SCHEDULES
SCHEDULE 39Repeal of miscellaneous reliefs etc
PART 6Mineral leases or agreements
Income tax
43
1
The following provisions of ITTOIA 2005 (which provide for income tax relief in relation to mineral royalties) are repealed—
a
section 157 (mineral royalties included as receipts of a trade),
b
section 319 (mineral royalties included as receipts of a UK property business), and
c
sections 340 to 343 (mineral royalties receivable in connection with mines, quarries and other concerns).
2
In consequence of the provision made by sub-paragraph (1)—
a
in ITTOIA 2005—
i
in section 337, omit the entry relating to section 340 (and the “and” before that entry), and
ii
in section 339, omit subsection (3), and
b
in CRCA 2005, in Schedule 4, omit paragraph 132(3)(a).
3
The amendments made by this paragraph have effect in relation to mineral royalties which a person is entitled to receive on or after 6 April 2013.
Corporation tax on income
44
1
The following provisions of CTA 2009 (which provide for corporation tax relief on income in relation to mineral royalties) are repealed—
a
section 135 (mineral royalties included as receipts of a trade),
b
section 258 (mineral royalties included as receipts of a UK property business), and
c
sections 273 to 276 (mineral royalties receivable in connection with mines, quarries and other concerns).
2
In consequence of the provision made by sub-paragraph (1)(c), in section 272 of CTA 2009, omit subsection (3).
3
The amendments made by this paragraph have effect in relation to mineral royalties which a company is entitled to receive on or after 1 April 2013.
Chargeable gains
45
1
Section 201 of TCGA 1992 (mineral leases: royalties) is repealed.
2
In consequence of the provision made by sub-paragraph (1), in section 203 of TCGA 1992—
a
in subsection (1), for “sections 201 and 202” substitute “
section 202
”
, and
b
in the heading, for “sections 201 and 202” substitute “
section 202
”
.
3
The amendments made by this paragraph have effect—
a
for the purposes of capital gains tax, in relation to mineral royalties which a person is entitled to receive on or after 6 April 2013, and
b
for the purposes of corporation tax in respect of chargeable gains, in relation to mineral royalties which a company is entitled to receive on or after 1 April 2013.
46
1
Section 202 of TCGA 1992 (mineral leases: capital losses) is amended as follows.
2
In subsection (1)—
a
after “currency of a mineral lease or agreement” insert “
entered into before the relevant date
”
, and
b
after “in relation to a mineral lease or agreement” insert “
entered into before that date
”
.
3
After that subsection insert—
1A
For the purposes of this section “the relevant date” means—
a
for the purposes of capital gains tax, 6 April 2013; and
b
for the purposes of corporation tax in respect of chargeable gains, 1 April 2013.
4
In subsection (3), after “termination of a mineral lease or agreement” insert “
entered into before the relevant date
”
.
47
In section 203 of TCGA 1992 (provisions supplementary to sections 201 and 202), in subsection (1), for “as they apply for the interpretation of Chapter 7 of Part 4 of CTA 2009” substitute “
(despite their repeal by paragraph 44(1)(c) of Schedule 39 to the Finance Act 2012)
”
.