions received by insurance companies) for “section 208” substitute “ section 1285 of CTA 2009 ”.

76 U.K. Omit section 97 (treatment of farm animals etc).

77 U.K. Omit section 98 (tied premises: receipts and expenses treated as those of trade).

78 U.K. Omit section 99 (dealers in land).

79 U.K. Omit section 100 (valuation of trading stock at discontinuance of trade).

80 U.K. Omit section 101 (valuation of work in progress at discontinuance of profession or vocation).

81 U.K. Omit section 102 (provisions supplementary to sections 100 and 101).

82 U.K. Omit sections 103 to 106 (Case VI charges on receipts).

83 U.K. Omit section 110 (interpretation etc).

84 U.K. Omit section 111(1) (treatment of partnerships).

85 U.K. Omit sections 114 and 115 (special rules for computing profits and losses).

86 (1) Amend section 116 (arrangements for transferring relief) as follows. U.K.

(2) In subsection (4) for “under Case VI of Schedule D” substitute “ under or by virtue of any provision to which section 834A (miscellaneous charges) applies ”.

(3) Omit subsection (5).

87 U.K. Omit section 118ZA (treatment of limited liability partnerships).

88 U.K. Omit section 119 (rent etc payable in connection with mines, quarries and similar concerns).

89 U.K. Omit section 120 (rent etc payable in respect of electric line wayleaves).

90 U.K. Omit section 121 (management expenses of owner of mineral rights).

91 U.K. Omit section 122 (relief in respect of mineral royalties).

92 U.K. Omit section 125 (annual payments for dividends or non-taxable consideration).

93 U.K. Omit section 128(2) and (3) (commodity and financial futures etc: losses and gains).

94 (1) Amend section 130 (meaning of “company with investment business” and “investment company” in Part 4) as follows. U.K.

(2) Omit “ “company with investment business” means any company whose business consists wholly or partly in the making of investments”.

(3) For the title substitute “ Meaning of “investment company” in Part 4 ”.

95 U.K. In section 187(10) (interpretation of sections 185 and 186) for “, within the meaning of section 486,” substitute “ , as defined in section 834(1) ”.

96 U.K. Omit section 208 (UK company distributions not generally chargeable to corporation tax).

97 (1) Amend section 209 (meaning of distribution) as follows. U.K.

(2) In subsection (2)(e) at the beginning insert “ subject to subsection (6A), ”.

(3) After subsection (6) insert—

“(6A) Relevant alternative finance return shall not be treated as a distribution for the purposes of the Corporation Tax Acts by virtue of subsection (2)(e)(iii).

In this subsection “relevant alternative finance return”—

(a) for corporation tax purposes means anything that is alternative finance return for the purposes of Part 6 of CTA 2009 as a result of section 513 of that Act or any part of the redemption payment under arrangements to which section 507 of that Act applies (investment bond arrangements), and

(b) for income tax purposes means anything that is alternative finance return for the purposes of Chapter 5 of Part 2 of the Finance Act 2005 as a result of section 48B(1), 49(2) or 49A(2) of that Act or any part of the redemption payment under arrangements to which section 48A of that Act applies (alternative finance investment bonds).”

98 U.K. In section 212(3) (interest etc paid in respect of certain securities) for “section 208” substitute “ section 1285 of CTA 2009 (exemption for UK company distributions) ”.

99 (1) Amend section 214 (chargeable payments connected with exempt distributions) as follows. U.K.

(2) In subsection (1)(c) for “section 337A(1)” substitute “ section 1305(1) of CTA 2009 (denial of deduction for distributions) ”.

(3) For subsection (1B) substitute—

“(1B) So far as relating to corporation tax, the charge to tax under subsection (1) has effect as an application of the charge to corporation tax on income.”

100 U.K. In Chapter 3 of Part 6 (matters which are not distributions for the purposes of the Corporation Tax Acts) after section 230 insert—

“Industrial and provident society dividends etc U.K.

230A Dividend or bonus granted by industrial and provident society

(1) This section applies if—

(a) a dividend or bonus is granted by a registered industrial and provident society, and

(b) section 132 (deduction for dividends etc granted by industrial and provident societies) of CTA 2009 allows the sum representing the dividend or bonus to be deducted in calculating the profits of a trade.

(2) The dividend, or the bonus, is not treated as a distribution for the purposes of the Corporation Tax Acts.”

101 U.K. In section 231AA(3) (no tax credit for borrower under stock lending arrangement or interim holder under repurchase agreement) for “Schedule 13 to the Finance Act 2007” substitute “ Chapter 10 of Part 6 of CTA 2009 (repos) ”.

102 U.K. In section 231AB(2) (no tax credit for original owner under repurchase agreement in respect of certain manufactured dividends) for “Schedule 13 to the Finance Act 2007” substitute “ Chapter 10 of Part 6 of CTA 2009 (repos) ”.

103 U.K. Omit section 337 (company beginning or ceasing to carry on trade).

104 (1) Amend section 337A (computation of company's profits or income: exclusion of general deductions) as follows. U.K.

(2) Omit subsection (1)(a).

(3) In subsection (2)—

(a) in paragraph (a) for “Chapter 2 of Part 4 of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”, and

(b) omit paragraph (b) and the “and” immediately before it.

105 (1) Amend section 342 (tax on companies in liquidation) as follows. U.K.

(2) In subsection (3A) for “section 12(7)” substitute “ section 12(4) of CTA 2009 ”.

(3) In subsection (5) for “section 12(7)” substitute “ section 12(4) of CTA 2009 ”.

(4) In subsection (6) for “section 12(7)” substitute “ section 12(4) of CTA 2009 ”.

106 (1) Amend section 342A (tax on companies in administration) as follows. U.K.

(2) In subsection (7) for “section 12(3)” substitute “ section 10(1) of CTA 2009 ”.

(3) In subsection (8) for “section 12(3)” substitute “ section 10(1) of CTA 2009 ”.

(4) For subsection (9) substitute—

“(9) Section 342(7) applies in relation to this section as it applies in relation to that section, except that the reference to the completion of the winding up is to be read as a reference to the relevant event.”

107 U.K. In section 343(2) (company reconstructions without change of ownership)—

(a) for the words from the beginning to “but—” substitute “ In the circumstances mentioned in subsection (1)— ”, and

(b) in paragraph (a) for “those Acts” substitute “ the Capital Allowances Act (including enactments which under this Act are to be treated as contained in that Act) ”.

108 (1) Amend section 392A (Schedule A losses) as follows. U.K.

(2) In subsection (1) for “Schedule A loss” substitute “ UK property business loss ”.

(3) In subsection (2)—

(a) for “Schedule A loss”, in each place where it occurs, substitute “ UK property business loss ”, and

(b) for “Schedule A business” substitute “ UK property business ”.

(4) In subsection (3)—

(a) for paragraph (a) substitute—

“(a) ceases to carry on a UK property business, or to be within the charge to corporation tax in respect of such a business, but”, and

(b) in the words after paragraph (b), for “Schedule A loss” substitute “ UK property business loss ” and for “section 75” substitute “ Chapter 2 of Part 16 of CTA 2009 ”.

(5) In subsection (4)—

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

(b) in paragraph (b) for “the same meaning as in Part IV” substitute “ the meaning given by section 1218 of CTA 2009 ”.

(6) In subsection (5) for “Schedule A business” substitute “ UK property business ”.

(7) For the title substitute “ UK property business losses ”.

(8) In the cross-heading immediately before the section for “Schedule A business” substitute “ UK property business ”.

109 U.K. In section 392B(2) (losses from overseas property business) for “Schedule A business” substitute “ UK property business ”.

110 U.K. In section 393(8)(a) (losses other than terminal losses) for “Case I or V of Schedule D,” substitute “ Chapter 2 of Part 3 of CTA 2009, ”.

111 U.K. In section 393A(3) (losses: set off against profits of the same, or an earlier, accounting period) for “falling within Case V of Schedule D:” substitute “ carried on wholly outside the United Kingdom: ”.

112 (1) Amend section 396 (Case VI losses) as follows. U.K.

(2) In subsection (1)—

(a) for “under Case VI of Schedule D” substitute “ under or by virtue of a relevant provision ”, and

(b) for “under that Case” substitute “ charged under or by virtue of a provision to which section 834A (miscellaneous charges) applies ”.

(3) For subsection (2) substitute—

“(2) In this section “relevant provision” means any provision to which section 834A applies, except section 761(1)(b)(ii) (offshore income gains).”

(4) After subsection (2) insert—

“(2A) Subsection (2B) applies to any loss made by a company in a transaction if—

(a) the transaction was of such a nature that, if any profits had arisen from it, the company would have been liable to corporation tax in respect of the profits under Case VI of Schedule D for an accounting period ending before 1 April 2009, and

(b) the transaction—

(i) did not fall within section 34, 35 or 36 (lease premiums etc), and

(ii) was not a disposal made after 31 March 2007 to which Chapter 5 of Part 17 (offshore funds) applied.

(2B) So far as relief for the loss has not previously been given, the loss is to be treated as a loss to be set off against income in accordance with subsection (1).”

(5) For the title substitute “ Losses from miscellaneous transactions ”.

113 (1) Amend section 397 (restriction on relief in case of farming and market gardening) as follows. U.K.

(2) In subsection (7) for the words from “Case I” to “ITTOIA 2005” substitute “ the calculation of the profits of a trade in Part 3 of CTA 2009 (or in Part 2 of ITTOIA 2005) ”.

(3) In subsection (8)—

(a) in the words before paragraph (a), after “subsection” insert “ a trade shall be treated as discontinued, and a new trade set up in the event of any of the following— ”,

(b) for paragraph (a) and the “and” immediately after it substitute—

“(a) a company starting or ceasing to be within the charge to corporation tax in respect of a trade;”,

(c) in paragraph (b) for the words from the beginning to “the trade” substitute “ a change in the persons carrying on a trade ”, and

(d) after paragraph (b) insert “; or

(c) a change in the persons carrying on a trade not falling within paragraph (b) if—

(i) immediately before the change the trade is carried on by companies in partnership and by no other person, and

(ii) after the change none of those companies continues to carry on the trade in partnership.”

(4) In subsection (9) for the words from “if” to the end substitute “ if the change in the persons carrying on the trade is a cessation to which section 343(1) applies. ”

114 U.K. In section 398(b) for “Schedule D” substitute “ Part 5 of CTA 2009 (loan relationships) ”.

115 (1) Amend section 399 (dealings in commodity futures etc: withdrawal of loss relief) as follows. U.K.

(2) Omit subsection (1B).

(3) In subsection (3) omit the words “under Case VI of Schedule D”.

116 (1) Amend section 400 (write-off of government investment) as follows. U.K.

(2) In subsection (2)—

(a) in paragraph (b) for the words from “Part 4” to the end substitute “ Part 16 of CTA 2009, any excess that falls to be deducted under section 1223(3) of that Act; ”,

(b) in paragraph (bb)(ii) for “section 75” substitute “ Chapter 2 of Part 16 of CTA 2009 ”, and

(c) in paragraph (d) for “under 75(3) or 393(9)” substitute “ under section 393(9) of this Act or section 1223 of CTA 2009 ”.

(3) In subsection (6) for “Case I or II of Schedule D.” substitute “ Part 3 of CTA 2009. ”

(4) In subsection (9A) for “section 80(5) of the Finance Act 1996” and “Chapter II of Part IV of that Act” substitute “ section 464(1) of CTA 2009 ” and “ Part 5 of that Act ” respectively.

117 U.K. Omit section 401 (relief for pre-trading expenditure).

118 (1) Amend section 403 (amounts which may be surrendered by way of group relief) as follows. U.K.

(2) In subsection (1)(b) for “Schedule A losses” substitute “ UK property business losses ”.

(3) In subsection (3) for “Schedule A losses”, in each place where those words occur, substitute “ UK property business losses ”.

119 U.K. In section 403ZC(1) (amounts eligible for group relief: non-trading deficit on loan relationships) for “section 83 of the Finance Act 1996” substitute “ Chapter 16 of Part 5 of CTA 2009 (non-trading deficits) ”.

120 (1) Amend section 403ZD (other amounts available by way of group relief) as follows. U.K.

(2) In subsection (1) for “Schedule A losses” substitute “ UK property business losses ”.

(3) In subsection (3)—

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

(b) for “Schedule A business” substitute “ UK property business ”.

(4) In subsection (4)—

(a) for “section 75(1) (expenses of management of a company with investment business)” substitute “ section 1219 of CTA 2009 (expenses of management of a company's investment business) ”, and

(b) for “section 75(9) or 392A” substitute “ section 392A above or section 1223(3) of CTA 2009 ”.

(5) In subsection (6) for “Schedule 29 to the Finance Act 2002” and “paragraph 35(3) of that Schedule” substitute “ Part 8 of CTA 2009 (intangible fixed assets) ” and “ section 753(3) of that Act ” respectively.

121 U.K. In section 403ZE(1)(b)(ii) (computation of gross profits) for “75(9) or 392A(3)” substitute “ 392A(3) above or section 1223(3) of CTA 2009 ”.

122 (1) Amend section 404 (limitation of group relief in relation to certain dual resident companies) as follows. U.K.

(2) In subsection (2)(a) for “Schedule A loss” substitute “ UK property business loss ”.

(3) In subsection (6)(a)(ia) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”.

(4) In subsection (7) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of CTA 2009 (see section 302(6) of that Act) ”.

123 U.K. In section 407 (relationship between group relief and other relief)—

(a) in subsection (1)(b) for “section 83” to “1996” substitute “ section 388, 389 or 391 or Chapter 16 of Part 5 of CTA 2009 ”, and

(b) in subsection (2)(c) for “section 83(2)” to “1996” substitute “ section 389 or 459 of CTA 2009 ”.

124 U.K. After section 411 insert—

“411ZA No relief where deduction of relevant return under alternative finance arrangements disallowed

(1) This section applies if the surrendering company is prevented from obtaining a deduction in respect of an amount by section 520 of CTA 2009 (provision not at arm's length: non-deductibility of relevant return).

(2) The amount may not be surrendered by way of group relief.”

125 U.K. In section 414(1)(b) (close companies) omit “within the meaning of section 486(12)”.

126 (1) Amend section 431 (interpretation of provisions relating to insurance companies) as follows. U.K.

(2) In subsection (2)—

(a) in paragraph (b) of the definition of “free assets amount” for “Chapter 2 of Part 4 of the Finance Act 1996” substitute “ Part 5 of CTA 2009 (see section 303 of that Act) ”,

(b) in the definition of “the I minus E basis” for “Case I of Schedule D” substitute “ section 35 of CTA 2009 (charge on trade profits) ”,

(c) at the appropriate place insert—

““life assurance trade profits provisions” means the provisions applicable for the purposes of the taxation under section 35 of CTA 2009 (charge on trade profits) of the profits of life assurance business carried on by an insurance company;”, and

(d) in the definition of “net value” for “Chapter 2 of Part 4 of the Finance Act 1996” substitute “ Part 5 of CTA 2009: see section 303 of that Act ”.

(3) In subsection (2YC)(a) omit “under Schedule A or Case III, V or VI of Schedule D”.

(4) In subsection (2YD)(a) for “paragraph 4 of Schedule 11 to the Finance Act 1996” substitute “ sections 387 to 391 of CTA 2009 ”.

127 (1) Amend section 431G (company carrying on life assurance business) as follows. U.K.

(2) In subsection (3) for “in accordance with Case I of Schedule D” substitute “ under section 35 of CTA 2009 (charge on trade profits) ”.

(3) In subsection (4) for “in accordance with Case I of Schedule D” substitute “ under section 35 of CTA 2009 ”.

(4) In subsection (5) for “provision of Case I of Schedule D” substitute “ of the life assurance trade profits provisions ”.

128 U.K. In section 431H(3) (company carrying on life assurance business and other insurance business) for “Case I of Schedule D” substitute “ section 35 of CTA 2009 (charge on trade profits) ”.

129 (1) Amend section 432YA (long-term business other than life assurance business_adjustment consequent on change in Insurance Prudential Sourcebook) as follows. U.K.

(2) In subsection (2) for “to Case I of Schedule D” substitute “ for the purposes of section 35 of CTA 2009 (charge on trade profits) ”.

(3) In subsection (6) for paragraph (b) and the word “and” immediately before it substitute—

“(b) the reference in section 82E(4) to life assurance business were a reference to PHI business, and

(c) the reference in section 82E(7) to the life assurance trade profits provisions were a reference to the provisions applicable for the purposes of section 35 of CTA 2009.”

130 (1) Amend section 432A (apportionment of income and gains) as follows. U.K.

(2) In subsection (1ZA)—

(a) in paragraph (a) for “Schedule A in respect of any separate Schedule A” substitute “ Chapter 3 of Part 4 of CTA 2009 (profits of a property business) in respect of any separate UK property ”,

(b) for paragraph (b) substitute—

“(b) income chargeable under Chapter 3 of Part 4 of CTA 2009 in respect of distributions treated by section 121(1)(a) of the Finance Act 2006 as profits of a UK property business carried on by the company,”,

(c) in paragraph (c) for “Case V of Schedule D” substitute “ Chapter 3 of Part 4 of CTA 2009 ”,

(d) for paragraph (d) substitute—

“(d) income chargeable under Chapter 2 of Part 10 of CTA 2009 (dividends of non-UK resident companies) or Chapter 6 of that Part (sale of foreign dividend coupons),

(da) income chargeable under Chapter 7 of Part 10 of CTA 2009 (annual payments not otherwise charged) or Chapter 8 of that Part (income not otherwise charged) which arises from a source outside the United Kingdom,”,

(e) in paragraph (f) for “Chapter 2 of Part 4 of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”,

(f) in paragraph (g) for “Schedule 26 to the Finance Act 2002” substitute “ Part 7 of CTA 2009 ”,

(g) in paragraph (h) for the words from “Case III” to the end substitute “ Chapter 5 of Part 10 of CTA 2009 (distributions from unauthorised unit trusts) or Chapter 7 of that Part (annual payments not otherwise charged) ”,

(h) in paragraph (i) for “Part 3 of Schedule 29 to FA 2002” substitute “ Chapter 2 of Part 8 of CTA 2009 ”, and

(i) in paragraph (j) for “Case VI of Schedule D” substitute “ any provision to which section 834A (miscellaneous charges) applies ”.

(3) In subsection (1ZB)—

(a) in paragraph (a) for “Schedule A businesses” substitute “ UK property businesses ”,

(b) in paragraph (c) for “Chapter 2 of Part 4 of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”,

(c) in paragraph (d) for “Schedule 26 to the Finance Act 2002” substitute “ Part 7 of CTA 2009 ”,

(d) in paragraph (e) for “Part 2 of Schedule 29 to FA 2002” substitute “ Chapter 3 of Part 8 of CTA 2009 ”, and

(e) in paragraph (f) for “Case VI of Schedule D” substitute “ any provision to which section 834A applies ”.

131 (1) Amend section 432AA (Schedule A business or overseas property business) as follows. U.K.

(2) In subsection (1) for “is treated as carrying on separate Schedule A businesses or overseas property businesses” substitute “ is treated (despite sections 205 and 206 of CTA 2009) as carrying on separate UK property businesses or overseas property businesses ”.

(3) For the title substitute “ UK property business or overseas property business ”.

132 (1) Amend section 432AB (losses from Schedule A business or overseas property business) as follows. U.K.

(2) In subsection (1) for “Schedule A business” substitute “ UK property business ”.

(3) In subsection (4)(a) for “Schedule A business” substitute “ UK property business ”.

(4) In the title for “Schedule A business” substitute “ UK property business ”.

133 U.K. In section 434(1) (franked investment income etc) for “provisions applicable to Case I of Schedule D” substitute “ life assurance trade profits provisions ”.

134 (1) Amend section 434A (computation of losses and limitation of relief) as follows. U.K.

(2) In subsection (2) for the words “provisions of this Act applicable to Case I of Schedule D” substitute “ life assurance trade profits provisions ”.

(3) In subsection (2A)—

(a) omit the words from “which” to “1996”, and

(b) for “Chapter II of Part IV of that Act” substitute “ Part 5 of CTA 2009 ”.

135 (1) Amend section 436A (gross roll-up business: separate charge on profits) as follows. U.K.

(2) For subsection (1) substitute—

“(1) The charge to corporation tax on income applies to profits arising to an insurance company from gross roll-up business.”

(3) In subsection (2)(b) for “provisions of this Act applicable to Case I of Schedule D” substitute “ life assurance trade profits provisions ”.

(4) In subsection (7) for “Case I of Schedule D” substitute “ section 35 of CTA 2009 (charge on trade profits) ”.

136 U.K. In section 440(6) (transfers of assets etc) for “in accordance with Case I of Schedule D” substitute “ under section 35 of CTA 2009 (charge on trade profits) ”.

137 U.K. In section 440A(7) (securities) for “in accordance with Case I of Schedule D” substitute “ under section 35 of CTA 2009 (charge on trade profits) ”.

138 (1) Amend section 440B (modifications where tax charged under Case I of Schedule D) as follows. U.K.

(2) In subsection (1) for “in accordance with Case I of Schedule D” substitute “ under section 35 of CTA 2009 (charge on trade profits) ”.

(3) In subsection (4A) for “in accordance with Case I of Schedule D” substitute “ under section 35 of CTA 2009 ”.

(4) In subsection (4B) for “in accordance with Case I of Schedule D” substitute “ under section 35 of CTA 2009 ”.

(5) In the title for “Case I of Schedule D” substitute “ section 35 of CTA 2009 ”.

139 (1) Amend section 440C (modifications for change of tax basis) as follows. U.K.

(2) In subsection (1)(b) for “in accordance with Case I of Schedule D” substitute “ under section 35 of CTA 2009 (charge on trade profits) ”.

(3) In subsection (4)—

(a) in paragraph (a) for “in accordance with Case I of Schedule D” substitute “ under section 35 of CTA 2009 ”, and

(b) in paragraph (c) for “in accordance with Case I of Schedule D” substitute “ under section 35 of CTA 2009 ”.

(4) In subsection (6)(b) for “in accordance with Case I of Schedule D” substitute “ under section 35 of CTA 2009 ”.

(5) In subsection (7)(b) for “in accordance with Case I of Schedule D” substitute “ under section 35 of CTA 2009 ”.

140 U.K. In section 442(2) (overseas business of UK companies) for “of this Act applicable to Case I of Schedule D” substitute “ applicable for the purposes of section 35 of CTA 2009 (charge on trade profits) ”.

141 U.K. In section 442A(1) (taxation of investment return where risk reinsured) for “Case VI of Schedule D” substitute “ the charge to corporation tax on income ”.

142 (1) Amend section 444AZA (transfers of life assurance business: Case VI losses of the transferor) as follows. U.K.

(2) In subsection (1)(c) for “in accordance with Case I of Schedule D” substitute “ under section 35 of CTA 2009 (charge on trade profits) ”.

(3) In subsection (2)—

(a) for “ “Case VI loss”” substitute “ “qualifying loss of the transferor” ”, and

(b) omit “(a “Case I loss”)”.

(4) In subsection (4) for “Case VI loss” substitute “ qualifying loss of the transferor ”.

(5) In the title for “Case VI” substitute “ gross roll-up business ”.

143 (1) Amend section 444AZB (transfers of life assurance business: Case I losses of the transferor) as follows. U.K.

(2) In subsection (1)(b) for “in accordance with Case I of Schedule D” substitute “ under section 35 of CTA 2009 (charge on trade profits) ”.

(3) In subsection (2)—

(a) for “ “Case I loss”” substitute “ “qualifying loss of the transferor” ”, and

(b) omit “(a “Case VI loss”)”.

(4) In subsection (4) for “Case I loss” substitute “ qualifying loss of the transferor ”.

(5) In the title for “Case I” substitute “ trade ”.

144 U.K. In section 444ABD(1A) (transferor's period of account including transfer)—

(a) for “in accordance with Case I of Schedule D”, in the first place where it occurs, substitute “ under section 35 of CTA 2009 (charge on trade profits) ”, and

(b) for “in accordance with Case I of Schedule D”, in the second place where it occurs, substitute “ under section 35 of that Act ”.

145 (1) Amend section 444AEA (transfer schemes: anti-avoidance rule) as follows. U.K.

(2) In subsection (1)—

(a) in paragraph (a) for “Case I” substitute “ life assurance trade profits ”, and

(b) in paragraph (b) omit “Case I”.

(3) In subsection (3)—

(a) for “Case I advantage” substitute “ life assurance trade profits advantage ”, and

(b) omit “transferor's Case I”.

(4) In subsection (4)—

(a) for “Case I advantage” substitute “ life assurance trade profits advantage ”, and

(b) omit “transferee's Case I”.

146 (1) Amend section 444AEB (Case I advantage: transferor) as follows. U.K.

(2) In subsection (1)—

(a) for “Case I advantage” substitute “ life assurance trade profits advantage ”, and

(b) in paragraphs (a) and (b) for “Case I” substitute “ section 35 ”.

(3) In subsection (2)—

(a) for “a Case I advantage” substitute “ a life assurance trade profits advantage ”,

(b) for “the Case I advantage” substitute “ the advantage ”, and

(c) in paragraphs (a) and (b) for “Case I” substitute “ section 35 ”.

(4) In subsection (4)—

(a) for “ “Case 1 profits”” substitute “ “section 35 profits” ”,

(b) for “ “Case 1 losses”” substitute “ “section 35 losses” ”, and

(c) for “provisions of Case I of Schedule D” substitute “ life assurance trade profits provisions ”.

(5) In the title for “Case I” substitute “ Life assurance trade profits ”.

147 (1) Amend section 444AEC (Case I advantage: transferee) as follows. U.K.

(2) In subsection (1)—

(a) for “Case I advantage” substitute “ life assurance trade profits advantage ”, and

(b) in paragraphs (a) and (b) for “Case I” substitute “ section 35 ”.

(3) In subsection (2)—

(a) for “a Case I advantage” substitute “ a life assurance trade profits advantage ”,

(b) for “the Case I advantage” substitute “ the advantage ”, and

(c) in paragraphs (a) and (b) for “Case I” substitute “ section 35 ”.

(4) In subsection (4) for “Case I”, in both places where it occurs, substitute “ section 35 ”.

(5) In the title for “Case I” substitute “ Life assurance trade profits ”.

148 (1) Amend section 444AECA (parts of transfer scheme arrangements: anti-avoidance rule) as follows. U.K.

(2) In subsection (1)—

(a) in paragraph (a) for “Case I” substitute “ life assurance trade profits ”, and

(b) in paragraph (b) omit “Case I”.

(3) In subsection (3)—

(a) for “Case I advantage” substitute “ life assurance trade profits advantage ”, and

(b) omit “transferor's Case I”.

(4) In subsection (4)—

(a) for “Case I advantage” substitute “ life assurance trade profits advantage ”, and

(b) omit “transferee's Case I”.

149 (1) Amend section 444AECB (parts of transfer scheme arrangements: Case I advantage transferor) as follows. U.K.

(2) In subsection (1)—

(a) for “Case I advantage” substitute “ life assurance trade profits advantage ”, and

(b) in paragraphs (a) and (b) for “Case I” substitute “ section 35 ”.

(3) In subsection (2)—

(a) for “Case I profits” substitute “ section 35 profits ”,

(b) for “Case I losses” substitute “ section 35 losses ”, and

(c) for “Case I advantage” substitute “ life assurance trade profits advantage ”.

(4) In subsection (3)—

(a) for “a Case I advantage” substitute “ a life assurance trade profits advantage ”,

(b) for “the Case I advantage” substitute “ the advantage ”, and

(c) in paragraphs (a) and (b) for “Case I” substitute “ section 35 ”.

(5) In subsection (5)—

(a) for “a Case I advantage” substitute “ a life assurance trade profits advantage ”, and

(b) for “the Case I advantage” substitute “ the advantage ”.

(6) In subsection (6) for “Case I”, in both places where it occurs, substitute “ section 35 ”.

(7) In the title for “Case I” substitute “ life assurance trade profits ”.

150 (1) Amend section 444AECC (parts of transfer scheme arrangements: Case I advantage transferee) as follows. U.K.

(2) In subsection (1)—

(a) for “Case I advantage” substitute “ life assurance trade profits advantage ”, and

(b) in paragraphs (a) and (b) for “Case I” substitute “ section 35 ”.

(3) In subsection (2)—

(a) for “Case I profits” substitute “ section 35 profits ”,

(b) for “Case I losses” substitute “ section 35 losses ”, and

(c) for “Case I advantage” substitute “ life assurance trade profits advantage ”.

(4) In subsection (3)—

(a) for “a Case I advantage” substitute “ a life assurance trade profits advantage ”,

(b) for “the Case I advantage” substitute “ the advantage ”, and

(c) in paragraphs (a) and (b) for “Case I” substitute “ section 35 ”.

(5) In subsection (5) for “Case I”, in both places where it occurs, substitute “ section 35 ”.

(6) In the title for “Case I” substitute “ life assurance trade profits ”.

151 (1) Amend section 444AED (clearance: no avoidance or group advantage) as follows. U.K.

(2) In subsection (2) for “Case I”, in both places where it occurs, substitute “ life assurance trade profits ”.

(3) In subsection (3) for “Case I”, in both places where it occurs, substitute “ life assurance trade profits ”.

152 U.K. In section 444AF(5) (demutualisation surplus: life assurance business)—

(a) in paragraph (a) for “provisions of this Act applicable to Case I of Schedule D” substitute “ life assurance trade profits provisions ”, and

(b) in paragraph (b) omit “under Case VI of Schedule D”.

153 U.K. In section 444AH (modification of section 444AG etc for Case VI businesses) in the heading for “Case VI” substitute “ gross roll-up ”.

154 U.K. In section 444AK(3) (mutual surplus: gross roll-up business) for “provisions of this Act applicable to Case I of Schedule D” substitute “ life assurance trade profits provisions ”.

155 U.K. In section 444BA(1) (equalisation reserves for general business) for “Case I or V of Schedule D” substitute “ section 35 of CTA 2009 (charge on trade profits) ”.

156 U.K. In section 444BB(2) (modification of section 444BA for mutual or overseas business and for non-resident companies) for “to Case I of Schedule D” substitute “ for the purposes of section 35 of CTA 2009 (charge on trade profits) ”.

157 U.K. Omit section 469(4A) to (5) and (6) (other unit trusts).

158 U.K. Omit section 472A (trading profits etc from securities: taxation of amounts taken to reserves).

159 U.K. Omit section 473 (conversion etc of securities held as circulating capital).

160 U.K. In section 475 (tax-free Treasury securities: exclusion of interest on borrowed money)—

(a) in subsections (1)(b) and (2)(a) for “the Tax Acts” substitute “ the Income Tax Acts ”,

(b) in subsection (2), omit paragraph (b) and the “and” immediately before it, and

(c) in subsection (4) omit the words from “or to be brought” to the end.

161 U.K. In section 477A (building societies: loan relationships), omit subsections (3)(a) and (aa), (4) and (10).

162 U.K. Omit section 477B (incidental costs of issuing qualifying shares).

163 (1) Amend section 486 (industrial and provident societies and co-operative associations) as follows. U.K.

(2) In subsection (1), omit from the word “but” to the end.

(3) Omit subsections (4) and (7).

(4) Omit subsections (10) and (11).

(5) In subsection (12) omit the definition of “registered industrial and provident society”.

164 U.K. Omit section 487 (credit unions).

165 U.K. Omit section 491 (distribution of assets of body corporate carrying on mutual business).

166 U.K. In section 492(3A) (treatment of oil extraction activities etc for tax purposes) for “section 75” substitute “ section 1219 of CTA 2009 ”.

167 (1) Amend section 494 (loan relationships etc) as follows. U.K.

(2) In subsection (1) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”.

(3) In subsection (2)—

(a) for “Chapter II of Part IV of the Finance Act 1996”, in both places where it occurs, substitute “ Part 5 of CTA 2009 ”,

(b) in paragraph (b) for “subsection (4) of section 84” substitute “ section 329 ”, and

(c) in paragraph (c) and in the second sentence for “section 100” substitute “ Chapter 2 of Part 6 (relevant non-lending relationships) ”.

(4) In subsection (2ZA) for “Chapter 2 of Part 4 of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”.

(5) In subsection (2A)—

(a) in paragraph (a) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”, and

(b) in the words following paragraph (b) for “section 82(2)” substitute “ section 297 ”.

168 (1) Amend section 494AA (sale and lease-back) as follows. U.K.

(2) In subsection (3) for “Schedule D” substitute “ Part 3 of CTA 2009 ”.

(3) In subsection (5)—

(a) in paragraph (a) for “Schedule D” substitute “ Part 3 of CTA 2009 ”, and

(b) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”.

169 U.K. In section 494A(1) (computation of amount available for surrender by way of group relief) for “Schedule A losses” substitute “ UK property business losses ”.

170 (1) Amend section 500 (deduction of PRT in computing income for corporation tax purposes) as follows. U.K.

(2) For subsection (3)(b) substitute—

“(b) if that chargeable period ends after the accounting period of the company in or at the end of which the company—

(i) ceases to carry on the trade giving rise to the income referred to above, or

(ii) ceases to be within the charge to corporation tax in respect of that trade,

that accounting period.”

(3) In subsection (6)(d) for the words from “means” to the end substitute “means—

(i) the accounting period in or at the end of which ends the operative chargeable period, or

(ii) if the company ceases to carry on its ring fence trade (or to be within the charge to corporation tax in respect of that trade) before the end of the operative chargeable period, the last accounting period of that trade (or, as the case requires, the accounting period during or at the end of which the company ceased to be within the charge to corporation tax in respect of that trade).”

171 U.K. In section 501A(5) (supplementary charge in respect of ring fence trades)—

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

(b) in paragraph (b) for “that Chapter” and “section 103(1A) and (1B)” substitute “ that Part ” and “ section 475 ” respectively, and

(c) in paragraph (c) for “under Schedule 26 to the Finance Act 2002 (derivative contracts)” substitute “ in accordance with Part 7 of CTA 2009 (derivative contracts) ”.

172 U.K. In section 503(1)(a) (letting of furnished holiday accommodation treated as a trade for certain corporation tax purposes)—

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

(b) for “trade the profits of which are chargeable to corporation tax under Case I of Schedule D,” substitute “ trade carried on wholly or partly in the United Kingdom the profits of which are chargeable to corporation tax under Part 3 of CTA 2009, ”.

173 U.K. Omit section 504 (meaning of “commercial letting of furnished holiday accommodation”).

174 (1) Amend section 505 (charitable companies: general) as follows. U.K.

(2) In subsection (1)(a) for “under Schedules A and D” substitute “ under Parts 3 and 4 of CTA 2009 ”.

(3) In subsection (1)(aa) for “under Schedules A and D” substitute “ under Parts 3 and 4 of CTA 2009 ”.

(4) In subsection (1)(c)—

(a) for sub-paragraph (ii) substitute—

“(ii) from tax under section 299 of CTA 2009 (non-trading profits in respect of loan relationships),

(iiza) from tax under Chapter 5 of Part 10 of that Act (distributions from unauthorised unit trusts),

(iizb) from tax under Chapter 7 of that Part (annual payments not otherwise charged),”,

(b) omit sub-paragraph (iia),

F2 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) for sub-paragraph (iic) substitute—

“(iic) from tax under Part 8 of CTA 2009 in respect of non-trading gains on intangible fixed assets,”.

(5) In subsection (1)(d) omit “under Schedule D”.

(6) In subsection (1)(e) for “Schedule D” substitute “ Part 3 of CTA 2009 ”.

(7) In subsection (1AA) for the words from “which” to the end substitute “ which is not chargeable under Chapter 2 of Part 10 of CTA 2009. ”

(8) In subsection (2) for “Case III of Schedule D” substitute “ the charge to corporation tax on income ”.

Textual Amendments

F2 Sch. 1 para. 174(4)(c) omitted (with effect in accordance with Sch. 14 para. 31 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 14 para. 30(e)

175 (1) Amend section 506C (sections 506A and 506B: supplemental) as follows. U.K.

(2) In subsection (1) for paragraph (a) substitute—

“(a) section 105 of CTA 2009,”.

(3) In subsection (7)(b)(ii) after “2005” insert “ or section 501(2) of CTA 2009 ”.

176 U.K. Omit section 509 (reserves of marketing boards etc).

177 U.K. In section 510A(6A) (European Economic Interest Groupings) for “Chapter 2 of Part 4 of the Finance Act 1996” and “section 87A of, and paragraphs 19 and 20 of Schedule 9 to,” substitute “ Part 5 of CTA 2009 ” and “ Chapter 9 of that Part and sections 467 and 472 to 474 of ” respectively.

178 U.K. For section 518(2) (harbour reorganisation schemes) substitute—

“(2) For the purposes of provisions of the Corporation Tax Acts that apply—

(a) only if a person starts to carry on a trade, or

(b) only if a person ceases to carry on a trade,

the transferor is not treated as ceasing to carry on the trade, and the transferee is not treated as starting to carry it on.”

179 U.K. Omit section 524 (taxation of receipts from sale of patent rights).

180 U.K. Omit section 525 (capital sums: winding up or partnership change).

181 U.K. Omit section 526 (relief for expenses).

182 U.K. Omit section 528 (manner of making allowances and charges).

183 U.K. Omit section 531 (provisions supplementary to section 530).

184 U.K. Omit section 532 (application of Capital Allowances Act).

185 U.K. Omit section 533 (interpretation of sections 520 to 532).

186 U.K. Omit section 556 (activity treated as trade etc and attribution of income).

187 U.K. Omit section 558(5) and (6) (visiting performers: supplementary provisions).

188 U.K. In section 568(1) (deductions from profits of contributions paid under certified schemes)—

(a) omit “section 74 of this Act or”,

(b) after “section 33 of ITTOIA 2005” insert “ or section 53 of CTA 2009 (no deduction for capital expenditure) ”, and

(c) for “under Case I of Schedule D or under Part 2 of ITTOIA 2005,” substitute “ under Part 2 of ITTOIA 2005 or Part 3 of CTA 2009, ”.

189 U.K. In section 570(4) (payments under certified schemes which are not repayments of contributions), in the words after paragraph (c), for the words from “section 337(1)” to the end substitute “ section 18 of ITTOIA 2005 or section 41 of CTA 2009 (company starting or ceasing to be within charge to corporation tax) is to be treated as effecting a cessation of trading. ”

190 (1) Amend section 571 (cancellation of certificates) as follows. U.K.

(2) In subsection (1) omit the words from “(in” to “Schedule D)”.

(3) After subsection (1A) insert—

“(1B) So far as relating to corporation tax, the charge to tax under subsection (1) has effect as an application of the charge to corporation tax on income.”

191 U.K. Omit section 577 (business entertaining expenses).

192 U.K. Omit section 577A (expenditure involving crime).

193 U.K. Omit section 578 (housing grants).

194 U.K. Omit sections 578A and 578B (expenditure on car hire).

195 U.K. Omit sections 579 and 580 (statutory redundancy payments).

196 U.K. Omit section 582 (funding bonds issued in respect of interest on certain debts).

197 U.K. Omit section 584 (relief for unremittable overseas income).

198 U.K. Omit sections 586 and 587 (disallowance of deductions for war risk premiums and of certain payments in respect of war injuries to employees).

199 U.K. In section 587B(2)(b) (gifts of shares, securities and real property to charities etc) for “section 83A,” substitute “ section 105 of CTA 2009 (gifts of trading stock to charities etc), ”.

200 U.K. Omit section 588 (training courses for employees).

201 U.K. Omit section 589A (counselling services for employees).

202 U.K. Omit section 589B(5) (interpretation of section 589A).

203 U.K. Omit section 617 (social security benefits and contributions).

204 U.K. Omit section 695 (limited interests in residue).

205 U.K. Omit section 696 (absolute interests in residue).

206 U.K. Omit section 697 (supplementary provisions as to absolute interests in residue).

207 U.K. Omit section 698 (special provisions as to certain interests in residue).

208 U.K. Omit section 699A (untaxed sums comprised in the income of the estate).

209 U.K. In section 700 (adjustments and information)—

(a) omit subsections (1) to (3),

(b) in subsection (4) omit “this Part or”,

(c) in subsection (5)—

(i) omit paragraph (a),

(ii) in paragraph (b) omit “(a) or”, and

(iii) in the words following paragraph (b) omit the words from “deemed” to “this Part or”, in the first place where they occur, and the words “this Part or” in the second place where they occur, and for “(a) to” substitute “ (aa) and ”, and

(d) after subsection (6) insert—

“(7) This section is to be read as if it were in Chapter 6 of Part 5 of ITTOIA 2005.”

210 U.K. Omit section 701 (interpretation).

211 U.K. Omit section 702 (application to Scotland).

212 U.K. In section 703(3) (cancellation of corporation tax advantage) omit the words from “(the amount” to “accordingly)”.

213 U.K. In section 709(2) (meaning of “corporation tax advantage” and other expressions), in the definition of “trading stock”, for “the same meaning as in section 100(1)” substitute “ the meaning given by section 163 of CTA 2009 ”.

F3 214 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F3 Sch. 1 para. 214 omitted (with effect in accordance with Sch. 25 para. 10 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 25 para. 9(3)(i)

F4 215 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F4 Sch. 1 para. 215 omitted (retrospective and with effect in accordance with Sch. 24 paras. 12, 13-16 of the commencing Act) by virtue of Finance Act 2009 (c. 10), Sch. 24 paras. 9(f), 12

216 U.K. In section 736C(9) (deemed interest: cash collateral under stock lending arrangements)—

(a) in paragraph (a) for “Chapter 2 of Part 4 of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”, and

(b) in paragraph (b) for “section 100” to “lending of money)” substitute “ Chapter 2 of Part 6 of that Act applies (relevant non-lending relationships) ”.

217 U.K. In section 747(1B) (controlled foreign companies: company residence for purposes of Chapter), for “section 249 of the Finance Act 1994” substitute “ section 18 of CTA 2009 ”.

218 U.K. In section 751(3) (controlled foreign companies: accounting periods) for “subsections (3), (5) and (7) of section 12” substitute “ sections 10(1) and (5), 11(1) and (2) and 12 of CTA 2009 ”.

219 (1) Amend section 755A (treatment of chargeable profits and creditable tax apportioned to company carrying on life assurance business) as follows. U.K.

(2) In subsection (5) for “Case I of Schedule D” substitute “ section 35 of CTA 2009 (charge on trade profits) ”.

(3) In subsection (7) for “Case I of Schedule D” substitute “ section 35 of CTA 2009 ”.

(4) In subsection (11BA)—

(a) for “Case I profits”, in both places where it occurs, substitute “ section 35 profits ”, and

(b) for “provisions applicable to Case I of Schedule D” substitute “ life assurance trade profits provisions ”.

220 (1) Amend section 761 (charge to income tax or corporation tax of offshore income gain) as follows. U.K.

(2) In subsection (1)(b)(ii) for “as a profit or gain under Case VI of Schedule D” substitute “ , under the charge to corporation tax on income, ”.

(3) In subsection (2) for “section 11(2A)(c)” substitute “ section 19(3)(c) of CTA 2009 ”.

221 (1) Amend section 768B (change in ownership of company with investment business: deductions generally) as follows. U.K.

(2) In subsection (6) for “section 75” substitute “ Chapter 2 of Part 16 of CTA 2009 (companies with investment business) as ”.

(3) In subsection (7) for “sections 338 and 75” substitute “ section 338 above (charges on income deducted from total profits) and Chapter 2 of Part 16 of CTA 2009 ”.

(4) In subsection (8) for “section 75(7)” substitute “ section 1233 of CTA 2009 (companies with investment business: excess capital allowances) ”.

(5) In subsection (9) for “section 75” substitute “ section 1219 of CTA 2009 (expenses of management of a company's investment business) ”.

(6) In subsection (10)—

(a) omit “and non-trading deficits”,

(b) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”,

(c) for “paragraph 14(3) of Schedule 26 to the Finance Act 2002” substitute “ section 574 of that Act ”, and

(d) at the end insert “ and the non-trading deficits in respect of those relationships that may be carried forward ”.

(7) In subsection (13)—

(a) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”, and

(b) for “paragraph 14(3) of Schedule 26 to the Finance Act 2002” substitute “ section 574 of that Act ”.

(8) In subsection (14) for “same meaning as in Part IV” substitute “ meaning given by section 1218 of CTA 2009 ”.

222 (1) Amend section 768C (deductions: asset transferred within group) as follows. U.K.

(2) In subsection (7) for “section 75” substitute “ section 1219 of CTA 2009 (expenses of management of a company's investment business) ”.

(3) In subsection (9)—

(a) omit “and non-trading deficits”,

(b) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”,

(c) for “paragraph 14(3) of Schedule 26 to the Finance Act 2002” substitute “ section 574 of that Act ”, and

(d) at the end insert “ and the non-trading deficits in respect of those relationships that may be carried forward ”.

(4) In subsection (12) for “same meaning as in Part 4” substitute “ meaning given by section 1218 of CTA 2009 ”.

(5) In subsection (13)—

(a) for “Schedule 29 to the Finance Act 2002” substitute “ Part 8 of CTA 2009 ”,

(b) in paragraph (a) for “paragraph 55 of that Schedule” substitute “ section 775 of CTA 2009 ”,

(c) in paragraph (b) for “that Act”, “that Schedule”, in the first place where it occurs, and “a credit within paragraph 34(1)(a) of that Schedule (non-trading credits)” substitute “ the 1992 Act ”, “ that Part ” and “ a non-trading credit for the purposes of that Part (see section 746 of that Act) ” respectively,

(d) in paragraph (c) for “that Schedule” substitute “ that Part (see section 734(1) of that Act) ”, and

(e) in paragraph (d) for “Part 6 of that Schedule” substitute “ Chapter 6 of that Part ”.

223 (1) Amend section 768D (change in ownership of company carrying on property business) as follows. U.K.

(2) In subsection (1) for “Schedule A business” substitute “ UK property business ”.

(3) In subsection (2) for “Schedule A loss” substitute “ UK property business loss ”.

(4) In subsection (8)—

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

(b) in paragraph (b) for “same meaning as in Part 4” substitute “ meaning given by section 1218 of CTA 2009 ”.

(5) In subsection (9) for “Schedule A business” substitute “ UK property business ”.

224 (1) Amend section 768E (change in ownership of company with unused non-trading loss on intangible fixed assets) as follows. U.K.

(2) In subsections (1) and (4) for “paragraph 35 of Schedule 29 to the Finance Act 2002” substitute “ section 753 of CTA 2009 (treatment of non-trading losses) ”.

(3) In subsection (5) for “paragraph 35(3) of Schedule 29 to the Finance Act 2002” substitute “ section 753(3) of CTA 2009 (carry forward of non-trading losses) ”.

(4) In subsection (7) for “same meaning as in Part 4” substitute “ meaning given by section 1218 of CTA 2009 ”.

225 U.K. In section 774(1) (transactions between dealing company and associated company) for “Case VI of Schedule D” substitute “ the charge to corporation tax on income ”.

226 U.K. In section 774B(5) (disregard of intended effects of arrangement involving disposal of assets)—

(a) in paragraph (a) for “Chapter 2 of Part 4 of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”, and

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

227 (1) Amend section 774D (disregard of intended effects of arrangement involving change in relation to a partnership) as follows. U.K.

(2) In subsection (4) for “section 114 above” substitute “ sections 1259 to 1265 of CTA 2009 ”.

(3) In subsections (7)(a) and (10)(a), for “paragraph 19 of Schedule 9 to the Finance Act 1996 (and the other provisions of Chapter 2 of Part 4 of that Act)” substitute “ Chapter 9 of Part 5 of CTA 2009 (partnerships involving companies) (and the other provisions of that Part) ”.

228 U.K. In section 774E (sections 774B and 774D: exceptions)—

(a) in the first sentence of subsection (3), in paragraph (a) for “Chapter 2 of Part 4 of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”,

(b) in the second sentence of subsection (3) for “section 100” to “money)” substitute “ Chapter 2 of Part 6 of CTA 2009 (relevant non-lending relationships) ”,

(c) in subsection (4)(b) after “securities)” insert “ or Chapter 10 of Part 6 of CTA 2009 (repos) ”, and

(d) in subsection (4)(c) after “2005” insert “ or Chapter 6 of Part 6 of CTA 2009 ”.

229 U.K. In section 774G(7) (sections 774A to 774D: minor definitions etc) for “section 34 above” substitute “ sections 217 to 221 of CTA 2009 ”.

F5 230 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F5 Sch. 1 para. 230 omitted (with effect in accordance with Sch. 25 para. 10 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 25 para. 9(3)(i)

231 (1) Amend section 776 (transactions in land: taxation of capital gains) as follows. U.K.

(2) For subsections (3) and (3A) substitute—

“(3) Where this section applies, then, subject to the following provisions of this section, the company by which any such gain is realised shall be chargeable to corporation tax, for the accounting period in which the gain is realised, on the whole of the gain.

(3A) The charge under subsection (3) has effect as an application of the charge to corporation tax on income.”

(3) In subsection (6)—

(a) in paragraph (a) for “Case I of Schedule D” substitute “ Part 3 of CTA 2009 ”, and

(b) in paragraph (b) for “subsections (2) and (3) of section 99 above” substitute “ section 136 of CTA 2009 ”.

(4) In subsection (7) for “Case I of Schedule D” substitute “ Part 3 of CTA 2009 ”.

(5) In subsection (8) for “(3)(b)” substitute “ (3) ”.

232 (1) Amend section 779 (sale and lease-back: limitation on tax reliefs) as follows. U.K.

(2) For subsection (10) substitute—

“(10) In this section references to rent under a lease include references to expenses which the tenant under the lease is treated as incurring in respect of the land subject to the lease under—

(a) sections 61 to 67 or 292 to 297 of ITTOIA 2005, or

(b) sections 63 to 67 or 232 to 234 of CTA 2009,

and such expenses are treated for the purposes of this section as having been paid as soon as they have been incurred.”

