Corporation Tax Act 2010

Corporation Tax Act 2009 (c. 4) U.K.

589 U.K. The Corporation Tax Act 2009 is amended as follows.

590 U.K. In section 20(3) (profits attributable to permanent establishment: introduction) for the words from “paragraph 5A” to “agent)” substitute “ section 1152 of CTA 2010 (investment managers: disregard of certain chargeable profits) ”.

591 U.K. In section 25(3) (non-UK resident banks: introduction) for “section 840A of ICTA” substitute “ section 1120 of CTA 2010 ”.

592 U.K. In section 39(3) (profits of mines, quarries and other concerns) for “Chapters 2 and 4 of Part 10 of ICTA (loss relief and group relief)” substitute “ Chapter 2 of Part 4 of CTA 2010 (trade loss relief), and Part 5 of that Act (group relief), ”.

593 U.K. In section 57 (car hire: supplementary)—

(a) in subsection (2)(a) omit “(see subsection (3))”, and

(b) for subsections (3) to (5) substitute—

“(3) For this purpose “hire-purchase agreement” has the meaning given by section 1129 of CTA 2010.”

594 U.K. In section 87(5) (expenses of research and development) for “section 837A of ICTA” substitute “ section 1138 of CTA 2010 ”.

595 U.K. In section 88(1)(a) (payments to research associations, universities etc)—

(a) for “an Association” substitute “ a body ”, and

(b) for “under section 508 of ICTA” substitute “ as a result of section 491 of CTA 2010 (scientific research associations) ”.

596 U.K. In section 97(4) (meaning of sale and lease-back arrangement) for “section 779(1) or (2) or 780(1) of ICTA” substitute “ section 835(1) or (2), 836(1) or (2) or 850 of CTA 2010 ”.

597 (1) Amend section 105 (gifts of trading stock to charities etc) as follows. U.K.

(2) In subsection (3) for “paragraph 1 of Schedule 18 to FA 2002” substitute “ section 658(6) of CTA 2010 ”.

(3) After subsection (5) insert—

“(6) This section is subject to section 203 of CTA 2010 (certain disposals of investments to charity).”

598 U.K. In section 132(5) (dividends etc granted by industrial and provident societies) for “section 230A of ICTA” substitute “ section 1056 of CTA 2010 ”.

599 U.K. In section 168 (connected persons) in paragraph (a) for “section 839 of ICTA” substitute “ section 1122 of CTA 2010 ”.

600 U.K. After section 221 insert—

“221A Sums to which sections 217 to 221 do not apply

(1) This section applies if a grant of a lease constitutes a disposal of an asset for the purposes of section 758(2)(b) or 763(2)(a) of CTA 2010 (disposals under finance arrangements).

(2) Sections 217 to 221 do not apply in relation to a premium paid in respect of the grant.”

601 U.K. In section 260(3) (mutual business) for “section 488 of ICTA” substitute “ Chapter 7 of Part 13 of CTA 2010 ”.

602 U.K. In section 264(2) (overview of Chapter) for paragraph (a) substitute—

“(a) Chapter 4 of Part 4 of CTA 2010 (relief for property business losses: see section 65 of that Act),”.

603 U.K. In section 269(2)(b) (capital allowances and loss relief) for “Chapter 2 of Part 10 of ICTA” substitute “ Chapter 2, 4 or 6 of Part 4 of CTA 2010 ”.

604 U.K. In section 297(5)(c) (trading credits and debits to be brought into account under Part 3) for “section 494(2A) of ICTA” substitute “ sections 286(5) and 287(5) of CTA 2010 ”.

605 U.K. In section 326(3) (writing off government investments)—

(a) for “Section 400(7) and (8) of ICTA” substitute “ Section 94 of CTA 2010 ”, and

(b) for “section 400(1)” substitute “ Chapter 7 of Part 4 ”.

606 U.K. In section 345(1)(b) (transferee leaving group otherwise than because of exempt distribution) for the words from “as a result of” to the end substitute “ as a result of section 1075 of CTA 2010 (exempt distributions) ”.

607 U.K. In section 346(1) (transferee leaving group because of exempt distribution)—

(a) in paragraph (a) for the words from “as a result of” to “business),” substitute “ as a result of section 1075 of CTA 2010 (exempt distributions), ” and

(b) in paragraph (b) for “section 214(2) of that Act” substitute “ section 1088(1) of CTA 2010 ”.

608 U.K. In section 364(5) (introduction to Chapter) for “section 403C of ICTA (amount of relief in consortium cases)” substitute “ section 143 or 144 of CTA 2010 (which limit the amount of group relief to be given in certain cases involving a consortium) ”.

609 (1) Amend section 371 (interpretation) as follows. U.K.

(2) In subsection (1)—

(a) for the definition of “consortium company” substitute—

““consortium company” means a trading company, as defined by section 185(1) of CTA 2010, that is owned by a consortium or a holding company that is so owned,”,

(b) for the definition of “group relief” substitute—

““group relief” means corporation tax relief under Part 5 of CTA 2010 (see section 97(2) of that Act),”,

(c) for the definition of “holding company” substitute—

““holding company” has the same meaning as in Part 5 of CTA 2010 (see section 185(2) of that Act),”,

(d) in the definition of “member” for “Chapter 4 of Part 10 of ICTA (group relief)” substitute “ Part 5 of CTA 2010 (see section 153(2) of that Act) ”, and

(e) in the definition of “subsidiary”, for the words after “means” to the end substitute “ a trading company (as defined by section 185(1) of CTA 2010) that, by reference to that holding company, is owned by a consortium by virtue of section 153(3) of that Act ”.

