CHAPTER 1 Double taxation arrangements and unilateral relief arrangements
Unilateral relief arrangements
8.Interpretation: “unilateral relief arrangements” means rules 1 to 9, etc
9.Rule 1: the unilateral entitlement to credit for non-UK tax
11.Rule 3: interaction between double taxation arrangements and rules 1 and 2
12.Rule 4: cases in which, and calculation of, credit allowed for tax on dividends
14.Rule 6: credit for underlying tax on dividend paid to 10% associate of payer
15.Rule 7: credit for underlying tax on dividend paid to sub-10% associate
16.Rule 8: credit for underlying tax on dividend paid by exchanged associate
CHAPTER 2 Double taxation relief by way of credit
Effect to be given to credit for foreign tax allowed against UK tax
Credits where same income charged to income tax in more than one tax year
Calculating income or gains in respect of which credit is allowed
Limit on total credit against income tax and capital gains tax
Limit on credit against corporation tax
43.Profits attributable to permanent establishments for purposes of section 42(2)
46.Applying section 44(2): asset in hedging relationship with derivative contract
48.Applying section 44(2): “portfolio” of transactions, arrangements or assets
49.Restricting section 44(3) if company is a bank or connected with a bank
Allocation of deductions etc to profits for purposes of section 42
Taking account of tax underlying dividends that is not foreign tax
Tax underlying dividend treated as underlying tax paid by dividend's recipient
Tax underlying dividends: restriction of relief, and particular cases
Unrelieved foreign tax on profits of overseas permanent establishment
Action after adjustment of amount payable by way of UK or foreign tax
Schemes and arrangements designed to increase relief: anti-avoidance
84.Section 83(2) and (4): schemes enabling attribution of foreign tax
85.Section 83(2) and (4): schemes about effect of paying foreign tax
85A.Section 83(2) and (4): schemes involving deemed foreign tax
86.Section 83(2) and (4): schemes about claims or elections etc
87.Section 83(2) and (4): schemes that would reduce a person's tax liability
88.Section 83(2) and (4): schemes involving tax-deductible payments
93.Amendment, closure notices and discovery assessments in section 92 cases
94.Information made available for the purposes of section 92(4)
97.Companies with more than one category of business: restriction of credit
98.Attribution for section 97 purposes if category is gross roll-up business
99.Allocation of expenses etc in calculations under section 35 of CTA 2009
102.Interpreting sections 99 to 101 for life assurance or gross roll-up business
103.Interpreting sections 99 to 101 for other insurance business
104.Interpreting sections 100 and 101: amounts referable to category of business
CHAPTER 3 Miscellaneous provisions
When foreign tax disregarded in applying Part for corporation tax purposes
Deduction for foreign tax where no credit allowed
112.Deduction from income for foreign tax (instead of credit against UK tax)
113.Deduction from capital gain for foreign tax (instead of credit against UK tax)
114.Time limits for action if tax adjustment makes reduction too large or too small
115.Duty to give notice that adjustment has rendered reduction too large
Transparent entities involved in cross-border transfers and mergers
Cases about being taxed otherwise than in accordance with double taxation arrangements
Interpretation of double taxation arrangements
130.Interpreting provision about UK taxation of profits of foreign enterprises
130A.Interpreting provision about UK taxation of pensions etc
131.Interpreting provision about interest influenced by special relationship
132.Interpreting provision about royalties influenced by special relationship
133.Special relationship rule for royalties: matters to be shown by taxpayer
CHAPTER 2 Key interpretative provisions
Meaning of certain expressions that first appear in section 147
“Direct participation” in management, control or capital of a person
“Indirect participation” in management, control or capital of a person
CHAPTER 4 Position, if only one affected person potentially advantaged, of other affected person
196.Balancing payments between affected persons: no charge to, or relief from, tax
198.Balancing payments by guarantor to issuer: no charge to, or relief from, tax
202.Election, in guarantee case, to pay tax rather than make balancing payments
204.Meaning of “capital market condition” in sections 199 and 201
CHAPTER 8 Supplementary provisions and interpretation of Part
General provisions about deduction notices and receipt notices
Part 7 Tax treatment of financing costs and income