(3) In subsection (13)—

(a) omit paragraph (a),

(b) in paragraph (c) for “profits or gains chargeable under Case VI of Schedule D” substitute “ profits or gains chargeable to corporation tax under or by virtue of any provision to which section 834A (miscellaneous charges) applies ”,

(c) in paragraph (d) leave out “75 or”, and

(d) after paragraph (d) insert—

“(da) a deduction under section 1219 of CTA 2009 (expenses of management of a company's investment business);”.

233 U.K. In section 780(3A) (sale and lease-back: taxation of consideration received) for “as a profit or gain under Case VI of Schedule D” substitute “ under the charge to corporation tax on income ”.

234 (1) Amend section 781 (assets leased to traders and others) as follows. U.K.

(2) In subsection (1) omit the words from “(in” to “Schedule D)”.

(3) After subsection (1A) insert—

“(1B) So far as relating to corporation tax, the charge to tax under subsection (1) has effect as an application of the charge to corporation tax on income.”

(4) In subsection (4)—

(a) in paragraph (b) for “profits or gains chargeable under Case VI of Schedule D” substitute “ profits or gains chargeable to corporation tax under or by virtue of any provision to which section 834A (miscellaneous charges) applies ”,

(b) in paragraph (c) leave out “75 or”, and

(c) after paragraph (c) insert—

“(ca) a deduction under section 1219 of CTA 2009 (expenses of management of a company's investment business);”.

235 U.K. In section 782(9) (leased assets: special cases) omit the words from “, and where” to the end.

236 U.K. In section 785 (definitions for purposes of sections 781 to 784), in the definition of “capital sum” for “under Case VI of Schedule D” substitute “ under or by virtue of any provision to which section 834A (miscellaneous charges) applies ”.

237 U.K. In section 785ZA(3) (restrictions on use of losses: leasing partnerships) for “section 114(2)” substitute “ sections 1262 to 1264 of CTA 2009 ”.

238 U.K. In section 785ZB(8) (section 785ZA: definitions)—

(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) ”.

239 U.K. In section 785C(4)(a) (section 785B: interpretation) for “under Schedule A” substitute “ under Chapter 3 of Part 4 of CTA 2009 as profits of a UK property business ”.

240 U.K. In section 785D(3) (section 785B: lease of plant and machinery and other property) for “under Schedule A” substitute “ under Chapter 3 of Part 4 of CTA 2009 as profits of a UK property business ”.

241 (1) Amend section 786 (transactions associated with loans or credit) as follows. U.K.

(2) In subsection (3A)(b) for “chargeable to corporation tax under Case III of Schedule D” substitute “ which is from a source in the United Kingdom and chargeable to corporation tax under Chapter 5 of Part 10 of CTA 2009 (distributions from unauthorised unit trusts) or Chapter 7 of that Part (annual payments not otherwise charged). ”

(3) In subsection (5)(b) for “Case VI of Schedule D” substitute “ the charge to corporation tax on income ”.

242 (1) Amend section 787 (restriction of relief for payments of interest) as follows. U.K.

(2) In subsection (1) for “Tax Acts” substitute “ Income Tax Acts ”.

(3) Omit subsection (1A).

(4) In subsection (2) omit “or total profits”.

(5) Omit subsection (3).

243 U.K. In section 788(7) (relief by agreement with other territories) omit the words from “, and, in” to the end.

244 U.K. In section 790(11) (unilateral relief) omit the words from “, and, in” to the end.

245 U.K. In section 795(4) (computation of income subject to foreign tax)—

(a) in paragraph (a) for “section 80(5) of the Finance Act 1996” and “Chapter II of Part 4” substitute “ section 464(1) of CTA 2009 ” and “ Part 5 ” respectively, and

(b) in paragraph (b) for “paragraph 1(3) of Schedule 29 to the Finance Act 2002” and “that Schedule” substitute “ section 906(1) of CTA 2009 ” and “ Part 8 of that Act ” respectively.

246 (1) Amend section 797 (limits on credit: corporation tax) as follows. U.K.

(2) In subsection (2A) for the words from “section 11AA” to “under that section” substitute “ Chapter 4 of Part 2 of CTA 2009 (profits attributable to permanent establishment), and of any regulations made under section 24 of that Act ”.

(3) In subsection (3A) for the words from “to which” to “relates,” substitute—

“(a) which falls to be set off under section 388(1) of CTA 2009 (insurance companies: basic rule: deficit set off against income and gains of deficit period), or

(b) to which a claim under section 459(1)(a) of that Act (claim to set off deficit against profits of deficit period) relates,”.

(4) In subsection (3B)(b) for “subsection (3A) of section 83 of the Finance Act 1996” substitute “ section 457(1) of CTA 2009 ”.

(5) In subsection (6) for “paragraph 4 of Schedule 8 to the Finance Act 1996” substitute “ Chapter 16 of Part 5 of CTA 2009 (see section 457(5) of that Act) ”.

247 (1) Amend section 797A (foreign tax on items giving rise to a non-trading credit: loan relationships) as follows. U.K.

(2) In subsection (1)(a) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”.

(3) In subsection (2)—

(a) for “paragraph (a) of Case III of Schedule D” substitute “ section 299 of CTA 2009 ”, and

(b) omit “and gains”.

(4) In subsection (4) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”.

(5) In subsection (5)—

(a) in paragraph (a) for “subsection (2)(c)” to “that Act” substitute “ section 389(1) or 459(1)(b) of CTA 2009 ”, and

(b) in paragraph (b) for “subsection (3A)” to “that Schedule” substitute “ section 391 or 457(1) of CTA 2009 ”.

(6) In subsection (6) for “section 83(3A) of that Act” substitute “ section 457(1) of CTA 2009 ”.

(7) In subsection (7)(c) for the words from “in pursuance” to the end of sub-paragraph (ii) substitute “as the result of—

(i) the application of section 388(1) of CTA 2009 (insurance companies: basic rule: deficit set off against income and gains of deficit period), or

(ii) a claim under section 459(1)(a) of that Act (claim to set off deficit against profits of deficit period),”.

(8) In subsection (8) for “paragraph 4 of Schedule 8 to the Finance Act 1996” substitute “ Chapter 16 of Part 5 of CTA 2009 (see section 457(5) of that Act) ”.

248 U.K. In section 797B (foreign items giving rise to a non-trading credit: intangible fixed assets)—

(a) in subsection (1)(a) for “Schedule 29 to the Finance Act 2002” substitute “ Part 8 of CTA 2009 ”,

(b) in subsection (2) for “Case VI of Schedule D” substitute “ that Part of that Act ”, and

(c) in subsection (4) for “Schedule 29 to the Finance Act 2002” and “paragraph 35(3) of that Schedule” substitute “ Part 8 of CTA 2009 ” and “ section 753(3) of that Act ” respectively.

249 (1) Amend section 798A (section 797: trade income) as follows. U.K.

(2) In subsection (4) for paragraphs (a) to (d) substitute—

“(a) income chargeable to tax under Chapter 2 or 15 of Part 3 of CTA 2009 (trade profits and post-cessation receipts),

(b) income chargeable to tax under Chapter 3 or 9 of Part 4 of CTA 2009 (profits of property businesses and post-cessation receipts),

(c) income which arises from a source outside the United Kingdom and is chargeable to tax under section 979 of CTA 2009 (charge to tax on income not otherwise charged), and

(d) any other income or profits which by a provision of this Act is or are—

(i) chargeable to tax under Chapter 2 of Part 3 of CTA 2009, or

(ii) calculated in the same way as the profits of a trade;”.

(3) After subsection (4) insert—

“(5) In subsection (4) the references—

(a) to income chargeable under Chapter 15 of Part 3 of CTA 2009, and

(b) to income chargeable under Chapter 9 of Part 4 of CTA 2009,

do not include income that would, but for the repeal by CTA 2009 of section 103 above, have been chargeable to corporation tax under that section.”

250 U.K. In section 804A(1) (life assurance companies with overseas branches etc: restriction of credit)—

(a) for “Case I or VI of Schedule D” substitute “ section 35 of CTA 2009 (charge on trade profits) or section 436A ”, and

(b) for “to Case I of Schedule D” substitute “ for the purposes of section 35 of CTA 2009 ”.

251 (1) Amend section 804C (insurance companies: allocation of expenses etc in computations under Case I of Schedule D) as follows. U.K.

(2) In subsection (1)(b) for “to Case I of Schedule D” substitute “ for the purposes of section 35 of CTA 2009 (charge on trade profits) ”.

(3) In the heading for “Case I of Schedule D” substitute “ section 35 of CTA 2009 ”.

F6 252 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F6 Sch. 1 paras. 252-254 omitted (with effect in accordance with Sch. 14 para. 31 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 14 para. 30(e)

F6 253 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F6 Sch. 1 paras. 252-254 omitted (with effect in accordance with Sch. 14 para. 31 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 14 para. 30(e)

F6 254 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F6 Sch. 1 paras. 252-254 omitted (with effect in accordance with Sch. 14 para. 31 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 14 para. 30(e)

255 U.K. In section 806L(5) (carry forward or carry back of unrelieved foreign tax)—

(a) for paragraph (a) and the “or” immediately after it substitute—

“(a) profits, chargeable under Chapter 2 of Part 3 of CTA 2009, of a trade carried on partly, but not wholly, outside the United Kingdom; or”, and

(b) in paragraph (b) omit “Case VI of Schedule D by virtue of”.

256 (1) Amend section 807A (disposals and acquisitions of company loan relationships with or without interest) as follows. U.K.

(2) In subsection (2B) for “section 91A” to “relationships)” substitute “ section 523 of CTA 2009 (application of Part 5 of that Act to certain shares as rights under creditor relationship) ”.

(3) In subsection (6A) (as substituted by paragraph 10 of Schedule 14 to FA 2007) in paragraph (a) for “paragraph 2 of Schedule 13 to the Finance Act 2007” substitute “ Chapter 10 of Part 6 of CTA 2009 (see section 548 of that Act) ”.

257 U.K. After section 807A insert—

“European cross-border transfers of business U.K.

807B Introduction to section 807C

(1) Subject to subsections (4) to (6), section 807C applies if condition A or B is met.

(2) Condition A is that—

(a) a company resident in the United Kingdom transfers to a company resident in another member State the whole or part of a business which immediately before the transfer the transferor carried on in a member State other than the United Kingdom through a permanent establishment, and

(b) the transfer includes—

(i) the transfer of an asset or liability representing a loan relationship,

(ii) the transfer of rights and liabilities under a derivative contract, or

(iii) the transfer of intangible fixed assets that are chargeable intangible assets in relation to the transferor immediately before the transfer and in the case of one or more of which the proceeds of realisation exceed the costs recognised for tax purposes.

(3) Condition B is that—

(a) a company resident in the United Kingdom transfers part of its business to one or more companies,

(b) the part of the transferor's business which is transferred was carried on immediately before the transfer in a member State other than the United Kingdom through a permanent establishment,

(c) at least one transferee is resident in a member State other than the United Kingdom,

(d) the transferor continues to carry on a business after the transfer,

(e) the condition in subsection (2)(b) is met, and

(f) the transfer—

(i) is made in exchange for the issue of shares in or debentures of each transferee to each person holding shares in or debentures of the transferor, or

(ii) is not so made only because, and only so far as, a transferee is prevented from so issuing such shares or debentures by section 658 of the Companies Act 2006 (general rule against limited company acquiring own shares) or by a corresponding provision of the law of another member State preventing such an issue.

(4) If a transfer that meets condition A or B includes such a transfer as is mentioned in subsection (2)(b)(i), section 807C —

(a) only applies as respects the transfer so mentioned as a result of the transfer meeting condition A if the transfer is wholly or partly in exchange for shares or debentures issued by the transferee to the transferor, and

(b) only applies as respects the transfer so mentioned as a result of the transfer meeting condition B if each transferee is resident in a member State, but not necessarily the same one.

(5) If a transfer that meets condition A or B includes such a transfer as is mentioned in subsection (2)(b)(ii), section 807C—

(a) only applies as respects the transfer so mentioned as a result of the transfer meeting condition A if the transfer is wholly or partly in exchange for shares or debentures issued by the transferee to the transferor or to the persons holding shares in or debentures of the transferor,

(b) only applies as respects the transfer so mentioned as a result of the transfer meeting condition B if each transferee is resident in a member State, but not necessarily the same one, and

(c) only applies as respects the transfer so mentioned if the transferor makes a claim under this section in respect of it.

(6) If a transfer that meets condition A or B includes such a transfer as is mentioned in subsection (2)(b)(iii), section 807C—

(a) only applies as respects the transfer so mentioned as a result of the transfer meeting condition A if—

(i) the companies mentioned in subsection (2)(a) are companies incorporated under the law of a member State, and

(ii) the transfer is wholly or partly in exchange for shares or other securities issued by the transferee to the transferor,

(b) only applies as respects the transfer so mentioned as a result of the transfer meeting condition B if—

(i) the transferor and at least one of the transferees mentioned in subsection (3)(a) is a company so incorporated, and

(ii) the transfer is in exchange for shares or debentures issued by the transferee to the persons holding shares in or debentures of the transferor, and

(c) only applies as respects the transfer so mentioned if—

(i) the transfer includes the whole of the assets of the transferor used for the purposes of the business or part, or the whole of those assets other than cash, and

(ii) the transferor makes a claim under this section in respect of the transfer so mentioned.

(7) No claim may be made under subsection (6) in respect of a transfer in relation to which a claim is made under section 827 of CTA 2009 (claims to postpone charge on transfer of assets to non-UK resident company).

(8) For the purposes of this section, a company is resident in a member State if—

(a) it is within a charge to tax under the law of the State as being resident for that purpose, and

(b) it is not regarded, for the purpose of any double taxation relief arrangements to which the State is a party, as resident in a territory not within a member State.

(9) In this section and section 807C—

• “company” means any entity listed as a company in the Annex to the Mergers Directive,

• “derivative contract” has the same meaning as in Part 7 of CTA 2009,

• “intangible fixed assets” and “chargeable intangible assets”, in relation to any person, have the same meaning as in Part 8 of CTA 2009,

• “loan relationship” has the same meaning as in Part 5 of CTA 2009,

• “the Mergers Directive” means Council Directive No. 90/434/EEC of 23 July 1990 on mergers, transfers etc,

• “proceeds of realisation”, in relation to intangible fixed assets, has the meaning given in section 739 of CTA 2009, and

• “recognised for tax purposes” has the same meaning as in Part 8 of CTA 2009.”

258 U.K. After section 807B insert—

“807C Tax treated as chargeable in respect of transfer of loan relationship, derivative contract or intangible fixed assets

(1) If tax would have been chargeable under the law of one or more other member States in respect of the transfer mentioned in section 807B(2)(b)(i), (ii) or (iii) but for the Mergers Directive, this Part, including any arrangements having effect by virtue of section 788, is to apply as if that tax had been chargeable.

(2) In calculating tax notionally chargeable under subsection (1), it is to be assumed—

(a) that to the extent permitted by the law of the other member State losses arising on the transfer mentioned in section 807B(2)(b)(i), (ii) or (iii) are set against gains arising on that transfer, and

(b) that any relief due to the transferor under that law is claimed.

(3) Subsection (1) does not apply if—

(a) the transfer of business mentioned in section 807B(2)(a) or (3)(a) is not effected for genuine commercial reasons, or

(b) that transfer of business forms part of a scheme or arrangements of which the main purpose, or one of the main purposes, is avoiding liability to corporation tax, capital gains tax or income tax.

(4) But subsection (3) does not prevent subsection (1) from applying if before the transfer—

(a) the appropriate applicant has applied to the Commissioners for Her Majesty's Revenue and Customs, and

(b) the Commissioners have notified the appropriate applicant that they are satisfied subsection (3) will not have that effect.

(5) In subsection (4) “the appropriate applicant” means—

(a) in a case where tax chargeable in respect of such a transfer as is mentioned in section 807B(2)(b)(i) or (ii) is concerned, the companies mentioned in section 807B(2)(a) or (3)(a), and

(b) in a case where tax chargeable in respect of such a transfer as is mentioned in section 807B(2)(b)(iii) is concerned, the transferor.

(6) Sections 427 and 428 of CTA 2009 (procedure and decisions on applications for clearance) have effect in relation to subsection (4) as in relation to section 426(2) of that Act, taking the references in section 428 to section 426(2)(b) as references to subsection (4)(b) of this section.”

259 U.K. After section 807C insert—

“European cross-border mergers U.K.

807D Introduction to section 807E

(1) Section 807E applies if—

(a) conditions A to E,

(b) in the case of a merger within subsection (2)(a), (b) or (c), condition F, and

(c) in the case of a merger within subsection (2)(c) or (d), condition G.

are met.

(2) Condition A is that—

(a) an SE is formed by the merger of two or more companies in accordance with Articles 2(1) and 17(2)(a) or (b) of Council Regulation (EC) No. 2157/2001 on the Statute for a European company (Societas Europaea),

(b) an SCE is formed by the merger of two or more co-operative societies, at least one of which is a society registered under the Industrial and Provident Societies Act 1965, in accordance with Articles 2(1) and 19 of Council Regulation (EC) No. 1435/2003 on the Statute for a European Co-operative Society (SCE),

(c) a merger is effected by the transfer by one or more companies of all their assets and liabilities to a single existing company, or

(d) a merger is effected by the transfer by two or more companies of all their assets and liabilities to a single new company (other than an SE or an SCE) in exchange for the issue by the transferee, to each person holding shares in or debentures of a transferor, of shares or debentures.

(3) Condition B is that each merging company is resident in a member State.

(4) Condition C is that the merging companies are not all resident in the same State.

(5) Condition D is that in the course of the merger a company resident in the United Kingdom (“company A”) transfers to a company resident in another member State all assets and liabilities relating to a business which company A carried on in a member State other than the United Kingdom through a permanent establishment (but see subsection (9)).

(6) Condition E is that the transfer mentioned in subsection (5) includes—

(a) the transfer of an asset or liability representing a loan relationship,

(b) the transfer of rights and liabilities under a derivative contract, or

(c) the transfer of intangible fixed assets—

(i) that are chargeable intangible assets in relation to company A immediately before the transfer, and

(ii) in the case of one or more of which the proceeds of realisation exceed the cost recognised for tax purposes.

(7) Condition F is that—

(a) the transfer of assets and liabilities to the transferee in the course of the merger is made in exchange for the issue of shares or debentures by the transferee to each person holding shares in or debentures of a transferor, or

(b) paragraph (a) is not met in relation to the transfer of those assets and liabilities only because, and only so far as, the transferee is prevented from so issuing such shares or debentures by section 658 of the Companies Act 2006 (general rule against limited company acquiring own shares) or by a corresponding provision of the law of another member State preventing such an issue.

(8) Condition G is that in the course of the merger each transferor ceases to exist without being in liquidation (within the meaning given by section 247 of the Insolvency Act 1986).

(9) In the case of a merger within subsection (2)(a) or (b), in determining whether section 807E applies in respect of such a transfer as is mentioned in subsection (6)(c), condition D is regarded as met even if all liabilities relating to the business which company A carried on are not transferred as mentioned in subsection (5).

(10) For the purposes of this section, a company is resident in a member State if—

(a) it is within a charge to tax under the law of the State as being resident for that purpose, and

(b) it is not regarded, for the purpose of any double taxation relief arrangements to which the State is a party, as resident in a territory not within a member State.

(11) In this section and section 807E—

• “company” means any entity listed as a company in the Annex to the Mergers Directive,

• “co-operative society” means a society registered under the Industrial and Provident Societies Act 1965 or a similar society governed by the law of a member State other than the United Kingdom,

• “derivative contract” has the same meaning as in Part 7 of CTA 2009,

• “intangible fixed assets” and “chargeable intangible assets”, in relation to any person, have the same meaning as in Part 8 of CTA 2009,

• “loan relationship” has the same meaning as in Part 5 of CTA 2009,

• “the Mergers Directive” means Council Directive No. 90/434/EEC of 23 July 1990 on mergers, transfers etc,

• “proceeds of realisation”, in relation to intangible fixed assets, has the meaning given in section 739 of CTA 2009,

• “recognised for tax purposes” has the same meaning as in Part 8 of CTA 2009,

• “SE” and “SCE” have the same meaning as in CTA 2009 (see section 1319 of that Act)),

• “the transferee” means—

  (a)

  in relation to a merger within subsection (2)(a), the SE,

  (b)

  in relation to a merger within subsection (2)(b), the SCE,

  (c)

  in relation to a merger within subsection (2)(c) or (d), the company to which assets and liabilities are transferred, and

• “transferor” means—

  (a)

  in relation to a merger within subsection (2)(a), a company merging to form the SE,

  (b)

  in relation to a merger within subsection (2)(b), a co-operative society merging to form the SCE, and

  (c)

  in relation to a merger within subsection (2)(c) or (d), a company transferring all of its assets and liabilities.

(12) In section 807E, “company A”, “the merger” and “the merging companies” have the same meaning as in this section.”

260 U.K. After section 807D insert—

“807E Tax treated as chargeable in respect of transfer of loan relationship, derivative contract or intangible fixed assets

(1) If tax would have been chargeable under the law of one or more other member States in respect of the transfer mentioned in section 807D(6)(a), (b) or (c) but for the Mergers Directive, this Part, including any arrangements having effect by virtue of section 788, is to apply as if that tax had been chargeable.

(2) In calculating tax notionally chargeable under subsection (1) in respect of the transfer mentioned in section 807D(6)(a) or (b), it is to be assumed—

(a) that to the extent permitted by the law of the other member State losses arising on that transfer are set against gains arising on that transfer, and

(b) that any relief due to company A under that law is claimed.

(3) Subsection (1) does not apply if—

(a) the merger is not effected for genuine commercial reasons, or

(b) the merger forms part of a scheme or arrangements of which the main purpose, or one of the main purposes, is avoiding liability to corporation tax, capital gains tax or income tax.

(4) But subsection (3) does not prevent subsection (1) from applying if before the merger—

(a) any of the merging companies has applied to the Commissioners for Her Majesty's Revenue and Customs, and

(b) the Commissioners have notified the merging companies that they are satisfied subsection (3) will not have that effect.

(5) Sections 427 and 428 of CTA 2009 (procedure and decisions on applications for clearance) have effect in relation to subsection (4) as in relation to section 426(2) of that Act, taking the references in section 428 to section 426(2)(b) as references to subsection (4)(b) of this section.”

261 U.K. After section 807E insert—

“Transparent entities involved in cross-border transfers and mergers U.K.

807F Introduction to section 807G

(1) Section 807G applies if, as a result of—

(a) a relevant loan relationship transaction,

(b) a relevant derivative contracts transaction, or

(c) a relevant intangible fixed assets transaction,

tax would have been chargeable under the law of a member State other than the United Kingdom in respect of a relevant profit but for the Mergers Directive.

(2) In this section “relevant loan relationship transaction” means—

(a) a transfer of a kind which meets condition A or B in section 421 of CTA 2009 or would meet one of those conditions if—

(i) the business or part of the business transferred were carried on by the transferor in the United Kingdom, and

(ii) the condition in section 421(3)(c) or (4)(f) of that Act were met,

and in relation to which the transferor or transferee or one of the transferees is a transparent entity, or

(b) a merger of a kind mentioned in section 431(2) of that Act which meets—

(i) conditions B to D in section 431,

(ii) in the case of a merger within section 431(3)(a), (b) or (c), condition E in section 431, and

(iii) in the case of a merger within section 431(3)(c) or (d), condition F in section 431,

and in relation to which one or more of the merging companies is a transparent entity.

(3) In this section “relevant derivative contracts transaction” means—

(a) a transfer of a kind which meets condition A or B in section 674 of CTA 2009 or would meet one of those conditions if—

(i) the business or part of the business transferred were carried on by the transferor in the United Kingdom, and

(ii) the condition in section 674(2)(c) or (3)(f) of that Act were met,

and in relation to which the transferor is a transparent entity, or

(b) a merger of a kind mentioned in section 682(2) of that Act which meets—

(i) conditions B to D in section 682,

(ii) in the case of a merger within section 682(2)(a), (b) or (c), condition E in section 682, and

(iii) in the case of a merger within section 682(2)(c) or (d), condition F in section 682,

and in relation to which one or more of the merging companies is a transparent entity.

(4) In this section “relevant intangible fixed assets transaction” means—

(a) a transfer—

(i) which is of a kind which meets condition A or B in section 819 of CTA 2009, or would meet one of those conditions if the business or part of the business transferred were carried on by the transferor in the United Kingdom, and

(ii) in relation to which the transferor or transferee or one of the transferees is a transparent entity, or

(b) a merger—

(i) which is of a kind mentioned in section 821(2) of that Act,

(ii) which meets conditions B and C in section 821,

(iii) which, if it is a merger within section 821(2)(a), (b) or (c), meets condition D in section 821,

(iv) which, if it is a merger within section 821(2)(c) or (d), meets condition E in section 821,

(v) in the course of which no qualifying assets are transferred to which section 818 (company reconstruction involving transfer of business) applies, and

(vi) in relation to which one or more of the merging companies is a transparent entity.

(5) In this section “relevant profit” means—

(a) in the case of a transfer within subsection (2)(a), a profit accruing to a transparent entity in respect of a loan relationship (or which would be treated as accruing if it were not transparent) because of the transfer of assets or liabilities representing a loan relationship by the transparent entity to the transferee,

(b) in the case of a merger within subsection (2)(b), a profit accruing to a transparent entity in respect of a loan relationship (or which would be treated as accruing if it were not transparent) because of the transfer of assets or liabilities representing a loan relationship by the transparent entity to another company in the course of the merger,

(c) in the case of a transfer within subsection (3)(a), a profit accruing to a transparent entity in respect of a derivative contract (or which would be treated as accruing if it were not transparent) because of the transfer of rights and liabilities under the derivative contract by the transparent entity to the transferee,

(d) in the case of a merger within subsection (3)(b), a profit accruing to a transparent entity in respect of a derivative contract (or which would be treated as accruing if it were not transparent) because of the transfer of rights and liabilities under the derivative contract by the transparent entity to another company in the course of the merger,

(e) in the case of a transfer within subsection (4)(a), a profit which would be treated as accruing to a transparent entity in respect of an intangible fixed asset, because of the transfer of intangible fixed assets by the transparent entity, if it were not transparent,

(f) in the case of a merger within subsection (4)(b), a profit which would be treated as accruing to a transparent entity in respect of an intangible fixed asset, because of the transfer of intangible fixed assets by the transparent entity in the course of the merger, if it were not transparent.

(6) In this section and section 807G—

• “company” means any entity listed as a company in the Annex to the Mergers Directive,

• “derivative contract” has the same meaning as in Part 7 of CTA 2009,

• “intangible fixed assets” has the same meaning as in Part 8 of CTA 2009,

• “loan relationship” has the same meaning as in Part 5 of CTA 2009,

• “the Mergers Directive” means Council Directive No. 90/434/EEC of 23 July 1990 on mergers, transfers etc, and

• “transparent entity” means a company which is resident in a member State other than the United Kingdom and does not have an ordinary share capital.”

262 U.K. After section 807F insert—

“807G Tax treated as chargeable in respect of relevant transactions

(1) This Part, including any arrangements having effect by virtue of section 788, is to apply as if the tax that would have been chargeable as mentioned in section 807F(1) had been chargeable.

(2) In calculating tax notionally chargeable under subsection (1), it is assumed—

(a) that to the extent permitted by the law of the other member State mentioned in section 807F(1) losses arising on the relevant transfer are set against profits arising on it, and

(b) that any relief available under that law is claimed.

(3) In this section “the relevant transfer” means—

(a) the transfer of assets or liabilities mentioned in paragraph (a) or (b) of section 807F(5),

(b) the transfer of rights and liabilities mentioned in paragraph (c) or (d) of that section, or

(c) the transfer of intangible fixed assets mentioned in paragraph (e) or (f) of that section.”

263 U.K. In section 811(3) (deduction for foreign tax where no credit allowable)—

(a) in paragraph (a) for “section 80(5) of the Finance Act 1996” and “Chapter II of Part IV” substitute “ section 464(1) of CTA 2009 ” and “ Part 5 ” respectively, and

(b) in paragraph (b) for “paragraph 1(3) of Schedule 29 to the Finance Act 2002” and “that Schedule” substitute “ section 906(1) of CTA 2009 ” and “ Part 8 of that Act ” respectively.

264 U.K. In section 815AZA (UK residents and foreign enterprises) for subsection (4) substitute—

“(4) This section does not apply in relation to—

(a) income of a person resident in the United Kingdom to which section 858 of ITTOIA 2005 applies, or

(b) income of a company resident in the United Kingdom to which section 1266 of CTA 2009 applies.”

265 U.K. Omit section 817 (deductions not to be allowed in computing profits or gains).

266 U.K. In section 821(1)(a) (under-deductions from payments made before passing of annual Act) omit “under under Case III of Schedule D”.

267 (1) Amend section 826 (interest on tax overpaid) as follows. U.K.

(2) In subsection (1)—

(a) in paragraph (d) for “Schedule 20 to the Finance Act 2000” substitute “ Chapter 2 or 7 of Part 13 of CTA 2009 ”,

(b) omit paragraph (da), and

(c) in paragraph (e) for “Schedule 22 to the Finance Act 2001” substitute “ Part 14 of CTA 2009 ”.

(3) Omit subsection (3AA).

(4) Omit subsections (5) and (5A).

(5) In subsection (7C)—

(a) in paragraph (b) for “section 83(2)(c) of the Finance Act 1996 or paragraph 4(3) of Schedule 11 to that Act” substitute “ section 389(1) or 459(1)(b) of CTA 2009 ”, and

(b) in the words following paragraph (c) for “section 83(2)(c) of that Act or, as the case may be, paragraph 4(3) of Schedule 11 to that Act” substitute “ section 389(1) or 459(1)(b) of CTA 2009 ”.

(6) In subsection (8A)—

(a) in paragraph (a) for “(d), (da)” substitute “ , (d) ”, and

(b) in paragraph (b)(ii), omit “, tax credit under Schedule 13 to the Finance Act 2002”.

(7) In subsection (8BA), omit (in both places) “, tax credit under Schedule 13 to the Finance Act 2002”.

268 U.K. Omit section 827 (VAT penalties etc).

269 (1) Amend section 828 (orders and regulations made by the Treasury or the Board) as follows. U.K.

(2) In subsection (4) omit “79B(5),”.

(3) In subsection (5)—

(a) for “or section 717 of ITEPA 2003” substitute “ , section 717 of ITEPA 2003 or section 1310 of CTA 2009 ”,

(b) in paragraph (a) for “or ITEPA 2003” substitute “ , ITEPA 2003 or CTA 2009 ”, and

(c) in paragraph (b) for “either” substitute “ any ”.

270 U.K. Omit section 830(2) to (4) (territorial sea and designated areas).

271 U.K. In section 831(3) (interpretation of ICTA) before the definition of “ITEPA 2003” insert—

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

272 (1) Amend section 832 (interpretation of the Corporation Tax Acts) as follows. U.K.

(2) In subsection (1)—

(a) omit the definition of “overseas property business”, and

(b) omit the definition of “Schedule A business”.

(3) Omit subsection (4).

273 (1) Amend section 834 (interpretation of the Corporation Tax Acts) as follows. U.K.

(2) In subsection (1)—

(a) in the definition of “accounting period” for “section 12” substitute “ Chapter 2 of Part 2 of CTA 2009 ”,

(b) at the appropriate place insert—

““the charge to corporation tax on income” has the same meaning as in CTA 2009 (see section 2(3));”,

(c) in the definition of “chargeable profits”, for “section 11(2)” substitute “ section 19 of CTA 2009 ”,

(d) in the definition of “derivative contract” for “Schedule 26 to the Finance Act 2002” substitute “ Part 7 of CTA 2009 ”,

(e) at the appropriate place insert—

““income” includes anything to which the charge to corporation tax on income applies;”,

(f) in the definition of “loan relationship” for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”,

(g) in the definition of “non-trading deficit” for “section 82 of the Finance Act 1996” substitute “ section 301 of CTA 2009 ”, and

(h) at the appropriate place insert—

““registered industrial and provident society” means—

(a) a society registered or treated as registered under the Industrial and Provident Societies Act 1965 or the Industrial and Provident Societies Act (Northern Ireland) 1969, or

(b) an SCE formed in accordance with Council Regulation (EC) No 1435/2003 on the Statute for a European Co-Operative Society;”.

(3) In subsection (2)—

(a) for “sections 75 and 76” substitute “ section 76 ”, and

(b) at the end insert— “ section 834C. ”

(4) In subsection (4) (apportionment to different periods) after “those Acts” insert “ , other than CTA 2009, ”.

274 U.K. After section 834 insert—

“834A Miscellaneous charges (list for the purposes of certain provisions that formerly referred to Case VI of Schedule D)

(1) In the Corporation Tax Acts references to any provision to which this section applies are references to any provision listed in the following table, so far as the provision relates to corporation tax (but subject to any applicable limitation in subsection (3)).

(2) This is the table—

PART 1

Provisions of this Act	Description
Section 56(2)	Transactions in deposits
Section 214(1)(ab)	Chargeable payments connected with exempt distributions
Section 436A(1)	Gross roll-up business: separate charge on profits
Section 442A(1)	Taxation of investment return where risk reinsured
Section 571(1)	Cancellation of tax certificates
Section 730(6)	Transfers of income arising from securities
Section 761(1)(b)(ii)	Offshore income gains
Section 774(1)	Transactions between dealing company and associated company
Section 776(3A)	Transactions in land
Section 780(3A)(b)	Sale and leaseback: taxation of consideration received
Section 781(1)	Assets leased to traders and others
Section 786(5)(b)	Transactions associated with loans or credit

PART 2

Provisions of CTA 2009	Description
Chapter 15 of Part 3	Post-cessation receipts: trades
Chapter 7 of Part 4	Rent receivable in connection with a UK section 39(4) concern
Chapter 8 of Part 4	Rent receivable for UK electric-line wayleaves
Chapter 9 of Part 4	Post-cessation receipts: UK property businesses
Section 752	Non-trading gains on intangible fixed assets
Section 908	Profits from disposals of know-how
Section 912	Profits from sales of patent rights
Section 965(4)	Adjustments after the administration period
Chapter 8 of Part 10	Income not otherwise charged
Section 986(4), so far as it relates to an amount treated as received under section 998(3)	Withdrawal of deductions if approval for share incentive plan withdrawn: non-trading cases
Section 1083(5)	Refunds of expenditure on research and development
Section 1229	Management expenses: claw back of relief
Section 1252	Industrial development grants: companies with investment business
Section 1253	Contributions to local enterprise organisations or urban regeneration companies: disqualifying benefits
Section 1254	Repayments under the Financial Services and Markets Act 2000
Section 1277(4)	Withdrawal of relief for unremittable foreign income after source ceases

PART 3

Other provisions	Description
Section 85(1) of the Finance Act 1989	Certain receipts of basic life assurance and general annuity business
Section 85A(1) of the Finance Act 1989	Excess adjusted life assurance trade profits
Paragraph 3(1) of Schedule 12 to the Finance (No 2) Act 1992	Banks etc in compulsory liquidation
Section 256(2) of the Capital Allowances Act	Life assurance business: capital allowances
Section 131(4) of the Finance Act 2004	Companies in partnership
Section 27(2) of the Finance (No 2) Act 2005	Avoidance involving tax arbitrage: qualifying payments
Section 112(1) of the Finance Act 2006	Real estate investment trusts: entry charge

(3) The reference in Part 2 of the above table to Chapter 8 of Part 10 of CTA 2009 does not include that Chapter so far as relating to income which arises from a source outside the United Kingdom.”

275 U.K. After section 834A insert—

“834B Meaning of “UK property business” and “overseas property business”

In the enactments relating to corporation tax “UK property business” and “overseas property business” have the meaning given by Chapter 2 of Part 4 of CTA 2009.”

276 U.K. After section 834B insert—

“834C Total profits

(1) In the Corporation Tax Acts references to total profits, in relation to an accounting period of a company, are to the amount arrived at by adding together—

(a) the amounts chargeable for the period under the charge to corporation tax on income, and

(b) any amount to be included for the period in respect of chargeable gains (see section 8 of the 1992 Act).

(2) Subsection (1) is subject to the provisions of the Corporation Tax Acts.”

277 (1) Amend section 842 (investment trusts) as follows. U.K.

(2) In subsection (1AB) for “Chapter 2 of Part 4 of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”.

(3) In subsection (1AC) for the words from “falls” to the end substitute “ is charged to corporation tax under section 1229(3)(b) of CTA 2009 (claw back of relief for expenses of management) ”.

(4) After subsection (2C) insert—

“(2D) For the purpose of determining whether a company may be approved for the purposes of this section for an accounting period, the excess of any relevant credits arising in that period over any relevant debits so arising is treated for the purposes of this section as income derived from shares or securities.

(2E) In subsection (2D) “relevant credits” and “relevant debits”, in relation to an accounting period, means credits and debits which are brought into account in respect of that period by virtue of section 574 of CTA 2009 (non-trading credits and debits to be brought into account under Part 5 of that Act).”

278 U.K. Omit Schedule A1 (determination of profits attributable to permanent establishment: supplementary provisions).

279 U.K. Omit Schedule 4AA (share incentive plans: corporation tax deductions).

280 U.K. Omit Schedule 5 (treatment of farm animals etc for purposes of Case I of Schedule D).

281 U.K. In paragraph 13(3) of Schedule 18A (group relief: overseas losses of non-resident companies) for “Schedule A purposes” substitute “ the purpose of calculating the profits of a UK property business under Part 4 of CTA 2009 ”.

282 (1) Amend Schedule 19ABA (modification of life assurance provisions of the Corporation Tax Acts in relation to BLAGAB group reinsurers) as follows. U.K.

(2) In paragraph 9 for “Case I of Schedule D” substitute “ section 35 of CTA 2009 ”.

(3) In the italic cross-heading before paragraph 9 for “Case I of Schedule D” substitute “ section 35 of CTA 2009 ”.

(4) In paragraph 23 for “Case I” substitute “ life assurance trade ”.

(5) In the italic cross-heading before paragraph 23 for “Case I” substitute “ life assurance trade ”.

283 U.K. In paragraph 6(6)(b) of Schedule 19B (petroleum extraction activities: exploration expenditure supplement), at the end insert “ or starts to be within the charge to corporation tax in respect of such a ring fence trade. ”

284 (1) Amend Schedule 19C (petroleum extraction activities: ring fence expenditure supplement) as follows. U.K.

(2) In paragraph 6(6)—

(a) in paragraph (a), for “paragraph 14 of Schedule 20 to the Finance Act 2000” substitute “ section 1045 of CTA 2009 ”, and

(b) in paragraph (b), for “that Schedule” substitute “ section 1054 of that Act ”.

(3) In paragraph 6(9) for the words from “qualifying expenditure” to “2002” substitute “ qualifying Chapter 5 expenditure as defined by section 1076 of CTA 2009 ”.

285 (1) Amend Schedule 23A (manufactured dividends and interest) as follows. U.K.

(2) In paragraph 4 (manufactured overseas dividends)—

(a) in sub-paragraph (1A)(b) for “section 75” substitute “ Part 16 of CTA 2009 ”, and

(b) in sub-paragraph (9) for “section 97 of the Finance Act 1996” and “Chapter II of Part IV” substitute “ Chapter 9 of Part 6 of CTA 2009 ” and “ Part 5 ” respectively.

(3) In paragraph 7(1A) (irregular manufactured payments) for “section 97 of the Finance Act 1996” and “Chapter II of Part IV” substitute “ section 540 of CTA 2009 ” and “ Part 5 ” respectively.

(4) In paragraph 7A (manufactured payments under arrangements having an unallowable purpose)—

(a) in sub-paragraph (8)—

(i) in paragraph (a) for “section 75(4)(b)” substitute “ section 1219(2)(b) of CTA 2009 ”,

(ii) in paragraph (c) for “paragraph 13 of Schedule 9 to the Finance Act 1996” substitute “ section 441 of CTA 2009 ”, and

(iii) in the second sentence for the words from the beginning to “effect” substitute “ The reference to section 76 is a reference to that section as it has effect ”, and

(b) in sub-paragraph (10), in paragraph (c) of the definition of “relevant tax relief” for “Chapter 2 of Part 4 of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”.

286 (1) Amend Schedule 24 (assumptions for calculating chargeable profits, creditable tax and corresponding United Kingdom tax of foreign companies) as follows. U.K.

(2) In paragraph 1(3) (general) for “section 154(2) of the Finance Act 1996” substitute “ section 1279 of CTA 2009 ”.

(3) In paragraph 12 (unremittable overseas income)—

(a) for “section 584” substitute “ Part 18 of CTA 2009 ”,

(b) for “paragraph (a) or paragraph (b) of subsection (1) of that section” substitute “ section 1274(3) or (4) of that Act ”, and

(c) for the words from “a notice” to “given” substitute “ a claim under section 1275 of that Act (claim for relief for unremittable income) may be made ”.

287 (1) Amend Schedule 25 (cases where section 747(3) does not apply) as follows. U.K.

(2) In paragraph 2(1A)—

(a) for paragraph (a) substitute—

“(a) it is chargeable neither under Chapter 2 of Part 3 of CTA 2009 as profits of a trade carried on wholly or partly in the United Kingdom nor under section 436A (gross roll-up business: separate charge on profits);”, and

(b) in paragraph (b) for the words from “Case I” to “above” substitute “ Chapter 2 of Part 3 of CTA 2009 as profits of a trade carried on wholly or partly in the United Kingdom, or under section 436A ”.

(3) In paragraph 2(1B)(a) for “section 208” substitute “ section 1285 of CTA 2009 ”.

(4) In paragraph 4(1A)—

(a) for paragraph (a) substitute—

“(a) it is chargeable neither under Chapter 2 of Part 3 of CTA 2009 as profits of a trade carried on wholly or partly in the United Kingdom nor under section 436A (gross roll-up business: separate charge on profits);”, and

(b) in paragraph (b) for the words from “Case I” to “above” substitute “ Chapter 2 of Part 3 of CTA 2009 as profits of a trade carried on wholly or partly in the United Kingdom, or under section 436A ”.

(5) In paragraph 12(6) for “Case I of Schedule D” substitute “ section 35 of CTA 2009 ”.

288 U.K. In Schedule 26 (reliefs against liability for tax in respect of chargeable profits) in paragraph 1(3)(c) for “section 75(1)” substitute “ section 1219(1) of CTA 2009 ”.

289 (1) Amend Schedule 27 (distributing funds) as follows. U.K.

(2) In paragraph 1(1)(d)(ii)—

(a) omit the words from “in accordance” to “(Schedule D)”,

(b) for “Case III of Schedule D” substitute “ Part 5 of CTA 2009 (loan relationships) or Chapter 7 of Part 10 of that Act (annual payments not otherwise charged) ”, and

(c) for “Case V of Schedule D” substitute “ Chapter 2 of Part 10 of CTA 2009 (dividends of non-UK resident companies) or Chapter 8 of that Part (income not otherwise charged) ”.

(3) For the heading for paragraph 3 substitute “ Certain foreign income ”.

(4) In paragraph 3(1)(aa)—

(a) in sub-paragraph (i) for “Case III of Schedule D” substitute “ Part 5 of CTA 2009 (loan relationships) or Chapter 7 of Part 10 of that Act (annual payments not otherwise charged) ”, and

(b) in sub-paragraph (ii) for “Case V of Schedule D” substitute “ Chapter 2 of Part 10 of CTA 2009 (dividends of non-UK resident companies) or Chapter 8 of that Part (income not otherwise charged) ”.

(5) In paragraph 4(3)(b) for “section 75” substitute “ section 1219 of CTA 2009 ”.

(6) In paragraph 5(3)—

(a) in paragraph (c) for “section 208” substitute “ section 1285 of CTA 2009 ”,

(b) in paragraph (d) for “Chapter 2 of Part 4 of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”, and

(c) in paragraph (e) for “Schedule 26 to the Finance Act 2002” substitute “ Part 7 of CTA 2009 ”.

(7) In paragraph 5(5) for “section 154(2) of the Finance Act 1996” substitute “ section 1279 of CTA 2009 ”.

290 (1) Amend Schedule 28A (change in ownership of company with investment business deductions) as follows. U.K.

(2) In paragraph 6 (amounts in issue for purposes of section 768B)—

(a) in sub-paragraph (a)—

(i) for “within the meaning of section 75” substitute “ within the meaning of Chapter 2 of Part 16 of CTA 2009 ”, and

(ii) for “under section 75” substitute “ under section 1219 of CTA 2009 (expenses of management of a company's investment business) ”,

(b) in sub-paragraph (c) for “section 75(9)” substitute “ section 1223 of CTA 2009 (expenses of management carried forward) ”,

(c) in sub-paragraph (d) for “section 75(7)” substitute “ section 1233 of CTA 2009 (excess capital allowances) ”,

(d) in sub-paragraph (da) for “Case III profits and gains” substitute “ non-trading profits ”,

(e) in sub-paragraph (db) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”,

(f) in sub-paragraph (dc) for “section 83(3A) of the Finance Act 1996” substitute “ section 457(1) of CTA 2009 ”,

(g) omit sub-paragraph (dd),

(h) in sub-paragraph (de) for “paragraph 34 of Schedule 29 to the Finance Act 2002” substitute “ section 751 of CTA 2009 ”, and

(i) in sub-paragraph (df) for “paragraph 35(3) of that Schedule” substitute “ section 753(3) of CTA 2009 ”.

(3) In paragraph 6A—

(a) for “Case III profits and gains” substitute “ non-trading profits ”,

(b) for sub-paragraph (a) substitute—

“(a) the amount of the profits arising from the company's loan relationships chargeable under section 299 of CTA 2009 (charge to tax on non-trading profits),”, and

(c) in the words following sub-paragraph (b) for “to (dd)” substitute “ or (dc) ”.

(4) In paragraph 7(1)—

(a) in sub-paragraph (d)(ii) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”,

(b) in sub-paragraph (d)(iii) for “paragraph 2(2) of Schedule 9 to” substitute “ section 373 of ”,

(c) in sub-paragraph (d)(iv) for “paragraph 17 or 18 of that Schedule” substitute “ sections 406 to 412 of that Act ”, and

(d) in sub-paragraph (e)(ii) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”.

(5) In paragraph 9—

(a) in sub-paragraph (1) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”, and

(b) in sub-paragraph (2)(b) for “that Chapter” substitute “ that Part ”.

(6) In paragraph 10—

(a) in sub-paragraph (1) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”, and

(b) in sub-paragraph (3)(b) for “paragraph 1(2) of Schedule 8 to the Finance Act 1996” substitute “ section 461 of CTA 2009 ”.

(7) In paragraph 11—

(a) in sub-paragraph (1)(a) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”,

(b) in sub-paragraph (1)(b)(i) for “paragraph 17 or 18 of Schedule 9 to” substitute “ sections 406 to 412 of ”,

(c) in sub-paragraph (1)(b)(ii) for “sub-paragraph (2) of paragraph 2 of that Schedule” substitute “ section 373(1) of that Act ”,

(d) in sub-paragraph (1)(c) for “paragraphs 2(2), 17 and 18 of that Schedule” substitute “ sections 373 and 406 to 412 of that Act ”,

(e) omit sub-paragraph (2),

(f) in sub-paragraph (3)(a) omit “or (2)”, and

(g) in sub-paragraph (3)(c) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”.

(8) In paragraph 12 for “Chapter II of Part IV of the Finance Act 1996” and “that Chapter” substitute “ Part 5 of CTA 2009 ” and “ that Part ” respectively.

(9) In paragraph 13—

(a) in sub-paragraph (1)(ea) for “Case III profits and gains” substitute “ non-trading profits ”,

(b) in sub-paragraph (1)(eb) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”,

(c) in sub-paragraph (1)(ec) for “section 83(3A) of the Finance Act 1996” substitute “ section 457(1) of CTA 2009 ”,

(d) omit sub-paragraph (1)(ed),

(e) in sub-paragraph (ee) for “paragraph 34 of Schedule 29 to the Finance Act 2002” substitute “ section 751 of CTA 2009 ”, and

(f) in sub-paragraph (ef) for “paragraph 35(3) of that Schedule” substitute “ section 753(3) of CTA 2009 ”.

(10) In paragraph 16—

(a) in sub-paragraph (1)(d)(ii) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”,

(b) in sub-paragraph (1)(d)(iii) for “paragraph 2(2) of Schedule 9 to” substitute “ section 373(1) of ”,

(c) in sub-paragraph (1)(d)(iv) for “paragraph 17 or 18 of that Schedule” substitute “ sections 406 to 412 of that Act ”,

(d) in sub-paragraph (1)(e)(ii) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”, and

(e) omit sub-paragraph (1)(f).

291 (1) Amend Schedule 28AA (provision not at arm's length) as follows. U.K.

(2) In paragraph 1(2) for “8, 10 and 13 below,” substitute “ 10 and 13 below and sections 447(5) and (6) and 694(8) and (9) of CTA 2009, ”.

(3) In paragraph 2(1) for “8 to 11 below” substitute “ 9 to 11 below and sections 447(5) and (6) and 694(8) and (9) of CTA 2009 ”.

(4) In paragraph 6A(3) for the words from “the same meaning as” to the end substitute “ the meaning given by section 174 of ITTOIA 2005 or section 163 of CTA 2009. ”

(5) In paragraph 6E—

(a) omit “Case III of Schedule D or”, and

(b) after “2005” insert “ or required to be brought into account under Part 5 of CTA 2009 as a non-trading credit ”.

(6) In the heading above paragraph 6E for “chargeable under Case III of Schedule D” substitute “ chargeable ”.

(7) Omit paragraph 8(1), (3) and (4).