(3) In subsection (2) for “section 413(6) of ICTA” substitute “ section 153 of CTA 2010 ”.

(4) In subsection (3) for the words from “Chapter 4” to the end substitute “ Part 5 of CTA 2010 (group relief) (see section 152 of that Act) ”.

610 (1) Amend section 376 (interpretation of section 375) as follows. U.K.

(2) In subsection (1) for the words from “section 414 of ICTA” to the end substitute “ Chapter 2 of Part 10 of CTA 2010 (meaning of “close company”) applies with the omission of section 442(a) (exclusion of non-resident companies) ”.

(3) In subsection (3)—

(a) for “for the purposes of Part 11 of ICTA because of section 417 of that Act” substitute “ within the meaning given by section 454 of CTA 2010 ”, and

(b) for “participator for those purposes” substitute “ such a participator ”.

(4) In subsection (5) in the definition of “CIS-based close company” for “section 416(6) of ICTA because of section 417(3)(a) of that Act” substitute “ section 451(4) to (6) of CTA 2010 because of section 448(1)(a) of that Act ”.

611 U.K. In section 383(8) (lending between partners and the partnership) for “section 840 of ICTA” substitute “ section 1124 of CTA 2010 ”.

612 (1) Amend section 390 (meaning of available profits) as follows. U.K.

(2) In paragraph (b) of Step 1 in subsection (5) for “charges on income” substitute “ qualifying charitable donations ”.

(3) In paragraph (b) of Step 2 in subsection (5) for “charges on income” substitute “ qualifying charitable donations ”.

613 U.K. In section 410(5) (exception to section 409) in the definition of “CIS-based close company” for “section 416(6) of ICTA because of section 417(3)(a) of that Act” substitute “ section 451(4) to (6) of CTA 2010 because of section 448(1)(a) of that Act ”.

614 U.K. In section 411(3) (interpretation of section 409)—

(a) for “for the purposes of Part 11 of ICTA because of section 417 of that Act” substitute “ within the meaning given by section 454 of CTA 2010 ”, and

(b) for “participator for those purposes” substitute “ such a participator ”.

F1 615 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Sch. 1 para. 615 omitted (with effect in accordance with Sch. 5 para. 7(3)(4) of the amending Act) by virtue of Finance Act 2011 (c. 11), Sch. 5 para. 7(2)(d)

616 (1) Amend section 443 (restriction of relief for interest where tax relief schemes involved) as follows. U.K.

(2) In subsection (5) for “as a result of section 403 of ICTA (amounts which may be surrendered by way of group relief)” substitute “ under Chapter 4 of Part 5 of CTA 2010 (claims for group relief) ”.

(3) In subsection (7) for “section 402 of ICTA (see subsection (1) of that section)” substitute “ Part 5 of CTA 2010 ”.

617 U.K. In section 448(1)(c) (exchange gains and losses on debtor relationships: equity notes where holder associated with issuer) for “section 209(2)(e)(vii) of ICTA” substitute “ section 1015(6) of CTA 2010 ”.

618 (1) Amend section 457 (basic rule for deficits: carry forward to accounting periods after deficit period) as follows. U.K.

(2) In subsection (2)(a) for “section 403 of ICTA” substitute “ Part 5 of CTA 2010 ”.

(3) In subsection (5) for “section 393A of ICTA (setting-off of trading losses against” substitute “ section 37 of CTA 2010 (deduction of trading losses from total ”.

619 U.K. In section 459(2) (claim to set off deficit against profits of deficit period or earlier periods) for “section 403 of ICTA” substitute “ Part 5 of CTA 2010 ”.

620 (1) Amend section 461 (claim to set off deficit against other profits for deficit period) as follows. U.K.

(2) In subsection (6)(a) for “section 392A(1) or 393A(1) of ICTA (losses set against” substitute “ section 37 or 62(1) to (3) of CTA 2010 (deduction of losses from total ”.

(3) In subsection (7) for “Chapter 5 of Part 12 of ICTA (petroleum extraction activities)” substitute “ Part 8 of CTA 2010 (oil activities) ”.

621 U.K. In section 463(5) (profits available for relief under section 462)—

(a) in paragraph (c) for “section 338 of ICTA (charges on income deducted from total profits)” substitute “ Part 6 of CTA 2010 (charitable donations relief) ”,

(b) in paragraph (d) for “section 393A of ICTA (losses set off against” substitute “ section 37 of CTA 2010 (losses deducted from total ”, and

(c) in paragraph (e)(ii) for “section 338 of ICTA” substitute “ Part 6 of CTA 2010 ”.