262.UK net debt of worldwide group for period of account of worldwide group
264.Worldwide gross debt of worldwide group for period of account of the group
265.References to amounts disclosed in balance sheet of a company
265A.Different accounting treatment used at company and group levels
268.Lending activities and activities ancillary to lending activities
CHAPTER 3 Disallowance of deductions
274.Application of Chapter and meaning of “total disallowed amount”
276.Appointment of authorised company for relevant period of account
279.Statement of allocated disallowances: submission of revised statement
280A.Statement of allocated disallowances: dual resident investing companies
283.Power to make regulations about statement of allocated disallowances
284.Failure of reporting body to submit statement of allocated disallowances
285.Powers to make regulations in relation to reductions under section 284
CHAPTER 4 Exemption of financing income
286.Application of Chapter and meaning of “total disallowed amount”
288.Appointment of authorised company for relevant period of account
291.Statement of allocated exemptions: submission of revised statement
295.Power to make regulations about statement of allocated exemptions
296.Failure of reporting body to submit statement of allocated exemptions
297.Power to make regulations in relation to reductions under section 296
298.Balancing payments between group companies: no tax charge or relief
CHAPTER 5 Intra-group financing income where payer denied deduction
CHAPTER 7 “Financing expense amount” and “financing income amount”
317A.Companies with permanent establishments profits election
322.Stranded deficits in non-trading loan relationships: financing expense
323.Stranded deficits in non-trading loan relationships: financing income
324.Stranded management expenses in non-trading loan relationships: financing expense
325.Stranded management expenses in non-trading loan relationships: financing income
CHAPTER 8 “Tested expense amount” and “tested income amount”
333.Group members with income from oil extraction subject to particular tax treatment in UK
334.Group members with income from shipping subject to particular tax treatment in UK
335.Group members with income from property rental subject to particular tax treatment in UK
336A.Mismatches between tax treatment and accounting treatment
CHAPTER 10 Other interpretative and supplementary provisions
342.Treatment of entities stapled to corporate, or relevant non-corporate, entities
345.Meaning of “UK group company” and “relevant group company”
347.Non-compliant financial statements of the worldwide group
348.Non-existent financial statements of the worldwide group
350.Translation of amounts disclosed in financial statements
351.Expressions taking their meaning from international accounting standards
353A.Effect of Part on parties to capital market arrangements
SCHEDULES
Alternative finance arrangements
Part 1 New Part 10A of ITA 2007
2.After Part 10 insert— Part 10A Alternative finance arrangements Introduction...
3.After section 564A insert— Meaning of “financial institution” (1) In this Part “financial institution” means—
4.After section 564B insert— Arrangements that are alternative finance arrangements...
5.After section 564C insert— Diminishing shared ownership arrangements (1) This section applies to arrangements if under them—
6.After section 564D insert— Deposit arrangements (1) This section applies to arrangements if under them—
7.After section 564E insert— Profit share agency arrangements (1) This section applies to arrangements if under them—
8.After section 564F insert— Investment bond arrangements (1) This section applies to arrangements if—
9.After section 564G insert— Provision not at arm's length: exclusion...
10.After section 564H insert— Meaning of “alternative finance return” Purchase...
11.After section 564I insert— Purchase and resale arrangements where return...
12.After section 564J insert— Diminishing shared ownership arrangements (1) In the case of diminishing shared ownership arrangements, payments...
13.After section 564K insert— Other arrangements (1) In the case of deposit arrangements, amounts paid or...
14.After section 564L insert— Treatment of alternative finance return as...
15.After section 564M insert— Alternative finance return under arrangements for...
16.After section 564N insert— Relief for some alternative finance return...
17.After section 564O insert— Tax relief schemes and arrangements Section 809ZG (tax relief schemes and arrangements) applies to alternative...
18.After section 564P insert— Deduction of income tax at source...
19.After section 564Q insert— Special rules for investment bond arrangements...