(8) In paragraph 14(1), in the definition of “losses”—

(a) in paragraph (a) for “section 75(9)” substitute “ section 1223 of CTA 2009 ”, and

(b) for paragraph (d) substitute—

“(d) sections 387 to 391 or Chapter 16 of Part 5 of CTA 2009 (deficits on loan relationships);”.

292 (1) Amend Schedule 30 (transitional provisions and savings) as follows. U.K.

(2) Omit paragraphs 2 to 4.

(3) Omit paragraph 5.

(4) In paragraph 7(5)(b) after “business” insert “ , or begins to carry on a trade, ”.

Part 2 U.K. Other enactments

Finance Act 1950 (c. 15) U.K.

293 U.K. The Finance Act 1950 is amended as follows.

294 U.K. In section 39(3) (treatment for taxation purposes of enemy debts etc written off during the war), in paragraph (b) of the proviso—

(a) in sub-paragraph (i) for “section 75(1) of the Income and Corporation Taxes Act 1988” substitute “ section 1219 of the Corporation Tax Act 2009 ”, and

(b) in sub-paragraph (ii) for “that Act” substitute “ the Income and Corporation Taxes Act 1988 ”.

Taxes Management Act 1970 (c. 9) U.K.

295 U.K. The Taxes Management Act 1970 is amended as follows.

296 U.K. In section 12(5) (information about chargeable gains) for “section 100(2) of the principal Act” substitute “ section 163 of CTA 2009 ”.

297 U.K. Omit section 12AE (choice between different Cases of Schedule D).

298 U.K. In section 17 (interest paid or credited by banks, building societies etc without deduction of income tax) after subsection (7) insert—

“(8) References in this section to interest include references to—

(a) alternative finance return within the meaning of Chapter 5 of Part 2 of the Finance Act 2005 (see section 57 of that Act), and

(b) alternative finance return within the meaning of Chapter 6 of Part 6 of CTA 2009 (see sections 511 to 513 of that Act).”

299 U.K. In section 18 (interest paid without deduction of income tax) at the end insert—

“(5) References in this section to interest include references to—

(a) alternative finance return within the meaning of Chapter 5 of Part 2 of the Finance Act 2005 (see section 57 of that Act), and

(b) alternative finance return within the meaning of Chapter 6 of Part 6 of CTA 2009 (see sections 511 to 513 of that Act).”

300 (1) Amend section 19 (information for purposes of charge on profits of UK property business or under Schedule A) as follows. U.K.

(2) In subsection (1) for “as the profits of a UK property business or under Schedule A” substitute “ , or under Chapter 3 of Part 4 of CTA 2009, as the profits of a UK property business ”.

(3) Omit subsection (2).

301 U.K. Omit section 31(3) (appeals: right of appeal).

302 U.K. In section 42(7) (procedure for making claims etc)—

(a) in paragraph (a)—

(i) omit “, 84, 91B, 101(2),” and “504, 531,”, and

(ii) for the words from “571(4)” to the end substitute “ 571(4) and 732(4) of the principal Act; ”,

(b) omit paragraph (b),

(c) omit the “and” immediately after paragraph (e), and

(d) at the end insert “, and

(“g) sections 109(1), 124(2), 127(2), 178 and 268 of CTA 2009.”

303 U.K. In section 46B(5) (questions to be determined by Special Commissioners), after paragraph (d) insert “or

(f) section 1313 of CTA 2009.”

304 U.K. In section 71(1) (bodies of persons) omit the words from “Subject to” to “companies),”.

305 U.K. In section 87A(4A)(b) (interest on overdue corporation tax etc) for “section 83(2)(c)” to “that Act” substitute “ section 389(1) or 459(1)(b) of CTA 2009 ”.

306 (1) Amend section 90 (disallowance of relief for interest on tax) as follows. U.K.

(2) In subsection (1) omit paragraph (b) and the “and” immediately before that paragraph.

(3) Omit subsection (2).

(4) For the title substitute “ Interest on tax payable gross ”.

307 (1) Amend section 98 (special returns, etc) as follows. U.K.

(2) In the first column of the Table—

(a) omit the entry relating to section 38(5) of ICTA,

F7 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) omit the entry relating to section 588(7) of ICTA,

(d) omit the entry relating to paragraph 10 of Schedule 5 to ICTA, and

(e) at the end insert—

“Section 75(5) of CTA 2009;

Section 126 of CTA 2009;

Section 241 of CTA 2009;

Section 245 of CTA 2009;

Section 966(1) of CTA 2009.”

(3) In the second column of the Table—

(a) at the appropriate place in the list of entries relating to ICTA insert— “ section 76ZE(4); ”,

(b) omit the entry relating to section 577(4) of ICTA,

(c) omit the entry relating to section 588(6) of ICTA, and

(d) at the end insert— “ Section 75(4) of CTA 2009. ”

Textual Amendments

F7 Sch. 1 para. 307(2)(b) omitted (13.8.2009) by virtue of Finance Act 2009, Schedule 47 (Consequential Amendments) Order 2009 (S.I. 2009/2035), art. 1, Sch. para. 60(q)

308 U.K. After section 109 insert—

“109A Residence of companies

Chapter 3 of Part 2 of CTA 2009 (rules for determining residence of companies) applies for the purposes of this Act as it applies for the purposes of the Corporation Tax Acts.”

309 U.K. In section 118 (interpretation) at the appropriate place insert—

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

310 U.K. In Schedule 3 (rules for assigning proceedings to General Commissioners), in paragraph 10—

(a) omit “102(1),” and

(b) for “and section 563 of the Capital Allowances Act.” substitute “ , section 563 of the Capital Allowances Act and section 171 of CTA 2009. ”

Finance Act 1973 (c. 51) U.K.

311 U.K. The Finance Act 1973 is amended as follows.

312 U.K. In paragraph 2(a) of Schedule 15 (territorial extension of charge to tax_supplementary provisions) for “or section 874 of the Income Tax (Trading and Other Income) Act 2005;” substitute “ , section 874 of the Income Tax (Trading and Other Income) Act 2005 or section 1313 of the Corporation Tax Act 2009; ”.

Oil Taxation Act 1975 (c. 22) U.K.

313 U.K. The Oil Taxation Act 1975 is amended as follows.

314 U.K. In section 3(2) (allowance of expenditure (other than expenditure on long-term assets and abortive exploration expenditure)) in the first sentence—

(a) omit “under subsection (2) of section 579 of the Taxes Act or”,

(b) after “(“ITTOIA 2005”)” insert “ or section 77 of the Corporation Tax Act 2009 ”, and

(c) omit “that subsection or”.

Inheritance Tax Act 1984 (c. 51) U.K.

315 U.K. The Inheritance Tax Act 1984 is amended as follows.

316 (1) Amend section 91 (administration period) as follows. U.K.

(2) In subsection (2) for paragraph (c) substitute—

“(c) subject to subsection (3) below, “charges on residue” means, in relation to the estate of a deceased person, the following liabilities properly payable out of the estate and interest payable in respect of those liabilities—

(i) funeral, testamentary and administration expenses and debts,

(ii) general legacies, demonstrative legacies, annuities and any sum payable out of the residue of the estate to which a person is entitled under the law of intestacy of any part of the United Kingdom or any other country, and

(iii) any other liabilities of the deceased person's personal representatives as such,

(d) “specific disposition” has the meaning given in section 947(6) of the Corporation Tax Act 2009, and

(e) the reference to the completion of the administration of the estate shall be construed as if it were in Chapter 3 of Part 10 of that Act.”

(3) After subsection (2) insert—

“(3) If, as between—

(a) persons interested under a specific disposition or in a general or demonstrative legacy or in an annuity, and

(b) persons interested in the residue of an estate,

any such liabilities as are mentioned in paragraph (c) of subsection (2) above fall exclusively or primarily on the property that is the subject of the specific disposition or on the legacy or annuity, only such part (if any) of those liabilities as falls ultimately on the residue shall be treated as charges on residue.

(4) In the application of this section to Scotland, “charges on residue” shall include, in addition to the liabilities specified in subsection (2)(c), any sums required to meet—

(a) claims in respect of prior rights or legal rights by a surviving spouse or civil partner, or

(b) claims in respect of legal rights by children.”

317 U.K. In section 94(2)(a) (charge on participators) for “section 208 of the Taxes Act 1988” substitute “ section 1285 of the Corporation Tax Act 2009 (exemption for UK company distributions) ”.

Films Act 1985 (c. 21) U.K.

318 U.K. The Films Act 1985 is amended as follows.

319 U.K. In paragraph 1(1) of Schedule 1 (certification of British films for the purposes of film tax relief), in the definition of “film production company”, for the words from “Chapter 3” to the end substitute “ Part 15 of the Corporation Tax Act 2009 (see section 1182 of that Act) ”.

Airports Act 1986 (c. 31) U.K.

320 U.K. The Airports Act 1986 is amended as follows.

321 U.K. In section 77(3) (corporation tax) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of the Corporation Tax Act 2009 ”.

Finance Act 1986 (c. 41) U.K.

322 U.K. The Finance Act 1986 is amended as follows.

323 U.K. In section 78(7)(d) (loan capital) after “2005” insert “ or section 507 of the Corporation Tax Act 2009 ”.

324 U.K. In section 79 (loan capital: new provisions)—

(a) in subsection (6), as it has effect by virtue of subsection (8A)(a) of that section, after “2005”, in both places where it occurs, insert “ or section 507(1) of the Corporation Tax Act 2009 ”, and

(b) in subsection (8A)(b) after “2005” insert “ or section 507 of the Corporation Tax Act 2009 ”.

325 U.K. In section 99(9A) (interpretation) after “2005” insert “ or section 507 of the Corporation Tax Act 2009 ”.

Gas Act 1986 (c. 44) U.K.

326 U.K. The Gas Act 1986 is amended as follows.

327 U.K. In section 60(3) (tax provisions) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of the Corporation Tax Act 2009 ”.

British Steel Act 1988 (c. 35) U.K.

328 U.K. The British Steel Act 1988 is amended as follows.

329 U.K. In section 11(7) (corporation tax) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of the Corporation Tax Act 2009 ”.

Finance Act 1988 (c. 39) U.K.

330 U.K. The Finance Act 1988 is amended as follows.

331 U.K. Omit section 65 (commercial woodlands).

332 U.K. Omit section 66 (company residence).

333 U.K. Omit section 66A (residence of SE or SCE).

334 U.K. Omit section 73(2) to (4) (consideration for certain restrictive undertakings).

335 U.K. Omit Schedule 6 (commercial woodlands).

336 U.K. Omit Schedule 7 (exceptions to the rule in section 66(1)).

337 U.K. In paragraph 3 of Schedule 12 (building societies: change of status)—

(a) omit sub-paragraph (1), and

(b) in sub-paragraph (2) for “those Acts” substitute “ the Capital Allowances Act 2001 ”.

Finance Act 1989 (c. 26) U.K.

338 U.K. The Finance Act 1989 is amended as follows.

339 U.K. Omit section 43 (Schedule D: computation (unpaid remuneration)).

340 U.K. Omit section 44 (companies with investment business and insurance companies: computation).

341 U.K. In section 82(1) (calculation of profits: bonuses etc) for the words from “, for” to the end substitute “ computed in accordance with the provisions applicable for the purposes of the taxation of such profits under section 35 of the Corporation Tax Act 2009 (charge on trade profits) ”.

342 U.K. In section 82D(2) (treatment of profits: life assurance_adjustment consequent on change in Insurance Prudential Sourcebook) for the words from “for the purposes” to “Schedule D” substitute “ in accordance with the life assurance trade profits provisions ”.

343 U.K. In section 82E(7) (section 82D: treatment of transferors under insurance business transfer schemes) for the words from “for the purposes” to “Schedule D” substitute “ in accordance with the life assurance trade profits provisions ”.

344 (1) Amend section 83 (receipts to be taken into account) as follows. U.K.

(2) In subsection (1) for the words from “, for” to the end substitute “ computed in accordance with the provisions applicable for the purposes of the taxation of such profits under section 35 of the Corporation Tax Act 2009 (charge on trade profits) ”.

(3) For subsection (2ZA)(a) to (c) substitute—

“(a) section 464 of the Corporation Tax Act 2009 (priority of Part 5 of that Act for corporation tax purposes),

(b) section 699 of that Act (priority of Part 7 of that Act for corporation tax purposes), and

(c) section 906 of that Act (priority of Part 8 of that Act for corporation tax purposes).”

(4) In subsection (2AB)(a) for “of the Taxes Act 1988 applicable to Case I of Schedule D” substitute “ applicable to the taxation of such profits under section 35 of the Corporation Tax Act 2009 ”.

345 (1) Amend section 83YC (FAFTS: charge in relevant period of account) as follows. U.K.

(2) In subsection (6)(b) for “provisions of Case I of Schedule D” substitute “ life assurance trade profits provisions ”.

(3) In subsection (10) for “provisions of Case I of Schedule D” substitute “ life assurance trade profits provisions ”.

346 U.K. In section 83YD(3)(a) (FAFTS: deduction in subsequent periods of account) for “section 82(2)(b) of the Finance Act 1996” substitute “ section 297(3) of the Corporation Tax Act 2009 ”.

347 (1) Amend section 83YF (financial reinsurance arrangements: further provision) as follows. U.K.

(2) In subsection (2) for “provisions of Case I of Schedule D” substitute “ life assurance trade profits provisions ”.

(3) In subsection (3) for “provisions of Case I of Schedule D” substitute “ life assurance trade profits provisions ”.

348 (1) Amend section 85 (charge of certain receipts of basic life assurance business) as follows. U.K.

(2) In subsection (1)—

(a) for “there shall be chargeable under Case VI of that Schedule” substitute “ the charge to corporation tax on income shall apply to ”,

(b) in paragraph (a) for “Case I of Schedule D” substitute “ section 35 of the Corporation Tax Act 2009 (charge on trade profits) ”, and

(c) in paragraph (b) for “Case I of Schedule D” substitute “ section 35 of the Corporation Tax Act 2009 ”.

(3) In subsection (2)(e) for “Case I of Schedule D” substitute “ section 35 of the Corporation Tax Act 2009 ”.

(4) For subsection (2B) substitute—

“(2B) Expenses are deducted from receipts falling within subsection (1) so far as is necessary for calculating the full amount of the profits.

This is subject to subsection (2BA).

(2BA) The provisions of Chapter 1 of Part 20 of the Corporation Tax Act 2009 (general rules for restricting deductions) apply to the calculation of those profits.”

349 (1) Amend section 85A (excess adjusted Case I profits) as follows. U.K.

(2) In subsection (1) for the words “Case I profits under Case VI of that Schedule” substitute “ life assurance trade profits under the charge to corporation tax on income ”.

(3) In subsection (2) for “Case I”, in both places where it occurs, substitute “ life assurance trade ”.

(4) In subsection (3)—

(a) for “Case I profits” substitute “ life assurance trade profits ”, and

(b) in paragraph (a) for “provisions applicable to Case I of Schedule D” substitute “ life assurance trade profits provisions ”.

(5) In subsection (4) for “Case I of Schedule D” substitute “ section 35 of the Corporation Tax Act 2009 ”.

(6) In subsection (6)(b) omit “under Case VI of Schedule D”.

(7) In subsection (8)—

(a) in paragraph (b)—

(i) after “loan relationships” insert “ under Part 5 of the Corporation Tax Act 2009 ”, and

(ii) omit the words from “by” to “1996”, and

(b) in paragraph (c)—

(i) for “paragraph 4(3) of that Schedule” substitute “ section 389(1) of the Corporation Tax Act 2009 ”, and

(ii) omit “(in accordance with paragraph 4(5) of that Schedule)”.

(8) In the title for “Case I” substitute “ life assurance trade ”.

350 U.K. In section 88(3)(b) (corporation tax: policy holders' share of profits) omit “under Case VI of Schedule D”.

351 (1) Amend section 89 (policy holders' share of profits) as follows. U.K.

(2) In subsection (1)(a) for “Case I” substitute “ life assurance trade ”.

(3) In subsection (1A)—

(a) omit “under Case VI of Schedule D”, and

(b) for “Case I”, in both places where it occurs, substitute “ life assurance trade ”.

(4) In subsection (2) for “Case I” substitute “ life assurance trade ”.

(5) In subsection (3) for “Case I” substitute “ life assurance trade ”.

(6) In subsection (4) for “Case I”, in both places where it occurs, substitute “ life assurance trade ”.

(7) In subsection (7)—

(a) for “ “Case I profits”” substitute “ “life assurance trade profits” ”, and

(b) for “provisions of the Taxes Act 1988 applicable to Case I of Schedule D” substitute “ life assurance trade profits provisions ”.

(8) In subsection (7B) for “Case I” substitute “ life assurance trade ”.

Finance Act 1990 (c. 29) U.K.

352 U.K. The Finance Act 1990 is amended as follows.

353 U.K. Omit section 126(2) and (3) (pools payments for football ground improvements).

354 U.K. In Schedule 14 (amendments correcting errors in ICTA) omit paragraph 2.

Finance Act 1991 (c. 31) U.K.

355 U.K. The Finance Act 1991 is amended as follows.

356 U.K. For section 65(5) (reimbursement by defaulter in respect of certain abandonment expenditure) substitute—

“(5) For the purposes of subsection (4) above, the relevant accounting period is the accounting period in which the reimbursement expenditure is received by the contributing participator or, if the contributing participator—

(a) ceases to carry on the ring fence trade before the receipt of the reimbursement expenditure, or

(b) ceases to be within the charge to corporation tax in respect of the ring fence trade before the receipt of the reimbursement expenditure,

the last accounting period of that trade or (as the case requires) the accounting period during or at the end of which the contributing participator ceased to be within the charge to corporation tax in respect of the trade.”

357 U.K. Omit section 121(2) and (3) (pools payments to support games etc).

Taxation of Chargeable Gains Act 1992 (c. 12) U.K.

358 U.K. The Taxation of Chargeable Gains Act 1992 is amended as follows.

359 U.K. In section 1(2) (the charge to tax) for “section 6 of the Taxes Act” substitute “ section 2 of CTA 2009 ”.

360 U.K. In section 10B (non-resident company with United Kingdom permanent establishment) for subsection (4) substitute—

“(4) In this section—

(a) references to a trade include an office, and

(b) references to carrying on a trade include holding an office.”

361 U.K. In section 33A (value shifting: modification of sections 30 to 33 in relation to chargeable intangible asset)—

(a) in subsection (1) for “Schedule 29 to the Finance Act 2002” substitute “ Part 8 of CTA 2009 ”,

(b) in subsection (2)—

(i) in paragraph (a) for “that Schedule (see paragraph 19 of that Schedule” substitute “ that Part (see section 734 of that Act ”,

(ii) in paragraph (b) for “paragraph 55 of that Schedule” substitute “ section 775 of that Act ”, and

(iii) in paragraph (c) for “paragraph 58 or 60 of that Schedule” substitute “ section 780 or 785 of that Act ”,

(c) in subsection (3) for “that Schedule (see paragraph 15 of that Schedule” substitute “ that Part (see section 723 of that Act ”, and

(d) in subsection (4) for “that Schedule” substitute “ that Part ”.

362 U.K. In section 40(4) (interest charged to capital) after “relationships)” insert “ and CTA 2009 (Part 5 of which re-enacts that Chapter) ”.

363 U.K. In section 41(4) (restriction of losses by reference to capital allowances)—

(a) in paragraph (b)—

(i) omit “any relief given under section 30 of the Taxes Act or”, and

(ii) after “ITTOIA 2005” insert “ or section 254 of CTA 2009 ”, and

(b) in paragraph (c)—

(i) omit “section 91 of the Taxes Act or”, and

(ii) after “ITTOIA 2005” insert “ or section 147 of CTA 2009. ”

364 U.K. In section 48(4) (consideration due after time of disposal) for the words from “Chapter 2” to the end substitute “ Part 5 of CTA 2009 (see sections 302(5) and 313(6)) ”.

365 (1) Amend section 59 (partnerships) as follows. U.K.

(2) In subsection (2)(b) after “capital gains tax” insert “ or corporation tax ”.

(3) In subsection (3)—

(a) after “arrangements” insert “ (so far as providing for that relief) ”, and

(b) after “capital gains tax” insert “ or corporation tax ”.

366 (1) Amend section 116 (reorganisations, conversions and reconstructions) as follows. U.K.

(2) In subsection (8A)—

(a) in the first sentence, for “Chapter II of Part IV of the Finance Act 1996” and “that Chapter” substitute “ Part 5 of CTA 2009 ” and “ that Part ” respectively, and

(b) in the second sentence for the words from “transaction” to the end substitute “ relevant loan relationship transaction ”.

(3) After subsection (8A) insert—

“(8AA) In subsection (8A) “relevant loan relationship transaction” means a transaction to which any of the following provisions applies—

• section 342 of CTA 2009 (continuity of treatment on transfers within groups or reorganisations: issues of new securities on reorganisations: disposal at notional carrying value),

• section 343 of that Act (continuity of treatment on transfers within groups or reorganisations: receiving company using fair value accounting),

• section 424 of that Act (European cross-border transfers of business: reorganisations involving loan relationships),

• section 425 of that Act (European cross-border transfers of business: original holder using fair value accounting),

• section 435 of that Act (European cross-border mergers: reorganisations involving loan relationships),

• section 436 of that Act (European cross-border mergers: original holder using fair value accounting).”

(4) In subsection (16) for “section 80(5) of the Finance Act 1996” and “Chapter II of Part IV” substitute “ section 464(1) of CTA 2009 ” and “ Part 5 ” respectively.

367 U.K. After section 116 insert—

“116A Holding beginning or ceasing to fall within section 490 of CTA 2009

(1) Section 116 applies in accordance with the following assumptions if—

(a) a holding that is a relevant holding for the purposes of section 490 of CTA 2009 (holdings in OEICs, unit trusts and offshore funds treated as creditor relationship rights) is held by a company both at the end of one accounting period and at the beginning of the next, and

(b) that section applies to the holding for one of those periods but not for the other.

(2) The assumptions in subsections (3) and (4) apply for the purposes of this Act if the accounting period for which section 490 of CTA 2009 applies to the relevant holding is the first of those periods.

(3) The relevant holding is assumed to have ceased to be a relevant holding for the second of those periods as a result of a transaction such as is mentioned in section 116(1) (“the reorganisation transaction”) occurring at the beginning of that period.

(4) In relation to the reorganisation transaction within subsection (3), for the purposes of section 116—

(a) the relevant holding immediately before the beginning of the second of those periods is assumed to be the old asset, and

(b) the relevant holding immediately after the beginning of that period is assumed to be the new asset.

(5) The assumptions in subsections (6) and (8) apply for the purposes of this Act if the accounting period for which section 490 of CTA 2009 applies to the relevant holding is the second of those periods.

(6) The holding is assumed to have become a relevant holding for the second of those periods as a result of the occurrence at the end of first period of a transaction such as is mentioned in section 116(1).

(7) But subsection (6) does not apply if the first of those periods is a period at the end of which a disposal of the relevant holding is treated as having occurred under section 212 (annual deemed disposal of holdings of unit trusts etc by insurance companies).

(8) In relation to the reorganisation transaction within subsection (6), for the purposes of section 116—

(a) the relevant holding immediately before the beginning of the second of those periods is assumed to be the old asset, and

(b) the relevant holding immediately after the beginning of that period is assumed to be the new asset.

116B Shares beginning or ceasing to be shares to which section 523 of CTA 2009 applies

(1) If at any time section 523 of CTA 2009 (application of Part 5 of that Act to certain shares as rights under a creditor relationship) begins or ceases to apply in the case of a share held by the investing company it is treated for the purposes of this Act—

(a) as having disposed of the share immediately before that time for consideration of an amount equal to its fair value at that time, and

(b) as having immediately reacquired it for consideration of the same amount.

(2) In this section—

• “fair value” has the same meaning as in Part 5 of CTA 2009, (loan relationships) (see section 313(6) of that Act), and

• “investing company” has the same meaning as it has for the purposes of Chapter 7 of Part 6 of that Act (shares with guaranteed returns) (see section 522(3) of that Act).”

368 U.K. In section 117(6D) (meaning of “qualifying corporate bond”) after “section 48A” insert “ of that Act or section 507 of CTA 2009 ”.

369 U.K. In section 143(1) (commodity and financial futures and qualifying options)—

(a) for “section 128 of the Taxes Act” substitute “ section 981 of CTA 2009 ”, and

(b) in paragraph (a) for “Schedule D otherwise than as the profits of a trade” substitute “ Chapter 8 of Part 10 of CTA 2009 ”.

370 U.K. After section 151D insert—

“151E Exchange gains and losses from loan relationships: regulations

(1) The Treasury may by regulations make provision for or in connection with bringing into account in prescribed circumstances for the purposes of this Act amounts to which section 328(1) of CTA 2009 does not apply because of section 328(3) or (4) of that Act.

(2) The regulations may—

(a) make different provision for different cases, and

(b) make provision subject to an election or to other prescribed conditions.

151F Treatment of alternative finance arrangements

(1) This section applies if under arrangements to which section 503 (purchase and resale arrangements), 504 (diminishing shared ownership arrangements) or 507 (investment bond arrangements) of CTA 2009 applies an asset is sold by one party to the arrangements to the other party.

(2) The alternative finance return (as defined in section 511, 512 or 513(3) of that Act, as the case may be) is excluded in determining for the purposes of this Act the consideration for the sale and purchase of the asset.

(3) This section does not affect the operation of any provision of this Act which provides that the consideration for a sale or purchase is to be taken for any purpose to be an amount other than the actual consideration.

151G Regulations where non-qualifying shares conditions altered

(1) If the Treasury make regulations under section 533 of CTA 2009 (power to change conditions for non-qualifying shares) adding, varying or removing such a condition as is mentioned in subsection (1) of that section, they may also by regulations amend this Act so as to make provision for or in connection with taxation in the case of any asset or transaction that is or was mentioned in the condition.

(2) Regulations under this section may—

(a) make different provision for different cases, and

(b) make incidental, supplemental, consequential and transitional provisions and savings.

(3) Regulations made under subsection (2)(b) may, in particular, include provision amending any enactment or any instrument made under an enactment.”

371 U.K. In section 156(4) (assets of Class 1)—

(a) omit “section 98 of the Taxes Act or”, and

(b) after “ITTOIA 2005” insert “ or section 42 of CTA 2009 ”.

372 U.K. After section 156 insert—

“156ZA Intangible fixed assets: roll-over relief

(1) This section applies if a company is entitled to relief under Chapter 7 of Part 8 of CTA 2009 (roll-over relief in case of realisation and reinvestment) as a result of—

(a) section 898 of that Act (roll-over relief where pre-FA 2002 assets disposed of on or after 1 April 2002), or

(b) section 899 of that Act (roll-over relief where degrouping charge on pre-FA 2002 asset arises on or after 1 April 2002).

(2) The company is treated for the purposes of this Act as if the consideration for the disposal of the old asset were reduced by the amount available for relief.

(3) Subsection (2) does not affect the treatment for any purpose of the Taxes Acts of the other party to any transaction involved in the disposal of the old asset or the expenditure on other assets.

(4) In this section—

• “the old asset” has the same meaning as in Chapter 7 of Part 8 of CTA 2009 (see section 754(2)), and

• “the Taxes Acts” means the enactments relating to income tax, corporation tax or chargeable gains.

156ZB Intangible fixed assets: interaction with relief under Chapter 7 of Part 8 of CTA 2009

(1) This section applies if there is a disposal on or after 1 April 2002 of an asset that is both—

(a) an asset of a class specified in section 155, and

(b) an intangible fixed asset for the purposes of Part 8 of CTA 2009.

(2) The period specified in section 152(3)—

(a) does not include any period beginning on or after 1 April 2002, and

(b) may not be extended so as to include any such period.

(3) Classes 4 to 7A in section 155 do not apply for the purposes of corporation tax as respects the acquisition of new assets that are chargeable intangible assets for the purposes of Part 8 of CTA 2009 (see section 741 of that Act).

(4) In the case of an acquisition before 22 March 2005, subsection (3) applies as if it referred to Classes 4 to 7, instead of Classes 4 to 7A.”

373 U.K. In section 158(2) (activities other than trades, and interpretation) omit the words from “but” to the end.

374 U.K. In section 161(3)(a) (appropriations to and from stock) for “under Case I of Schedule D” substitute “ under Chapter 2 of Part 3 of CTA 2009 and the trade is carried on wholly or partly in the United Kingdom ”.

375 U.K. In section 170(9)(c) (interpretation of sections 171 to 181) omit “within the meaning of section 486 of the Taxes Act”.

376 U.K. In section 171(3A) (transfers within a group: general provisions) for “section 91A of the Finance Act 1996” substitute “ section 524 of CTA 2009 ”.

377 U.K. Omit section 201(2) (relationship between section 201 of TCGA 1992 and section 119(1) of ICTA).

378 U.K. For section 203(1) substitute—

“(1) Sections 274 to 276 of CTA 2009 (meaning of “mineral royalties” etc) apply for the interpretation of this section and sections 201 and 202 as they apply for the interpretation of Chapter 7 of Part 4 of CTA 2009.”

379 (1) Amend section 210A (ring-fencing of losses) as follows. U.K.

(2) In subsection (10A)—

(a) for “Case I profits”, in both places where it occurs, substitute “ life assurance trade profits ”, and

(b) for “provisions applicable to Case I of Schedule D” substitute “ life assurance trade profits provisions ”.

(3) In subsection (11)(c) (ring-fencing of losses) for “paragraph 4(3) of Schedule 11 to the Finance Act 1996” substitute “ section 389(1) of CTA 2009 ”.

380 (1) Amend section 241 (furnished holiday lettings) as follows. U.K.

(2) In subsection (2), in the second sentence for “has the meaning given by section 504 of the Taxes Act” substitute “ has the same meaning as it has for the purposes of Chapter 6 of Part 4 of CTA 2009 ”.

(3) In subsection (3)(a) omit “(within the meaning of the Income Tax Acts), or any Schedule A business (within the meaning of the Taxes Act),”.

381 U.K. In section 251(8) (general provisions) omit—

(a) paragraph (a), and

(b) in paragraph (b) the words “(even apart from those provisions)”.

382 U.K. In section 253(3) (relief for loans to traders) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of CTA 2009 ”.

383 U.K. In section 275B (section 275A: supplementary provisions) for subsection (3) substitute—

“(3) In section 275A—

• “future” has the meaning given by section 581 of CTA 2009, and

• “option” has the meaning given by section 580 of that Act.”

384 U.K. After section 286 insert—

“286A Residence of companies

Chapter 3 of Part 2 of CTA 2009 (rules for determining residence of companies) applies for the purposes of—

(a) this Act (so far as relating to capital gains tax), and

(b) any other enactment relating to capital gains tax,

as it applies for the purposes of the Corporation Tax Acts.”

385 U.K. In section 288(1) (interpretation)—

(a) at the appropriate place insert—

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

(b) for the definition of “personal representatives” substitute—

““personal representatives” has the same meaning as in Chapter 3 of Part 10 of CTA 2009 (see section 968 of that Act);”,

(c) in the definition of “trading stock” for “section 100(2) of the Taxes Act” substitute “ section 163 of CTA 2009 ”, and

(d) at the appropriate place insert—

““UK property business” means—

(a) a UK property business within the meaning of the Income Tax Acts (see section 989 of ITA 2007), or

(b) a UK property business within the meaning of the enactments relating to corporation tax (see section 834B of the Taxes Act);”.

386 U.K. In Schedule 7AC (exemptions for disposals by companies with substantial shareholding) omit paragraph 34(2).

387 U.K. In Schedule 7D (approved share schemes and share incentives), in paragraph 2(4), for “paragraph 9 of Schedule 4AA to the Taxes Act” substitute “ section 989 of CTA 2009 ”.

388 (1) Amend Schedule 8 (leases) as follows. U.K.

(2) In paragraph 5—

(a) in sub-paragraph (1) for the words from “section 34” to “property business (within the meaning of that Act)” substitute “ any of sections 277 to 281 of ITTOIA 2005 or sections 217 to 221 of CTA 2009 as a receipt of a UK property business ”,

(b) in sub-paragraph (2) for the words from “section 34” to “property business (within the meaning of that Act)” substitute “ any of sections 277 to 281 of ITTOIA 2005 or sections 217 to 221 of CTA 2009 as a receipt of a UK property business ”,

(c) in sub-paragraph (3) for the words from “section 36” to “property business (within the meaning of that Act)” substitute “ section 284 or 285 of ITTOIA 2005 or section 224 or 225 of CTA 2009 (sale of land with right to reconveyance or leaseback) as a receipt of a UK property business ”, and

(d) in sub-paragraph (5) omit paragraph (a).

(3) In the italic cross-heading before paragraph 5 for “under Schedule A” substitute “ as receipts of a property business ”.

(4) In paragraph 6—

(a) in sub-paragraph (1) for the words from “If” to the end of paragraph (b) substitute “ If under section 292 of ITTOIA 2005 or section 232 of CTA 2009 (allowance where, by the grant of a sublease, a lessee has converted a capital amount into a right to income) a person is to be treated as incurring expenses in consequence of having granted a sublease, ”

(b) in sub-paragraph (2) for the words from “by virtue of section 35” to the end substitute “ by virtue of section 282 of ITTOIA 2005 or section 222 of CTA 2009 (assignments for profit of lease granted at undervalue) as a receipt of a UK property business. ”, and

(c) for sub-paragraph (3) substitute—

“(3) If any adjustment is made—

(a) under section 301 or 302 of ITTOIA 2005, or

(b) under section 238 or 239 of CTA 2009,

on a claim made under that section, any necessary adjustment shall be made to give effect to the consequences of the claim on the operation of this paragraph or paragraph 5 above.”

(5) In paragraph 7 for paragraphs (a) and (b) substitute—

“(a) under section 277 of ITTOIA 2005 any amount is brought into account by virtue of section 278 of that Act as a receipt of a UK property business which is carried on by any person, or

(b) under section 217 of CTA 2009 any amount is brought into account by virtue of section 218 of that Act as a receipt of a UK property business which is carried on by any company,”.

(6) In paragraph 7A omit “Schedule A business or”.

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

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

390 (1) Amend paragraph 3 of Schedule 12 (banks etc in compulsory liquidation) as follows. U.K.

(2) In sub-paragraph (1), omit the words from “(in” to “Schedule D)”.

(3) After that sub-paragraph insert—

“(1A) So far as relating to corporation tax, the charge to tax under sub-paragraph (1) has effect as an application of the charge to corporation tax on income.”

(4) In sub-paragraph (3)—

(a) omit “section 100 of the Taxes Act 1988 or”, and

(b) after “2005” insert “ or section 162 of the Corporation Tax Act 2009 ”.

(5) In sub-paragraph (5) for the words from “section 80(5)” to the end substitute “ section 464(1) of the Corporation Tax Act 2009 (matters to be brought into account in the case of loan relationships only under Part 5 of that Act) ”.

(6) For the italic cross-heading before the paragraph substitute “ Taxation of certain receipts ”.

Finance Act 1994 (c. 9) U.K.

391 U.K. The Finance Act 1994 is amended as follows.

392 (1) Amend section 219 (Lloyd's underwriters: taxation of profits) as follows. U.K.

(2) In subsection (2)—

(a) in paragraph (a) for “Case I of Schedule D” substitute “ Part 3 of the Corporation Tax Act 2009 ”, and

(b) in paragraph (b) for the words from “under” to the end substitute “ otherwise than under Part 3 of the Corporation Tax Act 2009 ”.

(3) In subsection (3)—

(a) for “Case I of Schedule D” substitute “ Part 3 of the Corporation Tax Act 2009 ”, and

(b) for the words from “under any other” to the end substitute “ otherwise than under Part 3 of that Act ”.

F8 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F8 Sch. 1 para. 392(4)(5) omitted (with effect in accordance with Sch. 14 para. 31 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 14 para. 30(e)

393 U.K. In section 220(3) (accounting period in which certain profits or losses arise) for “section 72 of the Taxes Act 1988” substitute “ section 52 of the Corporation Tax Act 2009 ”.

394 U.K. In section 225(4) (stop-loss and quota share insurance) in the definition of “apportioned part” for “section 72 of the Taxes Act 1988” substitute “ section 52 of the Corporation Tax Act 2009 ”.

395 U.K. In section 226(3) (provisions which are not to apply) for “Schedule 26 to the Finance Act 2002” substitute “ Part 7 of the Corporation Tax Act 2009 ”.

396 U.K. In section 229(1)(ca) (regulations) for sub-paragraph (ii) substitute—

“(ii) arrangements involving repos (within the meaning given by section 554(4) of the Corporation Tax Act 2009); or

(iii) arrangements meeting the conditions in section 554(2) of that Act (redemption arrangements);”.

397 U.K. Omit sections 249 and 250 (certain companies treated as non-resident).

398 U.K. In paragraph 20(1) of Schedule 24 (provisions relating to the Railways Act 1993), in the words after paragraph (b) omit the words from “the trade” to “but”.

Finance Act 1995 (c. 4) U.K.

399 U.K. The Finance Act 1995 is amended as follows.

400 U.K. In section 126(7A) (UK representatives of non-residents) omit paragraph (b) and the “or” immediately before it.

401 U.K. In section 127(1) (persons not treated as UK representatives)—

(a) in paragraph (ca)—

(i) for “Chapter 5 of Part 2” substitute “ section 47(6) or (7), 47A(5), 48B(1) or 49A(2) ”, and

(ii) for “the arrangements falling within that section” substitute “ the alternative finance arrangements in question ”, and

(b) omit paragraph (cb).

Finance Act 1996 (c. 8) U.K.

402 U.K. The Finance Act 1996 is amended as follows.

403 U.K. Omit section 80 (taxation of loan relationships).

404 U.K. Omit section 81 (meaning of “loan relationship” etc).

405 U.K. Omit section 82 (methods of bringing amounts into account).

406 U.K. Omit section 83 (non-trading deficit on loan relationships).

407 U.K. Omit section 84 (debits and credits brought into account).

408 U.K. Omit section 84A (exchange gains and losses from loan relationships).

409 U.K. Omit section 85A (computation in accordance with generally accepted accounting practice).

410 U.K. Omit section 85B (amounts recognised in determining a company's profit or loss).

411 U.K. Omit section 85C (amounts not fully recognised for accounting purposes).

412 U.K. Omit section 87 (accounting method where parties have a connection).

413 U.K. Omit section 87A (meaning of “control” in section 87).

414 U.K. Omit section 88 (exemption from section 87 in certain cases).

415 U.K. Omit section 88A (accounting method where rate of interest is reset).

416 U.K. Omit section 90A (change of accounting basis applicable to assets or liabilities).

417 U.K. Omit section 91A (shares subject to outstanding third party obligations).

418 U.K. Omit section 91B (non-qualifying shares).

419 U.K. Omit section 91C (Condition 1 for section 91B(6)(b)).

420 U.K. Omit section 91D (Condition 2 for section 91B(6)(b)).

421 U.K. Omit section 91E (Condition 3 for section 91B(6)(b)).

422 U.K. Omit section 91F (power to add, vary or remove Conditions for section 91B(6)(b)).

423 U.K. Omit section 91G (shares beginning or ceasing to be subject to section 91A or 91B).

424 U.K. Omit section 91H (payments in return for capital contribution).

425 U.K. Omit section 91I (change of partnership shares).

426 U.K. Omit section 93C (creditor relationships and benefit derived by connected persons).

427 U.K. Omit section 94 (indexed gilt-edged securities).

428 U.K. Omit section 94A (loan relationships with embedded derivatives).

429 U.K. Omit section 94B (loan relationships treated differently by connected debtor and creditor).

430 U.K. Omit section 95 (gilt strips).

431 U.K. Omit section 96 (special rules for certain other gilts).

432 U.K. Omit section 97 (manufactured interest).

433 U.K. Omit section 98 (collective investment schemes).

434 U.K. Omit section 99 (insurance companies).

435 U.K. Omit section 100 (money debts etc not arising from the lending of money).

436 U.K. Omit section 101 (financial instruments).

437 U.K. Omit section 103 (interpretation of Chapter).

438 U.K. In section 154 (FOTRA securities), omit subsections (2), (3), (5), (6) and (8).

439 U.K. In section 203(9) (modification of the Agriculture Act 1993) for “Chapter II of Part IV of this Act” substitute “ Part 5 of the Corporation Tax Act 2009 (loan relationships) ”.

440 U.K. Omit Schedule 8 (loan relationships: claims etc relating to deficits).

441 U.K. Omit Schedule 9 (loan relationships: special computational provisions).

442 U.K. Omit Schedule 10 (loan relationships: collective investment schemes).

443 U.K. Omit Schedule 11 (loan relationships: special provisions for insurers).

444 (1) Amend Schedule 15 (loan relationships: savings and transitional provisions) as follows. U.K.

(2) Omit—

(a) paragraph 2 (loan relationships terminated before 1st April 1996),

(b) paragraph 3 (basic rules for transitional accounting periods),

(c) paragraph 3A (adjustment of opening value where new accounting basis adopted as from an accounting period beginning on 1st April 1996), and

(d) paragraph 4 (application of accruals basis to pre-commencement relationships).

(3) In paragraph 5—

(a) in sub-paragraph (5) for “this Chapter is” substitute “ this Chapter (as it had effect immediately before 1st April 2009) was ”,

(b) in sub-paragraph (6)(b)—

(i) for “which is” substitute “ which was ”, and

(ii) after “this Chapter” insert “ (as it had effect immediately before 1st April 2009) ”, and

(c) in sub-paragraph (7)—

(i) for “taken to be” substitute “ taken to have been ”,

(ii) for “is treated” substitute “ was treated ”, and

(iii) after “paragraph 4 above” insert “ (as it had effect immediately before 1st April 2009) ”.

(4) In paragraph 6—

(a) in sub-paragraph (3) for “this Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ”,

(b) for sub-paragraphs (4) to (7) substitute—

“(4) Sub-paragraphs (1) to (3) above do not apply if the company duly made an election for the purposes of this sub-paragraph as it had effect on 30th September 1996.”, and

(c) in sub-paragraph (8)—

(i) for “section 82(2) of this Act” substitute “ section 297 of the Corporation Tax Act 2009 ”, and

(ii) at the end insert “ under Part 5 of that Act ”.

(5) In paragraph 9—

(a) in sub-paragraph (1) after “this Chapter” insert “ or Part 5 of the Corporation Tax Act 2009 ”, and

(b) in sub-paragraph (2)—

(i) after “this Chapter”, in the first place where it occurs, insert “ or that Part ”, and

(ii) after “this Chapter”, in the second place where it occurs, insert “ or, as the case may be, that Part ”.

(6) Omit paragraph 10 (adjustments of opening value for mark to market accounting in the case of chargeable assets).

(7) In paragraph 11 (other adjustments in the case of chargeable assets etc)—

(a) in sub-paragraphs (1) and (3)(a) for “this Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ”,

(b) in sub-paragraph (6) at the end insert “ under Part 5 of the Corporation Tax Act 2009 ”, and

(c) in sub-paragraph (8) after “this Chapter” insert “ and Part 5 of the Corporation Tax Act 2009 ”.

(8) In paragraph 11A(2) (reduction of paragraph 11 credit where section 251(4) of 1992 Act prevents paragraph 8 loss) for “this Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ”.

(9) In paragraph 12 (notional closing values of relevant assets)—

(a) in sub-paragraph (2) for “makes” substitute “ made ”, and

(b) in sub-paragraph (3)—

(i) for “is made” substitute “ was made ”, and

(ii) after “this Chapter” insert “ and Part 5 of the Corporation Tax Act 2009 ”.

(10) Omit—

(a) paragraph 13 (further transitional rules where interest under loan relationships),

(b) paragraph 14 (transitional in respect of incidental expenses already allowed), and

(c) paragraph 15 (holdings of unit trusts etc).

(11) In paragraph 16 (bad debt relieved before commencement of FA 1996)—

(a) in sub-paragraph (2)—

(i) after “this Chapter”, in the first place where it occurs, insert “ or Part 5 of the Corporation Tax Act 2009 ”, and

(ii) after “this Chapter”, in the second place where it occurs, insert “ or that Part ”,

(b) in sub-paragraph (3)—

(i) after “this Chapter”, in the first place where it occurs, insert “ and Part 5 of the Corporation Tax Act 2009 ”, and

(ii) after “this Chapter”, in the second place where it occurs, insert “ and that Part ”, and

(c) in sub-paragraph (4) for “falls” substitute “ fell ”.

(12) In paragraph 17 (transitional for overseas sovereign debt etc)—

(a) in sub-paragraph (1) after “this Chapter” insert “ and Part 5 of the Corporation Tax Act 2009 ”, and

(b) in sub-paragraph (3)—

(i) after “this Chapter”, in the first place where it occurs, insert “ and Part 5 of the Corporation Tax Act 2009 ”, and

(ii) after “this Chapter”, in the second place where it occurs, insert “ and that Part ”.

(13) Omit paragraph 18 (transitional for accrued income scheme).

(14) In paragraph 19 (deep discount securities)—

(a) omit sub-paragraphs (1) and (2),

(b) in sub-paragraphs (3A), (4), (5), (6), (7) and (8) for “this Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ”,

(c) omit sub-paragraph (10), and

(d) in sub-paragraph (11)(b) for “this Chapter is” substitute “ this Chapter was ”.

(15) In paragraph 20 (deep gain securities)—

(a) omit sub-paragraph (1),

(b) in sub-paragraphs (2A) and (3) for “this Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ”, and

(c) in sub-paragraph (5) for “this Chapter is” substitute “ this Chapter (as it had effect immediately before 1st April 2009) was ”.

(16) In paragraph 21 (convertible securities)—

(a) omit sub-paragraph (1), and

(b) in sub-paragraphs (2) and (4) for “this Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ”.

Broadcasting Act 1996 (c. 55) U.K.

445 U.K. The Broadcasting Act 1996 is amended as follows.

446 (1) Amend Schedule 7 (transfer schemes relating to BBC transmission networking: taxation provisions) as follows. U.K.

(2) In paragraph 11(2) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of the Corporation Tax Act 2009 ”.

(3) In paragraph 21—

(a) in sub-paragraph (1) for “Section 35 of the Taxes Act 1988 (charge on lease” substitute “ Section 222 of the Corporation Tax Act 2009 (lease ”,

(b) in sub-paragraph (2) for “Section 87 of the Taxes Act 1988 (taxable premiums)” substitute “ Sections 62 to 67 of the Corporation Tax Act 2009 (tenants occupying land for purposes of trade treated as incurring expenses) ” and for “that section to the amount chargeable” substitute “ those sections to the taxed receipt ”, and

(c) in sub-paragraph (3) for “Part II of the Taxes Act 1988” substitute “ Part 4 of the Corporation Tax Act 2009 (see section 291 of that Act) ”.

Finance Act 1997 (c. 16) U.K.

447 U.K. The Finance Act 1997 is amended as follows.

448 U.K. In Schedule 12 (leasing arrangements: finance leases and loans), in paragraph 11(11) for sub-paragraphs (a) and (b) substitute—

“(a) section 165 or 168 of ITTOIA 2005 or section 142 or 145 of the Corporation Tax Act 2009 (preparation and restoration expenditure in relation to waste disposal site), or

(b) section 170 of ITTOIA 2005 or section 147 of the Corporation Tax Act 2009 (cemeteries etc),”.

Finance (No. 2) Act 1997 (c. 58) U.K.

449 U.K. The Finance (No. 2) Act 1997 is amended as follows.

450 U.K. Omit section 40 (carry-back of loan relationship deficits).

Finance Act 1998 (c. 36) U.K.

451 U.K. The Finance Act 1998 is amended as follows.

452 U.K. Omit section 42 (computation of profits of trade, profession or vocation).

453 U.K. In section 46 (minor and consequential provisions about computations) omit subsections (1) and (2).

454 (1) Amend Schedule 18 (company tax returns, assessments and related matters) as follows. U.K.

(2) In paragraph 9(2) for “section 6(2) of the Taxes Act 1988” substitute “ section 3 of the Corporation Tax Act 2009 ”.

(3) In paragraph 10—

(a) omit sub-paragraphs (2B) and (3), and

(b) in sub-paragraph (5)—

(i) for “section 32(7) of the Finance Act 2006” substitute “ section 1182(7) of the Corporation Tax Act 2009 ”, and

(ii) for “section 32(8)(a)” substitute “ section 1182(8)(a) ”.

(4) In paragraph 13(3) in the definition of “trading stock” for “section 100(2) of the Taxes Act 1988” substitute “ section 163 of the Corporation Tax Act 2009 ”.

(5) In paragraph 26(1)(b) for the words from “section 12(5A)” to “Board” substitute “ section 11(3) of the Corporation Tax Act 2009 (power of officer of Revenue and Customs ”.

(6) In paragraph 52—

(a) in sub-paragraph (2)—

(i) in paragraph (ba), for “Schedule 20 to the Finance Act 2000” substitute “ Chapter 2 or 7 of Part 13 of the Corporation Tax Act 2009 ”,

(ii) in paragraph (bb), for “Schedule 22 to the Finance Act 2001” substitute “ Part 14 of the Corporation Tax Act 2009 ”,

(iii) omit paragraph (bc), and

(iv) in paragraph (bd) after “credit” insert “ under Part 15 of the Corporation Tax Act 2009 ”,

(b) omit sub-paragraph (4), and

(c) in sub-paragraph (5)—

(i) omit paragraph (ad), and

(ii) at the end, omit “, (ad)”.

(7) In paragraph 83A for “Schedule 20 to the Finance Act 2000” substitute “ Part 13 of the Corporation Tax Act 2009 ”.

(8) In paragraph 83F(1)—

(a) in paragraph (a), after “tax credit” insert “ under Chapter 2 or 7 of Part 13 of the Corporation Tax Act 2009 ”, and

(b) in paragraph (b), after “by it” insert “ under that Chapter ”.