622 U.K. In section 464(3) (priority of Part for corporation tax purposes)—

(a) in paragraph (d) for “section 400(9A) of ICTA” substitute “ section 96(4) of CTA 2010 ”,

(b) in paragraph (e) for “section 494 of ICTA (petroleum extraction” substitute “ sections 286 and 287 of CTA 2010 (oil ”, and

(c) in paragraph (i) for “paragraph 3(5) of Schedule 12 to F(No.2)A 1992” substitute “ section 640(2) of CTA 2010 ”.

623 U.K. In section 465(3) (exclusion of distributions except in tax avoidance cases)—

(a) in paragraph (b) for “section 209(6A) of ICTA” substitute “ section 1019 of CTA 2010 ”,

(b) in paragraph (c) for “section 477A(3)(b) of ICTA” substitute “ section 1054 of CTA 2010 ”, and

(c) in paragraph (d) for “section 486(1) and (9) of ICTA” substitute “ sections 1055 and 1057 of CTA 2010 ”.

624 U.K. In section 476(1) (other definitions)—

(a) in the definition of “associate” for “section 417(3) of ICTA” substitute “ section 448 of CTA 2010 ”, and

(b) in the definition of “tax advantage” for “section 840ZA of ICTA” substitute “ section 1139 of CTA 2010 ”.

625 U.K. In section 486F(2)(a) (meaning of “income stream transfer”) for “Part 1 of Schedule 25 to FA 2009” substitute “ Chapter 1 of Part 16 of CTA 2010 ”.

626 U.K. In section 486G(2) (meaning of “relevant receipts”) for “paragraph 1(2) of Schedule 25 to FA 2009” substitute “ section 752(2) of CTA 2010 ”.

627 (1) Amend section 488 (meaning of “open-ended investment company etc”) as follows. U.K.

(2) In subsection (1)—

(a) for “section 468A(2) and (3) of ICTA” substitute “ sections 613 and 615(3) of CTA 2010 ”, and

(b) for “section 468A of that Act” substitute “ Chapter 2 of Part 13 of that Act ”.

(3) In subsection (2) for “section 468A(4) of ICTA” substitute “ section 615 of CTA 2010 ”.

628 (1) Amend section 493 (the qualifying investments test) as follows. U.K.

(2) In subsection (2)(b) for “section 468A(3) of ICTA” substitute “ section 615(3) of CTA 2010 ”.

(3) In subsection (6) for “section 468A(3) of ICTA” substitute “ section 615(3) of CTA 2010 ”.

(4) In subsection (7) for “section 468(9) of ICTA” substitute “ section 619 of CTA 2010 ”.

629 U.K. In section 495(3)(a)(ii) (qualifying holdings) for “section 468A(3) of ICTA” substitute “ section 615(3) of CTA 2010 ”.

630 U.K. In section 502(1)(a) (meaning of “financial institution”) for “section 840A of ICTA” substitute “ section 1120 of CTA 2010 ”.

631 U.K. In section 518(2)(c) (investment bond arrangements: treatment as securities) for “section 84 of FA 2005 (taxation of securitisation companies)” substitute “ Chapter 4 of Part 13 of CTA 2010 (securitisation companies) ”.

632 (1) Amend section 519 (investment bond arrangements: other provisions) as follows. U.K.

(2) In subsection (2)—

(a) for “section 417 of ICTA (close companies)” substitute “ sections 453 and 454 of CTA 2010 (definitions related to close companies) ”, and

(b) for “section 417(1)(d) of that Act” substitute “ section 454(2)(e) of CTA 2010 ”.

(3) In subsection (3)—

(a) for “Schedule 18 to ICTA” substitute “ Chapter 6 of Part 5 of CTA 2010 ”, and

(b) in paragraph (b) for “paragraph 1(5)(b) of that Schedule” substitute “ condition C in section 162(4) of CTA 2010 ”.

(4) After subsection (3) insert—

“(4) Investment bond arrangements are not—

(a) a unit trust scheme for the purposes of section 1119 of CTA 2010, or

(b) an offshore fund for the purposes of section 354 of TIOPA 2010 so far as relating to corporation tax.”

633 U.K. In section 520(2)(b) (provision not at arm's length: non-deductibility of relevant return) for “against” substitute “ from ”.

634 U.K. In section 521D(5) (excepted shares) for the words from “Chapter 4” to the end substitute “ Part 5 of CTA 2010 (group relief) (see section 152 of that Act) ”.

F2 635 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F2 Sch. 1 para. 635 omitted (1.1.2014) by virtue of Finance Act 2013 (c. 29), Sch. 29 paras. 45, 52

F3 636 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F3 Sch. 1 para. 636 omitted (1.1.2014) by virtue of Finance Act 2013 (c. 29), Sch. 29 paras. 45, 52

637 (1) Amend section 541 (debits for deemed interest under stock lending arrangements disallowed) as follows. U.K.

(2) In subsection (1) for “section 736B(2) of ICTA” substitute “ section 812 of CTA 2010 ”.

(3) In subsection (2)—

(a) for “section 736B(2A) of that Act” substitute “ subsection (3) of that section ”,

(b) after “Part 5” insert “ of this Act ”, and

(c) for “section 736B(2) of that Act” substitute “ subsection (2) of that section ”.

638 U.K. In section 606H(11) (other interpretative provisions) for “section 840ZA of ICTA” substitute “ section 1139 of CTA 2010 ”.