20.After section 564R insert— Treatment of bond-holder and bond-issuer (1) This section applies for the purposes of the Income...
21.After section 564S insert— Treatment as securities (1) Investment bond arrangements are securities for the purposes of...
22.After section 564T insert— Arrangements not unit trust scheme or...
23.After section 564U insert— Other rules Exclusion of alternative finance...
24.After section 564V insert— Diminishing shared ownership arrangements not partnerships...
25.After section 564W insert— Treatment of principal under profit share...
26.After section 564X insert— Provision not at arm's length: relevant...
Part 2 New Chapter 4 of Part 4 of TCGA 1992
28.After Chapter 3 of Part 4 insert— Chapter 4 Alternative...
29.After section 151H insert— Meaning of “financial institution” (1) In this Chapter “financial institution” means—
30.After section 151I insert— Arrangements that are alternative finance arrangements...
31.After section 151J insert— Diminishing shared ownership arrangements (1) This section applies to arrangements if under them—
32.After section 151K insert— Deposit arrangements (1) This section applies to arrangements if under them—
33.After section 151L insert— Profit share agency arrangements (1) This section applies to arrangements if under them—
34.After section 151M insert— Investment bond arrangements (1) This section applies to arrangements if—
35.After section 151N insert— Provision not at arm's length: exclusion...
36.After section 151O insert— Meaning of “alternative finance return” Purchase...
37.After section 151P insert— Purchase and resale arrangements where return...
38.After section 151Q insert— Diminishing shared ownership arrangements (1) In the case of diminishing shared ownership arrangements, payments...
39.After section 151R insert— Other arrangements (1) In the case of deposit arrangements, amounts paid or...
40.After section 151S insert— Special rules for investment bond arrangements...
41.After section 151T insert— Treatment of bond-holder and bond-issuer (1) This section applies for the purposes of this Act...
42.After section 151U insert— Treatment as securities (1) Investment bond arrangements are securities for the purposes of...
43.After section 151V insert— Investment bond arrangements not unit trust...
44.After section 151W insert— Other rules Exclusion of some alternative...
45.After section 151X insert— Diminishing shared ownership arrangements not partnerships...
52.After section 372A insert— Purchase and resale arrangements (1) This section applies if, under arrangements to which section...
53.After section 372B insert— Deposit arrangements (1) This section applies if, under arrangements to which section...
54.After section 372C insert— Profit share agency arrangements (1) This section applies if, under arrangements to which section...
55.In section 1005 (meaning of “recognised stock exchange” etc) after...
Leasing arrangements: finance leases and loans
Part 1 New Part 11A of ITA 2007
2.After Part 11 insert— Part 11A Leasing arrangements: finance leases...
3.After section 614AC insert— Chapter 2 Finance leases with return...
4.After section 614BY insert— Chapter 3 Other finance leases Introduction...
5.After section 614CD insert— Chapter 4 Supplementary provisions Pre-26 November...
Factoring of income etc: new Chapters 5B and 5C of Part 13 of ITA 2007
2.After section 809AZG insert— Chapter 5B Finance arrangements Type 1...
3.After section 809BZE insert— Type 2 arrangements Type 2 finance...
4.After section 809BZI insert— Type 3 arrangements Type 3 finance...
5.After section 809BZL insert— Exceptions Exceptions: preliminary (1) Sections 809BZN to 809BZP make provision for finance arrangement...
6.After section 809BZP insert— Supplementary Accounts (1) This section applies for the purposes of this Chapter....
7.After section 809BZS insert— Chapter 5C Loan or credit transactions...
UK Representatives of non-UK residents
Part 1 New Chapters 2B and 2C of Part 14 of ITA 2007
2.After section 835C insert— Income tax chargeable on company's income:...
3.After section 835D insert— Branches and agencies Branch or agency...
4.After section 835E insert— Trade or profession carried on in...
5.After section 835F insert— Persons who are not UK representatives...
6.After section 835G insert— Brokers (1) This section applies if a non-UK resident carries on...
7.After section 835H insert— Investment managers (1) This section applies if a non-UK resident carries on...
