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Corporation Tax Act 2009

Type Public General Act

Publication 2009-03-26

Last updated 2025-04-01

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(2) A debit is not allowed or required, as a result of the amendments made by paragraph 3(2) and (4) to (7) of Schedule 8 to F(No.2)A 2005, to be brought into account under Part 5 for an accounting period in respect of any amount of discount in respect of which a debit is so brought into account for any earlier accounting period.

(3) In sub-paragraph (2) “earlier accounting period” means an accounting period that began before—

(a) 1 April 2007, or

(b) if the contract mentioned in sub-paragraph (1) was varied before that date, the date of variation.

(4) The references in this paragraph to the variation of a contract do not include references to a variation that does not affect the terms of the debtor relationship in question.

Repo, stock lending and other transactions before 1 October 2007: disapplication of section 332

66

Section 332 (repo, stock lending and other transactions) does not apply in relation to cases where there is—

(a) an arrangement to which Chapter 10 of Part 6 would apply if the arrangement had not come into force before 1 October 2007,

(b) a stock lending arrangement (within the meaning of section 263B(1) of TCGA 1992), which came into force before that date and under which the lender transfers securities to the borrower otherwise than by way of sale, or

Avoidance relying on continuity of treatment provisions: transactions before 16 May 2008

67

Section 347 (disapplication of Chapter 4 of Part 5 where transferor party to avoidance) does not have effect in relation to transactions taking place, or a series of transactions of which the first takes place, before 16 May 2008.

Disposals for consideration not fully recognised by accounting practice: disposals before 16 May 2008

68

Section 455 (disposals for consideration not fully recognised by accounting practice) does not have effect in relation to disposals before 16 May 2008.

5½% Treasury Stock 2008-2012 not redeemed before 6 April 2009

69

(1) This paragraph applies if any loan relationship of a company—

(a) is represented by any 5½% Treasury Stock 2008-2012, and

(b) is one to which the company is a party otherwise than in the course of activities that form an integral part of a trade it carries on.

(2) No amounts fall to be brought into account for the purposes of Part 5 in respect of the loan relationship unless they relate to interest.

References to Companies Act 2006

70

Until section 658 of the Companies Act 2006 (c. 46) (rule against limited company acquiring own shares) comes into force, references to that section in sections 421(4)(g)(ii) and 431(7)(b) have effect as if they were references to section 143 of the Companies Act 1985 (c. 6).

Prospective repeal of provisions concerning exchange gains and losses from loan relationships

71

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 9 — Relationships treated as loan relationships

Relevant non-lending relationships: discounts accruing and profits arising before 16 March 2005

72

(1) None of the following is to be brought into account for the purposes of Part 5 as a result of any of the provisions specified in sub-paragraph (2) or any reference to that provision in any other provision—

(a) credits in respect of a discount arising from a money debt, so far as the discount accrued before 16 March 2005,

(b) credits in respect of profits arising as mentioned in 481(3)(c) or (5)(c) where the related transaction took place before that date,

(c) debits in respect of any impairment arising in respect of a discount arising from a money debt, so far as the discount accrued before that date,

(d) credits in respect of any reversal of any such impairment, so far as the discount accrued before that date.

(2) The provisions are—

(a) section 480 (relevant non-lending relationships involving discounts),

(b) section 481(3)(c) and (5) to (8) (application of Part 5 to relevant non-lending loan relationships), and

(3) This paragraph is to be read as if it were in Chapter 2 of Part 6.

Alternative finance arrangements entered into before 6 April 2005

73

(1) Chapter 6 of Part 6 (alternative finance arrangements) does not apply to purchase and resale arrangements entered into before 6 April 2005.

(1A) That Chapter only applies to deposit arrangements entered into before that date (“pre-6 April 2005 arrangements”) if they are relevant deposit arrangements and then only so far as provided by this paragraph.

(2) In this paragraph “relevant deposit arrangements” means deposit arrangements under which alternative finance return is payable on or after 6 April 2005.

(3) For the purposes of Part 5 (loan relationships) the loan that is treated under section 509 (application of Part 5: general) as made by or to a company that is party to the pre-6 April 2005 arrangements is a loan made on 6 April 2005 of an amount equal to the notional carrying value of the asset or liability representing the arrangements.

(4) For the purposes of sub-paragraph (3) that notional carrying value is the amount that would have been the carrying value of the asset or liability in the accounts of the company (prepared in accordance with generally accepted accounting practice) if a period of account had ended immediately before 6 April 2005.

74

(1) Chapter 6 of Part 6 (alternative finance arrangements) does not apply to diminishing shared ownership arrangements entered into before 1 April 2006.

(1A) That Chapter only applies to profit share agency arrangements entered into before that date (“pre-1 April 2006 arrangements”) if they are relevant profit share agency arrangements and then only so far as provided by this paragraph.

(2) In this paragraph “relevant profit share agency arrangements” means profit share agency arrangements under which alternative finance return is payable on or after 1 April 2006.

(3) For the purposes of Part 5 (loan relationships) the loan that is treated under section 509 (application of Part 5: general) as made by or to a company that is party to the pre-1 April 2006 arrangements is a loan made on 1 April 2006 of an amount equal to the notional carrying value of the asset or liability representing the arrangements.

(4) For the purposes of sub-paragraph (3) that notional carrying value is the amount that would have been the carrying value of the asset or liability in the accounts of the company (prepared in accordance with generally accepted accounting practice) if a period of account had ended immediately before 1 April 2006.

