4.—(1) Regulation 3 (large companies)(1) is amended as follows.
(2) In paragraph (1)—
(a)for “(2)” substitute “(1A)”; and
(b)for “relevant maximum amount” substitute “limit”.
(3) After paragraph (1) insert—
“(1A) In relation to any applicable accounting period an entity which is the relevant entity or the responsible member for the purposes of Schedule 19 is a large company for that period for the purposes of these Regulations.”.
(4) In paragraph (2) at the end insert—
“This paragraph does not apply if a company is the relevant entity or the responsible
member.”.
(5) In paragraph (3) at the end insert—
“This paragraph does not apply if a company is the relevant entity or the responsible
member.”.
(6) In paragraph (3A)(2) for “section 501A of the Taxes Act (supplementary charge in respect of ring fence trades)” substitute “sections 330 (supplementary charge in respect of ring fence trades) and 331 (meaning of “financing costs” etc) of CTA 2010”.
(7) Omit paragraph (4).
(8) For paragraph (5) substitute—
“(5) Sections 24 to 30 of CTA 2010 (the lower limit and the upper limit) shall apply so as to reduce the amount specified in paragraph (3)(a) in accordance with those sections as they apply to reduce the upper and lower limits, except that—
(a)the number of associated companies referred to in section 24(3) of CTA 2010 shall be determined by reference to the number existing at the end of the immediately preceding accounting period of the company or, if there is no immediately preceding accounting period or the immediately preceding accounting period did not end on the day before the accounting period concerned commenced, by reference to the number existing at the commencement of the accounting period concerned; and
(b)section 434(3A) of the Taxes Act (franked investment income)(3) and section 88(4) of the Finance Act 1989 (corporation tax policy holders’ share of profits)(4) shall be disregarded.”.
(9) After paragraph (7) insert—
“(8) In this regulation “upper limit” and “lower limit” shall be construed in accordance with section 24 of CTA 2010 (the lower limit and the upper limit).”.
Regulation 3 has been amended by section 92 of the Finance Act 2002 and by S.I. 2000/892 and 2008/2649.
Paragraph (3A) was inserted by section 92 of the Finance Act 2002.
Subsection (3A) was substituted for subsection (3) by paragraph 3 of Schedule 8 to the Finance Act 1989 (c. 26) and amended by paragraph 12(2) of Schedule 33 to the Finance Act 2003 (c. 14) and by paragraph 45 of Schedule 1 to the Corporation Tax Act 2010.
Subsection (4) has been amended by section 45(2) of the Finance Act 1990 (c. 29) and by paragraph 214 of Schedule 1 to the Corporation Tax Act 2010.