8.After section 835I insert— Persons acting under alternative finance arrangements...
9.After section 835J insert— Lloyd's agents (1) This section applies if— (a) a non-UK resident (“X”)...
10.After section 835K insert— The independent broker conditions The independent...
11.After section 835L insert— The independent investment manager conditions The...
12.After section 835M insert— Investment managers: the 20% rule (1) The requirements of the 20% rule are met if...
13.After section 835N insert— Meaning of “qualifying period”, “relevant disregarded...
14.After section 835O insert— Treatment of transactions where 20% rule...
15.After section 835P insert— Application of 20% rule to collective...
16.After section 835Q insert— Supplementary Supplementary provision (1) For the purposes of this Chapter a person is...
17.After section 835R insert— Interpretation of Chapter (1) This section applies for the purposes of this Chapter....
18.After section 835S insert— Chapter 2C Income tax obligations and...
19.After section 835T insert— Obligations and liabilities of UK representative...
20.After section 835U insert— Exceptions: notices and information (1) An obligation or liability attaching to a non-UK resident...
21.After section 835V insert— Exceptions: criminal offences and penalties etc...
22.After section 835W insert— Indemnities (1) An independent agent of a non-UK resident is entitled...
23.After section 835X insert— Meaning of “independent agent” (1) In this Chapter “independent agent”, in relation to a...
Part 2 New Part 7A of TCGA 1992
25.After section 271A insert— Branches and agencies Branch or agency...
26.After section 271B insert— Trade or profession carried on in...
27.After section 271C insert— Interpretation of Chapter In this Chapter— “branch or agency” means any factorship, agency,...
28.After section 271D insert— Chapter 2 Capital gains tax obligations...
29.After section 271E insert— Obligations and liabilities of UK representative...
30.After section 271F insert— Exceptions: notices and information (1) An obligation or liability attaching to a non-UK resident...
31.After section 271G insert— Exceptions: criminal offences and penalties etc...
32.After section 271H insert— Indemnities (1) An independent agent of a non-UK resident is entitled...
33.After section 271I insert— Meaning of “non-UK resident” and “independent...
Part 1 Relocation of section 38 of, and Schedule 15 to, FA 1973
Part 2 Relocation of section 24 of FA 1974
Part 3 Relocation of section 42 of ICTA
Part 4 Relocation of section 84A of ICTA
Part 5 Relocation of section 152 of ICTA
Part 6 Relocation of section 337A(2) of ICTA
Part 7 Relocation of section 475 of ICTA
Part 8 Relocation of section 700 of ICTA
Part 9 Relocation of section 787 of ICTA
Part 11 Relocation of section 151 of FA 1989
Part 12 Relocation of Schedule 12 to F(No.2)A 1992 so far as applying for income tax purposes
Part 13 Relocation of section 200 of FA 1996 so far as applying for income tax purposes
Part 14 Relocation of section 36 of FA 1998 and section 111 of FA 2009
Part 15 Relocation of section 118 of FA 1998
Part 16 Relocation of section 144 of FA 2000
Part 17 Relocation of section 199 of FA 2003
Part 19 Relocation of paragraph 13 of Schedule 13 to FA 2007
Minor and consequential amendments
Income and Corporation Taxes Act 1988 (c. 1)
9.In section 444BB(6) (meaning of “double taxation relief”)—
10.In section 750(3)(b) (disregard of certain double taxation relief) for...
11.In section 751(6)(a) (“creditable tax” includes amounts of double taxation...
12.In section 755A(4A)(b) (dividend paid by controlled foreign company to...
13.Omit section 788 (giving effect to double taxation arrangements).
14.Omit section 789 (conversion of references to the profits tax...
16.Omit section 791 (power to make regulations giving effect to...
17.Omit sections 792 to 798C (which contain rules about double...
18.Omit sections 799 and 801 to 801B (double taxation relief:...
20.(1) Amend section 806A as follows. (2) In subsection (2)—...
21.(1) Amend section 806B as follows. (2) In subsection (2)(b)...
22.In section 806C(3) and (4) for “this Part” substitute “...