(9) In paragraph 83G—

(a) in paragraph (a) for “paragraph 14 of Schedule 22 to the Finance Act 2001” substitute “ section 1151 of the Corporation Tax Act 2009 ”, and

(b) in paragraph (b) for “paragraph 24 of that Schedule” substitute “ section 1164 of that Act ”.

(10) Omit Part 9BA.

(11) Omit Part 9C.

(12) Omit paragraph 84 and the italic cross-heading before it.

Finance Act 1999 (c. 16) U.K.

455 U.K. The Finance Act 1999 is amended as follows.

456 U.K. Omit section 54 (tax treatment of reverse premiums).

457 U.K. Omit section 63 (treatment of transfer fees under existing contracts).

458 (1) Amend section 81 (acquisitions disregarded under insurance companies concession) as follows. U.K.

(2) In subsection (4)—

(a) omit paragraph (a), and

(b) in paragraph (b) for “paragraph 6(4)(a)” substitute “ paragraph 6(4) ”.

(3) In subsection (8) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of the Corporation Tax Act 2009 (see section 302(5)) ”.

(4) In subsection (9)—

(a) for “section 473 of the Taxes Act 1988” substitute “ section 129 of the Corporation Tax Act 2009 ”,

(b) for “the purposes of that Act” substitute “ the purpose of calculating the profits of a company's trade ”, and

(c) for “paragraph 12(2) of Schedule 9 to the Finance Act 1996” and “Chapter II of Part IV of that Act of 1996” substitute “ section 340(2) to (4) of the Corporation Tax Act 2009 ” and “ Part 5 of that Act ” respectively.

(5) In subsection (13) for “Schedule 22 to the Finance Act 2002” substitute “ Chapter 14 of Part 3 of the Corporation Tax Act 2009 ”.

459 U.K. Omit Schedule 6 (tax treatment of receipts by way of reverse premium).

Commonwealth Development Corporation Act 1999 (c. 20) U.K.

460 U.K. The Commonwealth Development Corporation Act 1999 is amended as follows.

461 (1) Amend paragraph 6 of Schedule 3 (tax) as follows. U.K.

(2) In sub-paragraph (2)—

(a) in paragraph (a) for “section 208 of the Income and Corporation Taxes Act 1988” substitute “ section 1285 of the Corporation Tax Act 2009 ”, and

(b) in paragraph (b) for “that Act” substitute “ the Income and Corporation Taxes Act 1988 ”.

(3) In sub-paragraph (3) for the words from “as income” to the end substitute “ as dividends of a non-UK resident company chargeable under Chapter 2 of Part 10 of the Corporation Tax Act 2009. ”

Finance Act 2000 (c. 17) U.K.

462 U.K. The Finance Act 2000 is amended as follows.

463 (1) Amend section 46 (exemption for small trades etc) as follows. U.K.

(2) For subsection (1)(b) substitute—

“(b) from corporation tax chargeable—

(i) under Part 3 of the Corporation Tax Act 2009 in respect of a trade carried on wholly or partly in the United Kingdom, or

(ii) under or by virtue of any provision to which section 834A of the Taxes Act 1988 (miscellaneous charges) applies,”.

(3) In subsection (2)(b) for “under Case VI of Schedule D” substitute “ under or by virtue of any provision to which section 834A of the Taxes Act 1988 applies ”.

(4) In subsection (2A)—

(a) for the words from “, 703” to “790” substitute “ or 776 ”, and

(b) omit paragraph (b).

(5) In subsection (6), in the definition of “income”, for paragraph (b) substitute—

“(b) any profits or gains or other income—

(i) which is chargeable to corporation tax under Part 3 of the Corporation Tax Act 2009 in respect of a trade carried on wholly or partly in the United Kingdom, or

(ii) which is chargeable to corporation tax under or by virtue of any provision to which section 834A of the Taxes Act 1988 applies,

and which (in either case) is not, apart from this section, exempted from corporation tax chargeable under or by virtue of that Part or provision.”

464 U.K. Omit section 50 (phasing out of relief for payments to trustees of profit sharing schemes).

465 U.K. Omit section 69(1) (which introduces Schedule 20).

466 U.K. Omit section 143(2) (power to provide incentives to use electronic communications).

467 U.K. In Schedule 12 (provision of services through an intermediary) omit paragraphs 17 and 18.

468 U.K. In Schedule 15 (the corporate venturing scheme) in paragraph 60(1) omit “under Case VI of Schedule D”.

469 U.K. Omit Schedule 20 (tax relief for expenditure on research and development).

470 (1) Amend Schedule 22 (tonnage tax) as follows. U.K.

(2) In paragraph 50(2)—

(a) in paragraph (a) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of the Corporation Tax Act 2009 ”, and

(b) in paragraph (c) for “under Schedule 26 to the Finance Act 2002 (derivative contracts)” substitute “ in accordance with Part 7 of the Corporation Tax Act 2009 (derivative contracts) ”.

(3) For paragraph 51(3) and (4) substitute—

“(3) For the purposes of this paragraph “income from investments” includes anything chargeable to tax under—

(a) Part 4 of the Corporation Tax Act 2009 (property income),

(b) section 299 of that Act (loan relationships: non-trading profits),

(c) Chapter 5 of Part 10 of that Act (distributions from unauthorised unit trusts), or

(d) Chapter 7 of that Part (annual payments not otherwise charged).”

(4) In paragraph 61(6) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of the Corporation Tax Act 2009 ”.

(5) In paragraph 62(6) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of the Corporation Tax Act 2009 ”.

(6) In paragraph 63(2)—

(a) in paragraph (a) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of the Corporation Tax Act 2009 ”,

(b) in paragraph (b) for “under Schedule 26 to the Finance Act 2002 (derivative contracts)” substitute “ in accordance with Part 7 of the Corporation Tax Act 2009 (derivative contracts) ”, and

(c) in paragraph (c) for “section 103(1A) of the Finance Act 1996” substitute “ section 475 of the Corporation Tax Act 2009 ”.

Transport Act 2000 (c. 38) U.K.

471 U.K. The Transport Act 2000 is amended as follows.

472 (1) Amend Schedule 7 (transfer schemes: tax) as follows. U.K.

(2) In paragraph 12(5) for “section 100 of the 1988 Act” substitute “ section 163 of the Corporation Tax Act 2009 ”.

(3) In paragraph 17—

(a) in sub-paragraph (2) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of the Corporation Tax Act 2009 ”, and

(b) in sub-paragraph (3) for “Chapter II of Part IV of the Finance Act 1996” and “that Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ” and “ that Part ” respectively.

473 (1) Amend Schedule 26 (transfers: tax) as follows. U.K.

(2) In paragraph 7—

(a) in sub-paragraph (2) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of the Corporation Tax Act 2009 ”, and

(b) in sub-paragraph (4) for “Chapter II of Part IV of the Finance Act 1996” and “that Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ” and “ that Part ” respectively.

(3) For paragraph 13(1) substitute—

“(1) Sub-paragraphs (2) to (4) apply if—

(a) the transferor ceased to carry on a trade by virtue of a relevant transfer taking effect, and

(b) on the taking effect of that transfer, the transferee began to carry on the trade.

This sub-paragraph is to be read with sub-paragraph (8).”

(4) In paragraph 17—

(a) in sub-paragraph (2) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of the Corporation Tax Act 2009 ”, and

(b) in sub-paragraph (3) for “Chapter II of Part IV of the Finance Act 1996” and “that Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ” and “ that Part ” respectively.

(5) In paragraph 29—

(a) in sub-paragraph (2) for “Chapter II of Part IV of the Finance Act 1996” substitute “ Part 5 of the Corporation Tax Act 2009 ”, and

(b) in sub-paragraph (3) for “Chapter II of Part IV of the Finance Act 1996” and “that Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ” and “ that Part ” respectively.

(6) In paragraph 35—

(a) in sub-paragraph (1) for “paragraph 11 of Schedule 9 to the Finance Act 1996” substitute “ section 444 of the Corporation Tax Act 2009 ”, and

(b) in sub-paragraph (2) for “Chapter II of Part IV of the Finance Act 1996” and “that Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ” and “ that Part ” respectively.

Capital Allowances Act 2001 (c. 2) U.K.

474 U.K. The Capital Allowances Act 2001 is amended as follows.

475 U.K. In section 2(4) (general means of giving effect to capital allowances) for “section 6 of ICTA” substitute “ Part 2 of CTA 2009 (see section 2(2) of that Act) ”.

476 U.K. In section 15(1)(f) (qualifying activities) for “section 55(2) of ICTA” substitute “ section 39(4) of CTA 2009 ”.

477 U.K. In section 16 (ordinary property business) omit “, or a Schedule A business,”.

478 (1) Amend section 17 (furnished holiday lettings) as follows. U.K.

(2) In subsection (1) omit “, or a Schedule A business,”.

(3) In subsection (3), in the second sentence for “has the meaning given by section 504 of ICTA” substitute “ has the same meaning as it has for the purposes of Chapter 6 of Part 4 of CTA 2009 (see section 265) ”.

479 (1) Amend section 18 (managing investments of a company with investment business) as follows. U.K.

(2) In subsection (1) for “section 75 of ICTA” substitute “ section 1219 of CTA 2009 ”.

(3) In subsection (2) for “section 130 of ICTA” substitute “ section 1218 of CTA 2009 ”.

480 U.K. In section 28(2B)(a) (thermal insulation of buildings) for “section 31ZA of ICTA” substitute “ section 251 of CTA 2009 ”.

481 U.K. In section 38 (production animals etc) for paragraphs (a) and (b) substitute—

“(a) animals or other creatures to which section 30 of ITTOIA 2005 or section 50 of CTA 2009 (animals kept for trade purposes) applies,

(b) animals or other creatures to which Chapter 8 of Part 2 of ITTOIA 2005 or Chapter 8 of Part 3 of CTA 2009 (herd basis rules) applies, or

(c) shares in animals or creatures such as are mentioned in paragraph (a) or (b).”

482 (1) Amend section 63 (cases in which disposal value is nil) as follows. U.K.

(2) In subsection (2)(c) for “section 84 of ICTA” substitute “ section 106 of CTA 2009 ”.

(3) In subsection (4) for “sections 83A(4) and 84(4) of ICTA” substitute “ section 108 of CTA 2009 ”.

483 U.K. In section 105(3)(a) (“profits chargeable to tax”) for “section 830(4) of ICTA” substitute “ section 1313(2) of CTA 2009 ”.

484 (1) Amend section 106 (the designated period) as follows. U.K.

(2) In subsection (3)(b) for the words from “each of which” to the end substitute “ each of which there was a change in the persons carrying on the qualifying activity in relation to which Condition A or Condition B was met. ”

(3) After subsection (3) insert—

“(3A) Condition A is that—

(a) at least one person who carried on the qualifying activity immediately before or immediately after the change was within the charge to income tax in respect of that activity, and

(b) at least one person who carried on the qualifying activity before the change continued to carry it on after the change.

(3B) Condition B is that—

(a) the qualifying activity was carried on in partnership both immediately before and immediately after the change,

(b) a company that was within the charge to corporation tax in respect of the activity carried it on immediately before or immediately after the change, and

(c) at least one company which carried the activity on before the change continued to carry it on after the change.”

485 (1) Amend section 108 (effect of disposal to connected person on overseas leasing pool) as follows. U.K.

(2) In subsection (1)(b) for the words from “is one” to “reconstructions)” substitute “does not occur on the occasion of a change in the persons carrying on the qualifying activity—

(i) which falls within section 343(1) of ICTA (company reconstructions without change of ownership), or

(ii) in relation to which Condition A or Condition B is met”.

(3) After subsection (1) insert—

“(1A) Condition A is that—

(a) at least one person who carried on the qualifying activity immediately before or immediately after the change was within the charge to income tax in respect of that activity, and

(b) at least one person who carried on the qualifying activity before the change continued to carry it on after the change.

(1B) Condition B is that—

(a) the qualifying activity was carried on in partnership both immediately before and immediately after the change,

(b) a company that was within the charge to corporation tax in respect of the activity carried it on immediately before or immediately after the change, and

(c) at least one company which carried the activity on before the change continued to carry it on after the change.”

486 (1) Amend section 112 (excess allowances: connected persons) as follows. U.K.

(2) In subsection (1) for paragraph (b) and the “and” immediately after that paragraph substitute—

“(b) the transaction was not effected (or, if more than one, none of the transactions was effected) on the occasion of a change in the persons carrying on the qualifying activity—

(i) which falls within section 343(1) of ICTA (company reconstructions without change of ownership), or

(ii) in relation to which Condition A or Condition B is met, and”.

(3) After subsection (1) insert—

“(1A) Condition A is that—

(a) at least one person who carried on the qualifying activity immediately before or immediately after the change was within the charge to income tax in respect of that activity, and

(b) at least one person who carried on the qualifying activity before the change continued to carry it on after the change.

(1B) Condition B is that—

(a) the qualifying activity was carried on in partnership both immediately before and immediately after the change,

(b) a company that was within the charge to corporation tax in respect of the activity carried it on immediately before or immediately after the change, and

(c) at least one company which carried the activity on before the change continued to carry it on after the change.”

487 (1) Amend section 115 (prohibited allowances: connected persons) as follows. U.K.

(2) In subsection (1) for paragraph (c) and the “and” immediately after that paragraph substitute—

“(c) the transaction was not effected (or, if more than one, none of the transactions was effected) on the occasion of a change in the persons carrying on the qualifying activity—

(i) which falls within section 343(1) of ICTA (company reconstructions without change of ownership), or

(ii) in relation to which Condition A or Condition B is met, and”.

(3) After subsection (1) insert—

“(1A) Condition A is that—

(a) at least one person who carried on the qualifying activity immediately before or immediately after the change was within the charge to income tax in respect of that activity, and

(b) at least one person who carried on the qualifying activity before the change continued to carry it on after the change.

(1B) Condition B is that—

(a) the qualifying activity was carried on in partnership both immediately before and immediately after the change,

(b) a company that was within the charge to corporation tax in respect of the activity carried it on immediately before or immediately after the change, and

(c) at least one company which carried the activity on before the change continued to carry it on after the change.”

488 (1) Amend section 122 (short-term leasing by buyer, lessee, etc) as follows. U.K.

(2) In subsection (2)(c) for the words from “on the occasion of each of which” to the end substitute “ on the occasion of each of which there was a change in the persons carrying on the qualifying activity in relation to which Condition A or B was met. ”

(3) After subsection (2) insert—

“(2A) Condition A is that—

(a) at least one person who carried on the qualifying activity immediately before or immediately after the change was within the charge to income tax in respect of that activity, and

(b) at least one person who carried on the qualifying activity before the change continued to carry it on after the change.

(2B) Condition B is that—

(a) the qualifying activity was carried on in partnership both immediately before and immediately after the change,

(b) a company that was within the charge to corporation tax in respect of the activity carried it on immediately before or immediately after the change, and

(c) at least one company which carried the activity on before the change continued to carry it on after the change.”

489 (1) Amend section 125 (other qualifying purposes) as follows. U.K.

(2) In subsection (3)(c) for the words from “on the occasion of each of which” to the end substitute “ on the occasion of each of which there was a change in the persons carrying on the qualifying activity in relation to which Condition A or B was met. ”

(3) After subsection (3) insert—

“(3A) Condition A is that—

(a) at least one person who carried on the qualifying activity immediately before or immediately after the change was within the charge to income tax in respect of that activity, and

(b) at least one person who carried on the qualifying activity before the change continued to carry it on after the change.

(3B) Condition B is that—

(a) the qualifying activity was carried on in partnership both immediately before and immediately after the change,

(b) a company which was within the charge to corporation tax in respect of the activity carried it on immediately before or immediately after the change, and

(c) at least one company which carried the activity on before the change continued to carry it on after the change.”

490 U.K. In section 252 (mines, transport undertakings etc) for “section 55(2) of ICTA” substitute “ section 39(4) of CTA 2009 ”.

491 (1) Amend section 253 (companies with investment business) as follows. U.K.

(2) In subsection (2) for “section 75(4) of ICTA” substitute “ section 1233 of CTA 2009 ”.

(3) In subsection (4) for “Case I of Schedule D” substitute “ Part 3 of CTA 2009 ”.

(4) In subsection (6) for “section 75(4) of ICTA” substitute “ section 1233 of CTA 2009 ”.

492 (1) Amend section 256 (different giving effect rules for different categories of business) as follows. U.K.

(2) In subsection (2)(b) for the words from “amount” to the end substitute “ company as receiving for the chargeable period in question an amount which is equal to the amount of the charges (or parts of charges) and to which the charge to corporation tax on income applies ”.

(3) In subsection (4) for “under Case VI of Schedule D” substitute “ chargeable under section 436A of ICTA ”.

493 U.K. In section 257(2)(a) (supplementary) for “Case I” substitute “ life assurance trade ”.

494 U.K. In section 260(8) (special leasing: corporation tax (excess allowance)) for “section 6 of ICTA (charge to corporation tax etc)” substitute “ Part 2 of CTA 2009 (see section 2(2) of that Act) ”.

495 (1) Amend section 263 (qualifying activities carried on in partnership) as follows. U.K.

(2) For subsection (1)(c) substitute—

“(c) if the qualifying activity is a trade or property business, the condition in subsection (1A) or (1B) (whichever is appropriate) is met.”

(3) For subsection (1A) substitute—

“(1A) For income tax purposes, the condition is that a person carrying on the trade or property business immediately before the change continues to carry it on after the change.

(1B) For corporation tax purposes, the condition is that a company carrying on the trade or property business in partnership immediately before the change continues to carry it on in partnership after the change.”

496 (1) Amend section 265 (successions: general) as follows. U.K.

(2) For subsection (1)(b) substitute—

“(b) if the qualifying activity is a trade or property business, the condition in subsection (1A) or (1B) (whichever is appropriate) is met.”

(3) For subsection (1A) substitute—

“(1A) For income tax purposes, the condition is that no person carrying on the trade or property business immediately before the succession continues to carry it on after the succession.

(1B) For corporation tax purposes, the condition is that no company carrying on the trade or property business in partnership immediately before the succession continues to carry it on in partnership after the succession.”

497 U.K. In section 282 (buildings outside the United Kingdom) for the words from “or that apply” to the end substitute “ or corporation tax purposes. ”

498 U.K. In section 291(3)(a) (supplementary provisions with respect to elections) for “section 38(1) to (4) and (6) of ICTA,” substitute “ sections 243 and 244 of CTA 2009, ”.

499 U.K. In section 326(1) (interpretation of section 325), in the definition of “premium” for paragraph (a) and the “or” immediately after it substitute—

“(a) an amount brought into account as a receipt in calculating the profits of a property business under sections 217 to 221 of CTA 2009 that is calculated by reference to the sum, or”.

500 U.K. In section 331(1)(b) (meaning of “capital value”) for sub-paragraph (i) and the “or” immediately after it substitute—

“(i) an amount brought into account as a receipt in calculating the profits of a property business under sections 217 to 221 of CTA 2009 that is calculated by reference to the sum, or”.

501 (1) Amend section 353 (lessors and licensors) as follows. U.K.

(2) In subsection (2) omit “, or a Schedule A business,”.

(3) In subsection (4) for “Schedule A business” substitute “ UK property business ”.

502 (1) Amend section 354 (buildings temporarily out of use) as follows. U.K.

(2) In subsection (3), in the words after paragraph (b)—

(a) for “section 105 of ICTA” substitute “ section 196 of CTA 2009 ”, and

(b) for “section 103 or 104(1) of ICTA” substitute “ Chapter 15 of Part 3 of CTA 2009 ”.

(3) In subsection (5) for “section 18 of ITTOIA 2005 or section 337(1) of ICTA” substitute “ section 577(2A) of this Act or section 18 of ITTOIA 2005 ”.

503 U.K. In section 390(1) (interpretation of section 389), in the definition of “premium” for paragraph (a) and the “or” immediately after it substitute—

“(a) an amount brought into account as a receipt in calculating the profits of a UK property business under sections 217 to 221 of CTA 2009 that is calculated by reference to the sum, or”.

504 (1) Amend section 392 (UK property business and Schedule A business) as follows. U.K.

(2) In subsection (2) omit “, or a Schedule A business,”.

(3) In subsection (2A)—

(a) omit the words from “is within” to “and he”, and

(b) for “treating him as if he had been carrying on” substitute “ treating the person as having carried on ”.

(4) Omit subsection (3).

(5) For the title substitute “ UK property businesses ”.

505 U.K. In section 393B(4) (meaning of “qualifying expenditure”) omit “or Schedule A business”.

506 U.K. In section 393J(3)(a) (entitlement to writing-down allowances) for “section 38(1) to (4) and (6) of ICTA,” substitute “ sections 243 and 244 of CTA 2009, ”.

507 (1) Amend section 393T (giving effect to allowances and charges) as follows. U.K.

(2) In subsection (2) omit “, or a Schedule A business,”.

(3) In subsection (2A)—

(a) for the words from “person” to “his” substitute “ person's ”,

(b) for “by him” substitute “ by the person ”, and

(c) for “treating him as if he had been carrying on” substitute “ treating the person as having carried on ”.

(4) Omit subsection (3).

508 (1) Amend section 406 (reduction where premium relief previously allowed) as follows. U.K.

(2) In subsection (1)(b) for “sections 87 and 87A of ICTA” substitute “ sections 62 to 67 of CTA 2009 ”.

(3) In subsection (2) for “sections 87 and 87A of ICTA” substitute “ sections 62 to 67 of CTA 2009 ”.

509 U.K. In section 454(1)(c) (qualifying expenditure) for “section 531(3)(a) of ICTA” substitute “ section 178 of CTA 2009 ”.

510 U.K. In section 455(4) (excluded expenditure) for “section 531(2) of ICTA” substitute “ section 178(3) of CTA 2009 ”.

511 U.K. In section 462(3) (disposal values) for “section 531(2) of ICTA” substitute “ section 178(2) of CTA 2009 ”.

512 U.K. In section 481(5)(b) (anti-avoidance: limit on qualifying expenditure) for “section 524 of ICTA” substitute “ section 912 of CTA 2009 ”.

513 U.K. In section 483(c) (meaning of “income from patents”) for “section 524 or 525 of ICTA” substitute “ section 912 or 918 of CTA 2009 ”.

514 U.K. In section 488(3)(a) (balancing allowances) for “section 18 of ITTOIA or section 337(1) of ICTA” substitute “ section 577(2A) of this Act or section 18 of ITTOIA 2005 ”.

515 (1) Amend section 529 (giving effect to allowances and charges) as follows. U.K.

(2) In subsection (1) omit “, or a Schedule A business,”.

(3) In subsection (1A)—

(a) omit the words from “is within” to “and he”, and

(b) for “treating him as if he had been carrying on” substitute “ treating the person as having carried on ”.

(4) Omit subsection (2).

516 U.K. In section 536(5)(a)(v) (contributions not made by public bodies and not eligible for tax relief) for “section 55(2) of ICTA” substitute “ section 39(5) of CTA 2009 ”.

517 U.K. In section 545(4) (investment assets) for “Case I of Schedule D” substitute “ section 35 of CTA 2009 (charge on trade profits) ”.

518 (1) Amend section 558 (effect of partnership changes) as follows. U.K.

(2) For subsection (1)(c) substitute—

“(c) the condition in subsection (1A) or (1B) (whichever is appropriate) is met.”

(3) After subsection (1) insert—

“(1A) For income tax purposes, the condition is that a person carrying on the relevant activity immediately before the change continues to carry it on after the change.

(1B) For corporation tax purposes, the condition is that a company carrying on the relevant activity in partnership immediately before the change continues to carry it on in partnership after the change.”

519 (1) Amend section 559 (effect of successions) as follows. U.K.

(2) For subsection (1)(b) substitute—

“(b) the condition in subsection (1A) or (1B) (whichever is appropriate) is met.”

(3) For subsection (1A) substitute—

“(1A) For income tax purposes, the condition is that no person carrying on the relevant activity immediately before the succession continues to carry it on after the succession.

(1B) For corporation tax purposes, the condition is that no company carrying on the relevant activity in partnership immediately before the succession continues to carry it on in partnership after the succession.”

520 (1) Amend section 577 (other definitions) as follows. U.K.

(2) In subsection (1), in the definition of “property business” omit “, a Schedule A business”.

(3) After subsection (2) insert—

“(2A) A person's ceasing to carry on a trade, property business, profession or vocation is treated for the purposes of this Act as the permanent discontinuance of the trade, property business, profession or vocation, whether or not it is in fact discontinued.

(2B) For income tax purposes, a change in the persons carrying on a trade, property business, profession or vocation is not treated as the permanent discontinuance of the trade, property business, profession or vocation if a person carrying it on immediately before the change continues to carry it on after the change.

(2C) For corporation tax purposes, a change in the persons carrying on a trade or property business is not treated as the permanent discontinuance of the trade or property business if a company carrying it on in partnership immediately before the change continues to carry it on in partnership after the change.”

521 (1) Amend Schedule A1 (first-year tax credits) as follows. U.K.

(2) In paragraph 5—

(a) in sub-paragraph (1) for “Schedule A business” substitute “ UK property business ”, and

(b) in sub-paragraph (2) for “(Schedule A losses)” substitute “ (UK property business losses) ”.

(3) In paragraph 7—

(a) in sub-paragraph (1)(a) for “Schedule A business” substitute “ UK property business ”, and

(b) in sub-paragraph (3) for “Schedule A business” substitute “ UK property business ”.

(4) In paragraph 8(2) for paragraph (a) substitute—

“(a) the sum of the amounts mentioned in section 1223(2) of CTA 2009, exceeds”.

(5) In paragraph 11(4) for paragraphs (a) to (d) substitute—

“(a) Chapter 2 or 7 of Part 13 of CTA 2009 (tax credits for expenditure on research and development or vaccine research etc),

(b) Chapter 3 of Part 14 of that Act (tax credits for remediation of contaminated land), and

(c) Chapter 3 of Part 15 of that Act (film tax credits).”

(6) In paragraph 12—

(a) in sub-paragraph (1) for “Schedule A business” substitute “ UK property business ”, and

(b) in sub-paragraph (2)(c) for “Part 3 of Schedule 22 to FA 2001” substitute “ Chapter 3 of Part 14 of CTA 2009 ”.

(7) In paragraph 14—

(a) in sub-paragraph (1)(a) for “Schedule A business” substitute “ UK property business ”,

(b) in sub-paragraph (4)(a) for “Part 3 of Schedule 22 to FA 2001” substitute “ Chapter 3 of Part 14 of CTA 2009 ”, and

(c) in sub-paragraph (6)(b) for “paragraph 4(4) of Schedule 11 to FA 1996” substitute “ section 391(3)(b) of CTA 2009 ”.

(8) In paragraph 15(3) for “section 75(9) of that Act” substitute “ section 1223 of CTA 2009 ”.

(9) In paragraph 16—

(a) in sub-paragraph (2)(a) for “Part 4 of Schedule 22 to FA 2001” substitute “ Chapter 4 of Part 14 of CTA 2009 ”, and

(b) in sub-paragraph (3)(b) for “paragraph 4(4) of Schedule 11 to FA 1996” substitute “ section 391(3)(b) of CTA 2009 ”.

(10) In paragraph 20—

(a) in sub-paragraph (b) for “section 75(9) of that Act (relief of expenses and charges against future profits)” substitute “ section 1223 of CTA 2009 (carrying expenses forward) ”,

(b) in sub-paragraph (c)—

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

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

(iii) for “that Act” substitute “ ICTA ”, and

(c) in sub-paragraph (d) for “that Act” substitute “ ICTA ”.

(11) In paragraph 21(1) for “Schedule A business” substitute “ UK property business ”.

522 (1) Amend Schedule 1 (abbreviations and defined expressions) as follows. U.K.

(2) In Part 1 at the end insert—

“CTA 2009

The Corporation Tax Act 2009”

(3) In Part 2—

(a) in the entry for “accounting period”, in the second column, for “section 12 of ICTA” substitute “ Chapter 2 of Part 2 of CTA 2009 ”,

(b) after the entry for “car (in Part 2)” insert—

“the charge to corporation tax on income

section 2(3) of CTA 2009 (as applied by section 834(1) of ICTA)”,

(c) in the entry for “overseas property business”, for the words in the second column substitute “ Chapter 2 of Part 3 of ITTOIA 2005 (as applied by section 989 of ITA 2007) and Chapter 2 of Part 4 of CTA 2009 (as applied by section 834B of ICTA) ”,

(d) omit the entry for “Schedule A business”, and

(e) in the entry for “UK property business”, in the second column, at the end insert “ and Chapter 2 of Part 4 of CTA 2009 (as applied by section 834B of ICTA) ”.

Finance Act 2001 (c. 9) U.K.

523 U.K. The Finance Act 2001 is amended as follows.

524 U.K. Omit section 70(1) and (2) (which introduces Schedule 22).

525 U.K. Omit Schedule 22 (remediation of contaminated land).

Finance Act 2002 (c. 23) U.K.

526 U.K. The Finance Act 2002 is amended as follows.

527 U.K. Omit section 53 (which introduces Schedule 12 to that Act).

528 U.K. Omit section 54 (which introduces Schedules 13 and 14 to that Act).

529 U.K. Omit section 55 (gifts of medical supplies and equipment).

530 U.K. Omit section 64 (adjustment on change of basis).

531 (1) Amend section 65 (postponement of change to mark to market in certain cases) as follows. U.K.

(2) In subsection (1) for “of Case I of Schedule D” substitute “ applicable for the purposes of section 35 of the Corporation Tax Act 2009 (charge on trade profits) ”.

(3) In subsection (2)(b) for “section 42 of the Finance Act 1998 (c. 36) ” substitute “ section 46 of the Corporation Tax Act 2009 ”.

532 U.K. Omit section 71 (accounting method where rate of interest etc is reset).

533 U.K. In section 81(3)(b) (transitional provision) for “Chapter 2 of Part 4 of the Finance Act 1996” substitute “ Part 5 of the Corporation Tax Act 2009 ”.

534 U.K. In section 83 (derivative contracts) omit subsections (1)(a) and (2).

535 U.K. Omit section 84(1) (gains and losses from intangible fixed assets of company).

536 U.K. Omit Schedule 12 (tax relief for expenditure on research and development).

537 U.K. Omit Schedule 13 (tax relief for expenditure on vaccine research etc).

538 U.K. In Schedule 16 (community investment tax relief) in paragraph 27(4) omit “under Case VI of Schedule D”.

539 (1) Amend Schedule 18 (relief for community amateur sports clubs) as follows. U.K.

(2) In paragraph 4(4) for the words from “means” to the end substitute “profits that (apart from this paragraph) are chargeable under Chapter 2 of Part 3 of CTA 2009 and are—

(a) means profits of a trade carried on wholly or partly in the United Kingdom, or

(b) profits of an activity other than a trade.”

(3) In paragraph 5(3)(a) for the words from “on” to the end substitute “ which (apart from this paragraph) would be required to be brought into account under Part 5 of the Corporation Tax Act 2009 (loan relationships) as a non-trading credit of the club; ”.

(4) Omit paragraph 9(3)(a).

540 U.K. Omit Schedule 22 (computation of profits: adjustment on change of basis).

541 (1) Amend Schedule 23 (exchange gains and losses from loan relationships etc) as follows. U.K.

(2) Omit paragraph 25 (anti-avoidance: change of accounting period).

(3) In paragraph 26 (deferred foreign exchange gains)—

(a) in sub-paragraph (2)—

(i) in paragraph (a) for “Chapter 2 of Part 4 of the Finance Act 1996 (c. 8)” substitute “ Part 5 of the Corporation Tax Act 2009 ”,

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

(iii) in paragraph (c) for “section 82(2) of the Finance Act 1996” substitute “ section 297(2) of the Corporation Tax Act 2009 ”, and

(b) in sub-paragraph (5) for “subsection (8) of section 84A of the Finance Act 1996” and “subsection (9)” substitute “ section 328(5) of the Corporation Tax Act 2009 ” and “ subsection (6) ” respectively.

542 U.K. In Schedule 25 (loan relationships) omit paragraphs 61 to 64.

543 U.K. Omit Schedule 26 (derivative contracts).

544 (1) Schedule 28 (derivative contracts: transitional provisions etc) is amended as follows. U.K.

(2) Omit paragraph 1 (anti-avoidance: change of accounting period).

(3) After paragraph 2(4) (qualifying contracts to which company ceases to be party before commencement day) insert—

“(4A) In relation to a subsequent accounting period ending on or after 1 April 2009, the reference in sub-paragraph (4) to Schedule 26 is to be read as a reference to Part 7 of the Corporation Tax Act 2009.”

(4) Omit paragraph 3 (qualifying contracts which become derivative contracts).

(5) After paragraph 4(7) (contracts which became derivative contracts: chargeable assets) insert—

“(7A) In relation to an accounting period ending on or after 1 April 2009, the reference in sub-paragraph (7) to Chapter 2 of Part 4 of the Finance Act 1996 is to be read as a reference to Part 5 of the Corporation Tax Act 2009.”

(6) After paragraph 5(9) (contracts: election to treat as two assets) insert—

“(9A) In relation to an accounting period ending on or after 1 April 2009, the reference in sub-paragraph (9) to Chapter 2 of Part 4 of the Finance Act 1996 is to be read as a reference to Part 5 of the Corporation Tax Act 2009.”

(7) After paragraph 6(8) (contracts which become derivative contracts: contracts within Schedule 5AA to ICTA) insert—

“(8A) In relation to an accounting period ending on or after 1 April 2009—

(a) the reference in sub-paragraph (7) to paragraph 14(3) of Schedule 26 is to be read as a reference to section 574 of the Corporation Tax Act 2009,

(b) the reference in that sub-paragraph to Chapter 2 of Part 4 of the Finance Act 1996 is to be read as a reference to Part 5 of the Corporation Tax Act 2009, and

(c) the references in sub-paragraph (8) to Schedule 26 are to be read as references to Part 7 of the Corporation Tax Act 2009.”

545 U.K. Omit Schedule 29 (gains and losses of a company from intangible fixed assets).

Proceeds of Crime Act 2002 (c. 29) U.K.

546 U.K. The Proceeds of Crime Act 2002 is amended as follows.

547 (1) Amend Schedule 10 (tax) as follows. U.K.

(2) In paragraph 9—

(a) in sub-paragraph (1) for “section 84” to “that Act)” substitute “ Part 5 of the Corporation Tax Act 2009 (loan relationships) ”, and

(b) in sub-paragraph (2) for the words “that Chapter” substitute “ that Part ”.

(3) In paragraph 11—

(a) in sub-paragraph (3) for the words from “section 100” to the end substitute “ section 173 of ITTOIA 2005 or section 162 of the Corporation Tax Act 2009 (valuation of trading stock on cessation). ”, and

(b) in sub-paragraph (4) for the words from “section 100” to the end substitute “ section 174 of ITTOIA 2005 or (as the case may be) section 163 of the Corporation Tax Act 2009. ”

Income Tax (Earnings and Pensions) Act 2003 (c. 1) U.K.

548 U.K. The Income Tax (Earnings and Pensions) Act 2003 is amended as follows.

549 U.K. In section 61(1) (interpretation) in the definition of “business” for “or Schedule A business” substitute “ within the meaning of Chapter 2 of Part 3 of ITTOIA 2005 or Chapter 2 of Part 4 of CTA 2009 ”.

550 U.K. In section 178(d) (exception for loans where interest qualifies for tax relief) for “, or a Schedule A business,” substitute “ (within the meaning of Chapter 2 of Part 3 of ITTOIA 2005 or Chapter 2 of Part 4 of CTA 2009) ”.

551 U.K. In section 180(5)(d) (threshold for benefit of loan to be treated as earnings) for “, or a Schedule A business,” substitute “ (within the meaning of Chapter 2 of Part 3 of ITTOIA 2005 or Chapter 2 of Part 4 of CTA 2009) ”.

552 (1) Amend section 357 (business entertainment and gifts: exception where employer's expenses disallowed) as follows. U.K.

(2) In subsection (2) for “section 577 of ICTA” substitute “ section 1298 of CTA 2009 ”.

(3) In subsection (3) for “that section” substitute “ section 1298 of CTA 2009 ”.

553 U.K. In section 420(1)(h) (meaning of securities etc) at the end insert “ or section 507 of CTA 2009 (investment bond arrangements) ”.

554 (1) Amend section 515 (which refers to other provisions which deal with share incentive plans) as follows. U.K.

(2) Omit subsection (1).

(3) In subsection (2)—

(a) omit the “and” immediately after paragraph (c), and

(b) after paragraph (d) insert “, and

(e) Chapter 1 of Part 11 of CTA 2009 (share incentive plans)”.

555 U.K. In section 702(5B) (which sets out what shares are corporation tax deductible) for “Schedule 23 to the Finance Act 2003” substitute “ Part 12 of CTA 2009 ”.

556 U.K. In Schedule 1 (abbreviations and defined expressions)—

(a) in Part 1 at the end insert—

“CTA 2009

The Corporation Tax Act 2009”, and

(b) in Part 2 omit the entries for “Schedule A business” and “UK property business”.

557 U.K. In Schedule 2 (approved share incentive plans), in paragraph 85(1)(c), for “paragraph 11 of Schedule 4AA to ICTA” substitute “ section 998 of CTA 2009 ”.

Finance Act 2003 (c. 14) U.K.

558 U.K. The Finance Act 2003 is amended as follows.

559 U.K. Omit section 141 (corporation tax for employee share acquisitions).

560 U.K. Omit section 143 (restriction of deductions for employee benefit contributions).

561 U.K. In section 148 (meaning of “permanent establishment”)—

(a) in subsection (5A)—

(i) for “as defined by Chapter 5 of Part 2 of the Finance Act 2005” substitute “ within section 47(6) or (7), 47A(5), 48B(1) or 49A(2) of the Finance Act 2005 or section 511, 512 or 513(2) or (3) of the Corporation Tax Act 2009 ”, and

(ii) for “the arrangements falling within that section” substitute “ the alternative finance arrangements in question ”, and

(b) omit subsection (5B).

562 (1) Amend section 150 (non-resident companies: assessment, collection and recovery of corporation tax) as follows. U.K.

(2) In subsection (2) for “section 11(2A) of the Taxes Act 1988” substitute “ section 19 of the Corporation Tax Act 2009 ”.

(3) In subsection (7) omit the words from “; and” to the end.

(4) After subsection (7) insert—

“(7A) In this section references to carrying on a trade include holding an office.”

563 U.K. In section 152(2) (non-resident companies: transactions carried out through broker, investment manager or Lloyd's agent) for “section 11AA of the Taxes Act 1988” substitute “ Chapter 4 of Part 2 of the Corporation Tax Act 2009 ”.

564 U.K. After section 177(4) (currency contracts and currency options) insert—

“(4A) In relation to a subsequent accounting period ending on or after 1 April 2009, the reference in subsection (4)(c) to Schedule 26 is to be read as a reference to Part 7 of the Corporation Tax Act 2009.”

565 U.K. In section 195(9)(b) (companies acquiring their own shares) for the words from “in accordance with” to the end substitute “ under Chapter 2 of Part 3 of the Corporation Tax Act 2009 ”.

566 U.K. Omit Schedule 23 (corporation tax relief for employee share acquisitions).

567 U.K. Omit Schedule 24 (restriction of deductions for employee benefit contributions).

568 U.K. In paragraph 5A(2) of Schedule 26 (non-resident companies: transactions through broker, investment manager or Lloyd's agent) for “section 11AA of the Taxes Act 1988” substitute “ Chapter 4 of Part 2 of the Corporation Tax Act 2009 ”.

Finance Act 2004 (c. 12) U.K.

569 U.K. The Finance Act 2004 is amended as follows.

570 U.K. In section 71 (collection and recovery of sums to be deducted) omit subsection (3)(b) and the “and” immediately before it.

F9 571 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F9 Sch. 1 para. 571 omitted (retrospective and with effect in accordance with Sch. 24 paras. 12, 13-16 of the commencing Act) by virtue of Finance Act 2009 (c. 10), Sch. 24 paras. 9(f), 12

572 (1) Amend section 131 (companies in partnership) as follows. U.K.

(2) In subsection (4) for the words from “annual” to the end substitute “an amount—

“(a) which is equal to the chargeable amount, and

(b) to which the charge to corporation tax on income applies.”

(3) In subsection (10) for “section 91H or 91I of the Finance Act 1996” substitute “ Chapter 8 of Part 6 of the Corporation Tax Act 2009 (returns from partnerships) ”.

573 (1) Amend section 196 (relief for employers in respect of contributions paid) as follows. U.K.

(2) In subsection (2) for “(trading income) or Case I or II of Schedule D” substitute “ or Part 3 of CTA 2009 (trading income) ”.

(3) In subsection (3) for “section 75 of ICTA” substitute “ Chapter 2 of Part 16 of CTA 2009 ”.

574 U.K. In section 196A(4) (power to restrict relief)—

(a) in paragraph (a) for “(trading income) or Case I or II of Schedule D” substitute “ or Part 3 of CTA 2009 (trading income) ”, and

(b) in paragraph (b) for “section 75 of ICTA” substitute “ section 1219 of CTA 2009 ”.

575 U.K. In section 197(10) (spreading of relief)—

(a) in paragraph (a), for “(trading income) or Case I or II of Schedule D,” substitute “ or Part 3 of CTA 2009 (trading income), ” and

(b) in paragraph (b) for the words from “section 75” to the end substitute “ section 76 of ICTA (expenses of insurance companies) or Chapter 2 of Part 16 of CTA 2009 (expenses of management: companies with investment business), an accounting period. ”

576 U.K. In section 199A(10) (indirect contributions)—

(a) in paragraph (a) for “(trading income) or Case I or II of Schedule D” substitute “ or Part 3 of CTA 2009 (trading income) ”, and

(b) in paragraph (b) for “section 75 of ICTA” substitute “ Chapter 2 of Part 16 of CTA 2009 ”.

577 U.K. In section 200 (no other relief for employers in respect of contributions)—

(a) in paragraph (a) for “(trading income) or Case I or II of Schedule D” substitute “ or Part 3 of CTA 2009 (trading income) ”, and

(b) in paragraph (b) for “section 75 of ICTA” substitute “ Chapter 2 of Part 16 of CTA 2009 ”.

578 (1) Amend section 246 (restriction of deduction for non-contributory provision) as follows. U.K.

(2) In subsection (2)—

(a) in paragraph (a) for “(trading income) or Case I or II of Schedule D” substitute “ or Part 3 of CTA 2009 (trading income) ”, and

(b) in paragraph (b) for “section 75 of ICTA” substitute “ Chapter 2 of Part 16 of CTA 2009 ”.

(3) In subsection (3)—

(a) in paragraph (a) for “(trading income) or Case I or II of Schedule D,” substitute “ or Part 3 of CTA 2009 (trading income), ” and

(b) in paragraph (b) for “of section 75 or 76 of ICTA in relation to the employer,” substitute “ in relation to the employer of section 76 of ICTA or Chapter 2 of Part 16 of CTA 2009, ”.

579 U.K. In section 246A(4) (case where no relief for provision by an employer)—

(a) in paragraph (a) for “(trading income) or Case I or II of Schedule D” substitute “ or Part 3 of CTA 2009 (trading income) ”, and

(b) in paragraph (b) for “section 75 of ICTA” substitute “ Chapter 2 of Part 16 of CTA 2009 ”.

580 U.K. In section 280(1) (abbreviations and general index)—

(a) omit the “and” immediately after the entry for “ITTOIA 2005”, and

(b) after the entry for “ITA 2007” insert “, and

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

581 (1) Amend Schedule 26 (offshore funds) as follows. U.K.

(2) In paragraph 1(6) for “Chapter 2 of Part 4 of the Finance Act 1996” substitute “ Part 5 of the Corporation Tax Act 2009 ”.

(3) In paragraph 2(6) in the definition of “derivative contract” for “Schedule 26 to the Finance Act 2002” substitute “ Part 7 of the Corporation Tax Act 2009 ”.

Energy Act 2004 (c. 20) U.K.

582 U.K. The Energy Act 2004 is amended as follows.

583 (1) Amend section 27 (tax exemption for NDA activities) as follows. U.K.

(2) In subsection (8)—

(a) in the definition of “trading income”—

(i) in paragraph (a), after “trade” insert “ carried on wholly or partly in the United Kingdom ”, and

(ii) in paragraph (b) for “Case I of Schedule D” substitute “ Chapter 2 of Part 3 of the Corporation Tax Act 2009 ”, and

(b) in the definition of “trading losses”—

(i) after “trade” insert “ carried on wholly or partly in the United Kingdom ”, and

(ii) for “Case I of Schedule D” substitute “ Chapter 2 of Part 3 of the Corporation Tax Act 2009 ”.

(3) In subsection (9)—

(a) in paragraph (a) for “Chapter 2 of Part 4 of the Finance Act 1996 (c. 8)” substitute “ Part 5 of the Corporation Tax Act 2009 ”, and

(b) in paragraph (b) for “under Schedule 26 to the Finance Act 2002 (c. 23) (derivative contracts)” substitute “ in accordance with Part 7 of the Corporation Tax Act 2009 (derivative contracts) ”.

584 (1) Amend section 28 (taxation of activities of the Nuclear Decommissioning Authority chargeable under Case VI of Schedule D) as follows. U.K.

(2) In subsection (1)—

(a) in paragraph (a) for “under Case VI of Schedule D” substitute “ under or by virtue of any provision to which section 834A of the Income and Corporation Taxes Act 1988 (miscellaneous charges) applies ”, and

(b) in the words after paragraph (b) for “Case I of Schedule D” substitute “ Chapter 2 of Part 3 of the Corporation Tax Act 2009 ”.

(3) In subsection (2)(b) for the words from “under” to the end substitute “ under or by virtue of a provision to which section 834A of the Income and Corporation Taxes Act 1988 applies, other than section 979 of the Corporation Tax Act 2009 (income not otherwise charged). ”

(4) In the title for “Case VI of Schedule D” substitute “ miscellaneous provisions ”.

585 U.K. In section 44(2) (extinguishment of BNFL losses for tax purposes)—

(a) in paragraph (b) for “under Case VI of Schedule D” substitute “ under or by virtue of any provision to which section 834A of the Income and Corporation Taxes Act 1988 (miscellaneous charges) applies ”,

(b) in paragraph (c) for “section 75(9) of the Income and Corporation Taxes Act 1988” substitute “ section 1223 of the Corporation Tax Act 2009 (carrying forward expenses of management and other amounts) ”,

(c) in paragraph (d) for “Schedule A losses” and “that Act” substitute “ UK property business losses ” and “ the Income and Corporation Taxes Act 1988 ” respectively, and

(d) in paragraph (h) for “subsection (1) of section 83 of the Finance Act 1996 (c. 8)” and “subsection (3A) of that section” substitute “ section 456(1) of the Corporation Tax Act 2009 ” and “ section 457(1) of that Act ” respectively.

586 (1) Amend Schedule 9 (taxation provisions relating to nuclear transfer schemes) as follows. U.K.

(2) In paragraph 11—

(a) in sub-paragraph (2) for “Chapter 2 of Part 4 of the Finance Act 1996 (c. 8)” substitute “ Part 5 of the Corporation Tax Act 2009 ”, and

(b) in sub-paragraph (3) for “Chapter 2 of Part 4 of the Finance Act 1996” and “that Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ” and “ that Part ” respectively.

(3) In paragraph 12—

(a) in sub-paragraph (2) for “Schedule 26 to the Finance Act 2002 (c. 23)” substitute “ Part 7 of the Corporation Tax Act 2009 ”, and

(b) in sub-paragraph (3)—

(i) for “Schedule 26 to the Finance Act 2002” substitute “ Part 7 of the Corporation Tax Act 2009 ”, and

(ii) for “that Schedule” substitute “ that Part ”.

(4) In paragraph 15(4), in the definition of “relevant trading profits and losses” for the words from “under” to the end substitute “ under Part 3 of the Corporation Tax Act 2009 in respect of the trade or part of a trade in question for periods in which the trade was carried on wholly or partly in the United Kingdom. ”

(5) In paragraph 23—

(a) in sub-paragraph (2) for “Chapter 2 of Part 4 of the Finance Act 1996 (c. 8)” substitute “ Part 5 of the Corporation Tax Act 2009 ”, and

(b) in sub-paragraph (3) for “Chapter 2 of Part 4 of the Finance Act 1996 (c. 8)” and “that Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ” and “ that Part ” respectively.

(6) In paragraph 24(2) for “Schedule 26 to the Finance Act 2002 (c. 23)” substitute “ Part 7 of the Corporation Tax Act 2009 ”.

(7) In paragraph 24(3)—

(a) for “Schedule 26 to the Finance Act 2002” substitute “ Part 7 of the Corporation Tax Act 2009 ”, and

(b) for “that Schedule” substitute “ that Part ”.

(8) In paragraph 27(4), in the definition of “relevant trading profits and losses” for the words from “under” to the end substitute “ under Part 3 of the Corporation Tax Act 2009 in respect of the trade or part of a trade in question for periods in which the trade was carried on wholly or partly in the United Kingdom. ”

(9) In paragraph 33—

(a) in paragraph (a) for “Chapter 2 of Part 4 of the Finance Act 1996 (c. 8)” substitute “ Part 5 of the Corporation Tax Act 2009 ”, and

(b) in paragraph (b) for “Schedule 26 to the Finance Act 2002 (c. 23)” substitute “ Part 7 of the Corporation Tax Act 2009 ”.

Income Tax (Trading and Other Income) Act 2005 (c. 5) U.K.

587 U.K. The Income Tax (Trading and Other Income) Act 2005 is amended as follows.

588 U.K. In section 22(2)(b) (payments for wayleaves) for “would otherwise be brought into account in calculating the profits” substitute “ incurred by the trader in respect of the wayleave would otherwise be brought into account in calculating profits ”.

589 (1) Amend section 48 (car or motor cycle hire) as follows. U.K.