639 U.K. In section 629(5) (tax avoidance), in the definition of “tax advantage”, for “section 840ZA of ICTA” substitute “ section 1139 of CTA 2010 ”.

640 U.K. In section 631(1) (transferee leaving group otherwise than because of exempt distribution) for the words from “as a result of” to the end substitute “ as a result of section 1075 of CTA 2010 (exempt distributions) ”.

641 U.K. In section 632(1) (transferee leaving group because of exempt distribution)—

(a) for the words from “as a result of” to “business),” substitute “ as a result of section 1075 of CTA 2010 (exempt distributions), ” and

(b) in paragraph (b) for “section 214(2) of that Act” substitute “ section 1088(1) of CTA 2010 ”.

642 U.K. In section 691(6) (meaning of “unallowable purpose”) for “section 840ZA of ICTA” substitute “ section 1139 of CTA 2010 ”.

643 (1) Amend section 710 (other definitions) as follows. U.K.

(2) In the definition of “bank”—

(a) in paragraph (b) for “section 840A(1)(b) of ICTA” substitute “ section 1120(2)(b) of CTA 2010 ”, and

(b) in paragraph (c) for “section 840A(1)(c) of that Act” substitute “ section 1120(2)(c) of CTA 2010 ”.

(3) In the definition of “open-ended investment company” for “section 468A(2) of ICTA” substitute “ section 613 of CTA 2010 ”.

644 U.K. In section 753(3)(b) (treatment of non-trading losses) for “(see section 403 of ICTA)” substitute “ under Part 5 of CTA 2010 ”.

645 U.K. In section 768 (company cannot be member of more than one group) for subsection (9) substitute—

“(9) For the purposes of subsection (8) share capital is owned directly or indirectly if it would be so owned by a body corporate for the purposes of section 1154(2) of CTA 2010 (meaning of “51% subsidiary”).”

646 U.K. In section 772 (equity holders and profits or assets available for distribution) for subsections (1) and (2) substitute—

“(1) Chapter 6 of Part 5 of CTA 2010 (group relief: equity holders and profits or assets available for distribution) applies for the purposes of sections 768 and 771.

(2) In that Chapter as it applies for those purposes, sections 171(1)(b) and (3), 173, 174 and 176 to 182 of CTA 2010 are to be treated as omitted.”

647 U.K. In section 773(1) (supplementary provisions) for “section 838 of ICTA” substitute “ section 1154 of CTA 2010 ”.

648 U.K. In section 775(4)(b) (transfers within a group) for “section 404 of that Act (limitation of group relief)” substitute “ section 949 of CTA 2010 (dual resident investing companies) ”.

649 U.K. In section 777(3)(e) (relief on realisation and reinvestment: application to group member) for “section 404 of ICTA (limitation of group relief)” substitute “ section 949 of CTA 2010 (dual resident investing companies) ”.

650 U.K. In section 784 (groups with a relevant connection) for subsection (6) substitute—

“(6) For the purposes of this section “control” is to be read in accordance with sections 450 and 451 of CTA 2010 (close companies: meaning of control).”

651 U.K. In section 787(5) (company ceasing to be member of group because of exempt distribution)—

(a) in the definition of “exempt distribution” for “section 213(2) of ICTA” substitute “ section 1076 or 1077 of CTA 2010 ”, and

(b) in the definition of “chargeable payment” for “section 214(2) of that Act” substitute “ section 1088(1) of CTA 2010 ”.

652 U.K. In section 793(4)(b) (further requirements about elections) for “section 404 of that Act (limitation of group relief)” substitute “ section 949 of CTA 2010 (dual resident investing companies) ”.

653 (1) Amend section 796 (interpretation of section 795) as follows. U.K.

(2) In subsection (4) in paragraph (b) of the definition of “director” for “section 417(5) of ICTA (read with section 417(6) of that Act)” substitute “ section 452(1) of CTA 2010 ”.

(3) In subsection (5) for “has the meaning given by section 416(2) to (6) of ICTA” substitute “ is to be read in accordance with sections 450 and 451 of CTA 2010 ”.

654 U.K. In section 814(5) (research and development) for “section 837A of ICTA” substitute “ section 1138 of CTA 2010 ”.

655 U.K. In section 818(4)(b) (company reconstruction involving transfer of business) for “section 404 of that Act (limitation of group relief)” substitute “ section 949 of CTA 2010 (dual resident investing companies) ”.

656 U.K. In section 826(3)(c) (amalgamation of, or transfer of engagements by, certain societies) for the words from “section” to the end substitute “ section 1057 of CTA 2010 (UK agricultural or fishing co-operatives) applies. ”

657 (1) Amend section 841 (“participator” and “associate”) as follows. U.K.

(2) In subsection (1) for “it has for the purposes of Part 11 of ICTA (close companies) (see section 417(1) of that Act)” substitute “ given by section 454 of CTA 2010 ”.

(3) In subsection (2) for “of that Part (see section 417(7) to (9) of ICTA)” substitute “ given by section 453 of CTA 2010 ”.

(4) In subsection (3) for “section 417(3) of ICTA” substitute “ section 448 of CTA 2010 ”.

