Taxation (International and Other Provisions) Act 2010

[F1 353A Effect of Part on parties to capital market arrangements U.K.

(1) This section applies in relation to cases in which a company (“company A”)—

(a) is a party to a capital market arrangement at any time during a period of account of the worldwide group, and

(b) is subject to a liability to corporation tax for a relevant accounting period as a result of the operation of this Part.

(2) The Commissioners may by regulations make provision under which company A and a company that is a relevant group company at any time in the same period of account (“company B”) may jointly elect that company B is to take sole responsibility for discharging the liability.

(3) Where an election has effect, the liability is treated for all purposes as if it were a liability of company B and not of company A.

(4) The regulations may include provision about—

[F2 (za) the conditions that must be met for an election to be made;]

(a) when an election may be made (which may, in particular, be before the accounting period for which the liability arises);

(b) circumstances in which HMRC may or must—

(i) accept or reject an election, or

(ii) terminate the effect of an election that has already been accepted;

(c) the effect of termination by virtue of paragraph (b)(ii);

(d) the transfer from company A to company B of liabilities to penalties.

(5) The provision that may be made by virtue of subsection (4)(b)(i) or (ii) includes provision conferring a discretion on HMRC.

(6) In this section “ capital market arrangement ” has the same meaning as in section 72B(1) of the Insolvency Act 1986 (see paragraph 1 of Schedule 2A to that Act). ]

Textual Amendments

F1 Ss. 353A, 353B inserted (retrospectively) by Finance (No. 3) Act 2010 (c. 33), Sch. 5 paras. 33, 36(1) (with Sch. 5 para. 36(3))

F2 S. 353A(4)(za) inserted (17.7.2014) by Finance Act 2014 (c. 26), s. 39(3)