(2) In subsection (3) for “the deduction is reduced as a result of subsection (2)” substitute “ a deduction is reduced as a result of subsection (2), or a corresponding provision, ”.

(3) In subsection (4)(a) omit “under section 97 (debts incurred and later released)”.

(4) After subsection (4) insert—

“(4A) In this section “corresponding provision” means—

(a) section 56(2) of CTA 2009 (car or motor cycle hire: trade profits and property income),

(b) section 1251(2) of CTA 2009 (car or motor cycle hire: expenses of management), or

(c) section 76ZN(2) of ICTA (car or motor cycle hire: expenses of insurance companies).”

590 U.K. In section 49(2)(b) (car or motor cycle hire: supplementary) after “the car” insert “ or motor cycle ”.

591 U.K. In section 60(6) (tenants under taxed leases: introduction) after “288” insert “ below or section 228 of CTA 2009 ”.

592 (1) Amend section 64 (restriction on section 61 expenses: lease premium receipts) as follows. U.K.

(2) For subsection (1) substitute—

“(1) This section applies if a lease has been granted out of the taxed lease and—

(a) in calculating the amount of a receipt of a property business under Chapter 4 of Part 3 (profits of property businesses: lease premiums etc) in respect of the lease, there is a reduction under section 288 (the additional calculation rule) by reference to the taxed receipt, or

(b) in calculating the amount of a receipt of a property business under Chapter 4 of Part 4 of CTA 2009 (profits of a property business: lease premiums etc) in respect of the lease, there is a reduction under section 228 of that Act (the additional calculation rule) by reference to the taxed receipt.

In this section and sections 65 and 67 the receipt that is so reduced is referred to as a “lease premium receipt”.”

(3) In subsection (6) after “288” insert “ below or section 228 of CTA 2009 ”.

593 U.K. In section 65(1)(a) (restrictions on section 61 expenses: lease of part of premises) for “the conditions in section 64(1)(a) and (b) are met” substitute “ section 64 applies ”.

594 U.K. In the title of section 66 (corporation tax receipts treated as taxed receipts) after “tax receipts” insert “ under ICTA ”.

595 (1) Amend section 67 (restrictions on section 61 expenses: corporation tax receipts) as follows. U.K.

(2) In subsection (3)(a), after “2005” insert “ but before 1st April 2009 ”.

(3) In the title after “receipts” insert “ under ICTA ”.

596 (1) Amend section 71 (educational establishments) as follows. U.K.

(2) In subsection (3)—

(a) in paragraph (a) for “education or library board” substitute “ education and library board ”, and

(b) in paragraph (b) for “or a controlled, maintained, grant-maintained integrated, controlled integrated, voluntary or” substitute “ , a grant-aided school or an ”.

597 U.K. Omit section 79(2) (additional payments: change in persons carrying on the trade).

598 U.K. After section 79 insert—

“79A Additional payments: change in the persons carrying on the trade

(1) This section deals with the application of section 79 in circumstances where there is a change in the persons carrying on the trade.

(2) The employer is treated for the purposes of section 79 as permanently ceasing to carry on the trade unless a person carrying on the trade immediately before the change continues to carry it on after the change.”

599 U.K. In section 80(2) (payments made by the Government) for “79” substitute “ 79A ”.

600 U.K. In section 88(6)(b) (payments to research associations, universities etc) before “what” insert “ to ”.

601 (1) Amend section 155 (levies and repayments under FISMA 2000) as follows. U.K.

(2) In subsection (1) omit the words from “carried” to the end.

(3) For subsection (2) substitute—

“(2) A deduction is allowed for any sum—

(a) spent by the person carrying on the trade in paying a levy, or

(b) paid by that person as a result of an award of costs under costs rules,

so far as it is not otherwise allowable.”

(4) In subsection (3) after “person” insert “ carrying on the trade ”.

(5) After subsection (3) insert—

“(3A) For the purposes of this section “costs rules” means—

(a) rules made under section 230 of FISMA 2000, or

(b) provision relating to costs contained in standard terms fixed under paragraph 18 of Schedule 17 to FISMA 2000.”

(6) In subsection (4)(e) for the words from “(other” to the end substitute “ (other than a sum paid as a result of an award of costs under costs rules) ”.

602 U.K. In section 158(1)(d) (lease premiums etc: reduction of receipts) for “term” substitute “ terms ”.

603 U.K. In section 170(3)(b) (deduction for capital expenditure) for “section 91(1)(b) of ICTA” substitute “ section 147(2)(b) of CTA 2009 ” and for “section 91(1)(a) of ICTA substitute “ section 147(2)(a) of CTA 2009 ”.

604 U.K. In section 171(2)(d) (allocation of ancillary capital expenditure) for “section 91(1)(b) of ICTA,” substitute “ section 147(2)(b) of CTA 2009 ”.

605 U.K. In section 175(2) (basis of valuation of trading stock)—

(a) in paragraph (a) after “trade” insert “ , profession or vocation ”, and

(b) in paragraph (b) after “trade” insert “ , profession or vocation ”.

606 U.K. In section 176(1)(a) (sale basis of valuation: sale to unconnected person) after “trade”, in both places where it occurs, insert “ , profession or vocation ”.

607 U.K. In section 177(1)(a) (sale basis of valuation: sale to connected person) after “trade”, in both places where it occurs, insert “ , profession or vocation ”.

608 U.K. In section 178(1)(a) (sale basis of valuation: election by connected persons) after “trade”, in both places where it occurs, insert “ , profession or vocation ”.

609 (1) Amend section 180 (cost to buyer of stock valued on sale basis of valuation) as follows. U.K.

(2) In subsection (1) after “trade” insert “ , profession or vocation ”.

(3) In subsection (2)(b) for “section 100(1A) to (1C) of ICTA” substitute “ section 164(3) or sections 165 to 167 of CTA 2009 ”.

610 U.K. In section 184(1) (basis of valuation of work in progress)—

(a) in paragraph (a) after “a” insert “ trade, ” and

(b) in paragraph (b) after “that” insert “ trade, ”.

611 U.K. In section 194(7) (disposal of know-how as part of disposal of all or part of trade)—

(a) in paragraph (a) for “subsection (3) of section 531 of ICTA” substitute “ section 178 of CTA 2009 ”, and

(b) for “that subsection”, in both places where it occurs, substitute “ that section ”.

612 U.K. In section 246(2) (basic meaning of “post-cessation receipt”) for the words from “the occurrence” to the end substitute “ a reference to a company ceasing to be within the charge to corporation tax in respect of a trade. ”

613 U.K. In section 249(3) (debts released after cessation) for the words from “the occurrence” to the end substitute “ a reference to a company ceasing to be within the charge to corporation tax in respect of a trade. ”

614 U.K. In section 276(3) (introduction to Chapter 4 of Part 3) for “term” substitute “ terms ”.

615 U.K. In section 279(3) for “or of” substitute “ of or ”.

616 U.K. In the title of section 281 (sums payable for variation or waiver of term of lease) for “term” substitute “ terms ”.

617 (1) Amend section 287 (circumstances in which additional calculation rule applies) as follows. U.K.

(2) In subsection (1) for “term” substitute “ terms ”.

(3) In subsection (4)—

(a) omit the “or” immediately before paragraph (b),

(b) in paragraph (b) for “additional calculation rule” substitute “ rule in section 288 (the additional calculation rule) ”,

(c) after paragraph (b) insert—

“(c) there is a receipt under any of sections 217 to 222 of CTA 2009 (receipts in respect of lease premiums, sums payable instead of rent, for surrender of lease and for variation or waiver of terms of lease and assignments) in respect of the lease, or

(d) there would be such a receipt, but for the operation of the rule in section 228 of that Act (the additional calculation rule) in the calculation of its amount.”, and

(d) in the second sentence for “such a receipt” substitute “ a receipt falling within paragraph (a), (b), (c) or (d) ”.

618 (1) Amend section 288 (the additional calculation rule) as follows. U.K.

(2) In subsection (4)—

(a) for “282,” substitute “ 282 above, or in section 217, 219, 220, 221 or 222 of CTA 2009, ”, and

(b) after “section 290(2) to (4)” insert “ above ”.

(3) In subsection (6)—

(a) omit the “and” immediately before paragraph (d), and

(b) after paragraph (d) insert “, and

(e) in the case of a receipt under Chapter 4 of Part 4 of CTA 2009 (profits of property businesses: lease premiums etc), its receipt period within the meaning of that Chapter (see section 228(6) of that Act).”

619 (1) Amend section 290 (meaning of “unused amount” and “unreduced amount”) as follows. U.K.

(2) In subsection (2) for the words from “formula” to the end substitute “formula in—

(a) section 277, 279, 280, 281 or 282 above, or

(b) section 217, 219, 220, 221 or 222 of CTA 2009 (corporation tax provisions corresponding to those listed in paragraph (a)).”

(3) For subsection (3) substitute—

“(3) Subsection (4) applies—

(a) to a taxed receipt under section 277 (lease premiums) as a result of section 278 (amount treated as lease premium where work required), and

(b) to a taxed receipt under section 217 of CTA 2009 (lease premiums) as a result of section 218 of that Act (amount treated as lease premium where work required).”

(4) In subsection (5)—

(a) in paragraph (a) after “288” insert “ above or section 228 of CTA 2009 (the additional calculation rule) ”,

(b) in paragraph (b) after “61” insert “ above or section 63 of CTA 2009 ”, and

(c) in paragraph (c) after “292” insert “ below or section 232 of CTA 2009 ”.

(5) In subsection (6)—

(a) after “288” insert “ above or section 228 of CTA 2009 ”, and

(b) for “that section” substitute “ the section concerned ”.

620 (1) Amend section 293 (restrictions on section 292 expenses: the additional calculation rule) as follows. U.K.

(2) For subsection (1) substitute—

“(1) This section applies if—

(a) in calculating the amount of a receipt under this Chapter there is a reduction under section 288 (the additional calculation rule) by reference to a taxed receipt, or

(b) in calculating the amount of a receipt under Chapter 4 of Part 4 of CTA 2009 (profits of a property business: lease premiums etc) there is a reduction under section 228 of that Act (the additional calculation rule) by reference to a taxed receipt.

The receipt that is so reduced is referred to in this section as the “lease premium receipt”.”

(3) In subsection (6) after “288” insert “ above or section 228 of CTA 2009 ”.

621 U.K. For section 294(1)(c) (restriction on section 292 expenses: lease of part of premises) substitute—

“(c) the condition in subsection (1A) is met.

(1A) The condition is that—

(a) in calculating the amount of a receipt under any of sections 277 to 281 (receipts in respect of lease premiums or sums payable instead of rent, for surrender of lease or for variation or waiver of terms of lease) in respect of the lease, there is a reduction under section 288 by reference to a taxed receipt, or

(b) in calculating the amount of a receipt under any of sections 217 to 221 of CTA 2009 (receipts in respect of lease premiums or sums payable instead of rent, for surrender of lease or for variation or waiver of terms of lease) in respect of the lease, there is a reduction under section 228 of that Act (the additional calculation rule) by reference to a taxed receipt.

The receipt that is so reduced is referred to in this section as the “lease premium receipt”.”

622 U.K. For section 295(2)(b) (limit on reductions and deductions) substitute—

“(b) the total of the amounts mentioned in subsection (3).

(3) Those amounts are—

(a) the reductions under section 228 of CTA 2009 (the additional calculation rule) by reference to the taxed receipt,

(b) the deductions allowed in calculating the profits of a property business for expenses under section 232 of CTA 2009 (tenant under taxed lease which uses premises for purposes of property business treated as incurring expenses) by reference to the taxed receipt, and

(c) the deductions allowed in calculating the profits of a trade, profession or vocation for expenses under section 61 above or section 63 of CTA 2009 (tenant under taxed lease who uses land in connection with trade treated as incurring expenses) by reference to the taxed receipt.”

623 U.K. In section 296(1)(a) (corporation tax receipts treated as taxed receipts) after “2005” insert “ but before 1st April 2009 ”.

624 U.K. In section 298 (taking account of deductions for rent as a result of section 37(4) or 87(2) of ICTA)—

(a) in subsections (1)(a) and (3)(a) after “2005” insert “ but before 1st April 2009 ”, and

(b) in subsection (2) for “295(2)(b)” substitute “ 295(3)(c) ”.

625 U.K. In section 299(1)(b) (payment of tax by instalments) for “term” substitute “ terms ”.

626 (1) Amend section 303 (rules for determining effective duration of lease) as follows. U.K.

(2) For Rule 1 substitute— “Rule 1: If—

(a) the terms of the lease or any other circumstances make it unlikely that the lease will continue beyond a date before the end of the term for which the lease was granted, and

(b) the premium was not substantially greater than it would have been had the term been one ending on that date,

the lease is treated as ending on that date (or the earliest such date). ”

(3) After subsection (2) insert—

“(2A) In Rule 1 “premium” includes—

(a) an amount treated as a premium under section 278 (amount treated as lease premium where work required),

(b) a sum payable by the tenant under the terms subject to which the lease is granted instead of the whole or a part of the rent for a period,

(c) a sum payable by the tenant under the terms subject to which the lease is granted as consideration for the surrender of the lease, and

(d) a sum payable by the tenant (otherwise than by way of rent) as consideration for the variation or waiver of a term of the lease.”

627 (1) Amend section 304 (applying the rules in section 303) as follows. U.K.

(2) In subsection (1)(b) for “term” substitute “ terms ”.

(3) In subsection (4) for the words from “securing” to the end substitute “securing—

(a) an income tax advantage in the application of this Chapter, or

(b) a corporation tax advantage in the application of Chapter 4 of Part 4 of CTA 2009 (profits of property business: lease premiums etc).”

(4) In subsection (5) after “applying” insert “ paragraph (b) of ”.

628 U.K. In section 318(4) for “section 30 of ICTA” substitute “ sections 255 to 257 of CTA 2009 ”.

629 (1) Amend section 356 (application to Schedule A businesses) as follows. U.K.

(2) In subsection (1) for “a Schedule A business” substitute “ one within the charge to corporation tax ”.

(3) In subsection (2) for the words from “includes” to the end substitute “ includes, in the case of a company, the occurrence of an event treated under section 289 of CTA 2009 (company starting or ceasing to be within the charge to corporation tax) as the company permanently ceasing to carry on the business. ”

(4) In subsection (3) for “Schedule A business” substitute “ UK property business ”.

(5) In the title for “Schedule A businesses” substitute “ businesses within the charge to corporation tax ”.

630 U.K. In section 413(4) (person liable) for paragraph (b) substitute—

“(b) section 947 of CTA 2009 (under which similar provision is made for the purposes of Chapter 3 of Part 10 of that Act)”.

631 U.K. In section 419(2) (loans and advances to persons who die) for paragraph (b) substitute—

“(b) section 947 of CTA 2009” (under which similar provision is made for the purposes of Chapter 3 of Part 10 of that Act)”.

632 U.K. In section 466(3) (person liable: personal representatives) for “section 701(8) of ICTA” and “Part 16 of ICTA” substitute “ section 947 of CTA 2009 ” and “ Chapter 3 of Part 10 of CTA 2009 ” respectively.

633 U.K. In section 496(7) (modification of section 494: qualifying endowment policies held as security for company debts) in the definition of “accounting period” for “section 12 of ICTA” substitute “ Chapter 2 of Part 2 of CTA 2009 ”.

634 U.K. In section 671 (successive absolute interests)—

(a) at the end of subsection (4) add “ (or, where the previous holder is a company chargeable to corporation tax, having regard to the application of section 954(4) of CTA 2009 to the previous holder) ”, and

(b) at the end of subsection (6) add “ (but, in a case where the last previous holder or any earlier previous holder is a company chargeable to corporation tax, having regard to the application of section 954(6) of CTA 2009 to the previous holder) ”.

635 U.K. After section 749 insert—

“749A Interest on tax overpaid

No liability to income tax arises in respect of interest paid under section 826 of ICTA (interest on tax overpaid).”

636 U.K. In section 754(1) (redemption of funding bonds) for “section 582(1) of ICTA” substitute “ section 413 of CTA 2009 ”.

637 (1) Amend section 839 (annual payments payable out of relevant foreign income) as follows. U.K.

(2) In subsection (1) for “A to C” substitute “ A, B1 or B2 and C ”.

(3) In subsection (3)—

(a) for “B” substitute “ B1 ”, and

(b) omit “or to corporation tax under Case III of Schedule D”.

(4) After subsection (3) insert—

“(3A) Condition B2 is that, had the payment arisen in the United Kingdom it would have been—

(a) required to be brought into account under Part 5 of CTA 2009 (loan relationships) as a non-trading credit, or

(b) chargeable to corporation tax under Chapter 5 of Part 10 of that Act (distributions from unauthorised unit trusts) or Chapter 7 of that Part (annual payments not otherwise charged).”

638 U.K. In section 847(2) (partnerships: general provisions), in the words before paragraph (a) for the words from “are expressed” to “also apply” substitute “ which are expressed to apply to trades also apply, unless otherwise indicated (whether expressly or by implication) ”.

639 U.K. In section 849 (calculation of firm's profits or losses) after subsection (3) insert—

“(4) In calculating under subsection (2) or (3) the profits of a trade for any period of account no account is taken of any losses for another period of account.”

640 U.K. For section 850 (allocation of firm's profits or losses between partners) substitute—

“850 Allocation of firm's profits or losses between partners

(1) For any period of account a partner's share of a profit or loss of a trade carried on by a firm is determined for income tax purposes in accordance with the firm's profit-sharing arrangements during that period.

This is subject to sections 850A and 850B.

(2) In this section and sections 850A and 850B “profit-sharing arrangements” means the rights of the partners to share in the profits of the trade and the liabilities of the partners to share in the losses of the trade.

850A Profit-making period in which some partners have losses

(1) For any period of account, if—

(a) the calculation under section 849 in relation to a partner (“A”) produces a profit, and

(b) A's share determined under section 850 is a loss,

A's share of the profit of the trade is neither a profit nor a loss.

(2) For any period of account, if—

(a) the calculation under section 849 in relation to A produces a profit,

(b) A's share determined under section 850 is a profit, and

(c) the comparable amount for at least one other partner is a loss,

A's share of the profit of the trade is the amount produced by the formula in subsection (3).

(3) The formula is—

where—

FP is the amount of the firm's profit calculated under section 849 in relation to A,

PP is the amount determined under section 850 to be A's profit, and

TCP is the total of the comparable amounts attributed to other partners under step 3 in subsection (4) that are profits.

(4) The comparable amount for each partner other than A is determined as follows.

Step 1

Take the firm's profit calculated under section 849 in relation to A.

Step 2

Determine in accordance with the firm's profit-sharing arrangements during the relevant period of account the shares of that profit that are attributable to each of the other partners.

Step 3

Each such share is the comparable amount for the partner to whom it is attributed.

(5) In subsections (2) to (4) “partner” means any partner in the firm, whether or not chargeable to income tax.

850B Loss-making period in which some partners have profits

(1) For any period of account, if—

(a) the calculation under section 849 in relation to a partner (“A”) produces a loss, and

(b) A's share determined under section 850 is a profit,

A's share of the loss of the trade is neither a profit nor a loss.

(2) For any period of account, if—

(a) the calculation under section 849 in relation to A produces a loss,

(b) A's share determined under section 850 is a loss, and

(c) the comparable amount for at least one other partner is a profit,

A's share of the loss of the trade is the amount produced by the formula in subsection (3).

(3) The formula is—

where—

FL is the amount of the firm's loss calculated under section 849 in relation to A,

PL is the amount determined under section 850 to be A's loss, and

TCL is the total of the comparable amounts attributed to other partners under step 3 in subsection (4) that are losses.

(4) The comparable amount for each partner other than A is determined as follows.

Step 1

Take the firm's loss calculated under section 849 in relation to A.

Step 2

Determine in accordance with the firm's profit-sharing arrangements during the relevant period of account the shares of that loss that are attributable to each of the other partners.

Step 3

Each such share is the comparable amount for the partner to whom it is attributed.

(5) In subsections (2) to (4) “partner” means any partner in the firm, whether or not chargeable to income tax.”

641 (1) Amend section 860 (adjustment income) as follows. U.K.

(2) After subsection (1) insert—

“(1A) A change in the persons carrying on a property business from one period of account to the next does not prevent Chapter 7 of Part 3 (adjustment income) applying in relation to the property business so long as a person carrying on the property business immediately before the change continues to carry on the property business immediately after the change.”

(3) In subsection (3)—

(a) after “trade” insert “ or property business ”, and

(b) after “Chapter 17 of Part 2” insert “ , or Chapter 7 of Part 3, ”.

(4) In subsection (6)—

(a) in paragraph (a), at the end insert “ or Chapter 7 of Part 3 (as the case requires) ”, and

(b) in paragraph (b) after “trade” insert “ or property business (as the case requires) ”.

642 U.K. For section 861 (sale of patent rights: effect of partnership changes) substitute—

“861 Sale of patent rights: effect of partnership changes

(1) This section applies if each of the following conditions is met—

(a) a person (“the trader”) sells the whole or part of any patent rights in carrying on a trade,

(b) tax is chargeable under section 587 of this Act or section 912 of CTA 2009 on the proceeds of the sale or on any instalment of those proceeds,

(c) the tax is chargeable in one or more tax years or accounting periods (referred to in this section as “the tax charge periods”),

(d) there is a change in the persons carrying on the trade at any time between the beginning of the first of those tax charge periods and the end of the last of them, and

(e) the partnership condition and the continuity condition are met.

(2) The partnership condition is that—

(a) the trader is a firm at the time of the sale, or

(b) the trade is carried on in partnership at any time between the beginning of the first of the tax charge periods and the end of the last of them.

(3) The continuity condition is—

(a) in the case of an amount chargeable under section 587, that a person who carried on the trade immediately before the change continues to carry it on after the change, or

(b) in the case of an amount chargeable under section 912 of CTA 2009, that a company which carried on the trade in partnership immediately before the change continues to carry it on in partnership after the change.

(4) Any amounts chargeable in respect of the proceeds or instalment that would (apart from this section) be treated in accordance with Chapter 2 of Part 5 of this Act or Chapter 3 of Part 9 of CTA 2009 as profits of the seller of the patent rights chargeable in tax charge periods falling wholly after the change are treated for income tax purposes—

(a) as proceeds, arising at a constant daily rate during the remainder of the relevant period, of a sale of patent rights by the person or persons carrying on the trade after the change, and

(b) if the trade is carried on in partnership after the change, as arising to the partners in shares calculated in accordance with the firm's profit-sharing arrangements.

(5) If the change occurs during the course of a tax charge period—

(a) any person who would, but for this section, have been charged to income tax in that period on a sum (“S”) in respect of the proceeds or instalment is so charged on a fraction of S proportionate to the length of the part of the period before the change, and

(b) the balance of S not dealt with under paragraph (a) is treated for the purposes of this section and section 1271 of CTA 2009 (sale of patent rights: effect of partnership changes) as if it were an amount such as is described in subsection (4).

(6) In this section “the remainder of the relevant period” means—

(a) if one or more tax charge periods begins after the tax charge period in which the change occurs, the period beginning immediately after the change and ending 6 years after the beginning of the first of the tax charge periods, or

(b) otherwise, the period beginning immediately after the change and ending at the end of the tax charge period in which the change occurs.

(7) In this section “profit-sharing arrangements” means the rights of the partners to share in the profits of the trade.”

643 (1) Amend section 862 (sale of patent rights: effect of later cessation of trade) as follows. U.K.

(2) For subsections (1) and (2) substitute—

“(1) This section applies if—

(a) a person (“the trader”) sells the whole or part of any patent rights in carrying on a trade,

(b) by virtue of section 861 amounts are chargeable to income tax under section 587 as profits of one or more persons for the time being carrying on the trade in partnership,

(c) a partner permanently ceases to carry on the trade after that, and

(d) no person who carried on the trade immediately before the cessation continues to carry on the trade immediately after the cessation.

(2) Any amounts mentioned in subsection (1)(b) which would have been chargeable in any tax year later than that in which the cessation occurred are charged in the tax year in which the cessation occurred.”

(3) Omit subsections (3) and (7).

644 U.K. Omit section 881 (disapplication of corporation tax: section 9 of ICTA).

645 (1) Amend Schedule 1 (consequential amendments) as follows. U.K.

(2) Omit paragraph 312(4)(b) and the “and” immediately before it.

646 (1) Amend Schedule 2 (transitionals and savings etc) as follows. U.K.

(2) In paragraph 70(2) for “term” substitute “ terms ”.

(3) In paragraph 71(2) for “term” substitute “ terms ”.

(4) In paragraph 109(5) for “section 12 of ICTA” substitute “ Chapter 2 of Part 2 of CTA 2009 ”.

647 (1) Amend Schedule 4 (abbreviations and defined expressions) as follows. U.K.

(2) In Part 1 at the end insert—

“CTA 2009

The Corporation Tax Act 2009”

(3) In Part 2—

(a) in the entry for “accounting period”, in the second column—

(i) for “sections 12 and” substitute “ section ”, and

(ii) at the end insert “ and Chapter 2 of Part 2 of CTA 2009 ”, and

(b) omit the entry for “Schedule A business”.

Finance Act 2005 (c. 7) U.K.

648 U.K. The Finance Act 2005 is amended as follows.

649 U.K. In section 47A(6) (alternative finance arrangements: diminishing shared ownership) for “Taxes” to “1970)” substitute “ Income Tax Acts, TCGA 1992 and all other enactments relating to capital gains tax ”.

650 U.K. In section 48A (alternative finance arrangements: alternative finance bond: introduction) in subsection (3) after “this section” insert “ and section 507 of CTA 2009 (investment bond arrangements) ”.

651 U.K. In section 48B (alternative finance arrangements: alternative finance investment bond: effects)—

F10 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) in subsection (4) after “section 48A”, in both places where it occurs, insert “ of this Act or section 507 of CTA 2009 ”, and

(c) in subsection (5)—

(i) after “section 48A” insert “ of this Act or section 507 of CTA 2009 ”,

(ii) after paragraph (b) insert “ or ”, and

(iii) omit paragraph (d) and the “or” immediately before it.

Textual Amendments

F10 Sch. 1 para. 651(a) omitted (21.7.2009) by virtue of Finance Act 2009 (c. 10), Sch. 61 para. 28

652 U.K. In section 49(2) (alternative finance arrangements: deposit) for “profit share return” substitute “ alternative finance return ”.

653 U.K. In section 49A (alternative finance arrangements: profit share agency)—

(a) in subsection (2) for “profit share return” substitute “ alternative finance return ”, and

(b) in subsection (3) for “Tax Acts” substitute “ Income Tax Acts ”.

654 U.K. Omit section 50 (treatment of alternative finance arrangements: companies).

655 U.K. In section 51 (treatment of alternative finance arrangements: persons other than companies) in subsections (1), (4) and (5)(b) omit “or profit share return”.

656 U.K. In section 52 (provision not at arm's length)—

(a) in subsection (2) omit “or profit share return”, and

(b) omit subsection (6).

657 U.K. Omit section 54 (return not to be treated as distribution).

658 U.K. In section 54A (treatment of section 47, 49 and 49A arrangements as loans: Community Investment Tax Relief)—

(a) in subsection (2)(a) after “or 49A” insert “ of this Act or section 503, 505 or 506 of CTA 2009 ”,

(b) in subsection (2)(b) omit “or profit share return”,

(c) in subsections (3) and (4) after “section 47” insert “ of this Act or section 503 of CTA 2009 ”,

(d) in subsection (5) after “section 49” insert “ of this Act or section 505 of CTA 2009 ”, and

(e) in subsection (6) after “section 49A” insert “ of this Act or section 506 of CTA 2009 ”.

659 U.K. In section 55 (further provisions) omit “, corporation tax”.

660 U.K. In section 56 (application of Chapter)—

(a) in subsections (2) and (3) for “profit share return” substitute “ alternative finance return ”,

(b) omit subsection (4)(b) and the “and” immediately before it,

(c) omit subsection (5), and

(d) in subsection (6)—

(i) for “Section 54” substitute “ Section 209(6A) of ICTA ”, and

(ii) for “profit share return” substitute “ alternative finance return ”.

661 U.K. In section 57 (interpretation of Chapter)—

(a) in the definition of “alternative finance return” for “and 47A(5)” substitute “ 47A(5), 48B(1), 49(2) and 49A(2) ”, and

(b) omit the definition of “profit share return”.

662 U.K. In section 83(8) (application of accounting standards to securitisation companies) in the definition of “asset” for “Schedule 26 to FA 2002 (derivative contracts) (see paragraph 12 of that Schedule)” substitute “ Part 7 of CTA 2009 (derivative contracts) (see sections 580, 581 and 582 of that Act) ”.

663 U.K. In section 105 (interpretation) after the definition of “CAA 2001” insert—

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

664 (1) Amend Schedule 2 (alternative finance arrangements: further provisions) as follows. U.K.

(2) Omit paragraph 2.

(3) Omit paragraph 7.

(4) In paragraphs 8, 10, 11(c), 12 and 13 omit “or profit share return”.

665 U.K. In Schedule 4 (accounting practice and related matters) omit paragraphs 27 and 52.

Railways Act 2005 (c. 14) U.K.

666 U.K. The Railways Act 2005 is amended as follows.

667 (1) Amend Schedule 10 (taxation provisions relating to transfer schemes) as follows. U.K.

(2) In paragraph 7—

(a) in sub-paragraph (a) for “Chapter 2 of Part 4 of the Finance Act 1996 (c. 8)” substitute “ Part 5 of the Corporation Tax Act 2009 ”, and

(b) in sub-paragraph (b) for “Schedule 26 to the Finance Act 2002 (derivative contracts)” substitute “ Part 7 of the Corporation Tax Act 2009 (derivative contracts) ”.

(3) In paragraph 10(5) for the words from “under” to the end substitute “ under Part 3 of the Corporation Tax Act 2009 in respect of the trade or part of a trade in question for periods in which the trade was carried on wholly or partly in the United Kingdom. ”

(4) In paragraph 17—

(a) in sub-paragraph (1) for “Schedule 29 to the Finance Act 2002 (c. 23) ” and “an existing asset”, in both places where it occurs, substitute “ Part 8 of the Corporation Tax Act 2009 ” and “ a pre-FA 2002 asset ” respectively, and

(b) in sub-paragraph (2) for “that Schedule”, in both places where it occurs, substitute “ that Part ”.

(5) In paragraph 18—

(a) in sub-paragraph (1) for “Chapter 2 of Part 4 of the Finance Act 1996 (c. 8)” substitute “ Part 5 of the Corporation Tax Act 2009 ”, and

(b) in sub-paragraph (2) for “paragraph 12(8) of Schedule 9 to” substitute “ section 335(6) of ”.

(6) In paragraph 19—

(a) in sub-paragraph (1) for “Schedule 26 to the Finance Act 2002 (derivative contracts)” substitute “ Part 7 of the Corporation Tax Act 2009 (derivative contracts) ”, and

(b) in sub-paragraph (2) for “paragraph 28(6) of that Schedule” substitute “ section 624(3) of that Act ”.

(7) In paragraph 28—

(a) in sub-paragraph (1) for “paragraph 11 of Schedule 9 to the Finance Act 1996 (c. 8)” substitute “ section 444 of the Corporation Tax Act 2009 ”, and

(b) in sub-paragraph (2) for “Chapter 2 of Part 4 of the Finance Act 1996” and “that Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ” and “ that Part ” respectively.

Finance (No. 2) Act 2005 (c. 22) U.K.

668 U.K. The Finance (No. 2) Act 2005 is amended as follows.

669 U.K. In section 18 (section 17(3): specific powers) for subsection (2)(c) substitute—

“(c) modify the meaning of “relevant holding” for the purposes of—

(i) sections 490 and 492 of the Corporation Tax Act 2009 (loan relationships), and

(ii) section 587 of that Act (derivative contracts).”

670 (1) Amend section 26 (receipts cases) as follows. U.K.

(2) In subsection (7) for the words from “person who” to the end substitute “person who—

(a) is charged to corporation tax under Part 3 of CTA 2009 (trading income) in respect of distributions of companies that are received in the course of a trade not consisting of insurance business, or

(b) would be so charged if resident in the United Kingdom.”

(3) In subsection (10)—

(a) for “Chapter 2 of Part 4 of FA 1996” substitute “ Part 5 of CTA 2009 (loan relationships) ”, and

(b) for the words from “section 91A” to the end substitute “ section 523 of that Act (application of that Part of that Act to certain shares as rights under creditor relationship) ”.

671 U.K. In section 27(2) (rule as to qualifying payment) for the words from “an amount” to the end substitute “ a receipt of the company which is chargeable for that period under the charge to corporation tax on income ”.

672 U.K. In section 71 (interpretation) after the definition of “CAA 2001” insert—

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

673 U.K. In Schedule 6 (accounting practice and related matters)—

(a) omit paragraph 7 (loan relationships with embedded derivatives), and

(b) omit paragraph 9 (exchange gains and losses).

674 U.K. In Schedule 7 (avoidance involving financial arrangements) in paragraph 14—

(a) in sub-paragraph (4)(b) after “1996” insert “ or Part 5 of CTA 2009 ”, and

(b) in sub-paragraph (5) after “1996” insert “ and Part 5 of CTA 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 ”.

Income Tax Act 2007 (c. 3) U.K.

699 U.K. The Income Tax Act 2007 is amended as follows.

700 U.K. For section 5 substitute—

“5 Income tax and companies

Section 3 of CTA 2009 disapplies the provisions of the Income Tax Acts relating to the charge to income tax in relation to income of a company (not accruing to it in a fiduciary or representative capacity) if—

(a) the company is UK resident, or

(b) the company is non-UK resident and the income is within its chargeable profits as defined by section 19 of that Act (profits attributable to its permanent establishment in the United Kingdom).”

701 U.K. In section 276(3) (conditions relating to income) for “paragraph 14(3) of Schedule 26 to FA 2002 as if they were non-trading credits or non-trading debits” substitute “ section 574 of CTA 2009 (non-trading credits and debits to be brought into account under Part 5 of that Act) ”.

702 U.K. In section 489(6) (the “applicable period” in relation to shares) for “paragraph 9 of Schedule 4AA to ICTA” substitute “ section 989 of CTA 2009 ”.

703 U.K. In section 550(a) (meaning of “relievable gift”) for “section 83A of ICTA” substitute “ section 105 of CTA 2009 ”.

704 U.K. In section 557(1)(b)(ii) (substantial donor transactions: supplementary) after “2005” insert “ or section 501(2) of CTA 2009 ”.

705 (1) Amend section 835 (residence rules for trustees and companies) as follows. U.K.

(2) Omit subsection (2).

(3) In the title omit “and companies”.

706 U.K. After section 835 insert—

“835A Residence of companies

Chapter 3 of Part 2 of CTA 2009 (rules for determining residence of companies) applies for the purposes of the Income Tax Acts as it applies for the purposes of the Corporation Tax Acts.”

707 U.K. In section 899(4)(b) (meaning of “qualifying annual payment”) for “charged to corporation tax under Case III of Schedule D” substitute “which is—

(i) required to be brought into account under Part 5 of CTA 2009 (loan relationships) as a non-trading credit, or

(ii) from a source in the United Kingdom and chargeable to corporation tax under Chapter 5 of Part 10 of that Act (distribution from unauthorised unit trusts) or Chapter 7 of that Part (annual payments not otherwise charged).”

708 U.K. In section 904 (annual payments for dividends or non-taxable consideration) for subsection (2) substitute—

“(2) The payment must be—

(a) a payment charged to income tax under Part 5 of ITTOIA 2005 (miscellaneous income), or

(b) a payment which is—

(i) required to be brought into account under Part 5 of CTA 2009 (loan relationships) as a non-trading credit, or

(ii) from a source in the United Kingdom and chargeable to corporation tax under Chapter 5 of Part 10 of that Act (distributions from unauthorised unit trusts) or Chapter 7 of that Part (annual payments not otherwise charged).”

709 (1) Amend section 910 (proceeds of a sale of patent rights: payments to non-UK residents) as follows. U.K.

(2) In subsection (1)(b) for “section 524(3) of ICTA” substitute “ section 912 of CTA 2009 ”.

(3) In subsection (6)(b) for “section 524(9) of ICTA” substitute “ section 919 of CTA 2009 ”.

710 U.K. In section 934(4) (non-UK resident companies) for “section 11(2) of ICTA” substitute “ section 19 of CTA 2009 ”.

711 U.K. In section 937(5)(c) (partnerships)—

(a) for “section 11(2) of ICTA” substitute “ section 19 of CTA 2009 ”, and

(b) for “sections 114 and 115 of ICTA” substitute “ Part 17 of that Act ”.

712 U.K. In section 939(1)(b) (duty to retain bonds where issue treated as payment of interest) for “section 582(1)(a) of ICTA” substitute “ section 413 of CTA 2009 ”.

713 (1) Amend section 941 (deemed payments to unit holders and deemed deductions of income tax) as follows. U.K.

(2) In subsection (1), after “ITTOIA 2005” insert “ or Chapter 5 of Part 10 of CTA 2009 ”.

(3) In subsection (2), after “ITTOIA 2005” insert “ and section 973(2) of CTA 2009 ”.

(4) Omit subsections (4) and (5).

(5) In subsection (6)—

(a) in the definition of “deemed deduction”, omit “or (5)”, and

(b) in the definition of “deemed payment”, omit “or (4)”.

714 U.K. In section 948(2) (meaning of “accounting period”) for the words from “section” to “assessment)” substitute “ Chapter 2 of Part 2 of CTA 2009 (accounting periods) ”.

715 U.K. In section 965(2) (overview of sections 966 to 970) for “section 556 of ICTA” substitute “ section 1309 of CTA 2009 ”.

716 (1) Amend section 971 (income tax in respect of non-resident landlords) as follows. U.K.

(2) In subsection (2) for the words from “chargeable” to the end substitute “ chargeable as the profits of a UK property business under Chapter 3 of Part 3 of ITTOIA 2005 or Chapter 3 of Part 4 of CTA 2009. ”

(3) In subsection (3)(a) for “Schedule A business, or a UK property business,” substitute “ UK property business (within the meaning of Chapter 2 of Part 3 of ITTOIA 2005 or Chapter 2 of Part 4 of CTA 2009) ”.

717 U.K. In section 976(6) (arrangements for payments of interest less tax or at a specified net rate) for paragraph (b) substitute—

“(b) interest which is required to be brought into account under Part 5 of CTA 2009 (loan relationships) as a non-trading credit of the recipient.”

718 U.K. In section 980(2) (derivative contracts: exception from duties to deduct) for “Schedule 26 to FA 2002” substitute “ Part 7 of CTA 2009 ”.

719 U.K. In section 989 (definitions) omit the definition of “Schedule A business”.

720 U.K. In section 1017 (abbreviated references to Acts) after the definition of “CAA 2001” insert—

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

721 U.K. In Schedule 4 (index of defined expressions) omit the entry for “Schedule A business”.

Finance Act 2007 (c. 11) U.K.

722 U.K. The Finance Act 2007 is amended as follows.

723 U.K. In section 113 (interpretation) after the definition of “CRCA 2005” insert—

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

724 U.K. In Schedule 3 (managed service companies) omit paragraph 10.

725 (1) Amend Schedule 7 (insurance business: gross roll-up business etc) as follows. U.K.

(2) In paragraph 85—

(a) in sub-paragraph (1) omit “(a “Case VI loss”)” and “(a “Case I loss”)”, and

(b) in sub-paragraph (2)—

(i) for “Case VI losses” substitute “ losses so treated ”, and

(ii) for “Case I losses” substitute “ losses of the transferee ”.

(3) For the italic cross-heading before paragraph 85 substitute “ Losses transferred under section 444AZA ”.

(4) In paragraph 86(4) and (5) for “Case VI” substitute “ gross roll-up business ”.

(5) For the italic cross-heading before paragraph 86 substitute “ Losses transferred under section 444AZB ”.

726 (1) Amend Schedule 13 (sale and repurchase of securities) as follows. U.K.

(2) In paragraph 1(1) after “in that case” insert “ in respect of chargeable gains ”.

(3) Omit paragraphs 2 to 5, 7 to 10 and 12.

(4) In paragraph 14—

(a) in the definition of “creditor quasi-repo” for “paragraph 8” substitute “ section 544 of CTA 2009 ”,

(b) in the definition of “creditor repo” for “paragraph 7” substitute “ section 543 of CTA 2009 ”,

(c) in the definition of “debtor quasi-repo” for “paragraph 3” substitute “ section 549 of CTA 2009 ”,

(d) in the definition of “debtor repo” for “paragraph 2” substitute “ section 548 of CTA 2009 ”, and

(e) in the definition of “the loan relationship rules” for “Chapter 2 of Part 4 of FA 1996” substitute “ Part 5 of CTA 2009 ”.

(5) In paragraph 15(9)(b) for “paragraph 12” and “paragraph 10” substitute “ section 547 of CTA 2009 ” and “ section 546 of that Act ” respectively.

727 U.K. In paragraph 28(fa) of Schedule 24 (penalties for errors)—

(a) in paragraph (i) for “Schedule 20 to FA 2000” substitute “ Chapter 2 or 7 of Part 13 of CTA 2009 ”,

(b) in paragraph (ii) for “Schedule 22 to FA 2001” substitute “ Chapter 3 or 4 respectively of Part 14 of CTA 2009 ”,

(c) omit paragraph (iii), and

(d) in paragraph (iv) for “Schedule 5 to FA 2006” substitute “ Chapter 3 of Part 15 of CTA 2009 ”.

Finance Act 2008 (c. 9) U.K.

728 U.K. The Finance Act 2008 is amended as follows.

729 U.K. Omit section 29 (cap on R&D aid).

730 U.K. Omit section 36(1) (company gains from investment life insurance contracts etc).

731 U.K. In section 77(6), in the words after paragraph (b) for “section 578A of ICTA and section 50 of ITTOIA 2005 apply” substitute “ section 50 of ITTOIA 2005 applies ”.

732 U.K. In section 154(6) (stamp duty and stamp duty reserve tax: alternative investment bonds) after “2005” insert “ or section 507 of CTA 2009 ”.

733 U.K. In section 165(1) (interpretation) after the definition of “CRCA 2005” insert—

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

734 U.K. In Schedule 10 (cap on R&D aid), omit paragraphs 1 to 7.

735 U.K. Omit Schedule 13 (company gains from investment life insurance contracts).

736 U.K. In Schedule 15 (changes in trading stock), omit Part 2.

737 U.K. In Schedule 25 (first-year tax credits)—

(a) in paragraph 14(6)(b) for “paragraph 4(4) of Schedule 11 to FA 1996” substitute “ section 391(3)(b) of CTA 2009 ”, and

(b) in paragraph 16(3)(b) for “paragraph 4(4) of Schedule 11 to FA 1996” substitute “ section 391(3)(b) of CTA 2009 ”.

Crossrail Act 2008 (c. 18) U.K.

738 U.K. The Crossrail Act 2008 is amended as follows.

739 (1) Amend Schedule 13 (transfer schemes: tax provisions) as follows. U.K.

(2) In paragraph 3 (interpretation: supplementary) after the definition of “CAA 2001” insert—

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

(3) In paragraph 5(5) (computation of profits and losses in respect of transfer of trade) for the words from “under” to the end substitute “ under Part 3 of CTA 2009 in respect of the trade or part of a trade in question for periods in which the trade was carried on wholly or partly in the United Kingdom. ”

(4) In paragraph 6(5) (transfers of trading stock) for “has the same meaning as in section 100 of ICTA” substitute “ has the meaning given by section 163 of CTA 2009 ”.

(5) In paragraph 13 (continuity in relation to transfer of intangible assets)—

(a) in sub-paragraph (1) for “Schedule 29 to FA 2002” substitute “ Part 8 of CTA 2009 ”, and

(b) in sub-paragraph (2) for “Schedule”, in both places where it occurs, substitute “ Part ”.

(6) In paragraph 14 (continuity in relation to loan relationships)—

(a) in sub-paragraph (1) for “Chapter 2 of Part 4 of FA 1996” substitute “ Part 5 of CTA 2009 ”, and

(b) in sub-paragraph (2) for “paragraph 12(8) of Schedule 9 to” substitute “ section 335(6) of ”.

(7) In paragraph 15 (continuity in relation to derivative contracts)—

(a) in sub-paragraph (1) for “Schedule 26 to FA 2002” substitute “ Part 7 of CTA 2009 ”, and

(b) in sub-paragraph (2) for “paragraph 28(6) of that Schedule” substitute “ section 624(3) of that Act ”.

(8) In paragraph 18(6) (transfers of trading stock) for “has the same meaning as in section 100 of ICTA” substitute “ has the meaning given by section 163 of CTA 2009 ”.

(9) In paragraph 23 (neutral effect of transfer of intangible assets)—

(a) in sub-paragraph (1) for “Schedule 29 to FA 2002” substitute “ Part 8 of CTA 2009 ”, and

(b) in sub-paragraph (2) for “Schedule”, in both places where it occurs, substitute “ Part ”.

(10) In paragraph 24 (neutral effect of transfer for loan relationships and derivative contracts)—

(a) in sub-paragraph (a) for “Chapter 2 of Part 4 of FA 1996” substitute “ Part 5 of CTA 2009 ”, and

(b) in sub-paragraph (b) for “Schedule 26 to FA 2002” substitute “ Part 7 of that Act ”.

(11) In paragraph 34(6) (transfers of trading stock) for the words from “has” to the end substitute “ has the meaning given by section 174 of ITTOIA 2005 (as respects income tax) or section 163 of CTA 2009 (as respects corporation tax). ”

(12) In paragraph 40 (transfers involving private persons: loan relationships)—

(a) in sub-paragraph (1) for “Paragraph 11 of Schedule 9 to FA 1996” substitute “ Section 444 of CTA 2009 ”, and

(b) in sub-paragraph (2) for “Chapter 2 of Part 4 of FA 1996” and “that Chapter” substitute “ Part 5 of CTA 2009 ” and “ that Part ” respectively.

Section 1325

SCHEDULE 2 U.K. Transitionals and savings

Part 1 U.K. General provisions

Continuity of the law: general U.K.

1 U.K. The repeal of provisions and their enactment in a rewritten form by this Act does not affect the continuity of the law.

2 U.K. Paragraph 1 does not apply to any change made by this Act in the effect of the law.

3 U.K. Any subordinate legislation or other thing which—

(a) has been made or done, or has effect as if made or done, under or for the purposes of a superseded enactment so far as it applied for relevant tax purposes, and

(b) is in force or effective immediately before the commencement of the corresponding rewritten provision,

has effect after that commencement as if made or done under or for the purposes of the rewritten provision.

4 (1) Any reference (express or implied) in this Act, another enactment or an instrument or document to a rewritten provision is to be read as including, in relation to times, circumstances or purposes in relation to which any corresponding superseded enactment had effect for relevant tax purposes, a reference to the superseded enactment so far as applying for those relevant tax purposes. U.K.

(2) In particular, any reference (express or implied) in this Act, another enactment or an instrument or document to—

(a) the profits of a UK property business, or

(b) similar concepts created by this Act,

is to be read as including, in relation to times, circumstances or purposes in relation to which any corresponding concept in a superseded enactment had effect for corporation tax purposes, a reference to that concept so far as applying for corporation tax purposes.

(3) Any reference (express or implied) in this Act, another enactment or an instrument or document to—

(a) things done under or for the purposes of a rewritten provision, or

(b) things falling to be done under or for the purposes of a rewritten provision,

is to be read as including, in relation to times, circumstances or purposes in relation to which any corresponding superseded enactment had effect for relevant tax purposes, a reference to things done or falling to be done under or for the purposes of the superseded enactment so far as applying for those relevant tax purposes.

5 (1) Any reference (express or implied) in any enactment, instrument or document to a superseded enactment in its application for relevant tax purposes is to be read, so far as is required for those relevant tax purposes, as including, in relation to times, circumstances or purposes in relation to which any corresponding rewritten provision has effect, a reference to the rewritten provision. U.K.

(2) In particular, any reference (express or implied) in any enactment, instrument or document to Schedule A or D or the Cases of Schedule D in their application for corporation tax purposes is to be read, so far as is required for corporation tax purposes, as including, in relation to times, circumstances or purposes in relation to which any corresponding rewritten concept has effect, as a reference to the rewritten concept.

(3) Any reference (express or implied) in any enactment, instrument or document to—

(a) things done under or for the purposes of a superseded enactment in its application for relevant tax purposes, or

(b) things falling to be done under or for the purposes of a superseded enactment in its application for relevant tax purposes,

is to be read, so far as is required for those relevant tax purposes, as including, in relation to times, circumstances or purposes in relation to which any corresponding rewritten provision has effect, a reference to things done or falling to be done under or for the purposes of the rewritten provision.

6 U.K. Paragraphs 1 to 5 have effect instead of section 17(2) of the Interpretation Act 1978 (c. 30) (but are without prejudice to any other provision of that Act).

7 U.K. Paragraphs 4 and 5 apply only so far as the context permits.

General saving for old transitional provisions and savings U.K.

8 (1) The repeal by this Act of a transitional or saving provision relating to the coming into force of a provision rewritten in this Act does not affect the operation of the transitional or saving provision, so far as it is not specifically rewritten in this Act but remains capable of having effect in relation to the corresponding provision of this Act. U.K.

(2) The repeal by this Act of an enactment previously repealed subject to savings does not affect the continued operation of those savings.

(3) The repeal by this Act of a saving on the previous repeal of an enactment does not affect the operation of the saving so far as it is not specifically rewritten in this Act but remains capable of having effect.

Interpretation U.K.

9 (1) In this Part— U.K.

• “enactment” includes subordinate legislation (within the meaning of the Interpretation Act 1978 (c. 30)),

• “relevant tax purposes” means, in relation to a superseded enactment, tax purposes for which the enactment has been rewritten by this Act, and

• “superseded enactment” means an earlier enactment which has been rewritten by this Act for certain tax purposes (whether it applied only for those purposes or for those and other tax purposes).