658 U.K. In section 847(5)(a) (transfers involving other taxes) for “section 209 of ICTA (meaning of “distribution”),” substitute “ Chapter 2 of Part 23 of CTA 2010 (matters which are distributions), except section 1000(2), ”.

659 U.K. In section 931B(b) (exemption of distributions received by small companies) for “paragraph (d) or (e) of section 209(2) of ICTA” substitute “ paragraph E or F in section 1000(1) of CTA 2010 ”.

660 U.K. In section 931D(b) (exemption of distributions received by companies that are not small) for “paragraph (d) or (e) of section 209(2) of ICTA” substitute “ paragraph E or F in section 1000(1) of CTA 2010 ”.

661 U.K. In section 931V(2) (meaning of “scheme” and “tax advantage scheme”) for “section 840ZA of ICTA” substitute “ section 1139 of CTA 2010 ”.

662 U.K. Omit section 968 (meaning of “personal representatives”) (including the italic cross-heading preceding the section).

F4 663 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F4 Sch. 1 para. 663 omitted (6.4.2014) by virtue of The Unauthorised Unit Trusts (Tax) Regulations 2013 (S.I. 2013/2819), regs. 1(3), 41(e) (with reg. 32)

664 U.K. In section 974(6) (charge to tax under Chapter 6) for “section 840A of ICTA” substitute “ section 1120 of CTA 2010 ”.

665 U.K. In section 1004(9) (groups, consortiums and commercial associations of companies) for “section 416 of ICTA” substitute “ section 449 of CTA 2010 ”.

666 U.K. In section 1041 (“research and development”) for “section 837A of ICTA” substitute “ section 1138 of CTA 2010 ”.

667 (1) Amend section 1048 (treatment of deemed trading loss under section 1045) as follows. U.K.

(2) In subsection (2)—

(a) for “set off against” substitute “ deducted from ”, and

(b) for “section 393A(1)(b) or 393B(3) of ICTA” substitute “ section 37(3)(b) or 42 of CTA 2010 ”.

(3) In subsection (4)—

(a) in paragraph (b) for “section 403(1) of ICTA (surrender of relief to group or consortium members)” substitute “ Part 5 of CTA 2010 (group relief) ”, and

(b) in the words after that paragraph for “section 393 of ICTA” substitute “ section 45 of CTA 2010 ”.

668 U.K. In section 1049(3) (restriction on consortium relief) for “under section 402(3) of ICTA” substitute “ based on consortium condition 1, 2 or 3 in sections 132 and 133 of CTA 2010 ”.

669 (1) Amend section 1056 (amount of unrelieved trading loss) as follows. U.K.

(2) In subsection (2)—

(a) in paragraph (a) for “section 393A(1)(a) of ICTA to set the loss against” substitute “ section 37(3)(a) of CTA 2010 to deduct the loss from total ”,

(b) in paragraph (b) for “section 393A(1)(b) or 393B(3) of that Act (losses set against” substitute “ section 37(3)(b) or 42 of CTA 2010 (losses deducted from ”, and

(c) in paragraph (c) for “section 403(1) of that Act” substitute “ Part 5 of CTA 2010 ”.

(3) In subsection (3)—

(a) in paragraph (a) for “section 393(1) of ICTA” substitute “ section 45 of CTA 2010 ”, and

(b) in paragraph (b) for “section 393A(1)(b) or 393B(3)” substitute “ section 37(3)(b) or 42 ”.

670 U.K. In section 1062(2) (restriction on losses carried forward where tax credit claimed” for “section 393 of ICTA” substitute “ section 45 of CTA 2010 ”.

F5 671 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F5 Sch. 1 para. 671 omitted (with effect in accordance with Sch. 15 paras. 28, 29 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 15 para. 24(4)

F6 672 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F6 Sch. 1 paras. 672-674 omitted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 3 para. 32(b)

F6 673 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F6 Sch. 1 paras. 672-674 omitted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 3 para. 32(b)

F6 674 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F6 Sch. 1 paras. 672-674 omitted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 3 para. 32(b)

675 U.K. In section 1116(4)(a) (meaning of “the actual reduction in tax liability”) for “section 402 of ICTA” substitute “ Part 5 of CTA 2010 ”.

676 U.K. In section 1142(1) (meaning of “qualifying body”)—

(a) for paragraph (c) substitute—

“(c) an association (in the sense that word has in section 469(1)(a) of CTA 2010) which meets conditions A and B in that section (conditions for qualifying as a scientific research association),” and

(b) in paragraph (d) for “section 519A(2)” substitute “ section 986 ”.

677 (1) Amend section 1153 (amount of unrelieved loss) as follows. U.K.

(2) In subsection (1)—

(a) in paragraph (a)—

(i) for “section 392A(1) of ICTA” substitute “ section 62(1) to (3) of CTA 2010 ”, and

(ii) for “section 393A(1)(a) of ICTA, to set the loss against” substitute “ section 37(3)(a) of CTA 2010, to deduct the loss from total ”,

(b) in paragraph (b) for “section 393A(1)(b) of ICTA (losses set against” substitute “ section 37(3)(b) of CTA 2010 (losses deducted from ”, and

(c) in paragraph (c) for “section 403(1) of ICTA” substitute “ Part 5 of CTA 2010 ”.

