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[F1PART 8BU.K.Trading profits taxable at the Northern Ireland rate

Textual Amendments

F1Pt. 8B inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1

CHAPTER 17U.K.Excluded trades, excluded activities and back-office activities

IntroductoryU.K.

357XIntroductionU.K.

(1)This Chapter makes provision—

(a)specifying trades that are “excluded trades” for the purposes of this Part (see sections 357XA to 357XE), and

(b)specifying activities that are “excluded activities” for the purposes of this Part (see sections 357XF and 357XG).

(2)This Chapter also contains—

(a)a power to alter the meaning of “excluded trade” or “excluded activity” for the purposes of this Part (see section 357XH), and

(b)a power to make provision about the meaning of “back-office activities” for the purposes of this Part (see section 357XI).

Excluded tradesU.K.

357XAOil activitiesU.K.

(1)A trade is an “excluded trade” if it is a ring fence trade.

(2)In this section “ring fence trade” has the same meaning as in Part 8 (oil activities) (see section 277).

357XBLending and investmentU.K.

(1)A trade is an “excluded trade” if it consists of or includes—

(a)a lending activity, or

(b)a relevant regulated activity.

(2)But a trade is not an “excluded trade” by virtue of subsection (1) where it is carried on by an insurance company (within the meaning given by section 65 of FA 2012).

(3)In this section “lending activity” means—

(a)lending of money, including consumer credit, mortgage credit, factoring (with or without recourse), and financing of commercial transactions (including forfeiting),

(b)finance leasing (as lessor),

(c)issuing and administering means of payment,

(d)provision of guarantees or commitments to provide money,

(e)money transmission services,

(f)provision of alternative finance arrangements, or

(g)other activities carried on in connection with activities falling within any of paragraphs (a) to (f).

(4)In this section “relevant regulated activity” means an activity which is a regulated activity for the purposes of FISMA 2000 by virtue of any of the following provisions of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544)—

(a)article 5 (accepting deposits),

(b)article 14 (dealing in investments as principal),

(c)article 21 (dealing in investments as agent),

(d)article 25 (arranging deals in investments),

(e)article 40 (safeguarding and administering investments), and

(f)article 61 (entering into regulated mortgage contracts).

357XCInvestment managementU.K.

(1)A trade is an “excluded trade” if it consists of or includes portfolio management, or risk management, in relation to—

(a)a UCITS, or

(b)an AIF.

(2)In subsection (1)—

(a)UCITS” has the meaning given in Article 1.2 of Directive 2009/65/EC of the European Parliament and of the Council;

(b)AIF” has the meaning given in regulation 3 of the Alternative Investment Fund Managers Regulations 2013 (S.I. 2013/1773).

357XDInsurance: long-term businessU.K.

A trade is an “excluded trade” if it consists of or includes long-term business (within the meaning given by section 63(1) of FA 2012).

357XERe-insurance tradeU.K.

(1)A trade is an “excluded trade” if it consists of re-insurance.

(2)In this Part “re-insurance” includes retrocession.

Excluded activitiesU.K.

357XFRe-insurance activityU.K.

The activity of effecting or carrying out re-insurance contracts is an “excluded activity”.

357XGExploration and exploitation of UK sector of continental shelfU.K.

(1)An activity is an “excluded activity” if it is—

(a)an exploration or exploitation activity, or

(b)an activity carried on in connection with exploration or exploitation rights.

(2)In this section—

PowersU.K.

357XHPower to amend definition of “excluded trade” or “excluded activity”U.K.

(1)The Treasury may by regulations amend this Chapter so as to alter the meaning of “excluded trade” or “excluded activity” for the purposes of this Part.

(2)Regulations under this section may only be made if a draft of the statutory instrument containing them has been laid before, and approved by a resolution of, the House of Commons.

(3)Regulations under this section—

(a)may make different provision for different purposes;

(b)may make incidental, supplemental, consequential and transitional provision and savings.

357XIPower to make provision about meaning of “back-office activities”U.K.

(1)The Treasury may by regulations make provision about the meaning of “back-office activities” for the purposes of this Part.

(2)Regulations under this section may, in particular—

(a)specify activities that are, or are not, back-office activities, or

(b)specify circumstances in which activities are, or are not, to be regarded as back-office activities.

(3)Regulations under this section—

(a)may make different provision for different purposes;

(b)may make incidental, supplemental, consequential and transitional provision and savings.]