(2) References in this Part to the repeal of a provision include references to its revocation and to its express or implied disapplication for corporation tax purposes.

(3) References in this Part to tax purposes are not limited to corporation tax purposes.

Part 2 U.K. Changes in the law

10 (1) This paragraph applies if, in the case of any person— U.K.

(a) a thing is done or an event occurs before 1 April 2009, and

(b) because of a change in the law made by this Act, the corporation tax consequences of that thing or event for the relevant period are different from what they would otherwise have been.

(2) This paragraph also applies if, in the case of any person—

(a) a thing is done or an event occurs before 6 April 2009, and

(b) because of a change in the law made by this Act, the income tax consequences of that thing or event for the relevant period are different from what they would otherwise have been.

(3) If the person mentioned in sub-paragraph (1) or (2) so elects, this Act applies with such modifications as may be necessary to secure that the corporation tax or (as the case may be) income tax consequences for the relevant period are the same as they would have been if the change in the law had not been made.

(4) In sub-paragraphs (1) to (3) “the relevant period” means—

(a) for corporation tax purposes, any accounting period beginning before and ending on or after 1 April 2009, and

(b) for income tax purposes, any period of account beginning before and ending on or after 6 April 2009.

(5) If this paragraph applies in the case of two or more persons in relation to the same thing or event, an election made under this paragraph by any one of those persons is of no effect unless a corresponding election is made by the other or each of the others.

(6) An election under this paragraph must be made—

(a) for corporation tax purposes, not later than two years after the end of the accounting period, and

(b) for income tax purposes, on or before the first anniversary of the normal self-assessment filing date for the tax year in which the period of account ends.

Part 3 U.K. Charge to corporation tax on income

Effect of repeal of section 9(1) of ICTA on relevance of case law U.K.

11 U.K. The repeal by this Act of section 9(1) of ICTA does not affect the relevance for corporation tax purposes of any case law that was relevant for those purposes immediately before the repeal.

Part 4 U.K. Accounting periods

Companies in administration U.K.

12 U.K. Section 10(1)(i) and (j), (2), (3) and (4) apply only in relation to companies that enter administration (under the Insolvency Act 1986 (c. 45) or otherwise) on or after 15 September 2003.

Part 5 U.K. Company residence: exceptions to section 14

13 (1) Subject to sub-paragraph (2), section 14 does not apply to a company if— U.K.

(a) immediately before 15 March 1988 the company was non-UK resident, having ceased to be UK resident under a Treasury consent, and

(b) immediately before 1 April 2009 section 66(1) of FA 1988 did not apply to the company because of paragraph 1(1) of Schedule 7 to that Act (certain companies which ceased to be UK resident before 15 March 1988 in pursuance of a Treasury consent).

(2) If at any time a company falling within sub-paragraph (1)—

(a) ceases to carry on business,

(b) becomes UK resident, or

(c) if the Treasury consent was a general consent, ceases to be taxable in a territory outside the United Kingdom,

section 14 applies in relation to the company after that time.

14 (1) Subject to sub-paragraph (2), section 14 does not apply to a company if immediately before 1 April 2009 section 66(1) of FA 1988 did not apply to the company because of paragraph 2(1) of Schedule 7 to that Act (certain companies which ceased to be UK resident on or after 15 March 1988 in pursuance of a Treasury consent). U.K.

(2) If at any time a company falling within sub-paragraph (1)—

(a) ceases to carry on business, or

(b) becomes UK resident,

section 14 applies in relation to the company after that time.

15 (1) In paragraph 13— U.K.

• “general consent” means a consent under a section to which sub-paragraph (2) applies which is given generally within the meaning of subsection (4) of the section in question,

• “taxable” means liable to tax on income by reason of domicile, residence or place of management,

• “Treasury consent” means a consent under a section to which sub-paragraph (2) applies which is given for the purposes of subsection (1)(a) of the section in question.

(2) This sub-paragraph applies to the following sections (restrictions on the migration etc of companies)—

• section 765 of ICTA,

• section 482 of the Income and Corporation Taxes Act 1970,

• section 468 of the Income Tax Act 1952, and

• section 36 of FA 1951.

Part 6 U.K. Trading income

F11 ... U.K.

Textual Amendments

F11 Sch. 2 Pt. 6 paras. 16, 17 and cross-heading omitted (with effect in accordance with Sch. 11 paras. 65-67 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 11 para. 58

F11 16 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F11 17 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tenants under taxed leases U.K.

18 (1) This paragraph relates to the operation of sections 62 to 67 where, in respect of a lease— U.K.

(a) there is a receipt of a Schedule A business or an overseas property business (within the meaning of section 65A(4) or 70A(4) of ICTA) as a result of section 34 or 35 of ICTA (treatment of premiums etc as rent and assignments for profit of lease granted at an undervalue) for a tax year before the tax year 2005-06 or an accounting period ending before 1 April 2009, or

(b) there would be such a receipt, but for the operation of section 37(2) or (3) of ICTA (reductions in certain receipts under section 34 or 35 of ICTA).

In this paragraph and paragraphs 19 and 20 a receipt falling within paragraph (a) or (b) is referred to as an “ICTA pre-commencement receipt”.

(2) For the purposes of sections 62 to 67—

(a) the lease is treated as a taxed lease, and

(b) the ICTA pre-commencement receipt is treated as a taxed receipt.

(3) For the purposes of those sections, the “receipt period” of a taxed receipt which is an ICTA pre-commencement receipt is—

(a) in the case of an ICTA pre-commencement receipt as a result of section 34 of ICTA, the period treated in calculating the amount of the receipt as being the duration of the lease, and

(b) in the case of an ICTA pre-commencement receipt as a result of section 35 of ICTA, the period treated in calculating the amount of the receipt as being the duration of the lease remaining at the date of the assignment.

(4) For the purposes of sections 62 to 67 the “unreduced amount” of a taxed receipt which is an ICTA pre-commencement receipt is the amount of the ICTA pre-commencement receipt as a result of section 34 or 35 of ICTA, before the operation of section 37(2) or (3) of ICTA.

(5) Sub-paragraph (6) applies to a taxed receipt which is an ICTA pre-commencement receipt arising as a result of section 34(2) of ICTA (obligation on tenant to carry out work under lease).

(6) If the obligation to carry out work included the carrying out of work which gave or will give rise to expenditure for which an allowance has been, or may be, made under the enactments relating to capital allowances, the unreduced amount of the taxed receipt is calculated as if the obligation had not included the carrying out of that work.

19 (1) This paragraph provides for the application of section 63 as a result of section 65 if— U.K.

(a) a lease is a taxed lease as a result of paragraph 18,

(b) another lease is granted out of the taxed lease,

(c) in calculating the amount of an ICTA pre-commencement receipt in respect of the other lease, there is a reduction under section 37(2) or (3) of ICTA by reference to the amount chargeable on the superior interest for the purposes of that section, and

(d) as a result of paragraph 18 the amount chargeable on the superior interest is the taxed receipt for the purposes of section 63.

(2) Sections 63 to 67 apply as follows—

(a) the ICTA pre-commencement receipt is treated as if it were a lease premium receipt for the purposes of sections 66 and 67,

(b) references in those sections to the reduction under section 228 by reference to the taxed receipt are, in relation to the ICTA pre-commencement receipt, to the reduction under section 37(2) or (3) of ICTA by reference to the amount chargeable on the superior interest, and

(c) for the purposes of those sections the receipt period of the ICTA pre-commencement receipt is—

(i) in the case of an ICTA pre-commencement receipt as a result of section 34 of ICTA, the period treated in calculating the amount of the receipt as being the duration of the lease, and

(ii) in the case of an ICTA pre-commencement receipt as a result of section 35 of ICTA, the period treated in calculating the amount of the receipt as being the duration of the lease remaining at the date of the assignment.

(3) References in this paragraph and paragraph 20 to a reduction under section 37(2) or (3) of ICTA in an ICTA pre-commencement receipt by reference to the amount chargeable on the superior interest are to the difference between—

(a) the amount of the ICTA pre-commencement receipt before the operation of section 37(2) or (3) of ICTA, and

(b) the amount of the receipt after the operation of that subsection,

so far as attributable to the amount chargeable on the superior interest for the purposes of section 37 of ICTA.

20 (1) This paragraph provides for the application of section 63 as a result of section 65 if— U.K.

(a) the taxed lease referred to in those sections is a taxed lease as a result of section 227(4)(c) or (d) (lease taxed under ITTOIA 2005),

(b) another lease is granted out of the taxed lease, and

(c) in calculating the amount of an ICTA pre-commencement receipt in respect of the other lease, there is a reduction under section 37(2) or (3) of ICTA by reference to the amount chargeable on the superior interest for the purposes of that section.

(2) Sections 63 to 67 apply as follows—

(a) the ICTA pre-commencement receipt is treated as if it were a lease premium receipt for the purposes of sections 66 and 67,

(b) references in those sections to the reduction under section 228 by reference to the taxed receipt are, in relation to the ICTA pre-commencement receipt, to the reduction under section 37(2) or (3) of ICTA by reference to the amount chargeable on the superior interest, and

(c) for the purposes of those sections the receipt period of the ICTA pre-commencement receipt is—

(i) in the case of an ICTA pre-commencement receipt as a result of section 34 of ICTA, the period treated in calculating the amount of the receipt as being the duration of the lease, and

(ii) in the case of an ICTA pre-commencement receipt as a result of section 35 of ICTA, the period treated in calculating the amount of the receipt as being the duration of the lease remaining at the date of the assignment.

Local enterprise agencies U.K.

21 U.K. To the extent that any function of the Scottish Ministers under section 79 of ICTA was, before 1 April 2009, also exercisable by the Secretary of State for the purposes specified in section 2(2) of the European Communities Act 1972 (c. 68) that function as rewritten in—

(a) section 83(2) (meaning of “local enterprise agency”),

(b) section 84 (approval of local enterprise agencies), or

(c) section 85 (supplementary provisions with respect to approvals),

continues to be also exercisable by the Secretary of State for those purposes.

Expenses connected with patents, designs and trade marks U.K.

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

(a) fees have been incurred, but not paid, for the purposes of a trade in connection with any of the matters mentioned in section 89 or 90,

(b) the fees were incurred in a period of account no part of which falls in an accounting period ending after 31 March 2009, and

(c) the fees have not been taken into account in calculating the profits of the trade of any accounting period.

(2) A deduction is allowed for the fees in calculating the profits of the period of account in which they are paid.

Payments to Export Credits Guarantee Department U.K.

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

(a) a sum is payable, but not paid, by the company carrying on a trade to the Export Credits Guarantee Department under an agreement mentioned in section 91(a) or with a view to entering into such an agreement,

(b) the sum was incurred in a period of account no part of which falls in an accounting period ending after 31 March 2009, and

(c) the sum has not been taken into account in calculating the profits of the trade of any accounting period.

(2) A deduction is allowed for the sum in calculating the profits of the period of account in which it is paid.

Reverse premiums U.K.

24 (1) Sections 98 and 99 do not apply to a reverse premium— U.K.

(a) which was received before 9 March 1999, or

(b) to which the recipient was entitled immediately before that date.

(2) In determining whether a reverse premium was one to which the recipient was entitled immediately before 9 March 1999, no account is to be taken of any arrangements made on or after that date.

Sums recovered under insurance policies etc U.K.

25 U.K. Section 103 does not apply if—

(a) a company carrying on a trade recovers a sum mentioned in that section, and

(b) the sum has been taken into account in calculating the profits of the trade of an accounting period ending before 1 April 2009.

Meaning of “designated educational establishment” U.K.

26 U.K. To the extent that the power of the Welsh Ministers to make regulations under section 84(5) of ICTA was, before 1 April 2009, also exercisable by the Secretary of State for the purposes specified in section 2(2) of the European Communities Act 1972 (c. 68), that power as rewritten in section 106 continues to be also exercisable by the Secretary of State for those purposes.

27 U.K. The reference in section 106(1)(a) to regulations made for England and Scotland by the Secretary of State includes a reference to regulations made for Great Britain by the Secretary of State before 1 July 1999.

Dealers in securities etc U.K.

28 U.K. The repeal by this Act of section 473(2B) of ICTA (conversion etc of securities held as circulating capital) does not affect any election made under section 66 of FA 2002 (election to continue postponement of mark to market) before the repeal takes effect.

Purchase or sale of woodlands U.K.

29 U.K. Section 134 does not apply if the purchase mentioned in subsection (2) of that section was made under a contract entered into before 1 May 1963.

Waste disposal U.K.

30 U.K. If the predecessor ceased to carry on the trade carried on by the trader, or ceased to carry on a trade so far as relating to the site, before 21 March 2000, section 142 applies as if—

(a) “, or a predecessor,” in subsection (1) were omitted, and

(b) subsections (3) and (4) were omitted.

31 U.K. If the trade carried on by the trader was started before 1 April 1993, section 144(1) (definition of “waste disposal licence”) applies for the purposes of sections 142 and 143 as if paragraphs (d) and (e) of that subsection were omitted (radioactive waste and nuclear site authorisations or licences).

32 U.K. Section 144(3) does not apply for the purposes of sections 142 and 143 if the trade was started before 1 April 1993.

Reserves of marketing authorities etc U.K.

33 U.K. In section 153(5) “approved scheme or arrangement” includes a scheme or arrangement—

(a) approved by the National Assembly for Wales, or

(b) made with the National Assembly for Wales,

before 26 May 2007.

Adjustment on change of basis U.K.

34 U.K. Chapter 14 of Part 3 applies to a change of basis only if the first day of the first period of account for which the new basis is adopted falls within an accounting period that ends after 31 March 2009.

Part 7 U.K. Property income

Lease premiums U.K.

35 U.K. Section 217 does not apply in relation to a lease granted pursuant to a contract entered into before 4 April 1963.

Lease premiums: sums payable instead of rent U.K.

36 U.K. Section 219 does not apply in relation to a lease granted—

(a) before 6 April 1963, or

(b) pursuant to a contract entered into before 4 April 1963.

Lease premiums: sums payable for surrender of lease U.K.

37 U.K. Section 220 does not apply in relation to a lease granted—

(a) before 6 April 1963, or

(b) pursuant to a contract entered into before 4 April 1963.

Lease premiums: assignments for profit of lease granted at undervalue U.K.

38 U.K. Section 222 does not apply in relation to a lease granted—

(a) before 6 April 1963, or

(b) pursuant to a contract entered into before 4 April 1963.

Lease premiums: pre-commencement receipts under ICTA treated as taxed receipts U.K.

39 (1) This paragraph relates to the operation of sections 227 to 235 where, in respect of a lease— U.K.

(a) there is a receipt of a Schedule A business or an overseas property business (within the meaning of section 65A(4) or 70A(4) of ICTA) as a result of section 34 or 35 of ICTA (treatment of premiums etc as rent and assignments for profit of lease granted at an undervalue) for a tax year before the tax year 2005-06 or an accounting period ending before 1 April 2009, or

(b) there would be such a receipt, but for the operation of section 37(2) or (3) of ICTA (reductions in certain receipts under section 34 or 35 of ICTA).

In this paragraph and paragraph 40 a receipt falling within paragraph (a) or (b) is referred to as an “ICTA pre-commencement receipt”.

(2) For the purposes of Chapter 4 of Part 4—

(a) the lease is treated as a taxed lease, and

(b) the ICTA pre-commencement receipt is treated as a taxed receipt.

(3) For the purposes of that Chapter, the “receipt period” of a taxed receipt which is an ICTA pre-commencement receipt is—

(a) in the case of an ICTA pre-commencement receipt as a result of section 34 of ICTA, the period treated in calculating the amount of the receipt as being the duration of the lease, and

(b) in the case of an ICTA pre-commencement receipt as a result of section 35 of ICTA, the period treated in calculating the amount of the receipt as being the duration of the lease remaining at the date of the assignment.

(4) For the purposes of that Chapter the “unreduced amount” of a taxed receipt which is an ICTA pre-commencement receipt is the amount of the ICTA pre-commencement receipt as a result of section 34 or 35 of ICTA, before the operation of section 37(2) or (3) of ICTA.

(5) Sub-paragraph (6) applies to a taxed receipt which is an ICTA pre-commencement receipt arising as a result of section 34(2) of ICTA (obligation on tenant to carry out work under lease).

(6) If the obligation to carry out work included the carrying out of work which gave or will give rise to expenditure for which an allowance has been, or may be, made under the enactments relating to capital allowances, the unreduced amount of the taxed receipt is calculated as if the obligation had not included the carrying out of that work.

Lease premiums: taking account of reductions under section 37(2) or (3) of ICTA U.K.

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

(a) in calculating the amount of an ICTA pre-commencement receipt, there is a reduction under section 37(2) or (3) of ICTA by reference to the amount chargeable on the superior interest for the purposes of that section, and

(b) as a result of paragraph 39(1) and (2) or section 227(4)(c) or (d) (lease taxed under ITTOIA 2005) the amount chargeable on the superior interest is the taxed receipt for the purposes of Chapter 4 of Part 4.

(2) References to a reduction under section 37(2) or (3) of ICTA in an ICTA pre-commencement receipt by reference to the amount chargeable on the superior interest are to the difference between—

(a) the amount of the ICTA pre-commencement receipt before the operation of section 37(2) or (3) of ICTA, and

(b) the amount of the receipt after the operation of that subsection,

so far as attributable to the amount chargeable on the superior interest for the purposes of section 37 of ICTA.

(3) In sections 230(5)(a) (meaning of “unused amount”) and 235(3)(a) (limit on reductions and deductions) references to reductions under section 288 of ITTOIA 2005 by reference to the taxed receipt include references to reductions under section 37(2) or (3) of ICTA in ICTA pre-commencement receipts by reference to the amount chargeable on the superior interest.

(4) Sections 232 to 234 apply as follows—

(a) the ICTA pre-commencement receipt is treated as if it were a lease premium receipt for the purposes of sections 233 and 234,

(b) references in those sections to the reduction under section 228 by reference to the taxed receipt are, in relation to the ICTA pre-commencement receipt, to the reduction under section 37(2) or (3) of ICTA by reference to the amount chargeable on the superior interest, and

(c) for the purposes of those sections the receipt period of the ICTA pre-commencement receipt is—

(i) in the case of an ICTA pre-commencement receipt as a result of section 34 of ICTA, the period treated in calculating the amount of the receipt as being the duration of the lease, and

(ii) in the case of an ICTA pre-commencement receipt as a result of section 35 of ICTA, the period treated in calculating the amount of the receipt as being the duration of the lease remaining at the date of the assignment.

Lease premiums: taking account of deductions for rent as a result of section 37(4) or 87(2) of ICTA U.K.

41 (1) Sub-paragraph (2) applies if— U.K.

(a) in calculating the profits of a trade, profession or vocation for a tax year before the tax year 2005-06 or an accounting period ending before 1 April 2009, a person is treated as paying rent under section 87(2) of ICTA by reference to the amount chargeable for the purposes of that section, and

(b) as a result of paragraph 39(1) and (2) or section 227(4)(c) or (d) (lease taxed under ITTOIA 2005) the amount chargeable is the taxed receipt for the purposes of Chapter 4 of Part 4.

(2) References in sections 230(5)(b) and 235(3)(c) to the deductions allowed for expenses under section 63 by reference to the taxed receipt include references to the deductions allowed in calculating the profits of the trade, profession or vocation for the rent that the person is treated as paying under section 87(2) of ICTA by reference to the amount chargeable.

(3) Sub-paragraph (4) applies if—

(a) in calculating the profits of a Schedule A business or an overseas property business (within the meaning of section 65A(4) or 70A(4) of ICTA) for a tax year before the tax year 2005-06 or an accounting period ending before 1 April 2009, a person is treated as paying rent as a result of section 37(4) of ICTA by reference to the amount chargeable on the superior interest for the purposes of that section, and

(b) as a result of paragraph 39(1) and (2) or section 227(4)(c) or (d) (lease taxed under ITTOIA 2005) the amount chargeable on the superior interest is the taxed receipt for the purposes of Chapter 4 of Part 4.

(4) References in sections 230(5)(c) and 235(3)(b) to the deductions allowed for expenses under section 292 of ITTOIA 2005 by reference to the taxed receipt include references to the deductions allowed in calculating the profits of the Schedule A business or overseas property business (within the meaning of section 65A(4) or 70A(4) of ICTA) for the rent that the person is treated as paying as a result of section 37(4) of ICTA by reference to the amount chargeable on the superior interest.

Lease premiums: time limits for claims for repayment of tax U.K.

42 (1) Until the Treasury by order appoints a day under this paragraph— U.K.

(a) section 238 has effect as if “ 6 years ” were substituted for “4 years” in subsection (3) of that section, and

(b) section 239 has effect as if “ 6 years ” were substituted for “4 years” in subsection (3) of that section.

(2) An order under this paragraph—

(a) may appoint different days for different purposes, and

(b) may include transitional provision and savings.

Lease premiums: rules for determining effective duration of lease U.K.

43 (1) In relation to a lease granted after 24 August 1971 and before 1 April 2009, section 243 applies with the following modifications. U.K.

(2) In subsection (1) for Rule 1 substitute— “Rule 1: A lease is not to be treated as having been granted for a term longer than one ending on a date before the end of the term for which the lease was granted if—

(a) the terms of the lease or any other circumstances make it unlikely that the lease will continue beyond that date, and

(b) the premium was not substantially greater than it would have been had the term been one ending on that date.”

(3) Omit subsection (3).

44 U.K. The amendments made by paragraph 626 of Schedule 1 (amendments of section 303 of ITTOIA 2005, which provides rules for determining the effective duration of a lease) do not have effect in relation to leases granted before 1 April 2009.

45 (1) In relation to a lease granted after 12 June 1969 and before 25 August 1971, for sections 243 and 244 substitute— U.K.

“243 Rules for determining effective duration of lease

(1) The following rules apply for determining the effective duration of a lease for the purposes of this Chapter.

Rule 1: Where the terms of a lease include provision for the determination of the lease by notice given by the landlord, the lease is not to be treated as granted for a term longer than one ending at the earliest date on which it could be determined by notice so given.

Rule 2: A lease is not to be treated as having been granted for a term longer than one ending on a date before the end of the term for which the lease was granted, if the terms of the lease or any other circumstances make it unlikely that the lease will continue beyond that date.

Rule 3: Where the terms of the lease include provision for the extension of the lease beyond a given date by notice given by the tenant, account may be taken of any circumstances making it likely that the lease will be so extended.

(2) Rule 2 applies by reference to the facts known or ascertainable at the time of the grant of the lease.

(3) In applying the rules, it is assumed that all parties concerned, whatever their relationship, act as if they were at arm's length.

(4) In this section, in relation to Scotland, “term”, where referring to the duration of a lease, means period.”

(2) This paragraph does not apply if the determination is for the purposes of section 221 (sums payable for variation or waiver of terms of lease).

46 (1) In relation to a lease granted before 13 June 1969, for sections 243 to 245 substitute— U.K.

“243 Rules for determining effective duration of lease

(1) The following rules apply for determining the effective duration of a lease for the purposes of this Chapter.

Rule 1: Where the effective duration of a lease is being determined after the date on which the lease has for any reason come to an end, the duration is taken to have extended from its commencement to that date.

Rule 2: Where the terms of the lease include provision for the determination of the lease by notice given either by the landlord or by the tenant, the lease is not to be treated as granted for a term longer than one ending at the earliest date on which it could be determined by notice.

Rule 3: A lease is not to be treated as having been granted for a term longer than one ending on a date before the end of the term for which the lease was granted, if the terms of the lease or any other circumstances make it unlikely that the lease will continue beyond that date.

(2) Rules 2 and 3 are subject to Rule 1.

(3) Rules 2 and 3 apply in accordance with circumstances prevailing at the time of the determination.

(4) In this section, in relation to Scotland, “term”, where referring to the duration of a lease, means period.”

(2) This paragraph does not apply if the determination is for the purposes of section 221 (sums payable for variation or waiver of terms of lease).

47 U.K. The amendments made by paragraphs 498 and 506 of Schedule 1 (amendments of sections 291(3)(a) and 393J(3)(a) of CAA 2001) do not have effect in relation to leases granted before 1 April 2009.

Lease premiums: meaning of “premium” U.K.

48 (1) In relation to a lease granted after 12 June 1969 and before 25 August 1971 sections 246 and 247 have effect with the following modifications. U.K.

(2) Section 246 has effect with the omission of subsections (4) and (5).

(3) Section 247 has effect with the omission of—

(a) the words “or to a person connected with such a person” in subsection (1), and

(b) subsection (2).

Reverse premiums U.K.

49 (1) Section 250 does not apply to a reverse premium— U.K.

(a) which was received before 9 March 1999, or

(b) to which the recipient was entitled immediately before that date.

(2) In determining whether a reverse premium was one to which the recipient was entitled immediately before 9 March 1999, no account is to be taken of any arrangements made on or after that date.

Deductions for expenditure on energy-saving items U.K.

50 U.K. Sections 251 to 253 do not apply to expenditure incurred before 8 July 2008.

Adjustment on change of basis U.K.

51 (1) Sections 261 and 262 apply to a change of basis taking effect for a period of account which ends after 31 March 2009. U.K.

(2) For this purpose the period of account for which a change of basis takes effect is the first period of account for which the new basis is adopted.

Meaning of “mineral royalties” U.K.

52 U.K. The definition of “mineral royalties” in section 274(2) does not include any rent receivable before 6 April 1970.

Part 8 U.K. Loan relationships

Interpretation U.K.

53 U.K. Except as provided in this Part of this Schedule, expressions used in this Part of this Schedule and in Part 5 of this Act have the same meaning as in Part 5.

Opening and closing values determined under Schedule 15 to the Finance Act 1996 U.K.

54 U.K. So far as immediately before the commencement of this Act any opening value or closing value is to be determined by reference to Schedule 15 to FA 1996 (loan relationships: savings and transitional provisions), the determination of that value is not affected by the repeal by this Act of any provision in that Schedule or any provision affecting such a provision.

References to Part 5 to include Schedule 15 to FA 1996 U.K.

55 U.K. Except where the context indicates otherwise, references to Part 5 of this Act in any enactment other than Schedule 15 to FA 1996 include references to that Schedule.

Exemption for interest on tax overpaid for accounting periods ending before 1 July 1999 U.K.

56 U.K. No liability to corporation tax arises in respect of interest paid under section 826(1) of ICTA (interest on tax overpaid) if the accounting period mentioned in the paragraph of that section as a result of which it is paid ends before 1 July 1999.

Regulations under section 81 of FA 2002 U.K.

57 U.K. The repeal by this Act of any provision in Schedule 23 to FA 2002 (transitional provision) does not affect the power in section 81 of that Act so far as relating to that provision.

Continuity on transfers: transferees becoming party to loan relationship before 9 April 2003 U.K.

58 (1) In determining whether Chapter 4 of Part 5 (continuity on transfers within groups or on reorganisations) applies in the case mentioned in section 336 or 337 where the transferee became party to the loan relationship before 9 April 2003, section 338 (meaning of company replacing another as party to loan relationship) applies with the following omissions. U.K.

(2) In subsection (1) omit paragraphs (b) and (c).

(3) In subsection (2) omit “or obligations”.

(4) Omit subsections (5) and (6).

(5) This paragraph must be read as if it were in Chapter 4 of Part 5.

Deeply discounted securities held before 1 October 2002 U.K.

59 (1) This sub-paragraph applies if— U.K.

(a) the condition in paragraph 17(1)(c) of Schedule 9 to FA 1996 (connection between issuing company and another company) is met as respects an accounting period beginning on or after 1 October 2002 as a result of the amendments made by paragraph 33 of Schedule 25 to FA 2002, but would not have been met in an accounting period beginning before that date, and

(b) the debtor relationship in question was a debtor relationship of the issuing company (within the meaning of section 407) on the first day of the company's first accounting period beginning on or after that date.

(2) If sub-paragraph (1) applies, section 407 does not apply in relation to that debtor relationship as a result of those amendments.

(3) This sub-paragraph applies if section 409 applies in a case where—

(a) the relevant period began before 1 October 2002,

(b) as a result of paragraph 18 of Schedule 9 to FA 1996 an amount (“the deferred amount”) was not brought into account by a company for the purposes of Chapter 2 of Part 4 of that Act in respect of a debtor relationship for an accounting period beginning before that date, and

(c) the deeply discounted security concerned has not been redeemed before the beginning of the company's first accounting period to which this Act applies.

(4) If sub-paragraph (3) applies, as regards any accounting period to which this Act applies, section 409(2) applies as if paragraph 18(2) of Schedule 9 to FA 1996, instead of preventing the bringing of amounts into account for any accounting period before that in which the security was redeemed, had provided for the deferred amount to be brought into account for the accounting period in which the security was redeemed rather than for the relevant period.

(5) In this paragraph—

• “deeply discounted security” has the same meaning as in Chapter 8 of Part 4 of ITTOIA 2005 (profits from deeply discounted securities) (see section 430 of that Act), and

• “the relevant period” has the same meaning as in section 409.

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

(a) an authorised unit trust or open-ended investment company holds a deeply discounted security on the last day of the unit trust's or company's last accounting period beginning before 1 October 2002 (“the last old day”),

(b) the security was not transferred or redeemed on that day,

(c) there is an amount which, if the unit trust or company had made a transfer of that security on that day, by selling it for its adjusted closing value—

(i) would have been charged under paragraph 1 of Schedule 13 to FA 1996 under Case III or IV of Schedule D, or

(ii) would have been eligible for relief from tax on a claim for the purposes of paragraph 2 of Schedule 13 to FA 1996, and

(d) that amount has not fallen to be brought into account under paragraph 64(3) of Schedule 25 to FA 2002.

(2) That amount must be brought into account as a non-trading credit, or (as the case may be) a non-trading debit, for the purposes of Part 5 (loan relationships) for the relevant accounting period.

(3) The relevant accounting period is the accounting period in which falls the earliest of—

(a) the first day that falls after the last old day and is a day on which, under the terms on which the security was issued, the holder of the security is entitled to require it to be redeemed,

(b) the day on which the security is redeemed, and

(c) the day on which the unit trust or company makes a disposal of the security.

(4) For the purposes of sub-paragraph (1)(c), the “adjusted closing value” of a deeply discounted security held by the unit trust or company on the last old day is the amount which for the purposes of Chapter 2 of Part 4 of FA 1996 was the opening value, as at the first day of the unit trust's or company's first accounting period beginning on or after 1 October 2002, of the unit trust's or company's rights and liabilities under the relationship represented by that security.

(5) Paragraph 5(7) of Schedule 15 to FA 1996 (determination of opening value where accruals basis of accounting is used) applies for the purposes of sub-paragraph (4) as it applies for the purposes of paragraph 5 of that Schedule, but—

(a) taking the reference to 1 April 1996 as a reference to the first day of the unit trust's or company's first accounting period beginning on or after 1 October 2002, and

(b) applying paragraph 4 of that Schedule (determination of amounts treated as accruing on or after 1 April 1996) (as it had effect immediately before 1 April 2009) for these purposes with the same modification.

(6) In this paragraph—

• “creditor relationship” has the same meaning as in Part 5,

• “deeply discounted security” has the same meaning as in that Chapter (see section 430 of that Act),

• “open-ended investment company” has the same meaning as in section 468A of ICTA,

• “redeem” means—

  (a)

  make a disposal, within the meaning of Chapter 8 of Part 4 of ITTOIA 2005 (profits from deeply discounted securities), except by a transfer within the meaning of that Chapter, or

  (b)

  convert as mentioned in section 437(1)(c) of that Act, and

• “transfer” has the same meaning as in that Chapter.

(7) In this paragraph “the relevant period” has the same meaning as in section 409.

Restriction on bringing into account credits resulting from reversal of debits disallowed in a period of account beginning before 1 January 2005 U.K.

61 (1) No credit is to be brought into account for the purposes of Part 5 in respect of the reversal of a debit that was disallowed for tax purposes in a period of account beginning before 1 January 2005— U.K.

(a) because of the assumption required by paragraph 5(1) of Schedule 9 to FA 1996, or

(b) because the exceptions in section 74(1)(j) of ICTA did not apply.

(2) This paragraph does not apply if fair value accounting is used.

Disregard of pre-2005 disallowed debits U.K.

62 (1) This paragraph applies if in a period of account of a company beginning before 1 January 2005 (“the earlier period”) a debit was disallowed for tax purposes— U.K.

(a) because of the assumption required by paragraph 5(1) of Schedule 9 to FA 1996, or

(b) because the exceptions in section 74(1)(j) of ICTA did not apply.

(2) The debit is ignored in determining the accounting value of an asset of the company at the end of the earlier period for the purposes of section 316 (change of accounting policy involving change of value).

Bringing into account losses on overseas sovereign debt etc U.K.

63 (1) This paragraph applies if at the end of the last period of account of a company before paragraph 17(1)(b) of Schedule 4 to FA 2005 (which repealed paragraph 9 of Schedule 9 to FA 1996) had effect— U.K.

(a) the company had ceased to be a party to a loan relationship, and

(b) the effect of paragraph 9 of Schedule 9 to FA 1996 (restrictions on bringing into account losses on overseas sovereign debt) (or a corresponding earlier enactment) was that part of the loss arising had not been brought into account for tax purposes.

(2) Despite the repeal by this Act of paragraph 17(3) of Schedule 4 to FA 2005, any debit that, as a result of that paragraph, immediately before its repeal could have been brought into account for the purposes of Chapter 2 of Part 4 of FA 1996 (loan relationships) under paragraph 9(4) or (5) of Schedule 9 to FA 1996 in a subsequent period of account of the company may be brought into account in such a period for the purposes of Part 5 (loan relationships).

Saving for old elections for treating loan relationships with embedded derivatives as two assets U.K.

64 (1) The repeal by this Act of paragraph 7 of Schedule 6 to F(No.2)A 2005 (loan relationships with embedded derivatives) does not affect— U.K.

(a) any election made under that paragraph immediately before the repeal takes effect, or

(b) any election which immediately before the repeal takes effect had effect as if so made as a result of sub-paragraph (8) of that paragraph (elections made under paragraph 28(3) of Schedule 4 to FA 2005).

(2) This Act applies to those elections as if they had been made under section 416 (election for application of sections 415 and 585).

Deeply discounted securities of close companies: discounts for accounting periods beginning before 1 April 2007 U.K.

65 (1) This paragraph applies as regards a debtor relationship entered into in pursuance of a contract— U.K.

(a) made before 4 March 2005, and

(b) not varied after that date, or not varied until after that date.

(2) A debit is not allowed or required, as a result of the amendments made by paragraph 3(2) and (4) to (7) of Schedule 8 to F(No.2)A 2005, to be brought into account under Part 5 for an accounting period in respect of any amount of discount in respect of which a debit is so brought into account for any earlier accounting period.

(3) In sub-paragraph (2) “earlier accounting period” means an accounting period that began before—

(a) 1 April 2007, or

(b) if the contract mentioned in sub-paragraph (1) was varied before that date, the date of variation.

(4) The references in this paragraph to the variation of a contract do not include references to a variation that does not affect the terms of the debtor relationship in question.

Repo, stock lending and other transactions before 1 October 2007: disapplication of section 332 U.K.

66 U.K. Section 332 (repo, stock lending and other transactions) does not apply in relation to cases where there is—

(a) an arrangement to which Chapter 10 of Part 6 would apply if the arrangement had not come into force before 1 October 2007,

(b) a stock lending arrangement (within the meaning of section 263B(1) of TCGA 1992), which came into force before that date and under which the lender transfers securities to the borrower otherwise than by way of sale, or

(c) any other disposal before that date.

Avoidance relying on continuity of treatment provisions: transactions before 16 May 2008 U.K.

67 U.K. Section 347 (disapplication of Chapter 4 of Part 5 where transferor party to avoidance) does not have effect in relation to transactions taking place, or a series of transactions of which the first takes place, before 16 May 2008.

Disposals for consideration not fully recognised by accounting practice: disposals before 16 May 2008 U.K.

68 U.K. Section 455 (disposals for consideration not fully recognised by accounting practice) does not have effect in relation to disposals before 16 May 2008.

5½% Treasury Stock 2008-2012 not redeemed before 6 April 2009 U.K.

69 (1) This paragraph applies if any loan relationship of a company— U.K.

(a) is represented by any 5½% Treasury Stock 2008-2012, and

(b) is one to which the company is a party otherwise than in the course of activities that form an integral part of a trade it carries on.

(2) No amounts fall to be brought into account for the purposes of Part 5 in respect of the loan relationship unless they relate to interest.

References to Companies Act 2006 U.K.

70 U.K. Until section 658 of the Companies Act 2006 (c. 46) (rule against limited company acquiring own shares) comes into force, references to that section in sections 421(4)(g)(ii) and 431(7)(b) have effect as if they were references to section 143 of the Companies Act 1985 (c. 6).

Prospective

Prospective repeal of provisions concerning exchange gains and losses from loan relationships U.K.

Valid from 18/11/2015

71 (1) The following provisions (which rewrite provisions prospectively repealed by F(No.2)A 2005 or are related to such provisions) cease to have effect— U.K.

(a) section 306(2)(e) (introduction to section 328),

(b) section 310(5) (power to make regulations about recognised amounts: exception for exchange gains and losses),

(c) section 328 (exchange gains and losses),

(d) section 384 (treatment of exchange gains and losses),

(e) section 450(6) (meaning of “corresponding debtor relationship”: disregard of section 328(2) to (7)), and

(f) [F12 section 151E] of TCGA 1992 (exchange gains and losses from loan relationships: regulations).

(2) For the power to make an order bringing this paragraph into force, see section 1329(3).

Textual Amendments

F12 Words in Sch. 2 para. 71(1)(f) substituted (18.11.2009) by Corporation Tax Act 2009 (Amendment) Order 2009 (S.I. 2009/2860), arts. 1(1), 6(7)(a)

Part 9 U.K. Relationships treated as loan relationships

Relevant non-lending relationships: discounts accruing and profits arising before 16 March 2005 U.K.

72 (1) None of the following is to be brought into account for the purposes of Part 5 as a result of any of the provisions specified in sub-paragraph (2) or any reference to that provision in any other provision— U.K.

(a) credits in respect of a discount arising from a money debt, so far as the discount accrued before 16 March 2005,

(b) credits in respect of profits arising as mentioned in 481(3)(c) or (5)(c) where the related transaction took place before that date,

(c) debits in respect of any impairment arising in respect of a discount arising from a money debt, so far as the discount accrued before that date,

(d) credits in respect of any reversal of any such impairment, so far as the discount accrued before that date.

(2) The provisions are—

(a) section 480 (relevant non-lending relationships involving discounts),

(b) section 481(3)(c) and (5) to (8) (application of Part 5 to relevant non-lending loan relationships), and

(c) section 482(2) (miscellaneous rules about amounts to be brought into account because of Chapter 2 of Part 6).

(3) This paragraph is to be read as if it were in Chapter 2 of Part 6.

[F13 Relevant non-lending relationships: discounts on disposals before 22 March 2006 U.K.

Textual Amendments

F13 Sch. 2 para. 72A inserted (retrospective and with effect in accordance with art. 1(2) of the amending S.I.) by Corporation Tax Act 2009 (Amendment) Order 2010 (S.I. 2010/614), arts. 1(1), 3(5)

72A. (1)  Section 480 (relevant non-lending relationships involving discounts) applies with the modifications set out in sub-paragraph (2) if— U.K.

(a) the money debt mentioned in section 480(1) is some or all of the consideration payable for a disposal of property, and

(b) the disposal is made before 22 March 2006.

(2) The modifications are—

(a) in section 480(1)(e) for “conditions A and B are met” substitute “the property is neither—

(i) an asset representing a loan relationship, nor

(ii) a derivative contract”, and

(b) omit subsections (2) to (4).]

Alternative finance arrangements entered into before [F14 certain dates] U.K.

Textual Amendments

F14 Words in Sch. 2 Pt. 9 cross-heading substituted (1.4.2009 retrospective) by Corporation Tax Act 2009 (Amendment) Order 2009 (S.I. 2009/2860), arts. 1(2), 6(7)(b)

73 [F15 (1) Chapter 6 of Part 6 (alternative finance arrangements) does not apply to purchase and resale arrangements entered into before 6 April 2005. U.K.

(1A) That Chapter only applies to deposit arrangements entered into before that date (“pre-6 April 2005 arrangements”) if they are relevant deposit arrangements and then only so far as provided by this paragraph.]

(2) In this paragraph “relevant deposit arrangements” means deposit arrangements under which alternative finance return is payable on or after 6 April 2005.

(3) For the purposes of Part 5 (loan relationships) the loan that is treated under section 509 (application of Part 5: general) as made by or to a company that is party to the pre-6 April 2005 arrangements is a loan made on 6 April 2005 of an amount equal to the notional carrying value of the asset or liability representing the arrangements.

(4) For the purposes of sub-paragraph (3) that notional carrying value is the amount that would have been the carrying value of the asset or liability in the accounts of the company (prepared in accordance with generally accepted accounting practice) if a period of account had ended immediately before 6 April 2005.

Textual Amendments

F15 Sch. 2 para. 73(1)(1A) substituted for Sch. 2 para. 73(1) (1.4.2009 retrospective) by Corporation Tax Act 2009 (Amendment) Order 2009 (S.I. 2009/2860), arts. 1(2), 6(7)(c)

F16 ... U.K.

Textual Amendments

F16 Sch. 2 Pt. 9 cross-heading omitted (1.4.2009 retrospective) by virtue of Corporation Tax Act 2009 (Amendment) Order 2009 (S.I. 2009/2860), arts. 1(2), 6(7)(d)

74 [F17 (1) Chapter 6 of Part 6 (alternative finance arrangements) does not apply to diminishing shared ownership arrangements entered into before 1 April 2006. U.K.

(1A) That Chapter only applies to profit share agency arrangements entered into before that date (“pre-1 April 2006 arrangements”) if they are relevant profit share agency arrangements and then only so far as provided by this paragraph.]

(2) In this paragraph “relevant profit share agency arrangements” means profit share agency arrangements under which alternative finance return is payable on or after 1 April 2006.

(3) For the purposes of Part 5 (loan relationships) the loan that is treated under section 509 (application of Part 5: general) as made by or to a company that is party to the pre-1 April 2006 arrangements is a loan made on 1 April 2006 of an amount equal to the notional carrying value of the asset or liability representing the arrangements.

(4) For the purposes of sub-paragraph (3) that notional carrying value is the amount that would have been the carrying value of the asset or liability in the accounts of the company (prepared in accordance with generally accepted accounting practice) if a period of account had ended immediately before 1 April 2006.

Textual Amendments

F17 Sch. 2 para. 74(1)(1A) substituted for Sch. 2 para. 74(1) (1.4.2009 retrospective) by Corporation Tax Act 2009 (Amendment) Order 2009 (S.I. 2009/2860), arts. 1(2), 6(7)(e)

F18 ... U.K.

Textual Amendments

F18 Sch. 2 Pt. 9 cross-heading omitted (1.4.2009 retrospective) by virtue of Corporation Tax Act 2009 (Amendment) Order 2009 (S.I. 2009/2860), arts. 1(2), 6(7)(f)

75 (1) Chapter 6 of Part 6 (alternative finance arrangements) only applies to investment bond arrangements entered into before 1 April 2007 (“pre-1 April 2007 arrangements”) if they are relevant investment bond arrangements and then only so far as provided by this paragraph. U.K.

(2) In this paragraph “relevant investment bond arrangements” means investment bond arrangements under which alternative finance return is payable on or after 1 April 2007.

(3) For the purposes of Part 5 (loan relationships) the loan that is treated under section 509 (application of Part 5: general) as made by or to a company that is party to the pre-1 April 2007 arrangements is a loan made on 1 April 2007 of an amount equal to the notional carrying value of the asset or liability representing the arrangements.

(4) For the purposes of sub-paragraph (3) that notional carrying value is the amount that would have been the carrying value of the asset or liability in the accounts of the company (prepared in accordance with generally accepted accounting practice) if a period of account had ended immediately before 1 April 2007.

Shares with guaranteed returns: redeemable shares where public issue before 22 March 2006 U.K.

76 U.K. In relation to any case where the public issue (within the meaning of section 530(4) and (5)) is before 22 March 2006 for “7 days” in subsections (4)(b) and (5)(a) of section 530 (the redemption return condition: excepted shares) substitute “ 24 hours ”.

Shares with guaranteed returns: income-producing assets for the increasing value condition U.K.

77 U.K. In relation to any time before 16 May 2008, section 527(4) (meaning of “income-producing assets” for the purposes of the increasing value condition) applies with the substitution for paragraph (c) of the following paragraph—

“(c) any share as respects which the redemption return condition is met or would be met apart from section 529(1)(c) (excepted shares),”.

Repo transactions and stock lending arrangements before 1 October 2007 U.K.

78 (1) Chapter 10 of Part 6 (repos) does not apply in relation to an arrangement which came into force before 1 October 2007. U.K.

(2) The repeal by this Act of paragraph 15 of Schedule 9 to FA 1996 (repo transactions and stock-lending) does not affect its application in relation to cases where there is—

(a) an arrangement to which Chapter 10 of Part 6 would apply if the arrangement had not come into force before 1 October 2007,

(b) a stock lending arrangement (within the meaning of section 263B(1) of TCGA 1992), which came into force before that date and under which the lender transfers securities to the borrower otherwise than by way of sale, or

(c) any other disposal before that date.

(3) But that paragraph applies with the substitution—

(a) for references to Chapter 2 of Part 4 of FA 1996 of references to Part 5 of this Act, and

(b) for the reference in sub-paragraph (5) to section 84 of that Act of a reference to section 304 of this Act.

Part 10 U.K. Derivative contracts

Interpretation U.K.

79 U.K. Expressions used in this Part of this Schedule and in Part 7 of this Act have the same meaning as in Part 7.

Extended meaning of reference in section 591(6)(b) U.K.

80 U.K. The reference in section 591(6)(b) (condition E) to the provisions in section 591(7) includes a reference to paragraphs 82 and 86 of this Schedule.

Disapplication of section 645 U.K.

81 U.K. Section 645 (creditor relationships: embedded derivatives which are options) does not apply to a derivative contract of a company for an accounting period if the asset representing the creditor relationship is an asset in relation to which paragraph 9(2) of Schedule 10 to FA 2004 has effect.

Existing assets representing creditor relationships: options U.K.

82 (1) This paragraph applies if section 645 would apply to a derivative contract of a company for an accounting period but for the fact that the asset representing the creditor relationship is an asset in relation to which paragraph 9(2) of Schedule 10 to FA 2004 has effect. U.K.

(2) Section 574 (non-trading credits and debits to be brought into account under Part 5) does not apply to the credits and debits which are given in relation to the derivative contract for the accounting period by section 595.

(3) The asset representing the creditor relationship is treated for corporation tax purposes as not being a qualifying corporate bond.

(4) For the purposes of corporation tax on chargeable gains, the amount or value of the consideration for any disposal by the company of the asset representing the creditor relationship is reduced by so much of that amount or value as, on a just and reasonable apportionment, relates to interest within sub-paragraph (5).

(5) Interest is within this sub-paragraph if—

(a) it falls to be brought into account under Part 5 of this Act (loan relationships) as accruing to any company at any time, and

(b) in consequence of, or of the terms of, the disposal, it is not paid or payable to the company to which it is treated for the purposes of that Part as accruing.

(6) For the purposes of corporation tax on chargeable gains, the amount or value of the consideration for any disposal by the company of the asset mentioned in sub-paragraph (4)—

(a) is increased by the addition of any relevant exchange losses, and

(b) is (after giving effect to any such increase) reduced (but not below nil) by the deduction of any relevant exchange gains.

(7) If the amount of the relevant exchange gains falling to be deducted under sub-paragraph (6)(b) exceeds the amount required to reduce the amount or value of the consideration to nil, the excess is treated for the purposes of section 38(1)(c) of TCGA 1992 as incidental costs of the disposal of the asset mentioned in sub-paragraph (4).

83 (1) This paragraph applies for the purposes of paragraph 82. U.K.

(2) “Relevant exchange gains” means an amount within sub-paragraph (4) or (5).

(3) “Relevant exchange losses” means an amount which would be within sub-paragraph (4) or (5) if references in those sub-paragraphs to exchange gains were read as references to exchange losses.

(4) An amount is within this sub-paragraph if it is the amount of any exchange gains in respect of the asset mentioned in paragraph 82(4) which are brought into account under Part 5 of this Act (loan relationships) by the company for an accounting period throughout which the company holds that asset.

(5) For any accounting period not within sub-paragraph (4) in which the company holds that asset, an amount is within this sub-paragraph if it is an amount which, on a just and reasonable apportionment, represents so much of the amount of any exchange gains brought into account under that Part in respect of that asset by the company for that period as is referable to the part of the period for which the company holds that asset.

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

(a) there has been a reorganisation for the purposes of sections 126 to 132 of TCGA 1992, and

(b) for the purposes of those sections, the asset mentioned in paragraph 82(4) is treated as the original shares.

(2) The reference in paragraph 82(4) to the disposal of that asset is a reference to the disposal of the asset which, as a result of the reorganisation, has become the new holding for the purposes of those sections.

Disapplication of section 648 U.K.

85 U.K. Section 648 (creditor relationships: embedded derivatives which are exactly tracking contracts for differences) does not apply to a derivative contract of a company for an accounting period if the asset representing the creditor relationship is an asset in relation to which paragraph 11(2) of Schedule 10 to FA 2004 has effect.

Existing assets representing creditor relationships: contracts for differences U.K.

86 (1) This paragraph applies if section 648 would apply to a derivative contract of a company for an accounting period but for the fact that the asset representing the creditor relationship is an asset in relation to which paragraph 11(2) of Schedule 10 to FA 2004 has effect. U.K.