(3) In subsection (2)—

(a) in paragraph (a) for “section 392A(2) or 393(1) of ICTA” substitute “ section 45 or 62(5) of CTA 2010 ”, and

(b) in paragraph (b) for “section 393A(1)(b) of ICTA” substitute “ section 37(3)(b) of CTA 2010 ”.

678 (1) Amend section 1158 (restriction on losses carried forward where tax credit claimed) as follows. U.K.

(2) In subsection (1) for “section 392A of ICTA (UK property business losses carried forward)” substitute “ section 62 of CTA 2010 (relief for losses made in UK property business) ”.

(3) In subsection (2) for “section 393 of ICTA” substitute “ section 45 of CTA 2010 ”.

679 U.K. In section 1179 (other definitions) for the definition of “UK property business loss” substitute—

““UK property business loss”, in relation to a company, means a loss incurred by the company in carrying on a UK property business.”

680 U.K. In section 1209(2) (restriction on use of losses while film in production) for “section 393(1) of ICTA” substitute “ section 45 of CTA 2010 ”.

681 (1) Amend section 1210 (use of losses in later periods) as follows. U.K.

(2) In subsection (2) for “section 393(1) of ICTA” substitute “ section 45 of CTA 2010 ”.

(3) In subsection (5)—

(a) in paragraph (a)—

(i) for “set against other” substitute “ deducted from total ”, and

(ii) for “section 393A of ICTA” substitute “ section 37 of CTA 2010 ”, and

(b) in paragraph (b) for “section 403” substitute “ Part 5 ”.

682 (1) Amend section 1211 (terminal losses) as follows. U.K.

(2) In subsection (1)(c) for “section 393(1) of ICTA” substitute “ section 45 of CTA 2010 ”.

(3) In subsection (3) for “section 393(1) of ICTA” substitute “ section 45 of CTA 2010 ”.

(4) In subsection (4)(c) for “Chapter 4 of Part 10 of ICTA” substitute “ Part 5 of CTA 2010 ”.

(5) In subsection (6) for “section 393(1) of ICTA” substitute “ section 45 of CTA 2010 ”.

683 U.K. In section 1219 (expenses of management of a company's investment business) for subsection (1) substitute—

“(1) In calculating the corporation tax to which a company with investment business is liable for an accounting period, expenses of management of the company's investment business which are referable to that period are allowed as a deduction from the company's total profits.

(1A) A deduction under subsection (1) is to be made before any other deduction at Step 2 in section 4(2) of CTA 2010 (deductions from total profits).”

684 U.K. In section 1220(5)(b) (meaning of “unallowable purpose”) for “section 840ZA of ICTA” substitute “ section 1139 of CTA 2010 ”.

685 U.K. In section 1221(1) (amounts treated as expenses of management)—

(a) omit paragraph (g) and the word “or” at the end of that paragraph, and

(b) after paragraph (h) insert “or

(i) section 791(4) of CTA 2010 (treatment of payer of manufactured overseas dividend),”.

686 (1) Amend section 1223 (carrying forward expenses of management and other amounts) as follows. U.K.

(2) In subsection (2)(b)—

(a) for “charges on income paid” substitute “ qualifying charitable donations made ”, and

(b) for “they are paid” substitute “ they are made ”.

(3) Omit subsection (4).

(4) In subsection (5) for the words from “section 392A(3)” to the end substitute “ section 63 of CTA 2010 (which is about unused losses made in a UK property business) ”.

687 U.K. In section 1225(3) (accounts conforming with GAAP) for “section 1311” substitute “ section 1172 of CTA 2010 ”.

688 U.K. In section 1229(6) (claw back of relief) for “section 1311” substitute “ section 1172 of CTA 2010 ”.

689 U.K. In section 1248 (expenses in connection with arrangements for securing a tax advantage)—

F7 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) in subsection (5)—

F8 (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii) in the definition of “tax advantage” for “section 840ZA of ICTA” substitute “ section 1139 of CTA 2010 ”.

Textual Amendments

F7 Sch. 1 para. 689(a) omitted (1.1.2014) by virtue of Finance Act 2013 (c. 29), Sch. 29 paras. 45, 52

F8 Sch. 1 para. 689(b)(i) omitted (1.1.2014) by virtue of Finance Act 2013 (c. 29), Sch. 29 paras. 45, 52

690 U.K. In section 1256(2) (overview) for “section 116 of ICTA (arrangements for transferring relief)” substitute “ Chapter 3 of Part 22 of CTA 2010 (transfer of relief within partnerships) ”.

691 (1) Amend section 1262 (allocation of firm's profits or losses between partners) as follows. U.K.

(2) In subsection (2)—

(a) for “pays charges on income” substitute “ makes qualifying charitable donations ”,

(b) for “share of the charges” substitute “ share of the donations ”, and

(c) for “charges are paid” substitute “ donations are made ”.

(3) Omit subsection (3).

692 U.K. Before section 1302 insert—

“1301B Qualifying charitable donations

In calculating a company's income from any source for corporation tax purposes, no deduction is allowed in respect of qualifying charitable donations.”

693 U.K. In section 1306(3)(a) (losses calculated on same basis as miscellaneous income) for “section 834A of ICTA” substitute “ section 1173 of CTA 2010 ”.