23.In section 806D(3), (4) and (5) for “this Part” substitute...
24.In section 806F(1) and (2) for “this Part” substitute “...
25.(1) Amend section 806J (interpretation of sections 806A to 806J)...
27.Omit sections 807 and 807A (provision, in connection with relief,...
28.Omit sections 807B to 807G (provisions related to the Mergers...
29.Omit sections 808A to 809 and 811 (provision, in connection...
30.In section 812(1)(b) for “section 788(1)” substitute “ section 2(1)...
31.In section 814(1)(a) for “section 788(1)” substitute “ section 2(1)...
32.Omit sections 815A to 815B and 816 (provision, in connection...
33.In section 828(4) (orders and regulations not subject to annulment)...
34.(1) Amend Schedule 19ABA (modification of life assurance provisions of...
35.(1) Amend Schedule 26 (reliefs against liability for tax in...
36.Omit Schedule 28AB (prescribed schemes and arrangements for purposes of...
Taxation of Chargeable Gains Act 1992 (c. 12)
41.In section 10(4) (persons exempt under Part 18 of ICTA)...
42.In section 10B(3) (companies exempt under Part 18 of ICTA)...
43.In section 59(2)(b) (arrangements giving relief for partnership gains) for...
44.In sections 140H(3), 140I(3) and 140J(3) (gains on which tax...
45.Omit section 277 (application to capital gains tax of provisions...
46.Omit section 278 (deduction for foreign gains tax in respect...
47.In section 288(1) (interpretation) for the definition of “double taxation...
Income Tax (Trading and Other Income) Act 2005 (c. 5)
66.In section 397A(7) (interpretation of section) in the definition of...
67.For section 397BA(2)(a) (which refers to arrangements to which section...
68.In section 763(3) (priority of double taxation arrangements) for “section...
69.(1) Section 764 (application of ICTA provisions about special relationships)...
70.In section 858(1)(b) (resident partners and double taxation agreements) for...
72.In section 1(2)(a) (example of income tax provisions located outside...
73.(1) Amend section 26(1)(b) (provisions referred to at Step 6...
74.In section 27(6) (tax reductions for individuals by way of...
75.In section 28(4) (tax reductions for non-individuals by way of...
76.(1) Amend section 29 (tax reductions: supplementary) as follows.
77.(1) Amend section 32 (liabilities not dealt with in calculation...
78.(1) Amend section 53 (transfer of unused relief: general) as...
79.(1) In section 424(2) (gift aid: charge to tax: interpretation)...
80.(1) Amend section 425 (“total amount of income tax” in...
81.In section 527(2) omit paragraph (b) (subsection (1) does not...
82.In section 582(2) (regulations may remove or reduce rights to...
83.In section 828C(4) (entitlement to double taxation relief)—
84.In section 849(1) (interaction between Part 15 of ITA 2007...
85.In section 1023 (meaning in Act of “double taxation arrangements”)...
Corporation Tax Act 2009 (c. 4)
90.In section 464(3)— (a) in paragraph (f) for “section 795(4)...
91.In section 486(2) for “section 811 of ICTA” substitute “...
92.In section 550(7) (meaning of “double taxation relief”) for “Part...
93.In section 697(3)(a) (exceptions to section 696) for “because of...
94.In section 782(1)(a) (intangible fixed assets transferred in the course...
95.In section 793(3)(b) (when election under section 792 may be...
96.In section 827(7) (no claim under section if claim made...
97.In section 906(3)— (a) omit “and” after paragraph (a), and...
98.For section 931C(1)(a) (which refers to arrangements to which section...
100.In section 931J(7) for “Part 18 of ICTA” substitute “...
101.In section 1266(1)(b) (resident partners and double taxation agreements) for...
Part 2 Transfer pricing and advance pricing agreements
Corporation Tax Act 2009 (c. 4)
124.(1) Amend section 161 (transfer pricing rules take precedence over...
126.In section 340(7) (Schedule 28AA to ICTA does not apply...
127.In section 374(3)(a) (meaning of non-qualifying territory) for “paragraph 5E...