(2) Section 574 (non-trading credits and debits to be brought into account under Part 5) does not apply to the credits and debits which are given in relation to the derivative contract for the accounting period by section 595.

(3) The asset representing the creditor relationship is treated for corporation tax purposes as not being a qualifying corporate bond.

(4) For the purposes of corporation tax on chargeable gains, the amount or value of the consideration for any disposal by the company of the asset representing the creditor relationship is reduced by so much of that amount or value as, on a just and reasonable apportionment, relates to interest within sub-paragraph (5).

(5) Interest is within this sub-paragraph if—

(a) it falls to be brought into account under Part 5 of this Act (loan relationships) as accruing to any company at any time, and

(b) in consequence of, or of the terms of, the disposal, it is not paid or payable to the company to which it is treated for the purposes of that Part as accruing.

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

(a) there has been a reorganisation for the purposes of sections 126 to 132 of TCGA 1992, and

(b) for the purposes of those sections, the asset mentioned in paragraph 86(4) is treated as the original shares.

(2) The reference in paragraph 86(4) to the disposal of that asset is a reference to the disposal of the asset which, as a result of the reorganisation, has become the new holding for the purposes of those sections.

Disapplication of section 658 U.K.

88 (1) Section 658 (chargeable gain or allowable loss treated as accruing) does not apply to a derivative contract of a company for an accounting period if the liability representing the debtor relationship was owed by the company immediately before its first accounting period to begin on or after 1 January 2005. U.K.

(2) If section 658 would apply to a derivative contract for an accounting period but for sub-paragraph (1), section 574 (non-trading credits and debits to be brought into account under Part 5) does not apply to the credits and debits which are given in relation to the derivative contract for the accounting period by section 595.

Disapplication of section 661 U.K.

89 U.K. Section 661 (contract which becomes derivative contract) does not apply if the relevant contract became a derivative contract before 30 December 2006.

Disapplication of section 666 U.K.

90 U.K. Section 666 (allowable loss treated as accruing) does not apply to a company if the liability representing the debtor relationship was owed by the company immediately before its first accounting period to begin on or after 1 January 2005.

Contracts which became derivative contracts on 16 March 2005 U.K.

91 (1) This paragraph applies in relation to a company if conditions A, B and C are met in relation to a relevant contract. U.K.

(2) Condition A is that the company was a party to the relevant contract both immediately before and at 3.00pm on 16 March 2005.

(3) Condition B is that the relevant contract—

(a) was not a derivative contract immediately before 3.00pm on that date, but

(b) has been a derivative contract as from that time.

(4) Condition C is that the relevant contract was a chargeable asset immediately before that time.

(5) If the company ceases to be a party to the contract, it must bring into account for the accounting period in which it so ceases the amount of any chargeable gain or allowable loss which would have been treated as accruing to it on the assumptions in sub-paragraph (6).

(6) Those assumptions are that—

(a) the company disposed of the contract immediately before 3.00pm on 16 March 2005, and

(b) the disposal was for consideration of an amount equal to the value (if any) given to the contract in the accounts of the company at the end of the company's accounting period immediately before its first accounting period—

(i) beginning on or after 1 January 2005, and

(ii) ending on or after 16 March 2005.

Contracts which became derivative contracts on 28 July 2005 U.K.

92 (1) This paragraph applies in relation to a company if conditions A, B and C are met in relation to a relevant contract. U.K.

(2) Condition A is that the company was a party to the contract both immediately before and on 28 July 2005.

(3) Condition B is that the contract—

(a) was not a derivative contract immediately before that date, but

(b) apart from this paragraph, would have been a derivative contract on that date if an accounting period of the company began on that date.

(4) Condition C is that the contract was a chargeable asset immediately before that date.

(5) The relevant contract is treated for the purposes of Part 7 of this Act as a derivative contract entered into by the company on 28 July 2005 for consideration of an amount equal to the fair value of the contract on that date.

(6) If the company ceases to be a party to the contract, it must bring into account for the accounting period in which it so ceases the amount of any chargeable gain or allowable loss which would have been treated as accruing to it on the assumptions in sub-paragraph (7).

(7) Those assumptions are that—

(a) the company disposed of the contract immediately before 28 July 2005, and

(b) the disposal was for consideration of an amount equal to the fair value of the contract on that date.

Plain vanilla contracts which became derivative contracts before 30 December 2006 U.K.

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

(a) a company is a party to a plain vanilla contract which (not having been a derivative contract) became a derivative contract before 30 December 2006,

(b) the company disposes of the derivative contract by ceasing to be a party to it, and

(c) paragraphs 91 and 92 do not apply in relation to the contract.

(2) Section 699(1) (priority of this Part for corporation tax purposes) does not apply for the purpose of calculating any chargeable gain accruing to the company on the disposal.

(3) For the purpose of calculating any chargeable gain accruing to the company on the disposal, the sums allowable as a deduction under section 38(1)(a) of TCGA 1992 (acquisition costs) are—

(a) if G exceeds L, increased by the amount of that excess,

(b) if L exceeds G, reduced by the amount of that excess.

(4) If the amount of the excess in sub-paragraph (3)(b) is greater than the amount of the expenditure allowable under section 38(1)(a) of TCGA 1992, the amount of the excess which cannot be deducted from the expenditure so allowable is, for the purpose mentioned in sub-paragraph (3), added to the consideration for the disposal.

(5) In this paragraph—

• G is the sum of the credits brought into account under section 574 of this Act (non-trading credits and debits to be brought into account under Part 5) in respect of the derivative contract in each relevant accounting period, and

• L is the sum of the debits brought into account under that section in respect of the derivative contract in each such period.

(6) In sub-paragraph (5) “relevant accounting period” means—

(a) the accounting period in which the disposal is made, or

(b) any previous accounting period.

Issuers of securities with embedded derivatives: deemed options U.K.

94 (1) This paragraph applies if the company mentioned in section 652(1) was a party to the debtor relationship mentioned in section 652(2) immediately before its first accounting period to begin on or after 1 January 2005. U.K.

(2) Section 653 (shares issued or transferred as a result of exercise of deemed option) does not apply.

(3) If section 654(2) (payment instead of disposal on exercise of deemed option) applies—

(a) CV is taken to be nil, and

(b) an allowable loss of an amount equal to X is treated as accruing to the company in the accounting period mentioned in section 654(2).

(4) Section 655 (ceasing to be party to debtor relationship when deemed option not exercised) does not apply.

Contract becoming derivative contract on 12 March 2008 U.K.

95 (1) This paragraph applies if a company was, immediately before 12 March 2008, a party to a relevant contract which became a derivative contract by virtue of the amendments made by paragraph 20 of Schedule 22 to FA 2008. U.K.

(2) The contract is to be regarded for the purposes of Part 7 as having been entered into by the company on 12 March 2008 for consideration of an amount equal to its notional carrying value (within the meaning of section 622) on that date.

Avoidance relying on continuity of treatment provisions: transactions before 16 May 2008 U.K.

96 U.K. Section 629 (disapplication of section 625 where transferor party to avoidance involving subsequent transfer by transferee) does not have effect in relation to transactions taking place, or a series of transactions of which the first takes place, before 16 May 2008.

Disposals for consideration not fully recognised by accounting practice: disposals before 16 May 2008 U.K.

97 U.K. Section 698 (disposals for consideration not fully recognised by accounting practice) does not have effect in relation to disposals before 16 May 2008.

References to Companies Act 2006 U.K.

98 U.K. Until section 658 of the Companies Act 2006 (c. 46) (rule against limited company acquiring own shares) comes into force, references to that section in sections 674(3)(g)(ii) and 682(6)(b) have effect as if they were references to section 143 of the Companies Act 1985 (c. 6).

Prospective

Repeal of provisions concerning exchange gains and losses from derivative contracts U.K.

Valid from 18/11/2015

99 (1) The following provisions of this Act (which rewrite provisions prospectively repealed by F(No.2)A 2005) cease to have effect— U.K.

(a) section 606 (exchange gains and losses), and

(b) in section 690(6) (derivative contracts for unallowable purposes) the words from “which are” to the end.

(2) For the power to make an order bringing this paragraph into force, see section 1329(3).

Part 11 U.K. Intangible fixed assets

Transactions between related parties U.K.

100 (1) Sub-paragraphs (2) and (3) apply in relation to any accounting period that began before 12 March 2008 and ends after 31 March 2009. U.K.

(2) For the purposes of section 835(7) to (9)—

(a) so much of the period as falls before 12 March 2008 is treated as an accounting period, and

(b) so much of the period as falls on or after that date is treated as a separate accounting period.

(3) Section 835(7) to (9) only has effect in relation to the credits and debits to be brought into account for the accounting period mentioned in sub-paragraph (2)(b).

(4) Section 835(7) to (9) does not apply for the purposes of determining whether a party was a related party in relation to a company at a time before 12 March 2008.

(5) For the purposes of sections 845 to 849 (transactions between related parties: transfers treated as being at market value) as they apply otherwise than for determining the credits and debits to be brought into account under Part 8, section 835(7) to (9) only has effect in relation to transfers of assets made on or after 12 March 2008.

(6) For the purposes of sections 845 to 849 as they apply otherwise than for determining the debits or credits to be brought into account under Part 8, in relation to any transfer made before 16 March 2005 section 835 (“related party”) applies with the omission of subsection (5)(b).

(7) Sections 847 (transfers involving other taxes) and 849 (transfers involving gifts of business assets) do not have effect in relation to any transfer of assets made before 16 March 2005.

Continuity: formation of an SE before 1 April 2005 U.K.

101 U.K. Section 770 (continuity where group includes an SE) does not apply in relation to the formation of an SE (including its formation by transformation) which occurs before 1 April 2005.

References to Companies Act 2006 U.K.

102 U.K. Until section 658 of the Companies Act 2006 (c. 46) (rule against limited company acquiring own shares) comes into force, references to that section in sections 819(3)(f)(ii) and 821(5)(b) have effect as if they were references to section 143 of the Companies Act 1985 (c. 6).

Part 12 U.K. Beneficiaries' income from estates in administration

Basic amounts U.K.

103 (1) Sub-paragraph (2) applies if any previous accounting period to which regard is to be had for the purposes of section 948 (assumed income entitlement) is an accounting period ending before 1 April 2009 (an “old accounting period”). U.K.

(2) In relation to the old accounting period, the reference in Step 4 in subsection (1) of that section to basic amounts relating to the person's absolute interest in respect of which the company was liable to corporation tax for that period is to be taken as a reference to the amount deemed to have been paid to that company as income for that period in respect of that interest by virtue of section 696 of ICTA.

(3) Sub-paragraph (4) applies if one or more of the absolute interests referred to in section 954(1) (successive absolute interests) was held in one or more old accounting periods.

(4) The reference in section 954(2)(b) to the basic amounts relating to any previous such interest includes a reference to the amounts deemed to have been paid to the previous holder as income for old accounting periods in respect of that interest by virtue of section 696 of ICTA.

(5) Sub-paragraph (6) applies if any of the limited interests referred to in section 955(1)(d) (successive interests: assumed income entitlement of holder of absolute interest following limited interest) was held in one or more old accounting periods.

(6) The reference in section 955(4) to the basic amounts relating to any previous such interest includes a reference to the amounts deemed to have been paid to the holders of any such interests as income for old accounting periods in respect of those interests by virtue of section 695 of ICTA.

(7) In the case of a UK estate, references in this paragraph to the amounts deemed to have been paid are references to the amounts that would be deemed to have been paid apart from sections 695(4)(a) and 696(4) of ICTA (grossing up).

Income treated as bearing income tax U.K.

104 (1) A sum treated as part of the aggregate income of an estate by virtue of section 547(1)(c) of ICTA (gains from life insurance contracts etc) as the result of an event that occurred before 6 April 2004 is treated for the purposes mentioned in section 963(1) of this Act as bearing income tax by deduction at the basic rate (as defined in section 832(1) of ICTA at the time the event occurred). U.K.

(2) A sum treated as part of the aggregate income of an estate by virtue of section 547(1)(c) or 701(8)(e) of ICTA (gains from life insurance contracts etc) as the result of an event that occurred on or after 6 April 2004 and before 6 April 2007 is treated for the purposes mentioned in section 963(1) of this Act as bearing income tax by deduction at the lower rate (as defined in section 832(1) of ICTA at the time the event occurred).

(3) A sum treated as part of the aggregate income of an estate by virtue of section 547(1)(c) or 701(8)(e) of ICTA (gains from life insurance contracts etc) as the result of an event that occurred on or after 6 April 2007 and before 6 April 2008 is treated for the purposes mentioned in section 963(1) of this Act as bearing income tax at the savings rate (as defined in section 989 of ITA 2007 at the time the event occurred).

(4) If sub-paragraph (2) or (3) applies section 962(3) applies as if the following paragraph were inserted after paragraph (a)—

“(aa) income bearing income tax at the lower rate (as defined in section 832(1) of ICTA at the time the event as a result of which the income arose occurred) or bearing income tax at the savings rate (as defined in section 989 of ITA 2007 at the time that event occurred),”.

Part 13 U.K. Relief for share incentive plans

Deduction for contribution to plan trust U.K.

105 U.K. Section 989(1)(a) does not apply in relation to a payment made before 6 April 2003.

Award of shares to excluded employee U.K.

106 (1) This paragraph applies if an amount is received by a company under section 992 as a result of shares having been awarded to an excluded employee in an accounting period that ends before 1 April 2009. U.K.

(2) Section 986 does not apply in relation to the amount.

(3) The amount is treated as a trading receipt of the company for the period of account in which the shares were awarded to the excluded employee.

Part 14 U.K. Other relief for employee share acquisitions

Accounting periods beginning before 1 January 2003 U.K.

107 (1) Relief is not available under Part 12 in relation to shares acquired so far as a deduction is available or has been made in relation to relevant expenses in calculating the chargeable profits of the employing company or any other company for corporation tax purposes for an accounting period beginning before 1 January 2003. U.K.

(2) “Relevant expenses” means any expenses referable, directly or indirectly, to the provision of the shares acquired.

Restricted shares not to include shares acquired before 16 April 2003 U.K.

108 U.K. In Part 12 “restricted shares” does not include shares acquired before 16 April 2003.

Shares acquired before 16 April 2003 that are subject to forfeiture U.K.

109 (1) Relief under Part 12 is not available in relation to shares acquired before 16 April 2003 that are subject to forfeiture. U.K.

(2) “Subject to forfeiture” is to be read in accordance with paragraph 19 of Schedule 23 to FA 2003 as originally enacted.

(3) Accordingly, Schedule 23 to FA 2003 continues to apply in relation to such shares (despite the repeal by this Act of that Schedule or of any provision modifying, or affecting the application of, that Schedule).

Meaning of “employment” for times before 16 April 2003 U.K.

110 U.K. In relation to any time before 16 April 2003, Part 12 applies as if section 1002(2) were omitted.

Relief under Chapters 4 and 5 of Part 12 U.K.

111 (1) This paragraph applies for the purposes of Chapters 4 and 5 of Part 12 in their application in relation to shares or other securities acquired during an accounting period that ends before 1 April 2009. U.K.

(2) In accordance with Part 1 of this Schedule (continuity of law), references to relief under Chapter 2 or 3 of Part 12 are to be read as references to relief under Schedule 23 to FA 2003 (as that Schedule applied when the shares or other securities were acquired) available on the acquisition.

Part 15 U.K. Research and development

Rates of relief U.K.

112 (1) In relation to expenditure incurred before 1 August 2008, Part 13 has effect with the following modifications. U.K.

(2) In Chapter 2 (relief for SMEs: cost of R&D incurred by SME)—

(a) in section 1044(8), for “75%” substitute “ 50% ”,

(b) in section 1045(7), for “175%” substitute “ 150% ”,

(c) in section 1055(2)(b), for “175%” substitute “ 150% ”, and

(d) in section 1058(1)(a), for “14%” substitute “ 16% ”.

(3) In Chapter 7 (relief for SMEs and large companies: vaccine research etc)—

(a) in section 1089(2), for “40%” substitute “ 50% ”,

(b) in section 1090(2), for “40%” substitute “ 50% ”,

(c) in section 1091—

(i) in subsection (3), for “40%” substitute “ 50% ”, and

(ii) in subsection (4), for “140%” substitute “ 150% ”,

(d) in section 1092(8)—

(i) in paragraph (a), for “40%” substitute “ 50% ”, and

(ii) in paragraph (b), for “140%” substitute “ 150% ”, and

(e) in section 1104(5), for “140%” substitute “ 150% ”.

R&D threshold in section 1050: qualifying Chapter 3 and 4 expenditure U.K.

113 (1) The references in section 1050(3)(b) and (c) to qualifying Chapter 3 expenditure and qualifying Chapter 4 expenditure do not include any such expenditure incurred before 1 April 2002. U.K.

(2) For the purposes of sub-paragraph (1) section 61 (pre-trading expenses) is to be ignored.

Chapters 3 to 5 of Part 13: expenditure incurred before 1 April 2002 U.K.

114 (1) Chapters 3 to 5 of Part 13 do not apply to expenditure incurred before 1 April 2002. U.K.

(2) For this purpose section 61 (pre-trading expenses) is to be ignored.

Chapter 7 of Part 13: expenditure incurred before 22 April 2003 U.K.

115 (1) Chapter 7 of Part 13 (relief for SMEs and large companies: vaccine research etc) does not apply to expenditure incurred before 22 April 2003. U.K.

(2) For this purpose section 61 (pre-trading expenses) is to be ignored.

Cap on R&D aid under Chapter 2 or 7 of Part 13 U.K.

116 U.K. For the purposes of any calculation in accordance with section 1114, no account is to be taken of any qualifying R&D relief (as defined in section 1113(4)) in respect of expenditure incurred before 1 August 2008.

Chapter 7 of Part 13: qualifying expenditure on contracted out R&D U.K.

117 (1) Section 1135(4) (time limit for notice of election for connected persons treatment) does not apply to a notice of an election under that section in relation to a sub-contractor payment made by a company if— U.K.

(a) the company has qualifying expenditure on contracted out research and development (as defined in section 1102),

(b) the sub-contractor is—

(i) a charity,

(ii) a university, or

(iii) an association of a description specified in section 508 of ICTA (scientific research organisations), and

(c) the notice is given before 1 August 2009.

(2) In sub-paragraph (1) “sub-contractor” and “sub-contractor payment” have the same meaning as in Part 13 (see section 1133).

Small or medium-sized enterprises U.K.

118 (1) In relation to expenditure incurred before 1 August 2008, Part 13 has effect with the omission of the larger SME provisions. U.K.

(2) The “larger SME provisions” are—

• sections 1089(4) and 1090 (modification of section 1089 for larger SMEs),

• section 1093 (modification of section 1092 for larger SMEs),

• section 1104(5) (modification of amount B in section 1104 for larger SMEs),

• qualification 1 in section 1120(2) (qualifications to section 1119), and

• section 1121 (meaning of “larger SME”).

(3) But for the purpose of determining, in relation to expenditure incurred on or after 1 August 2008, whether a company is a small or medium-sized enterprise within the meaning of Part 13, the larger SME provisions are to be treated as always having had effect.

Staffing costs U.K.

119 (1) In its application to expenditure incurred— U.K.

(a) before 1 April 2004, and

(b) in an accounting period ending on or after 6 April 2003,

section 1123 has effect with the following modification.

(2) For subsections (2) and (3) substitute—

“(2) This subsection applies to earnings paid by the company to directors or employees of the company.

For this purpose “earnings” means earnings or amounts treated as earnings which constitute employment income (see section 7(2)(a) or (b) of ITEPA 2003).”

120 U.K. In its application to expenditure incurred before 1 August 2008, section 1123 has effect with the omission of subsections (5) and (6).

121 (1) In relation to expenditure incurred before 27 September 2003, section 1124 applies, for the purposes of Chapters 2 and 7 of Part 13, with the modification in sub-paragraph (3). U.K.

(2) In relation to expenditure incurred before 9 April 2003, section 1124 applies, for the purposes of Chapters 3 to 5 of Part 13, with the modification in sub-paragraph (3).

(3) For subsections (3) and (4) substitute—

“(3) In the case of a director (“D”) or employee (“E”) partly engaged directly and actively in relevant research and development the following rules apply—

(a) if the time D or E spends so engaged is less than 20% of D's or E's total working time, none of the staffing costs relating to D or E is treated as attributable to relevant research and development,

(b) if the time D or E spends so engaged is more than 80% of D's or E's total working time, the whole of the staffing costs relating to D or E is treated as attributable to relevant research and development,

(c) in any other case, an appropriate proportion of the staffing costs relating to D or E is treated as attributable to relevant research and development.”

Expenditure on software or consumable items U.K.

122 (1) In relation to expenditure incurred before 1 April 2004, Part 13 applies with the following modifications. U.K.

(2) For “software or consumable items” in each place where it occurs, substitute “ consumable stores ”.

(3) For sections 1125 and 1126 substitute—

“1125 Consumable stores

(1) For the purposes of this Part expenditure on consumable stores means expenditure that would be treated as expenditure on consumable stores in accordance with normal accounting practice.

(2) For the purposes of this Part expenditure on consumable stores is attributable to relevant research and development if the stores are employed directly in such research and development.”

Qualifying expenditure on externally provided workers U.K.

123 (1) In relation to expenditure incurred before 27 September 2003, Chapters 2 and 4 of Part 13 (relief for SMEs: cost of R&D borne by SME, and subsidised expenditure on R&D) apply with the omission of— U.K.

(a) section 1052(2)(c),

(b) section 1071(3)(c),

(c) in section 1134(3)(c), the words “or is qualifying expenditure on externally provided workers”,

(d) section 1134(5)(b), and

(e) sections 1127 to 1132, as they apply for the purposes of those Chapters.

(2) In relation to expenditure incurred before 9 April 2003, Chapter 3 of Part 13 (relief for SMEs: R&D sub-contracted to SME) applies with the omission of—

(a) section 1066(3)(c), and

(b) sections 1127 to 1132, as they apply for the purposes of that Chapter.

(3) In relation to expenditure incurred before 9 April 2003, Chapter 5 of Part 13 (relief for large companies) applies with the omission of—

(a) section 1077(2)(c), and

(b) sections 1127 to 1132, as they apply for the purposes of that Chapter.

(4) In relation to expenditure incurred by a large company before 27 September 2003, Chapter 7 of Part 13 (relief for SMEs and large companies: vaccine research etc) applies in the case of such a company with the omission of—

(a) section 1101(4)(c), and

(b) sections 1127 to 1132, as they apply for the purposes of that Chapter.

(5) In sub-paragraph (4) “large company” has the same meaning as in Part 13.

Qualifying expenditure on relevant payments to subjects of clinical trials U.K.

124 (1) In relation to expenditure incurred before 1 August 2008, Chapter 2 of Part 13 (relief for SMEs: cost of R&D borne by SME) applies with the omission of— U.K.

(a) section 1052(2)(d),

(b) section 1071(3)(d),

(c) in section 1134(3)(c), the words “or relevant payments to the subjects of a clinical trial”, and

(d) section 1140, as it applies for the purposes of that Chapter.

(2) In relation to expenditure incurred before 1 August 2008, Chapter 3 of Part 13 (relief for SMEs: cost of R&D sub-contracted to SME) applies with the omission of—

(a) section 1066(3)(d), and

(b) section 1140, as it applies for the purposes of that Chapter.

(3) In relation to expenditure incurred before 1 April 2006, Chapter 4 of Part 13 (relief for SMEs: subsidised expenditure on R&D) applies with the omission of—

(a) section 1071(3)(d),

(b) in section 1134(3)(c), the words “or relevant payments to the subjects of a clinical trial”, and

(c) section 1140, as it applies for the purposes of that Chapter.

(4) In relation to expenditure incurred before 1 April 2006, Chapter 5 of Part 13 (relief for large companies) applies with the omission of—

(a) section 1077(2)(d), and

(b) section 1140, as it applies for the purposes of that Chapter.

(5) In relation to expenditure incurred before 1 August 2008, Chapter 7 of Part 13 (relief for SMEs and large companies: vaccine research etc) applies with the omission of—

(a) section 1101(4)(d), and

(b) section 1140, as it applies for the purposes of that Chapter.

Part 16 U.K. Remediation of contaminated land

Part 14: expenditure incurred before 11 May 2001 U.K.

125 (1) Part 14 does not apply to expenditure incurred before 11 May 2001. U.K.

(2) For this purpose section 61 (pre-trading expenses) is to be ignored.

Staffing costs U.K.

126 (1) In its application to expenditure incurred— U.K.

(a) before 1 April 2004, and

(b) in an accounting period ending on or after 6 April 2003,

section 1170 has effect with the following modification.

(2) For subsections (2) and (3) substitute—

“(2) This subsection applies to earnings paid by the company to directors or employees of the company.

For this purpose “earnings” means earnings or amounts treated as earnings which constitute employment income (see section 7(2)(a) or (b) of ITEPA 2003).”

Part 17 U.K. Film production

Interpretation U.K.

127 U.K. The provisions of sections 1181 to 1187 apply for the purposes of this Part of this Schedule as if this Part were contained in Part 15 of this Act.

Chapters 2 and 3 of Part 15 to apply only to films that commence principal photography on or after 1 January 2007 U.K.

128 U.K. Chapters 2 and 3 of Part 15 apply only in relation to films that commence principal photography on or after 1 January 2007 (but see paragraphs 130 and 131).

129 U.K. The references in section 1206 to the functions of the Secretary of State under Schedule 1 to the Films Act 1985 (c. 21) are to those functions only so far as they are exercised in relation to films that commence principal photography on or after 1 January 2007 (but see paragraphs 130 and 131).

Application of Part 15 etc to films that commenced principal photography before 1 January 2007 but were not completed before that date U.K.

130 (1) The Treasury may make provision by regulations for the application of the provisions of— U.K.

(a) Part 15 or section 812 of this Act, and

(b) Chapter 3 of Part 3 of FA 2006 and any enactment amended by that Chapter,

in relation to films that commenced principal photography before 1 January 2007 but were not completed before that date.

(2) The regulations may provide for such adaptations and modifications of—

(a) the provisions mentioned in sub-paragraph (1), and

(b) any other provision of the Corporation Tax Acts,

as appear to the Treasury appropriate for that purpose.

(3) The regulations may—

(a) provide that the provisions of Part 15 or section 812 of this Act (or any specified provisions of that Part or section) or Chapter 3 of Part 3 of FA 2006 (or any specified provisions of that Chapter) have effect as if they had been in force at all material times,

(b) require or authorise the making or amendment of returns, or the making of assessments, in relation to past accounting periods or tax years (whenever beginning), and

(c) authorise the making of any such return, amendment or assessment despite any limitation on the time within which a return, amendment or assessment may normally be made.

131 (1) In accordance with Part 1 of this Schedule, the Corporation Tax (Taxation of Films) (Transitional Provisions) Regulations 2007 (S.I. 2007/1050) have effect as if made under paragraph 130 above. U.K.

(2) For that purpose they are amended as follows.

(3) In regulation 1(2) for “(films and sound recordings)” substitute “ and Part 15 and section 812 of the Corporation Tax Act 2009 (film production) ”.

(4) Omit regulation 2.

(5) In regulation 3 for “Chapter 3 of Part 3” substitute “ Part 15 and section 812 of the Corporation Tax Act 2009, Chapter 3 of Part 3 of the Finance Act 2006 ”.

(6) In regulation 4 for “section 32” substitute “ section 1182 of the Corporation Tax Act 2009 ” (and make a corresponding change in the heading for regulation 4).

(7) In regulation 5 for “section 40” substitute “ section 1197 of the Corporation Tax Act 2009 ” (and make a corresponding change in the heading for regulation 5).

(8) In regulation 6(1) after “section 46” insert “ of the Finance Act 2006 ” (and make a corresponding change in the heading for regulation 6).

(9) In regulation 7(1) after “section 47” insert “ of the Finance Act 2006 ” (and make a corresponding change in the heading for regulation 7).

(10) For regulation 8 substitute—

“8 Modification of section 812 of the Corporation Tax Act 2009 (intangible fixed assets: films)

In section 812(1) of the Corporation Tax Act 2009—

(a) in paragraph (a) for “that began principal photography before 1st January 2007” substitute “ to which Chapter 2 of Part 15 of the Corporation Tax Act 2009 does not apply ”, and

(b) in paragraph (b) for “1st October 2007” substitute “31st March 2008”.

(11) For regulation 9 substitute—

“9 Modification of section 1188 of the Corporation Tax Act 2009 (taxation of activities of film production company)

In section 1188(1) of the Corporation Tax Act 2009 (taxation of activities of film production company) after “a film” insert “if the film—

(a) is certified by the Secretary of State under Schedule 1 to the Films Act 1985 as a British film for the purposes of film tax relief, and

(b) is intended for theatrical release at the time principal photography commences””.

(12) In regulation 10(1) after “Schedule 5” insert “ to the Finance Act 2006 ” (and make a corresponding change in the heading for regulation 10).

(13) Omit regulation 10(2).

(14) In regulation 10(5) for the words after “sections 46 and 47” substitute “ of the Finance Act 2006 (films: withdrawal of existing reliefs) and section 1188(1) of the Corporation Tax Act 2009 (taxation of activities of film production company) ”.

(15) In regulation 13(1)—

(a) for “Chapter 3 of Part 3” substitute “ Part 15 or section 812 of the Corporation Tax Act 2009, of Chapter 3 of Part 3 of the Finance Act 2006 ”, and

(b) for “whether before or after the commencement of that Chapter” substitute “ whenever beginning ”.

Prohibition on double counting U.K.

132 (1) Expenditure is not to be taken into account for the purposes of Chapter 2 of Part 15 if relief has been given in respect of it under— U.K.

(a) section 40B, 41 or 42 of F(No.2)A 1992,

(b) section 48 of F(No.2)A 1997, or

(c) section 135, 136 to 138A or 139 to 142 of ITTOIA 2005.

(2) For the purposes of paragraph 130 and any regulations made under that paragraph, sub-paragraph (1) of this paragraph is treated as if contained in Part 15.

Part 18 U.K. Management expenses

Unpaid remuneration U.K.

133 (1) This paragraph applies for the purposes of section 1249. U.K.

(2) In relation to a period of account ending before 27 November 2002, an amount charged in the accounts in respect of employees' remuneration includes an amount which is held by an intermediary with a view to its becoming employees' remuneration.

(3) In relation to a period of account ending on or after 27 November 2002, an amount charged in the accounts in respect of employees' remuneration includes an amount—

(a) in respect of employee benefit contributions (within the meaning of sections 1290 to 1296) made before that date, and

(b) which is held by an intermediary,

with a view to its becoming employees' remuneration.

Part 19 U.K. Unremittable income

Unremittable income that arose in an accounting period ending before 1 April 2009 U.K.

134 (1) A claim may be made under section 1275 (claim for relief for unremittable income) for an accounting period ending after 31 March 2009, despite the income having arisen in an accounting period ending before 1 April 2009. U.K.

(2) Section 1276 (withdrawal of relief) applies for an accounting period ending after 31 March 2009, despite the income having arisen originally in an accounting period ending before 1 April 2009 (whether the claim in respect of it was made under section 584 of ICTA (relief for unremittable overseas income) or section 1275 of this Act).

Withdrawal of relief: income that arose in an accounting period ending before 1 October 1993 U.K.

135 U.K. Section 1277 (income charged on withdrawal of relief after source ceases) does not apply if the income originally arose in an accounting period ending before 1 October 1993.

Part 20 U.K. General exemptions

Ulster savings certificates U.K.

136 U.K. In the case of certificates acquired before 27 July 1981, in section 1282(4) for “the Department of Finance and Personnel” substitute “ the Treasury ”.

Part 21 U.K. Other provisions

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) F19 ... 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) F20 ... of ICTA in relation to the employer as mentioned in sub-paragraph (1)(c).

Textual Amendments

F19 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)

F20 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, F21 ...

F21 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

continue to have effect (despite the repeal by this Act of those entries) in relation to section 588(6) F22 ... as it has effect by virtue of paragraph 137.

Textual Amendments

F21 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)

F22 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) Section 76ZE of ICTA (provision for companies carrying on life assurance provision corresponding to section 75) applies in relation to the employer as if the condition in subsection (1) of that section were met.

(4) In the application of section 75 of this Act and section 76ZE of ICTA to the employer, references to “the employee” are to the person in respect of whom the expenditure was incurred by the employer.

Unpaid remuneration U.K.

140 (1) This paragraph applies for the purposes of— U.K.

(a) section 1288 of this Act (unpaid remuneration), and

(b) section 76ZL of ICTA (corresponding provision for companies carrying on life assurance business).

(2) In relation to a period of account ending before 27 November 2002, an amount charged in the accounts in respect of employees' remuneration includes an amount which is held by an intermediary with a view to its becoming employees' remuneration.

(3) In relation to a period of account ending on or after 27 November 2002, an amount charged in the accounts in respect of employees' remuneration includes an amount—

(a) in respect of employee benefit contributions (within the meaning of sections 1290 to 1296) made before that date, and

(b) which is held by an intermediary,

with a view to its becoming employees' remuneration.

Employee benefit contributions U.K.

141 U.K. Section 1290 does not apply to deductions that would otherwise be allowed—

(a) for a period ending before 27 November 2002, or

(b) in respect of employee benefit contributions made before that date.

Interest on overdue corporation tax etc U.K.

142 (1) The repeal by this Act of section 90(1)(b) of TMA 1970 does not affect the following rules. U.K.

(2) In calculating profits for any corporation tax purpose, no deduction is allowed for interest payable under section 86 of TMA 1970 (interest on overdue tax for accounting periods ending before 1 October 1993).

(3) In calculating profits for any corporation tax purpose, no deduction is allowed for interest payable under section 87 of TMA 1970 (interest on overdue advance corporation tax and income tax on company payments) or section 87A of TMA 1970 (interest on overdue corporation tax etc) on—

(a) corporation tax for accounting periods ending before 1 July 1999, or

(b) tax assessable in accordance with Schedule 13 or 16 of ICTA for return periods in accounting periods ending before 1 July 1999.

Miscellaneous profits and losses: apportionment to accounting periods ending before 1 April 2009 U.K.

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

(a) a relevant period of account begins before 1 April 2009 and ends on or after that date, and

(b) in order to arrive at the profits or losses of an accounting period ending before 1 April 2009 it is necessary to apportion the profits or losses of the relevant period of account to any part of that period before 1 April 2009.

(2) A period of account is a “relevant period” if—

(a) section 1307 applies to the period of account, and

(b) the profits or losses of the part of the period of account falling in an accounting period ending after 31 March 2009 are calculated in accordance with this Act.

(3) The profits or losses of the relevant period of account—

(a) are calculated in accordance with this Act (and therefore, to that extent, this Act has effect for accounting periods ending before 1 April 2009), and

(b) may be apportioned in accordance with section 1307 to any part of the period of account falling in an accounting period ending before 1 April 2009.

Purchase and sale of securities: references to setting up and commencement etc of a trade U.K.

144 U.K. In section 731 of ICTA, as that section has effect in accordance with section 66(6) of FA 2008 (purchase and sale of securities: securities purchased before 1 April 2008)—

(a) the reference in subsection (7) to the setting up and commencement of a trade is to be read as including any event that would be treated as the setting up and commencement of the trade if sections 114(1) and 337(1) of ICTA were not repealed by this Act, and

(b) the reference in subsection (8) to the deemed discontinuance of a trade is to be read as including any event that would be treated as the discontinuance of the trade if sections 114(1) and 337(1) of ICTA were not repealed by this Act.

References to Companies Act 2006 U.K.

145 U.K. Until section 658 of the Companies Act 2006 (c. 46) (rule against limited company acquiring own shares) comes into force, references to that section in sections 807B(3)(f)(ii) and 807D(7)(b) of ICTA (which are inserted by Schedule 1 to this Act) have effect as if they were references to section 143 of the Companies Act 1985 (c. 6).

Charges to tax under Case VI of Schedule D in subordinate legislation U.K.

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

(a) a provision of the Corporation Tax Acts (“the rule”) contains a reference such as is mentioned in section 834A(1) of ICTA (that is, a reference to any provision to which section 834A of ICTA applies),

(b) immediately before 1 April 2009 the reference was to Case VI of Schedule D (or, if the rule rewrites a provision that is repealed by this Act, the corresponding reference in that provision was to Case VI of Schedule D), and

(c) by virtue of that reference, the rule (or the provision that it rewrites) then applied in relation to amounts charged, under a provision of subordinate legislation, to corporation tax under Case VI of Schedule D.

(2) As long as the provision of subordinate legislation continues to be expressed by reference to Case VI of Schedule D, the Corporation Tax Acts have effect as if it were listed in the table in section 834A(2) of ICTA.

(3) In this paragraph “subordinate legislation” has the same meaning as in the Interpretation Act 1978 (c. 30).

147 (1) This paragraph applies if immediately before 1 April 2009 a provision of subordinate legislation (within the meaning of the Interpretation Act 1978) treated amounts as losses incurred in a transaction in respect of which a person is within the charge to corporation tax under Case VI of Schedule D. U.K.

(2) As long as the provision continues to be expressed by reference to Case VI of Schedule D, it has effect as if it treated the amounts as losses incurred in a transaction in respect of which the person is within the charge to corporation tax under a provision to which section 834A of ICTA applies.

Section 1326

SCHEDULE 3 U.K. Repeals and revocations

Part 1 U.K. Repeals and revocations on 1 April 2009

Reference	Extent of repeal or revocation
Taxes Management Act 1970 (c. 9)	Section 12AE. Section 19(2). Section 31(3). In section 42(7)— (a) in paragraph (a) the words “84, 91B, 101(2)” and “504, 531”, (b) paragraph (b), and (c) the “and” immediately after paragraph (e). In section 71(1), the words from “Subject to” to “companies),”. In section 90— (a) in subsection (1), paragraph (b) and the “and” immediately before that paragraph, and (b) subsection (2). In the first column of the Table in section 98— (a) the entry relating to section 38(5) of ICTA, (b) the entry relating to section 588(7) of ICTA, and (c) the entry relating to paragraph 10 of Schedule 5 to ICTA. In the second column of the Table in section 98— (a) the entry relating to section 577(4) of ICTA, and (b) the entry relating to section 588(6) of ICTA. In Schedule 3, in paragraph 10, the word “102(1),”.
Oil Taxation Act 1975 (c. 22)	In section 3(2), in the first sentence, the words “under subsection (2) of section 579 of the Taxes Act or”, and “that subsection or”.
Income and Corporation Taxes Act 1988 (c. 1)	In section 6— (a) subsections (1) to (3), (b) in subsection (4), the words from “, sections” to “248”, and (c) subsection (4A). Section 8. In section 9— (a) subsections (1) to (4), (b) in subsection (5), the words “, by virtue of this section or otherwise,”, and (c) subsection (6). Section 11(1) to (2A). Section 11AA. Section 12(1) to (7ZA) and (9). Section 15. Section 18. Sections 21A to 21C. In section 24— (a) in subsection (1), the definition of “premium”, (b) subsections (2) to (4), (c) in subsection (5), the definitions of “intermediate landlord”, “premium” and “reversion”, and (d) subsection (6)(a). Section 30. Sections 31ZA to 31ZC. Sections 34 to 40. In section 42, subsection (1)(a) and the “or” immediately after it. Section 46. Section 53. Section 55. Section 70. Section 70A. Section 72. Section 74. Sections 75 to 75B. In section 76(7), in Step 3 the entries relating to— (a) paragraph 4(4)(b) of Schedule 11 to FA 1996, (b) paragraph 23 of Schedule 22 to FA 2001, (c) paragraph 13(2) of Schedule 12 to FA 2002, and (d) paragraph 36(3) of Schedule 29 to that Act. Sections 76A and 76B. Sections 79 to 79B. Sections 82A to 84. In section 84A— (a) in subsection (2), in paragraph (a) the words “Schedule D or”, paragraph (b) and the “or” immediately before it, and paragraph (c), and (b) subsection (3ZA)(b). Sections 85 to 85B. Sections 86 to 88. Sections 88D to 95. Sections 97 to 106. Section 110. Section 111(1). Sections 114 and 115. Section 116(5). Section 118ZA. Sections 119 to 122. Section 125. Section 128(2) and (3). In section 130, the words “ “company with investment business” means any company whose business consists wholly or partly in the making of investments”. Section 208. Section 337. In section 337A— (a) subsection (1)(a), and (b) subsection (2)(b) and the “and” immediately before it. In section 399, subsection (1B) and, in subsection (3), the words “under Case VI of Schedule D”. Section 401. In section 414(1)(b), the words “within the meaning of section 486(12)”. In section 431(2YC)(a), the words “under Schedule A or Case III, V or VI of Schedule D”. In section 434A(2A), the words from “which” to “1996”. In section 444AZA(2), the words “(a “Case I loss”)”. In section 444AZB(2), the words “(a “Case VI loss”)”. In section 444AEA— (a) in subsection (1)(b), the words “Case I”, (b) in subsection (3), the words “transferor's Case I”, and (c) in subsection (4), the words “transferee's Case I”. In section 444AECA— (a) in subsection (1)(b), the words “Case I”, (b) in subsection (3), the words “transferor's Case I”, and (c) in subsection (4), the words “transferee's Case I”. In section 444AF(5)(b), the words “under Case VI of Schedule D”. Section 469(4A) to (5) and (6). Sections 472A and 473. In section 475— (a) in subsection (2), paragraph (b) and the “and” immediately before it, and (b) in subsection (4), the words from “or to be brought” to the end. In section 477A, subsections (3)(a) and (aa), (4) and (10). Section 477B. In section 486— (a) in subsection (1), the words from “but” to the end, (b) subsections (4) and (7), (c) subsections (10) and (11), and (d) in subsection (12) the definition of “registered industrial and provident society”. Section 487. Section 491. Section 504. In section 505(1)— (a) paragraph (c)(iia), and (b) in paragraph (d), the words “under Schedule D”. Section 509. Sections 524 to 526. Section 528. Sections 531 to 533. Section 558(5) and (6). In section 568(1), the words “section 74 of this Act or”. In section 571(1), the words from “(in” to “Schedule D)”. Sections 577 to 580. Section 582. Section 584. Sections 586 and 587. Section 588. Section 589A. Section 589B(5). Section 617. Sections 695 to 698. Section 699A. In section 700— (a) subsections (1) to (3), (b) in subsection (4), the words “this Part or”, and (c) in subsection (5), paragraph (a), in paragraph (b) the words “(a) or”, the words from “deemed” to “this Part or”, in the first place where they occur, and the words “this Part or” in the second place where they occur. Sections 701 and 702. In section 703(3), the words from “(the amount” to “accordingly)”. In section 768B(10), the words “and non-trading deficits”. In section 768C(9), the words “and non-trading deficits”. In section 779(13), paragraph (a) and in paragraph (d) the words “75 or”. In section 781— (a) in subsection (1), the words from “(in” to “Schedule D)”, and (b) in subsection (4)(c), the words “75 or”. In section 782(9), the words from “, and where” to the end. In section 787, subsection (1A), in subsection (2) the words “or total profits” and subsection (3). In section 788(7), the words from “, and, in” to the end. In section 790(11), the words from “, and, in” to the end. In section 797A(2), the words “and gains”. In section 806B(10), the definition of “the Case V dividend”. In section 806L(5)(b), the words “Case VI of Schedule D by virtue of”. Section 817. In section 821(1)(a), the words “under under Case III of Schedule D”. In section 826— (a) subsections (1)(da) and (3AA), (b) subsections (5) and (5A), (c) in subsection (8A)(b)(ii), the words “, tax credit under Schedule 13 to the Finance Act 2002”, and (d) in subsection (8BA), the words “, tax credit under Schedule 13 to the Finance Act 2002” in both places where they occur. Section 827. In section 828(4), the word “79B(5),”. Section 830(2) to (4). In section 832— (a) in subsection (1), the definitions of “overseas property business” and “Schedule A business”, and (b) subsection (4). Schedule A1. Schedule 4AA. Schedule 5. In Schedule 27, in paragraph 1(1)(d)(ii), the words from “in accordance” to “(Schedule D)”. In Schedule 28A, paragraph 6(dd), in paragraph 11, sub-paragraph (2) and in sub-paragraph (3)(a) the words “or (2)” and paragraphs 13(1)(ed) and 16(1)(f). In Schedule 28AA— (a) in paragraph 6E the words “Case III of Schedule D or”, and (b) paragraph 8(1), (3) and (4). In Schedule 30, paragraphs 2 to 5.
Finance Act 1988 (c. 39)	Section 65 to 66A. Section 72. Section 73(2) to (4). Schedules 6 and 7. In Schedule 12, paragraph 3(1).
Finance Act 1989 (c. 26)	Sections 43 and 44. In section 85A— (a) in subsection (6)(b) the words “under Case VI of Schedule D”, and (b) in subsection (8)(b) the words from “by” to “1996” and in paragraph (c) the words “(in accordance with paragraph 4(5) of that Schedule)”. In section 88(3)(b), the words “under Case VI of Schedule D”. In section 89(1A), the words “under Case VI of Schedule D”. Section 114.
Finance Act 1990 (c. 29)	Section 76. Section 78. Section 126(2) and (3). In Schedule 14, paragraph 2.
Finance Act 1991 (c. 31)	Section 43. Section 68. Section 121(2) and (3). In Schedule 10, paragraph 3. In Schedule 15, paragraph 3.
Taxation of Chargeable Gains Act 1992 (c. 12)	In section 41(4)— (a) in paragraph (b), the words “any relief given under section 30 of the Taxes Act or”, and (b) in paragraph (c), the words “section 91 of the Taxes Act or”. In section 156(4), the words “section 98 of the Taxes Act or”. In section 158(2), the words from “but” to the end. In section 170(9)(c), the words “within the meaning of section 486 of the Taxes Act”. Section 201(2). In section 241(3)(a), the words “(within the meaning of the Income Tax Acts) or any Schedule A business (within the meaning of the Taxes Act),”. In section 251(8), paragraph (a), and in paragraph (b) the words “(even apart from those provisions)”. In Schedule 7AC, paragraph 34(2). In Schedule 8— (a) paragraph 5(5)(a), and (b) in paragraph 7A, the words “Schedule A business or”. In Schedule 10, paragraph 14(7), (27) and (28).
Finance (No. 2) Act 1992 (c. 48)	In Schedule 12, in paragraph 3— (a) in sub-paragraph (1), the words from “(in” to “Schedule D)”, and (b) in sub-paragraph (3), the words “section 100 of the Taxes Act 1988 or”.
Finance Act 1993 (c. 34)	Section 69. Section 108. Section 109(1), (2) and (4). Section 110. Section 123. In Schedule 6, paragraph 11.
Finance Act 1994 (c. 9)	Section 113(3)(b). Section 141. Sections 144 and 145. Section 215. Sections 249 and 250. In Schedule 14, paragraph 5. In Schedule 24, in paragraph 20(1), in the words after paragraph (b), the words from “the trade” to “but”.
Finance Act 1995 (c. 4)	Section 76(4) to (6). Section 117. Sections 120 and 121. Section 125. In section 126(7A), paragraph (b) and the “or” immediately before it. In section 127(1), paragraph (cb). Section 140. In Schedule 6, paragraph 2. In Schedule 18, paragraph 2.
Finance Act 1996 (c. 8)	Sections 80 to 103. Section 147(1). In section 154, subsections (2), (3), (5), (6) and (8). In Schedule 6, paragraph 22. In Schedule 7, paragraph 4(1), (2)(a) and (c), (3) and (4). Schedules 8 to 11. In Schedule 14, paragraphs 5, 7, 20 and 31. In Schedule 15, paragraphs 2 to 4, 10, 13 to 15, paragraphs 18, 19(1), (2) and (10), 20(1) and 21(1). In Schedule 20, paragraphs 2 and 33. In Schedule 21, paragraphs 2, 3, 15 and 20. In Schedule 24, paragraph 11.
Finance Act 1997 (c. 16)	Sections 65 and 66. In Schedule 7, paragraph 8(1). In Schedule 13, paragraphs 2 and 3.
Finance (No. 2) Act 1997 (c. 58)	Section 21. Section 24(1) to (9). Section 33(2) to (11). Section 40. In Schedule 6, paragraphs 12 and 13.
Finance Act 1998 (c. 36)	In section 33— (a) in subsection (2), paragraph (b) and the word “and” immediately before it, and (b) subsections (3) to (5). Section 40. Section 41(1) and (4) to (7). Section 42. Section 46(1) and (2). In Schedule 5, paragraphs 15 to 18, 34, 43 and 64. In Schedule 7— (a) in paragraph 1, the words “53(1) and (3), 55(1),”, the words “74(1) opening words and paragraph (m),”, the words “79(1), 79A(1),”, the word “83,”, the words “85(1)(a), 85A(2)(a),”, the words from “86A(2)(a)” to “94(1),”, the words from “97” to “106(2),”, the words “110(3) (twice), (4) and (5) (three times),”, the words from “401(1)(b)” to “509(1) (twice),”, the words from “577(1)(a)” to “589A(8),” and the words from “Schedule 5” to “8(7) (three times),”, (b) in paragraph 2, the words “section 73(2)”, and (c) paragraphs 5, 6 and 11. In Schedule 18— (a) paragraph 10(2B) and (3), (b) in paragraph 52, sub-paragraphs (2)(bc) and (4) and, in sub-paragraph (5), paragraph (ad) and the words “, (ad)” at the end, (c) Parts 9BA and 9C, and (d) paragraph 84.
Finance Act 1999 (c. 16)	Section 54. Section 55(1). Section 58. Section 61. Section 63. Section 81(4)(a). Schedule 6. In Schedule 11, paragraph 2.
Financial Services and Markets Act 2000 (c. 8)	Section 411(2).
Finance Act 2000 (c. 17)	Section 46(2A)(b). Section 50. Section 69(1). Sections 88 and 89. Section 143(2). In Schedule 12, paragraphs 17 and 18. In Schedule 15, in paragraph 60(1), the words “under Case VI of Schedule D”. Schedule 20. In Schedule 29, paragraph 44.
Capital Allowances Act 2001 (c. 2)	In section 16, the words “, or a Schedule A business,”. In section 17(1), the words “, or a Schedule A business,”. In section 353, in subsection (2), the words “, or a Schedule A business,”. In section 392— (a) in subsection (2), the words “, or a Schedule A business,” (b) in subsection (2A), the words from “is within” to “and he”, and (c) subsection (3). In section 393B(4), the words “or Schedule A business”. In section 393T— (a) in subsection (2), the words “, or a Schedule A business,” and (b) subsection (3). In section 529— (a) in subsection (1), the words “, or a Schedule A business,”, (b) in subsection (1A), the words from “is within” to “and he”, and (c) subsection (2). In section 577(1), the words “, a Schedule A business”. In Schedule 1, in Part 2, the entry for “Schedule A business”. In Schedule 2, paragraphs 5, 14, 16 to 20, 40, 45, 46, 48 to 52, 96 and 104.
Finance Act 2001 (c. 9)	Section 70(1) and (2). Section 73. Section 75(1). Schedule 22. In Schedule 23, paragraph 1.
Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629)	Article 16(6) to (8).
Tax Credits Act 2002 (c. 21)	In Schedule 3, paragraph 59.
Finance Act 2002 (c. 23)	Section 38. Sections 53 to 56. Section 60. Section 64. Section 65(2)(a). Section 67(1) and (2). Section 68. Section 71. Section 83(1)(a) and (2). Section 84(1). In section 103— (a) in subsection (4), paragraph (d), in paragraph (f) the words from “in Schedule 20” to the end, and paragraph (h), and (b) subsection (5). Section 105(1). Section 106. In Schedule 9, paragraphs 4(4) and 8(2). Schedules 12 to 15. In Schedule 16, in paragraph 27(4), the words “under Case VI of Schedule D”. In Schedule 18, paragraph 9(3)(a). Schedule 22. In Schedule 23, paragraphs 2, 3, 6, 7, 9 to 15 and 25. In Schedule 25, paragraphs 2 to 25, 27 to 36, 40, 47, 48, 50, 53 and 61 to 64. Schedule 26. In Schedule 27, paragraphs 3, 19 and 20. In Schedule 28, paragraphs 1 and 3. Schedule 29.
Income Tax (Earnings and Pensions) Act 2003 (c. 1)	In section 515— (a) subsection (1), and (b) the “and” immediately after subsection (2)(c). In Schedule 1, in Part 2, the entries for “Schedule A business” and “UK property business”. In Schedule 6, paragraphs 4, 5, 12, 13, 62 to 64, 67, 69, 70, 87, 109, 244 and 258.
Finance Act 2003 (c. 14)	Section 40. Section 141. Section 143. Section 148(5B). Section 149(1) to (3). In section 150(7), the words from “; and” to the end. In section 153— (a) in subsection (1)(a), the words “115(4)(b)”, (b) subsection (1)(e), (c) in subsection (2)(a), the words “and 830(4)”, and (d) subsection (2)(d). Section 168. Sections 178 and 179. Section 180(1). Section 184. In Schedule 22, paragraphs 59 to 73. Schedules 23 to 25. Schedule 31. In Schedule 35, paragraph 4. Schedule 37. In Schedule 41, paragraphs 1, 4 and 5(2).
Finance Act 2004 (c. 12)	Section 34(4). Sections 38 and 39. Section 45(1) to (3). Section 48. Section 54. In section 71, subsection (3)(b) and the “and” immediately before it. Section 137(2). Section 141. In section 280(1), the “and” immediately after the entry for “ITTOIA 2005”. In Schedule 5, paragraphs 2, 5 to 8 and 14 to 16. In Schedule 6, paragraphs 1 and 9. Schedules 8 and 9. In Schedule 10, paragraphs 1 to 4, 6, 8, 9(1), 13, 14, 16, 17, 19 to 23, 25, 28, 30 to 42, 47 to 69, 71 and 73. In Schedule 16, paragraph 5. In Schedule 17, paragraphs 4, 7 and 8. In Schedule 26, paragraph 12. In Schedule 35, paragraphs 45, 50, 52 and 53.
Finance Act 2002, Schedule 26, Parts 2 and 9 (Amendment) Order 2004 (S.I. 2004/2201)	The whole Order.
Finance Act 2004, Sections 38 to 40 and 45 and Schedule 6 (Consequential Amendment of Enactments) Order 2004 (S.I. 2004/2310)	In the Schedule, paragraphs 4(2), 5, 6, 22 and 58 to 64.
Finance Act 2000, Schedule 20 (Definition of Small or Medium-Sized Enterprise) Order 2004 (S.I. 2004/3267)	The whole Order.
Finance Act 2002, Schedule 26, Parts 2 and 9 (Amendment No.2) Order 2004 (S.I. 2004/3270)	The whole Order.
Income Tax (Trading and Other Income) Act 2005 (c. 5)	In section 48(4)(a), the words “under section 97 (debts incurred and later released)”. Section 79(2). In section 155(1), the words from “carried” to the end. In section 287(4), the “or” immediately before paragraph (b). In section 288(6), the “and” immediately before paragraph (d). In section 839(3), the words “or to corporation tax under Case III of Schedule D”. Section 862(3) and (7). Section 881. In Schedule 1— (a) paragraphs 6, 7, 9(2) and (3), 17 to 23, 31, 34(2)(b), 44, 46, 48 to 50, 56 to 58, 60, 62 to 74, 77 to 85, 90, 92, 95, 97, 107, 172, 182, 183, 189, 201 to 203, 205, 207 to 209, 230, 234 to 236, 238, 239, 243, 245, 247, 248, 250, 251, 262, 284 to 287, 290, 291(2) to (4) and 292, (b) in paragraph 312— (a) sub-paragraph (3), and (b) sub-paragraph (4)(b) and the “and” immediately before it, and (c) paragraphs 314(2), 321(3), 327, 332, 335, 351(2), 352(2), 378, 416(2) and (3), 418, 451(2)(a), (b) and (c), 486, 488, 489, 494(2)(c) and (d), 500, 502, 506, 509, 520, 576, 578, 583(6) and 630. In Schedule 4, in Part 2, the entry for “Schedule A business”.
Finance Act 2005 (c. 7)	Section 48B(5)(d) and the “or” immediately before it. Section 50. In section 51(1), (4) and (5)(b) the words “or profit share return”. In section 52, in subsection (2) the words “or profit share return” and subsection (6). Section 54. In section 54A(2)(b), the words “or profit share return”. In section 55, the words “, corporation tax”. In section 56, subsection (4)(b) and the “and” immediately before it, and subsection (5). In section 57, the definition of “profit share return”. Section 81. Section 91(2), (3) and (7). In Schedule 2— (a) paragraphs 2 and 7, and (b) in paragraphs 8, 10, 11(c), 12 and 13 the words “or profit share return”. In Schedule 4, paragraphs 2 to 5, 9, 11 to 13, 15 to 17, 19, 20, 22, 26 to 28, 30, 31, 34 to 47 and 52.
Finance (No. 2) Act 2005 (c. 22)	Section 17(1)(b) and (c). Section 23(1)(a)(ii). Section 41. Section 54(1). Section 55. Section 60. Section 63. In Schedule 2, paragraph 20. In Schedule 6, paragraphs 1, 4 to 7 and 9 to 11. In Schedule 7, paragraphs 10, 11, 15 to 18, 20 and 22 to 24. In Schedule 8, paragraph 4. In Part 2(6) of Schedule 11, the entries relating to FA 1996, FA 2002 and FA 2004 and Note 3.
Finance Act 2002, Schedule 26, Parts 2 and 9 (Amendment) Order 2005 (S.I. 2005/646)	The whole Order.
Finance Act 2002, Schedule 26, Parts 2 and 9 (Amendment No.2) Order 2005 (S.I. 2005/2082)	The whole Order.
Research and Development Tax Relief (Definition of “Small or Medium-Sized Enterprise”) Order 2005 (S.I. 2005/3376)	The whole Order.
Finance Act 2002, Schedule 26 (Parts 2 and 9) (Amendment No.3) Order 2005 (S.I. 2005/3440)	The whole Order.
Finance Act 2006 (c. 25)	Section 28. Sections 31 to 41. In section 42(2)— (a) the words “Part 1 deals with entitlement to the relief”, and (b) the words “Part 4 is about provisional entitlement to relief”. Sections 43 to 45, 48 to 52 and 53(2). Section 77. Section 93. In section 117(3)(b), the words “under Case VI of Schedule D”. Section 121(4). Schedule 2. In Schedule 3, paragraphs 2(3) and (4) and 6 to 9. Schedule 4. In Schedule 5, Part 1, paragraphs 24 and 25 and Part 4. In Schedule 6, paragraphs 10(1) to (3), 11 to 19 and 21 to 24. In Schedule 10, paragraph 43(2).
Income Tax (Trading and Other Income) Act 2005 (Consequential Amendments) Order 2006 (S.I. 2006/959)	Article 5.
Authorised Investment Funds (Tax) Regulations 2006 (S.I. 2006/964)	Regulation 95.
Investment Trusts and Venture Capital Trusts (Definition of Capital Profits, Gains or Losses) Order 2006 (S.I. 2006/1182)	The whole Order.
Finance Act 2002, Schedule 26, (Parts 2 and 9) (Amendment) Order 2006 (S.I. 2006/3269)	The whole Order.
Income Tax Act 2007 (c. 3)	Section 835(2). In section 941— (a) subsections (4) and (5), and (b) in subsection (6), the words “or (5)” in the definition of “deemed deduction” and “or (4)” in the definition of “deemed payment”. In section 989, the definition of “Schedule A business”. In Schedule 1, paragraphs 6, 10, 12, 21, 87(4) and (5), 91, 107, 109, 114, 134, 371 to 376, 422 and 439(2)(a). In Schedule 4, the entry for “Schedule A business”.
Finance Act 2007 (c. 11)	Section 17. Section 28. Section 34(1) to (6). Sections 49 and 50. Section 58(1). In Schedule 3, paragraph 10. In Schedule 5, paragraphs 11 to 16, 18 and 19. In Schedule 7, paragraphs 56, 65 to 67, 72, 74 and 75 and, in paragraph 85, the words “(a “Case VI loss”)” and “(a “Case I loss”)”. In Schedule 8, paragraphs 20 and 25 to 27. In Schedule 9, paragraph 1(2)(g) and (h) and (5). In Schedule 10, paragraph 4(4)(d) and the “and” immediately before it and paragraphs 6, 14(9) and (10)(c) and (d) and 16(8) and (10). In Schedule 13, paragraphs 2 to 5, 7 to 10 and 12. In Schedule 14, paragraphs 14 to 18.
Finance Act 2008 (c. 9)	Sections 26 to 30. Section 36(1). Section 49(7), (8) and (13). Section 58(1). Section 65. Section 73(3). In section 77, in subsection (4) paragraph (a) and the “and” immediately after it. In Schedule 1, paragraph 44. In Schedule 2, paragraph 51. Schedules 8 to 10. Schedule 13. In Schedule 15, Part 2. In Schedule 17, paragraphs 9(1), 12, 23, 28(1) and (2), 29 and 36. In Schedule 22, paragraphs 3 to 16, 17(1) and 18 to 20. In Schedule 35, paragraph 10. In Schedule 39, paragraph 17.
Companies Act 2006 (Consequential Amendments) (Taxes and National Insurance) Order 2008 (S.I. 2008/954)	Regulation 21.
Authorised Investment Funds (Tax) (Amendment No. 2) Regulations 2008 (S.I. 2008/1463)	The whole Regulations.