694 (1) Amend section 1307 (apportionment etc of miscellaneous profits and losses to accounting period) as follows. U.K.

(2) In subsection (1)(a) for “section 834A of ICTA” substitute “ section 1173 of CTA 2010 ”.

(3) In subsection (2) for “section 834A of ICTA” substitute “ section 1173 of CTA 2010 ”.

695 U.K. In section 1308(7) (expenditure brought into account in determining value of intangible asset), in the definition of “research and development”, for “section 837A of ICTA” substitute “ section 1138 of CTA 2010 ”.

696 U.K. Omit section 1311 (apportionment to different periods) (including the italic cross-heading preceding the section).

697 U.K. In section 1312 (abbreviated references to Acts) insert at the appropriate place—

“ “CTA 2010” means the Corporation Tax Act 2010,”.

698 (1) Amend section 1316 (meaning of “connected” persons and “control”) as follows. U.K.

(2) In subsection (1) for “Section 839 of ICTA” substitute “ Section 1122 of CTA 2010 ”.

(3) In subsection (2) for “Section 840 of ICTA” substitute “ Section 1124 of CTA 2010 ”.

699 U.K. Omit section 1317 (meaning of “farming” and related expressions).

700 U.K. Omit section 1318 (meaning of grossing up).

701 (1) Amend section 1319 (other definitions) as follows. U.K.

(2) Omit the following definitions—

• “basic rate”,

• “charity”,

• “non-UK resident”,

• “retail prices index”,

• “tax year”,

• “the tax year 2009-10”, and

• “UK resident”.

(3) At the appropriate place insert—

““statutory insolvency arrangement” means—

(a) a voluntary arrangement that has taken effect under, or as a result of, the Insolvency Act 1986, Schedule 4 or 5 to the Bankruptcy (Scotland) Act 1985 or the Insolvency (Northern Ireland) Order 1989,

(b) a compromise or arrangement that has taken effect under Part 26 of the Companies Act 2006, or

(c) an arrangement or compromise of a kind corresponding to any of those mentioned in paragraph (a) or (b) that has taken effect under, or as a result of, the law of a country or territory outside the United Kingdom,”.

702 U.K. Omit section 1320(1) (interpretation: Scotland).

703 (1) Amend Schedule 2 (transitionals and savings) as follows. U.K.

(2) In paragraph 146—

(a) in sub-paragraph (1)(a)—

(i) for “section 834A(1) of ICTA” substitute “ section 1173(1) of CTA 2010 ”, and

(ii) for “section 834A of ICTA” substitute “ section 1173 of CTA 2010 ”, and

(b) in sub-paragraph (2) for “section 834A(2) of ICTA” substitute “ section 1173(2) of CTA 2010 ”.

(3) In paragraph 147(2) for “section 834A of ICTA” substitute “ section 1173 of CTA 2010 ”.

704 (1) Amend Schedule 4 (index of defined expressions) as follows. U.K.

(2) In the following entries, in the second column, for “section 834(1) of ICTA” substitute “ section 1119 of CTA 2010 ”

(a) “accounting period”,

(b) “income”,

(c) “ [F9 registered society] ”, and

(d) “venture capital trust”.

(3) In the following entries, in the second column, for “section 832(1) of ICTA” substitute “ section 1119 of CTA 2010 ”

(a) “body of persons”,

(b) “building society”,

(c) “capital allowance”,

(d) “chargeable period”,

(e) “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)”,

(f) “distribution”,

(g) “for accounting purposes”,

(h) “notice”,

(i) “ordinary share capital”,

(j) “period of account”,

(k) “registered pension scheme”,

(l) “trade”, and

(m) “tribunal”.

(4) In the entry for “assignment”, in the second column, for “section 1320(1)” substitute “ section 1166(1) of CTA 2010 ”.

(5) In the entry for “associate (in Parts 5 and 6)”, in the second column, for “section 417(3) of ICTA” substitute “ section 448 of CTA 2010 ”.

(6) In the entry for “associate (in Chapter 12 of Part 8)”, in the second column, for “section 417(3) of ICTA” substitute “ section 448 of CTA 2010 ”.

(7) In the entry for “authorised unit trust”, in the second column, for “section 468(6) of ICTA (as applied by section 832(1) of that Act)” substitute “ Chapter 2 of Part 13 of CTA 2010 (as applied by section 1119 of that Act) ”.

(8) In the entry for “basic rate”, in the second column, for “section 1319” substitute “ section 1119 of CTA 2010 ”.

(9) In the entry for “charity”, in the second column, for “section 1319” substitute “ section 1119 of CTA 2010 ”.

(10) In the entry for “close company”, in the second column, for “sections 414 and 415 of ICTA” substitute “ Chapter 2 of Part 10 of CTA 2010 ”.

(11) In the entry for “connected (in the context of “connected person” or one person being “connected”with another) (except in Chapter 12 of Part 8)”, in the second column, for “section 839 of ICTA” substitute “ section 1122 of CTA 2010 ”.

(12) In the entry for “control (except in Part 5, Chapter 12 of Part 8 and Chapter 1 of Part 11)”, in the second column, for “section 840 of ICTA” substitute “ section 1124 of CTA 2010 ”.