128.(1) Amend section 376(5) (interpretation of section 375) as follows....
129.In section 377(3)(a) (meaning of non-qualifying territory) for “paragraph 5E...
130.In section 407(6)(a) (meaning of non-qualifying territory) for “paragraph 5E...
131.(1) Amend section 410(5) (interpretation of section) as follows.
132.In section 444(3) (section is subject to section 445) for...
133.(1) Amend section 445 (disapplication of section 444 where Schedule...
134.(1) Amend section 446 (bringing into account adjustments made under...
135.(1) Amend section 447 (exchange gains and losses on debtor...
136.In section 452(1)(a) and (3)(a) (exchange gains and losses where...
137.In section 455(5) (section does not apply if paragraph 1(2)...
138.In section 464(3)(a) (which refers to and describes section 445(2))...
139.In section 484(1) (non-lending relationships treated as loan relationships: meaning...
140.In section 508(2) (arrangements which are not alternative finance arrangements)—...
141.In section 625(7) (Schedule 28AA to ICTA does not apply...
142.(1) Amend section 693 (bringing into account adjustments under Schedule...
143.(1) Amend section 694 (exchange gains and losses where derivative...
144.In section 698(5) (section does not apply if paragraph 1(2)...
145.(1) In the provisions mentioned in sub-paragraph (2) (provisions which...
146.In section 775(3) (intangible fixed assets: transfers within a group)...
147.(1) Amend section 846 (intangible fixed assets: transfers not at...
148.In section 931P(4) (section does not apply if Schedule 28AA...
Part 7 Alternative finance arrangements
206.In section 71A(8) (alternative property finance: land sold to a...
207.In section 72(7) (alternative property finance in Scotland: land sold...
208.In section 72A(8) (alternative property finance in Scotland: land sold...
209.In section 73(5)(a) (alternative property finance: land sold to a...
210.In section 73C (alternative finance investment bonds) for “falling within...
Part 8 Leasing arrangements: finance leases and loans
Part 9 Sale and lease-back etc
257.In section 2 (overview of Act) after subsection (12) insert—...
258.In section 989 at the appropriate place insert— “hire-purchase agreement”...
259.After section 998 insert— Meaning of “hire-purchase agreement” (1) This section applies for the purposes of the provisions...
260.(1) Amend section 1016(2) (table of provisions to which section...
261.In Schedule 4 (index of defined expressions) at the appropriate...
Part 11 UK representatives of non-UK residents
281.In section 2(14) (overview of Act)— (a) omit the “and”...
282.In section 813(2) (meaning of “disregarded income”) for “section 126...
283.(1) Amend section 817 (independent broker conditions) as follows.
284.In section 824 (application of 20% rule to collective investment...
285.(1) Amend section 1014(2) (orders and regulations to which section...
286.In Schedule 4 (index of defined expressions) at the appropriate...
Part 12 Amendments for purposes connected with other tax law rewrite Acts
Solicitors (Northern Ireland) Order 1976 (S.I. 1976/582 (N.I. 12))
Conversion of references to the profits tax in old arrangements
Effect in relation to capital gains tax of arrangements given effect before introduction of that tax
Credit against corporation tax on trade income: anti-avoidance
Conditions for relief for underlying tax paid by company lower in dividend-paying chain
Application of sections 109 and 110 in relation to pre-1 October 2007 cases
Income increased by amounts paid by reference to foreign tax for which deduction allowed
Limited effect of amendments of sections 806A to 806J of ICTA
Repealed references to Part 18 of ICTA saved for purposes of sections 806A to 806K of ICTA
Index of defined expressions used in Parts 2 to 8
Part 1 Double taxation relief: index of defined expressions used in Parts 2 and 3
Part 2 Transfer pricing: index of defined expressions used in Part 4
Part 3 Advance pricing agreements: index of defined expressions used in Part 5
Part 4 Tax arbitrage: index of defined expressions used in Part 6
Part 5 Tax treatment of financing costs and income: index of defined expressions used in Part 7
Part 6 Offshore funds: index of defined expressions used in Part 8