Valid from 18/11/2015

Part 2 U.K. Prospective repeals

Reference	Extent of repeal or revocation
Taxation of Chargeable Gains Act 1992 (c. 12)	[F23 Section 151E.]
Corporation Tax Act 2009	Section 306(2)(e). Section 310(5). Section 328. Section 450(6). Section 384. Section 606. In section 690(6), the words from “which are” to the end.

Textual Amendments

F23 Words in Sch. 3 Pt. 2 substituted (18.11.2009) by Corporation Tax Act 2009 (Amendment) Order 2009 (S.I. 2009/2860), arts. 1(1), 6(8)

Section 1327

SCHEDULE 4 U.K. Index of defined expressions

absolute interest (in Chapter 3 of Part 10)	section 935(1)
accounting period	section 834(1) of ICTA
accounting period of a firm (in Part 17)	section 1261
accounting value (in relation to an asset) (in Part 8)	section 719
the acquired securities (in Chapter 5 of Part 12)	section 1030(4)
acquisition (in relation to an asset) (in Part 8)	section 856
the actual accrual period (in Chapter 8 of Part 5)	section 373(5)
the administration period (in Chapter 3 of Part 10)	section 938(1)
the aggregate income of the estate (in Chapter 3 of Part 10)	section 947(1)
alternative finance arrangements (in Parts 5 and 6)	section 501(2)
alternative finance return (in Part 6)	sections 511 to 513
amortised cost basis (in Parts 5 and 6)	section 313(4)
amount recognised in determining a company's profit or loss for a period (in Parts 5 and 6)	section 308
amount recognised in determining a company's profit or loss for a period (in Part 7)	section 597
amounts recognised for accounting purposes (in Parts 5 and 6)	section 309(2)
amounts recognised for accounting purposes (in Part 7)	section 599
amounts recognised for accounting purposes (in Part 8)	section 717(2)
animal (in Chapter 8 of Part 3)	section 110(1)
animal being added to a herd (in Chapter 8 of Part 3)	section 110(6)
animals in a herd or part of a herd (in Chapter 8 of Part 3)	section 110(3) to (5)
approved, approval (in relation to a share incentive plan) (in Chapter 1 of Part 11)	section 488(4) of ITEPA 2003 (see section 984(1) and (2) of this Act)
[F24 arrangement (in Chapter 2A of Part 6)	section 486B(9)]
arrangement (in Chapter 10 of Part 6)	section 559
assignment (in the application of the Act to Scotland)	section 1320(1)
associate (in Parts 5 and 6)	section 417(3) of ICTA (as applied by section 476(1))
associate (in Chapter 12 of Part 8)	section 417(3) of ICTA (as applied by section 841(3))
associated company (in Chapter 1 of Part 11)	paragraph 94 of Schedule 2 to ITEPA 2003 (see section 984(1) and (2) of this Act)
F25 . . .	F25 . . .
assumed income entitlement (in Chapter 3 of Part 10)	section 948(2), (3)
authorised unit trust	section 468(6) of ICTA (as applied by section 832(1) of that Act)
award of shares (and references to shares awarded) (in Chapter 1 of Part 11)	paragraph 5(1) and (2) of Schedule 2 to ITEPA 2003 (see section 984(1) and (2) of this Act)
bank (in Part 7)	section 710
the basic amount (in relation to estate income) (in Chapter 3 of Part 10)	section 941(4)
basic life assurance and general annuity business (abbreviated as “BLAGAB”)	section 431F of ICTA (as applied by section 431(2) of that Act)
basic rate	section 1319
basic relieving amount by reference to a taxed receipt (in Chapter 4 of Part 4)	sections 228(4), 229(2), (4)
BLAGAB (in Chapter 10 of Part 5)	section 386(4)
body of persons	section 832(1) of ICTA
building society	section 832(1) of ICTA
capital allowance	section 832(1) of ICTA
capital cost of patent rights (in Chapter 3 of Part 9)	section 913(4)
capital redemption policy (in Part 7)	section 710
capped R&D expenditure (in Part 13)	section 1073
caravan	section 1314
carrying value (in Part 7)	section 702
Chapter 2 surrenderable loss (in Chapter 2 of Part 13)	section 1055
Chapter 7 surrenderable loss (in Chapter 7 of Part 13)	section 1104
the charge to corporation tax on income	section 2(3)
chargeable asset (in Part 7)	section 703
chargeable event (in Chapter 5 of Part 12)	section 1032
chargeable intangible asset (in Part 8)	section 741(1)
chargeable period	section 832(1) of ICTA
chargeable realisation gain (in Part 8)	section 741(2)
charity	section 1319
claim	section 1315
close company	sections 414 and 415 of ICTA
collective investment scheme (in Parts 5 and 6)	section 476(1)
commercial association of companies (in Part 12)	section 1004(9)
commercial letting of furnished holiday accommodation (in Chapter 6 of Part 4)	sections 265 to 268
company (except in Chapters 13 and 14 of Part 5, Chapters 9 and 10 of Part 7, Chapter 8 of Part 8 and Chapter 1 of Part 11)	section 832(1) of ICTA (and see also section 1273(2)(c) of this Act)
company (in Chapter 13 of Part 5)	section 430(1)
company (in Chapter 14 of Part 5)	section 439(1)
company (in Chapter 9 of Part 7)	section 681(1)
company (in Chapter 10 of Part 7)	section 688(1)
company (in Chapter 8 of Part 8)	section 764(2)
company (in Chapter 1 of Part 11)	paragraph 99(1) of Schedule 2 to ITEPA 2003 (see section 984(1) and (2) of this Act)
the company (in relation to a share incentive plan) (in Chapter 1 of Part 11)	paragraph 2(2) of Schedule 2 to ITEPA 2003 (see section 984(1) and (2) of this Act)
the company (in Chapter 5 of Part 15)	section 1212(1)
company replacing another as party to a loan relationship (in Chapter 4 of Part 5)	section 338
company replacing another as party to a derivative contract (in Chapter 5 of Part 7)	section 627
company tax return (in Part 15)	section 1187
company with investment business (in Part 16)	section 1218(1) and (2)
the completion period (in Chapter 5 of Part 15)	section 1212(1)
connected (in the context of “connected person” or one person being “connected” with another) (except in Chapter 12 of Part 8)	section 839 of ICTA (see section 1316(1) of this Act)
connected (in the context of “connected person” or one person being “connected” with another) (in Chapter 12 of Part 8)	sections 842 and 843
connected companies relationship (in Parts 5 and 6)	section 348
consideration received for disposal of know-how (in Chapter 13 of Part 3)	section 176(3), (4)
consortium (in relation to companies that are owned by a consortium or are members of a consortium) (in Part 12)	section 1004(5) to (8)
consortium company (in Chapter 7 of Part 5)	section 371(1)
contaminated state (in relation to land) (in Part 14)	section 1145
contract for differences (in Part 7)	section 582
contract of insurance (in Part 7)	section 710
contract of long-term insurance (in Part 7)	section 710
control (except in F26 ... Chapter 12 of Part 8 and Chapter 1 of Part 11)	section 840 of ICTA (see section 1316(2) of this Act)
F27 . . .	F27 . . .
control (in Chapter 12 of Part 8)	section 836
control (in Chapter 1 of Part 11)	section 995 of ITA 2007, as applied by section 719 of ITEPA 2003 (see section 984(1) and (2) of this Act)
controlled waters (in Part 14)	section 1179
convertible securities (in Part 12)	section 1005 (and see also section 1030(4))
convertible shares (in Part 12)	section 1005
co-operative society (in Chapter 14 of Part 5)	section 439(1)
co-operative society (in Chapter 10 of Part 7)	section 688(1)
co-producer (in Part 15)	section 1186
core expenditure (in Part 15)	section 1184(1)
cost of an asset (in relation to certain assets) (in Chapter 7 of Part 8)	section 760
costs of the film (in Chapter 2 of Part 15)	section 1191
coupons (in Chapter 6 of Part 10)	section 975(3)
credit (in Part 16)	section 1255(3)
credit union	section 1319
creditor quasi-repo (in Chapter 10 of Part 6)	section 544
creditor relationship (in Parts 5, 6 and 7)	section 302(5)
creditor repo (in Chapter 10 of Part 6)	section 543
debit (in Part 16)	section 1255(3)
debt (in Parts 5 and 6)	section 476(1)
debtor consortium company (in Chapter 7 of Part 5)	section 371(1)
debtor quasi-repo (in Chapter 10 of Part 6)	section 549
debtor relationship (in Parts 5, 6 and 7)	section 302(6)
debtor repo (in Chapter 10 of Part 6)	section 548
the deficit (in Chapter 16 of Part 5)	section 456(2)
the deficit period (in Chapter 16 of Part 5)	section 456(2)
deposit arrangements (in Chapter 6 of Part 6)	section 501(3)
depositary receipt (in Part 7)	section 710
deposit back arrangements	section 431(2) of ICTA
[F28 derelict state (in relation to land) (in Part 14)	section 1145A]
derivative contract	section 576
derivative contract of a person	section 608(7)
designated (in Part 7)	section 710
diminishing shared ownership arrangements (in Chapter 6 of Part 6)	section 501(3)
discharge (in Chapter 10 of Part 6)	section 559
discretionary interest (in Chapter 3 of Part 10)	section 935(3)
distribution	section 832(1) of ICTA
dividend ordinary rate	section 1319
dividend shares (in Chapter 1 of Part 11)	paragraph 62(3)(b) of Schedule 2 to ITEPA 2003 (see section 984(1) and (2) of this Act)
the earlier period (in Chapter 15 of Part 8)	section 871(2)
effective 51% subsidiary (in Part 8)	section 771
[F29 economically equivalent to interest (in Chapter 2A of Part 6)	section 486B(2)]
effective duration of a lease (in Chapter 4 of Part 4)	section 243
election	section 1315
employee (in Chapter 1 of Part 11)	section 4(2) of ITEPA 2003 (see section 984(1) and (2) of this Act)
the employee (in Part 12)	section 1005
the employing company (in Part 12)	section 1005
employment (in Chapter 1 of Part 11)	section 4(1) of ITEPA 2003 (see section 984(1) and (2) of this Act)
employment (in Part 12)	section 1002
employment income	section 7(2) of ITEPA 2003
equity instrument (in Parts 5 and 6)	section 476(1)
equity instrument (in Part 7)	section 710
estate (in Chapter 3 of Part 10)	section 934(2)
estate income (in Chapter 3 of Part 10)	section 934(2)
estate in land (in relation to any land in Scotland)	section 832(1) of ICTA
exchange gain (in Parts 5 and 6)	section 475
exchange gain (in Part 7)	section 705
exchange loss (in Parts 5 and 6)	section 475
exchange loss (in Part 7)	section 705
excluded body (in Part 7)	section 706
expenditure on an asset (in Part 8)	section 727
externally provided worker (in Part 13)	section 1128
fair value (in Parts 5 and 6)	section 313(6)
fair value (in Part 7)	section 710
fair value accounting (in Parts 5 and 6)	section 313(5)
fair value accounting (in Part 7)	section 710
farmers (in Chapter 8 of Part 3)	section 109(3)
farming	section 1317
film (in Part 15)	section 1181
film-making activities (in Part 15)	section 1183
film production company (in Part 15)	section 1182
film tax relief (in Part 15)	section 1195(2)
final accounting period (in Chapter 3 of Part 10)	section 938(3)
final certificate (in Chapter 5 of Part 15)	section 1212(1)
final tax year (in Chapter 3 of Part 10)	section 938(4)
financial asset (in Part 8)	section 806(2), (3)
financial institution (in Chapter 6 of Part 6)	section 502
financial trader (in Part 7)	section 710
firm	section 1257(1) (and see also section 1273(2)(a))
for accounting purposes	section 832(1) of ICTA
foreign estate (in Chapter 3 of Part 10)	section 936(1)
foreign holdings (in Chapter 6 of Part 10)	section 975(1)
forestry	section 1317(3)
forfeiture, forfeited (in Chapter 1 of Part 11)	paragraph 99(1) (“provision for forfeiture”) of Schedule 2 to ITEPA 2003 (see section 984(1) and (2) of this Act)
free shares (in Chapter 1 of Part 11)	paragraph 2(1)(a) of Schedule 2 to ITEPA 2003 (see section 984(1) and (2) of this Act)
future (in Part 7)	section 581
fungible assets (in Part 8)	section 858(2)
GAAP-compliant accounts (in Part 8)	section 716(4)
generally accepted accounting practice (abbreviated as “GAAP”)	section 832(1) of ICTA and section 50(1) of FA 2004
generating income from land (in Chapter 2 of Part 4)	sections 207 and 208
gilt-edged securities (in Parts 5 and 6)	section 476(1)
goodwill (in Part 8)	section 715(3)
gross roll-up business	section 431(2) of ICTA
grossing up	section 1318
group (in Part 8)	Chapter 8 of Part 8
group (in relation to companies that are members of the same group of companies) (in Part 12)	section 1004(2)
group accounting period (in Chapter 7 of Part 5)	section 370
group member (in Chapter 7 of Part 5)	section 371(1)
group plan (in Chapter 1 of Part 11)	paragraph 4(2) of Schedule 2 to ITEPA 2003 (see section 984(1) and (2) of this Act)
group transfer (in Part 12)	section 1004(3)
F30 . . .	F30 . . .
hedging relationship (in Part 7)	section 707
herd (in Chapter 8 of Part 3)	section 110(1)
herd basis election (in Chapter 8 of Part 3)	section 109(1)
herd basis rules (in Chapter 8 of Part 3)	section 109(2)
holding company (in Chapter 7 of Part 5)	section 371(1)
houseboat	section 1319
hybrid derivative (in Part 7)	section 584(4)
the I minus E basis	section 431(2) of ICTA
impairment (in Parts 5 and 6)	section 476(1)
impairment loss (in Parts 5 and 6)	section 476(1)
income	section 834(1) of ICTA
income from the film (in Chapter 2 of Part 15)	section 1190
income statement (in Parts 5 and 6)	section 476(1)
income statement (in Part 7)	section 710
F31 . . .	F31 . . .
insurance business transfer scheme	section 431(2) of ICTA
insurance company	section 431(2) of ICTA
the Insurance Prudential Sourcebook	section 431(2) of ICTA
intangible asset (in Part 8)	section 712
intangible fixed asset (in Part 7)	section 710
intangible fixed asset (in Part 8)	sections 713 and 715(1)
intellectual property (in Part 13)	section 1139
interest payable on a money debt (in Chapter 2 of Part 6)	section 484(1)
interest under a loan relationship (in Parts 5 and 6)	section 305(1)
interim accounting period (in Chapter 5 of Part 15)	section 1212(1)
interim certificate (in Chapter 5 of Part 15)	section 1212(1)
international accounting standards	section 832(1) of ICTA and section 50(2) of FA 2004
international organisation (in Parts 5 and 6)	section 476(2)
[F32 the investing company (in Chapter 6A of Part 6)	section 521A(3)]
investment bond arrangements (in Chapter 6 of Part 6)	section 501(3)
investment business of a company (in Part 16)	section 1218(3)
investment trust	section 842 of ICTA
[F33 the issuing company (in Chapter 6A of Part 6)	section 521A(3)]
keeping a production herd (in Chapter 8 of Part 3)	section 109(4)
know-how (in Chapter 13 of Part 3)	section 176(1), (2)
know-how (in Chapter 2 of Part 9)	section 908(4)
F30 . . .	F30 . . .
large company (in Part 13)	section 1122
larger SME (in Part 13)	section 1121
the later period (in Chapter 15 of Part 8)	section 871(2)
lease (in Part 4)	section 291(1)
liabilities under a loan relationship (in Part 5)	section 305(2), (3)
life assurance business	section 431(2) of ICTA
limited-budget film (in Part 15)	section 1184(2) and (3)
limited interest (in Chapter 3 of Part 10)	section 935(2)
linked assets	section 432ZA of ICTA (as applied by section 431(2) of that Act)
listed company (in Part 12)	section 1005
loan (in Parts 5 and 6)	section 476(1)
loan relationship	section 302(1) and (2)
local authority	section 842A of ICTA
long-term business	section 431(2) of ICTA
long-term insurance fund	section 431(2) of ICTA
major interest (in Parts 5 and 6)	section 473
major interest (in Chapter 12 of Part 8)	section 837
[F34 major interest in land (in Part 14)	section 1178A]
manufactured interest (in Chapter 9 of Part 6)	section 539(5)
manufactured interest relationship	section 539(2)
market gardening	section 1317(5)
market value (in Chapter 1 of Part 11)	paragraph 92 of Schedule 2 to ITEPA 2003 (see section 984(1) and (2) of this Act)
market value (in Part 12)	section 1005
matching shares (in Chapter 1 of Part 11)	paragraph 3(1) of Schedule 2 to ITEPA 2003 (see section 984(1) and (2) of this Act)
material interest (in an offshore fund) (in Chapter 3 of Part 6)	section 489(3)
mature (in relation to female animals) (in Chapter 8 of Part 3)	section 111(5)
member (of a consortium) (in Chapter 7 of Part 5)	section 371(1)
member of a group (in Chapter 4 of Part 5)	section 335(6)
member of a group (in Chapter 7 of Part 5)	section 371(3)
member of a group (in Chapter 5 of Part 7)	section 624(3)
member company (in Chapter 7 of Part 5)	section 371(1)
members of a company	section 1273(2)(d)
members of a firm	section 1273(2)(b)
the merger (in Chapter 14 of Part 5)	section 431(10)
the merger (in Chapter 10 of Part 7)	section 682(8)
the Mergers Directive	section 1319
the merging companies (in Chapter 14 of Part 5)	section 431(10)
the merging companies (in Chapter 10 of Part 7)	section 682(8)
mineral lease or agreement (in Chapter 7 of Part 4)	section 274(1)
mineral royalties (in Chapter 7 of Part 4)	sections 274(2), 275, 276
money debt (in Parts 5 and 6)	section 303
money debt (in Chapter 2 of Part 6)	sections 483(2), 484(2)
mortgage (in the application of the Act to Scotland)	section 1320(1)
national insurance contributions	section 1319
net consortium debit (in Chapter 7 of Part 5)	section 371(1)
non-trading credits (in Parts 5 and 6)	section 301(2)
non-trading credits (in Part 8)	section 746
non-trading debits (in Parts 5 and 6)	section 301(2)
non-trading debits (in Part 8)	section 746(1)
non-trading deficit from loan relationships (in Parts 5 and 6)	section 301(6), (7)
non-trading profits (in Chapter 16 of Part 5)	section 457(5)
non-trading profits from loan relationships (in Parts 5 and 6)	section 301(4), (5)
non-UK resident (and references to a non-UK resident or a non-UK resident company)	section 1319
normal self-assessment filing date	section 1319
notice	section 832(1) of ICTA
offshore fund (in Chapter 3 of Part 6)	section 489(1) and (2)
oil and gas exploration and appraisal	section 837B of ICTA
old asset (in Chapter 7 of Part 8)	section 754(2)
open-ended investment company (abbreviated as “OEIC”) (in Chapter 3 of Part 6 and Part 7)	section 468A(2) of ICTA (as applied by sections 488(1) and 710)
option (in Part 7)	section 580
option (in Part 12)	section 1005
ordinary share capital	section 832(1) of ICTA
[F35 ordinary share (in Part 9A)	section 931U]
ordinary shares (in Part 12)	section 1005
the original relief (in Chapter 4 of Part 12)	section 1025(1)(a)
the original relief (in Chapter 5 of Part 12)	section 1030(4)
other assets (in Chapter 7 of Part 8)	section 754(2)
overseas dividend (in Chapter 10 of Part 6)	section 559
overseas life insurance company	section 431(2) of ICTA
overseas property business	section 206
overseas securities (in Chapter 10 of Part 6)	section 559
parent company (in Part 12)	section 1004(4)
Part 5	section 294(2)
[F36 the Part 5 one-way exchange effect provisions	section 328H(1)]
[F36 the Part 7 one-way exchange effect provisions	section 606H(1)]
this Part (in Part 5)	section 294(2)
part realisation (in relation to an intangible fixed asset) (in Part 8)	section 734(4)
participant (in relation to a share investment plan) (in Chapter 1 of Part 11)	paragraph 5(4) of Schedule 2 to ITEPA 2003 (see section 984(1) and (2) of this Act)
participant's plan shares (in Chapter 1 of Part 11)	paragraph 99(1) of Schedule 2 to ITEPA 2003 (see section 984(1) and (2) of this Act)
participator (in Chapter 12 of Part 8)	section 841(1) and (2)
partnership shares (in Chapter 1 of Part 11)	paragraph 2(1)(b) of Schedule 2 to ITEPA 2003 (see section 984(1) and (2) of this Act)
party (to a creditor relationship) (in Parts 5 and 6)	section 298(1)
party (to a manufactured interest relationship)	section 539(6)
party (to a loan relationship)	section 302(1) and (2)
party (to a relevant contract) (in Part 7)	section 578
patent rights (in Chapter 3 of Part 9)	section 912(3)
[F35 the payer (in Part 9A)	section 931T]
payment period (in Part 13)	section 1141
payments under a loan relationship (in Part 5)	section 305(1)
period of account	section 832(1) of ICTA
permanent establishment	section 832(1) of ICTA and section 148 of FA 2003
person receiving any asset (in Chapter 10 of Part 6)	section 557
personal representatives (in Chapter 3 of Part 10)	section 968
plain vanilla contract (in Part 7)	section 708
plan shares (in Chapter 1 of Part 11)	paragraph 99(1) of Schedule 2 to ITEPA 2003 (see section 984(1) and (2) of this Act)
plan trust (in Chapter 1 of Part 11)	paragraph 71(3) of Schedule 2 to ITEPA 2003 (see section 984(1) and (2) of this Act)
pollution of controlled waters (in Part 14)	section 1179
post-cessation receipt (in Part 3)	sections 190 and 191
post-cessation receipt (in Chapter 9 of Part 4)	sections 282 and 283
pre-FA 2002 assets (in Part 8)	sections 881 and 892 to 895
premises (in Part 4)	section 291(2)
premium (in Chapter 4 of Part 4)	section 247(1), (3)
the price (in relation to the exchange of know-how) (in Chapter 13 of Part 3)	section 176(6)
principal company (in Chapters 8 and 9 of Part 8)	section 765(2)
principal photography (in Part 15)	section 1183(2)
proceeds of realisation (of an asset) (in Part 8)	section 739
proceeds of sale (in relation to the exchange of know-how) (in Chapter 13 of Part 3)	section 176(6)
production expenditure (in Part 15)	section 1184(1)
production herd (in Chapter 8 of Part 3)	section 110(1), (2)
production herd (of the same class) (in Chapter 8 of Part 3)	section 111(2)
profit share agency arrangements (in Chapter 6 of Part 6)	section 501(3)
profit-sharing arrangements (in Parts 5 and 6)	section 476(1)
profit-sharing arrangements (in Part 7)	section 710
profits (in Part 2)	section 2(2)
property business	section 204
public body (in Chapter 5 of Part 9)	section 926(2)
purchase and resale arrangements (in Chapter 6 of Part 6)	section 501(3)
qualifying body (in Part 13)	section 1142
the qualifying business (in Part 12)	section 1005
qualifying Chapter 2 expenditure (in Part 13)	section 1051
qualifying Chapter 3 expenditure (in Part 13)	section 1065
qualifying Chapter 4 expenditure (in Part 13)	section 1070
qualifying Chapter 4 expenditure (in Chapter 4 of Part 14)	section 1162
qualifying Chapter 5 expenditure (in Part 13)	section 1076
qualifying Chapter 7 expenditure (in Part 13)	section 1098
qualifying co-production (in Part 15)	section 1186
qualifying corporate bond	section 117 of TCGA 1992
qualifying distribution	section 14(2) of ICTA (as applied by section 832(1) of that Act)
qualifying expenditure (in Chapter 3 of Part 15)	section 1199(3)
qualifying expenditure on externally provided workers (in Part 13)	section 1127
qualifying land remediation expenditure (in Part 14)	section 1144
qualifying land remediation loss (in Chapter 3 of Part 14)	section 1152
qualifying life assurance business loss (in Chapter 4 of Part 14)	section 1165
qualifying overseas transfer	section 431(2) of ICTA (as modified by regulation 6(5) of the Overseas Life Insurance Companies Regulations 2006 (S.I. 2006/3271))
qualifying policy	section 832(1) of ICTA
qualifying R&D activity (in Chapter 7 of Part 13)	section 1086
R&D threshold (in Chapter 2 of Part 13)	section 1050
R&D threshold (in Chapter 3 of Part 13)	section 1064
R&D threshold (in Chapter 4 of Part 13)	section 1069
R&D threshold (in Chapter 5 of Part 13)	section 1075
R&D threshold (in Chapter 7 of Part 13)	section 1097
the real interest (in Chapter 9 of Part 6)	section 539(5)
realisation (in relation to an asset) (in Part 8)	section 856
realisation (in relation to an intangible fixed asset) (in Part 8)	section 734
receipt period (of a receipt) (in Chapter 4 of Part 4)	section 228(6)
receipts and expenses (in the context of the calculation of the profits of a trade, profession or vocation or of a property business)	section 48 (including as applied by section 210)
[F35 the recipient (in Part 9A)	section 931T]
the recipient (in Part 12)	section 1005
recognised (in relation to an amount) (in Part 8)	section 716(1)
recognised stock exchange	section 841(1) of ICTA
[F35 redeemable (in Part 9A)	section 931U]
F31 . . .	F31 . . .
reduction under section 228 by reference to a taxed receipt (in Chapter 4 of Part 4)	section 230(6)
referable (of income or gains or losses of insurance companies)	section 432A of ICTA
registered industrial and provident society	section 834(1) of ICTA
registered pension scheme	section 150(2) of FA 2004 (as applied by section 832(1) of ICTA)
related party (in Part 8)	section 835
related transaction (in Parts 5 and 6)	section 304
related transaction (in Part 7)	section 596
release debit (in Chapter 6 of Part 5)	section 353(3)
release debit (in Chapter 7 of Part 5)	section 364(4)
relevant connection (in Part 14)	section 1178
relevant consortium creditor relationship (in Chapter 7 of Part 5)	section 371(1)
[F37 relevant contaminated land remediation (in Part 14)	section 1146]
relevant contract (in Part 7)	section 577
relevant contract of a company (in Part 7)	section 578
relevant credits (in Chapter 7 of Part 7)	section 659
relevant debits (in Chapter 7 of Part 7)	section 659
[F38 relevant derelict land remediation (in Part 14)	section 1146A]
the relevant employment (in Part 12)	section 1005
F39 . . .	F39 . . .
relevant non-lending relationship (in Chapter 2 of Part 6)	sections 479 and 480
relevant payment to a subject of a clinical trial (in Part 13)	section 1140
[F35 a relevant person (in Part 9A)	section 931T]
relevant research and development (in Part 13)	section 1042
relevant tax year (in relation to an amount of estate income) (in Chapter 3 of Part 10)	section 946(5)
relief event (in Chapter 5 of Part 12)	section 1031(3)
rent (in Chapter 7 of Part 4)	section 271(3)
rent (in Chapter 8 of Part 4)	section 278(3)
rent receivable for a UK electric-line wayleave (in Chapter 8 of Part 4)	section 278
rent receivable in connection with a UK section 39(4) concern (in Chapter 7 of Part 4)	section 271
research and development (abbreviated as “R&D”) (in Part 13)	section 837A of ICTA (as applied by section 1041)
resident in a member State (in Chapter 13 of Part 5)	section 430(2)
resident in a member State (in Chapter 14 of Part 5)	section 439(2)
resident in a member State (in Chapter 9 of Part 7)	section 681(2)
resident in a member State (in Chapter 10 of Part 7)	section 688(2)
the residuary income of the estate (in Chapter 3 of Part 10)	section 949(1)
restricted shares (in Part 12)	section 1005
retail prices index	section 1319
reversal amount (in Part 16)	section 1230
reversion (in the application of Chapter 4 of Part 4 to Scotland)	section 247(3)
rights and powers (in relation to a person) (in Chapter 12 of Part 8)	section 839
rights under a loan relationship (in Part 5)	section 305(2), (3)
royalty (in Part 8)	section 714
sale of an animal (in Chapter 8 of Part 3)	section 111(3)
sale of know-how (in Chapter 13 of Part 3)	section 176(5)
sale of property (in Part 9)	sections 928(1) and 929(1)
sale or transfer of trading stock (in Chapter 11 of Part 3)	section 163(3)
sale proceeds of an animal (in Chapter 8 of Part 3)	section 111(4)
SCE	section 1319
[F35 scheme (in Part 9A)	section 931V]
SE	section 1319
securities (in Chapter 10 of Part 6)	section 556(1)
securities house (in Part 7)	section 709
the separate film trade (in Chapters 2, 3 and 5 of Part 15)	section 1188 (and sections 1195(5) and 1212(1))
share (in Part 5 and in Part 6 except for Chapter [F40 6A] of that Part)	section 476(1)
[F41 share (in Chapter 6A of Part 6)	section 521A(4)]
[F41 the share (in Chapter 6A of Part 6)	section 521B(6)]
share being subject to third party obligations (in Chapter 7 of Part 6)	section 524(2)
share incentive plan (in Chapter 1 of Part 11)	section 488(4) of ITEPA 2003 (see section 984(1) and (2) of this Act)
share of residuary income of estate (in Chapter 3 of Part 10)	section 950
shares (in Part 7)	section 710
shares (in Chapter 1 of Part 11)	paragraph 99(2) of Schedule 2 to ITEPA 2003 (and, in the context of a new holding, paragraph 87(6) of that Schedule) (see section 984(1) and (2) of this Act)
shares (in Part 12)	section 1003
short-term lease (in Chapter 4 of Part 4)	section 216
similar securities (in Chapter 10 of Part 6)	section 556(2)
[F35 small company (in Part 9A)	section 931S]
small or medium-sized enterprise (abbreviated as “SME”) (in Part 13)	sections 1119 and 1120
software or consumable items (in Part 13)	section 1125
special film relief (in Chapter 5 of Part 15)	section 1212(1)
staffing costs (in Part 13)	section 1123
staffing costs (in Part 14)	section 1170
standing in the position of a creditor (as respects a loan relationship) (in Chapter 8 of Part 5)	section 379(1)
statement of changes in equity (in Parts 5 and 6)	section 476(1)
statement of changes in equity (in Part 7)	section 710
statement of comprehensive income (in Parts 5 and 6)	section 476(1)
statement of comprehensive income (in Part 7)	section 710
statement of income and retained earnings (in Parts 5 and 6)	section 476(1)
statement of income and retained earnings (in Part 7)	section 710
statement of recognised income and expense (in Parts 5 and 6)	section 476(1)
statement of recognised income and expense (in Part 7)	section 710
statement of total recognised gains and losses (in Parts 5 and 6)	section 476(1)
statement of total recognised gains and losses (in Part 7)	section 710
statutory insolvency arrangement	section 834(1) of ICTA
sub-contractor payment (and sub-contractor) (in Part 13)	section 1133(1)
F39 . . .	F39 . . .
subsidiary (of a holding company) (in Chapter 7 of Part 5)	section 371(1)
subsidiary (in Part 8)	section 764(3)
51% subsidiary	section 838(1)(a) of ICTA
75% subsidiary	section 838(1)(b) of ICTA
75% subsidiary (in Chapter 8 of Part 8)	section 838(1)(b) of ICTA and section 773
subsidised expenditure (in Part 13)	section 1138
subsidised expenditure (in Part 14)	section 1177
F39 . . .	F39 . . .
substantial part of a herd (in Chapter 8 of Part 3)	section 111(6)
surrender (in the application of the Act to Scotland)	section 1320(1)
tax advantage (in Parts 5 and 6)	section 840ZA of ICTA (as applied by section 476(1))
[F35 tax advantage scheme (in Part 9A)	section 931V]
tax-neutral (in relation to a transfer) (in Part 8)	section 776
tax written-down value (in relation to an asset) (in Part 8)	Chapter 5 of Part 8
tax year	section 1319
the tax year 2009-10 etc	section 1319
taxed lease (in Chapter 4 of Part 4)	section 227(4)
taxed receipt (in Chapter 4 of Part 4)	section 227(4)
third party obligations (in the case of a share) (in Chapter 7 of Part 6)	section 524(3)
total profits	section 834C of ICTA
trade	section 832(1) of ICTA
trade (in Part 2)	section 33
trade (in Parts 5 and 6)	section 298(3)
trading stock (in relation to a trade) (in Chapter 10 of Part 3)	section 156
trading stock (in relation to a trade) (in Chapter 11 of Part 3)	section 163
the transfer of business (in Chapter 13 of Part 5)	section 421(6)
the transfer of business (in Chapter 9 of Part 7)	section 674(4)
the transferee (in Chapter 4 of Part 5)	sections 336(5) and 337(7)
transferee (in Chapter 13 of Part 5)	section 421(6)
the transferee (in Chapter 14 of Part 5)	section 432(1)
transferee (in Chapter 9 of Part 7)	section 674(4)
the transferee (in Chapter 10 of Part 7)	section 683(1)
the transferor (in Chapter 4 of Part 5)	sections 336(5) and 337(7)
the transferor (in Chapter 13 of Part 5)	section 421(6)
transferor (in Chapter 14 of Part 5)	section 432(2)
the transferor (in Chapter 9 of Part 7)	section 674(4)
transferor (in Chapter 10 of Part 7)	section 683(2)
tribunal	section 832(1) of ICTA
the trustees (in Chapter 1 of Part 11)	paragraphs 2(2) and 71(1) of Schedule 2 to ITEPA 2003 (see section 984(1) and (2) of this Act)
UK estate (in Chapter 3 of Part 10)	section 936(1)
UK expenditure (in Part 15)	section 1185
UK generally accepted accounting practice	section 832(1) of ICTA and section 50(4) of FA 2004
UK property business	section 205
UK property business loss (in Part 14)	section 392A of ICTA (as applied by section 1179)
UK resident (and references to a UK resident or a UK resident company)	section 1319
Ulster Savings Certificates (in Part 19)	section 1282(6)
umbrella company (in Chapter 3 of Part 6)	section 468A(4) of ICTA (as applied by section 488(2))
underlying subject matter (in Part 7)	section 583
unit holder	section 468(6) of ICTA (as applied by section 832(1) of that Act)
unit trust scheme	section 1007 of ITA 2007 (as applied by section 832(1) of ICTA)
United Kingdom	section 830(1) of ICTA
unreduced amount (of a taxed receipt) (in Chapter 4 of Part 4)	sections 230(2) to (4)
unremittable (in relation to income) (in Part 18)	section 1274(2)
unused amount (of a taxed receipt) (in Chapter 4 of Part 4)	section 230(1), (5)
venture capital trust	section 834(1) of ICTA
warrant (in Part 7)	section 710
within the charge to tax	section 832(1) of ICTA
woodlands	section 1317(4)

Textual Amendments

F24 Sch. 4 entry inserted (retrospectively and with effect in accordance with Sch. 24 paras. 12, 13-16 of the amending Act) by Finance Act 2009 (c. 10), Sch. 24 paras. 7(2), 12

F25 Sch. 4 entry omitted (retrospectively and with effect in accordance with Sch. 24 paras. 12, 13-16 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 24 paras. 7(3), 12

F26 Words in Sch. 4 entry omitted (retrospectively) by virtue of Corporation Tax Act 2009 (Amendment) Order 2009 (S.I. 2009/2860), arts. 1(2), 6(9)(a)

F27 Sch. 4 entry omitted (retrospectively) by virtue of Corporation Tax Act 2009 (Amendment) Order 2009 (S.I. 2009/2860), arts. 1(2), 6(9)(b)

F28 Sch. 4 entry inserted (with effect in accordance with Sch. 7 paras. 27, 28 of the amending Act) by Finance Act 2009 (c. 10), Sch. 7 para. 26(2)

F29 Sch. 4 entry inserted (retrospectively and with effect in accordance with Sch. 24 paras. 12, 13-16 of the amending Act) by Finance Act 2009 (c. 10), Sch. 24 paras. 7(4), 12

F30 Sch. 4 entries omitted (with effect in accordance with Sch. 7 paras. 27, 28 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 7 para. 26(3)

F31 Sch. 4 entries omitted (retrospectively and with effect in accordance with Sch. 24 paras. 12, 13-16 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 24 paras. 7(7), 12

F32 Sch. 4 entry substituted (retrospectively and with effect in accordance with Sch. 24 paras. 12, 13-16 of the amending Act) by Finance Act 2009 (c. 10), Sch. 24 paras. 7(5), 12

F33 Sch. 4 entry substituted (retrospectively and with effect in accordance with Sch. 24 paras. 12, 13-16 of the amending Act) by Finance Act 2009 (c. 10), Sch. 24 paras. 7(6), 12

F34 Sch. 4 entry inserted (with effect in accordance with Sch. 7 paras. 27, 28 of the amending Act) by Finance Act 2009 (c. 10), Sch. 7 para. 26(4)

F35 Sch. 4 entries inserted (with effect in accordance with Sch. 14 para. 31 of the amending Act) by Finance Act 2009 (c. 10), Sch. 14 para. 29

F36 Sch. 4 entries inserted (with effect in accordance with Sch. 21 para. 11 of the amending Act) by Finance Act 2009 (c. 10), Sch. 21 para. 9

F37 Sch. 4 entry inserted (with effect in accordance with Sch. 7 paras. 27, 28 of the amending Act) by Finance Act 2009 (c. 10), Sch. 7 para. 26(5)

F38 Sch. 4 entry inserted (with effect in accordance with Sch. 7 paras. 27, 28 of the amending Act) by Finance Act 2009 (c. 10), Sch. 7 para. 26(6)

F39 Words in Sch. 4 omitted (with effect in accordance with Sch. 7 paras. 27, 28 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 7 para. 26(7)

F40 Figure in Sch. 4 entry substituted (retrospectively and with effect in accordance with Sch. 24 paras. 12, 13-16 of the amending Act) by Finance Act 2009 (c. 10), Sch. 24 paras. 7(8), 12

F41 Sch. 4 entries substituted (retrospectively and with effect in accordance with Sch. 24 paras. 12, 13-16 of the amending Act) by Finance Act 2009 (c. 10), Sch. 24 paras. 7(9), 12