(13) In the entry for “estate in land (in relation to any land in Scotland)”, in the second column, for “section 832(1) of ICTA” substitute “ section 1166(1) of CTA 2010 ”.

(14) In the entry for “farming”, in the second column, for “section 1317” substitute “ section 1125 of CTA 2010 ”.

(15) In the entry for “forestry”, in the second column, for “section 1317(3)” substitute “ section 1125(3) of CTA 2010 ”.

(16) In the entry for “generally accepted accounting practice”, in the second column, for “section 832(1) of ICTA and section 50(1) of FA 2004” substitute “ section 1119 of CTA 2010 ”.

(17) In the entry for “grossing up”, in the second column, for “section 1318” substitute “ section 1128 of CTA 2010 ”.

(18) In the entry for “international accounting standards”, in the second column, for “section 832(1) of ICTA and section 50(2) of FA 2004” substitute “ section 1119 of CTA 2010 ”.

(19) In the entry for “investment trust”, in the second column, for “section 842 of ICTA” substitute “ section 1158 of CTA 2010 ”.

(20) In the entry for “local authority”, in the second column, for “section 842A of ICTA” substitute “ section 1130 of CTA 2010 ”.

(21) In the entry for “mortgage”, in the second column, for “section 1320(1)” substitute “ section 1166(1) of CTA 2010 ”.

(22) In the entry for “non-UK resident”, in the second column, for “section 1319” substitute “ section 1119 of CTA 2010 ”.

(23) In the entry for “oil and gas exploration and appraisal”, in the second column, for “section 837B of ICTA” substitute “ section 1134 of CTA 2010 ”.

(24) In the entry for “open-ended investment company”, in the second column, for “section 468A(2) of ICTA” substitute “ section 613 of CTA 2010 ”.

(25) In the entry for “permanent establishment”, in the second column, for “section 832(1) of ICTA and section 148 of FA 2003” substitute “ section 1119 of CTA 2010 ”.

(26) In the entry for “personal representatives”, in the second column, for “section 968” substitute “ section 1119 of CTA 2010 ”.

F10 (27) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(28) Omit the entry for “qualifying policy”.

(29) In the entry for “recognised stock exchange”, in the second column, for “section 841(1) of ICTA” substitute “ section 1137 of CTA 2010 ”.

(30) In the entry for “registered pension scheme”, in the second column, for “section 832(1) of ICTA” substitute “ section 1119 of CTA 2010 ”.

(31) In the entry for “research and development”, in the second column, for “section 837A of ICTA” substitute “ section 1138 of CTA 2010 ”.

(32) In the entry for “retail prices index”, in the second column, for “section 1319” substitute “ section 1119 of CTA 2010 ”.

(33) In the entry for “statutory insolvency arrangement”, in the second column, for “section 834(1) of ICTA” substitute “ section 1319 ”.

(34) In the entry for “51% subsidiary”, in the second column, for “section 838(1)(a) of ICTA” substitute “ section 1154(2) of CTA 2010 ”.

(35) In the entries for “75% subsidiary” and “75% subsidiary (in Chapter 8 of Part 8)”, in the second column, for “section 838(1)(b) of ICTA” substitute “ section 1154(3) of CTA 2010 ”.

(36) In the entry for “surrender”, in the second column, for “section 1320(1)” substitute “ section 1166(1) of CTA 2010 ”.

(37) In the entry for “tax advantage”, in the second column, for “section 840ZA of ICTA” substitute “ section 1139 of CTA 2010 ”.

(38) In the entry for “tax year”, in the second column, for “section 1319” substitute “ section 1119 of CTA 2010 ”.

(39) In the entry for “the tax year 2009-10 etc”, in the second column, for “section 1319” substitute “ section 1119 of CTA 2010 (see entry for “the tax year 2010-11)” .

(40) In the entry for “total profits”, in the second column, for “section 834C of ICTA” substitute “ section 1119 of CTA 2010 ”.

(41) In the entry for “UK generally accepted accounting practice”, in the second column, for “section 832(1) of ICTA and section 50(4) of FA 2004” substitute “ section 1119 of CTA 2010 ”.

(42) In the entry for “UK resident”, in the second column, for “section 1319” substitute “ section 1119 of CTA 2010 ”.

(43) In the entry for “umbrella company”, in the second column, for “section 468A(4) of ICTA” substitute “ section 615 of CTA 2010 ”.

(44) In the entry for “unit holder”, in the second column, for “section 468(6) of ICTA (as applied by section 832(1) of that Act)” substitute “ section 1119 of CTA 2010 ”.

(45) In the entry for “unit trust scheme”, in the second column, for “section 1007 of ITA 2007 (as applied by section 832(1) of ICTA)” substitute “ section 1119 of CTA 2010 ”.

(46) In the entry for “United Kingdom”, in the second column, for “section 830(1) of ICTA” substitute “ section 1170 of CTA 2010 ”.

(47) In the entry for “within the charge to tax”, in the second column, for “section 832(1) of ICTA” substitute “ section 1167 of CTA 2010 ”.

Textual Amendments

F9 Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), Sch. 4 para. 156 (with Sch. 5)

F10 Sch. 1 para. 704(27) omitted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 67