Finance Act 2013

PART 2 U.K. Other amendments

Taxes Management Act 1970 U.K.

8 U.K. TMA 1970 is amended as follows.

9 U.K. In section 59E(11)(a) (provision as to when tax is due and payable)—

(a) after “455” insert “ or 464A ”, and

(b) after “loan” insert “ or benefit ”.

10 U.K. In section 59F(6)(a) (arrangements for paying tax on behalf of group members)—

(a) after “455” insert “ or 464A ”, and

(b) after “loan” insert “ or benefit ”.

11 (1) Section 109 (corporation tax on close company in connection with loans to participators etc) is amended as follows. U.K.

(2) In subsection (1)—

(a) after “459” insert “ and 464A and 464B ”, and

(b) for “by close companies” insert “ or benefits ”.

(3) For subsection (3) substitute—

“(3) For the purposes of section 87A of this Act as applied by subsection (1) above—

(a) the date when tax under section 455 of CTA 2010 became due and payable is that determined in accordance with subsection (3) of that section, and

(b) the date when tax under section 464A of CTA 2010 became due and payable is that determined in accordance with subsection (4) of that section.”

(4) After subsection (3A) insert—

“(3B) If there is a payment which for the purposes of section 464B of CTA 2010 is a return payment in respect of a benefit conferred, interest under section 87A of this Act on so much of the tax under section 464A of CTA 2010 as is referable to the return payment is not payable in respect of any period after the date on which the return payment was made.”

(5) In subsection (4), after “458” insert “ or 464B ”.

(6) In subsection (5), after “459” insert “ or 464A and 464B ”.

(7) In the heading, after “loans” insert “ or benefits ”.

12 U.K. The amendments made by paragraphs 9 to 11 are treated as having come into force on 20 March 2013.

Finance Act 1998 U.K.

13 (1) Schedule 18 to FA 1998 (company tax returns, assessments and related matters) is amended as follows. U.K.

(2) In paragraph 1 (meaning of “tax”), after the entry relating to section 455 of CTA 2010 insert— “ section 464A of that Act (tax on other benefit conferred on participator), ”.

(3) In paragraph 8(1) (calculation of tax payable), in paragraph 1 of the third step—

(a) after “455” insert “ or 464A ”, and

(b) for “or advance made by close company” substitute “ , advance or benefit ”.

(4) In paragraph 18 (failure to deliver return: tax-related penalty), for sub-paragraph (4) substitute—

“(4) In determining that amount no account is to be taken of—

(a) any relief under section 458 of the Corporation Tax Act 2010 (relief in respect of repayment, etc of loan) which is deferred under subsection (5) of that section, or

(b) any relief under section 464B of that Act (relief in respect of return payment) which is deferred under subsection (5) of that section.”

(5) The amendments made by this paragraph are treated as having come into force on 20 March 2013.

Income Tax (Trading and Other Income) Act 2005 U.K.

14 (1) In section 417 of ITTOIA 2005 (person liable for charge on release of loan or advance), for subsection (1) substitute— U.K.

“(1) The person liable for any tax charged under this Chapter is—

(a) in the case of a loan or advance made to a partnership, any partner who is an individual, and

(b) in any other case, the person to whom the loan or advance was made.

(1A) If more than one person is liable in a case within subsection (1)(a), the liability is to be apportioned between them in a just and reasonable manner.”

(2) The amendment made by this paragraph has effect in relation to loans or advances made on or after 20 March 2013.