Investment bond arrangements entered into before 1 April 2007

75

(1) Chapter 6 of Part 6 (alternative finance arrangements) only applies to investment bond arrangements entered into before 1 April 2007 (“pre-1 April 2007 arrangements”) if they are relevant investment bond arrangements and then only so far as provided by this paragraph.

(2) In this paragraph “relevant investment bond arrangements” means investment bond arrangements under which alternative finance return is payable on or after 1 April 2007.

(3) For the purposes of Part 5 (loan relationships) the loan that is treated under section 509 (application of Part 5: general) as made by or to a company that is party to the pre-1 April 2007 arrangements is a loan made on 1 April 2007 of an amount equal to the notional carrying value of the asset or liability representing the arrangements.

(4) For the purposes of sub-paragraph (3) that notional carrying value is the amount that would have been the carrying value of the asset or liability in the accounts of the company (prepared in accordance with generally accepted accounting practice) if a period of account had ended immediately before 1 April 2007.

(5) So far as section 519(2) has effect for income tax or capital gains tax purposes in relation to the disposal after 6 April 2007 of investment bond arrangements (whenever entered into), it is treated as always having had effect.

Shares with guaranteed returns: redeemable shares where public issue before 22 March 2006

76

In relation to any case where the public issue (within the meaning of section 530(4) and (5)) is before 22 March 2006 for “7 days” in subsections (4)(b) and (5)(a) of section 530 (the redemption return condition: excepted shares) substitute “ 24 hours ”.

Shares with guaranteed returns: income-producing assets for the increasing value condition

77

In relation to any time before 16 May 2008, section 527(4) (meaning of “income-producing assets” for the purposes of the increasing value condition) applies with the substitution for paragraph (c) of the following paragraph—

(c) any share as respects which the redemption return condition is met or would be met apart from section 529(1)(c) (excepted shares),

Repo transactions and stock lending arrangements before 1 October 2007

78

(1) Chapter 10 of Part 6 (repos) does not apply in relation to an arrangement which came into force before 1 October 2007.

(2) The repeal by this Act of paragraph 15 of Schedule 9 to FA 1996 (repo transactions and stock-lending) does not affect its application in relation to cases where there is—

(a) an arrangement to which Chapter 10 of Part 6 would apply if the arrangement had not come into force before 1 October 2007,

(b) a stock lending arrangement (within the meaning of section 263B(1) of TCGA 1992), which came into force before that date and under which the lender transfers securities to the borrower otherwise than by way of sale, or

(3) But that paragraph applies with the substitution—

(a) for references to Chapter 2 of Part 4 of FA 1996 of references to Part 5 of this Act, and

(b) for the reference in sub-paragraph (5) to section 84 of that Act of a reference to section 304 of this Act.

Part 10 — Derivative contracts

Interpretation

79

Expressions used in this Part of this Schedule and in Part 7 of this Act have the same meaning as in Part 7.

Extended meaning of reference in section 591(6)(b)

80

The reference in section 591(6)(b) (condition E) to the provisions in section 591(7) includes a reference to paragraphs 82 and 86 of this Schedule.

Disapplication of section 645

81

Section 645 (creditor relationships: embedded derivatives which are options) does not apply to a derivative contract of a company for an accounting period if the asset representing the creditor relationship is an asset in relation to which paragraph 9(2) of Schedule 10 to FA 2004 has effect.

Existing assets representing creditor relationships: options

82

(1) This paragraph applies if section 645 would apply to a derivative contract of a company for an accounting period but for the fact that the asset representing the creditor relationship is an asset in relation to which paragraph 9(2) of Schedule 10 to FA 2004 has effect.

(2) Section 574 (non-trading credits and debits to be brought into account under Part 5) does not apply to the credits and debits which are given in relation to the derivative contract for the accounting period by section 595.

(3) The asset representing the creditor relationship is treated for corporation tax purposes as not being a qualifying corporate bond.

(4) For the purposes of corporation tax on chargeable gains, the amount or value of the consideration for any disposal by the company of the asset representing the creditor relationship is reduced by so much of that amount or value as, on a just and reasonable apportionment, relates to interest within sub-paragraph (5).

(5) Interest is within this sub-paragraph if—

(a) it falls to be brought into account under Part 5 of this Act (loan relationships) as accruing to any company at any time, and

(b) in consequence of, or of the terms of, the disposal, it is not paid or payable to the company to which it is treated for the purposes of that Part as accruing.

(6) For the purposes of corporation tax on chargeable gains, the amount or value of the consideration for any disposal by the company of the asset mentioned in sub-paragraph (4)—

(a) is increased by the addition of any relevant exchange losses, and

(b) is (after giving effect to any such increase) reduced (but not below nil) by the deduction of any relevant exchange gains.

(7) If the amount of the relevant exchange gains falling to be deducted under sub-paragraph (6)(b) exceeds the amount required to reduce the amount or value of the consideration to nil, the excess is treated for the purposes of section 38(1)(c) of TCGA 1992 as incidental costs of the disposal of the asset mentioned in sub-paragraph (4).

83

(1) This paragraph applies for the purposes of paragraph 82.

(2) “Relevant exchange gains” means an amount within sub-paragraph (4) or (5).

(3) “Relevant exchange losses” means an amount which would be within sub-paragraph (4) or (5) if references in those sub-paragraphs to exchange gains were read as references to exchange losses.

(4) An amount is within this sub-paragraph if it is the amount of any exchange gains in respect of the asset mentioned in paragraph 82(4) which are brought into account under Part 5 of this Act (loan relationships) by the company for an accounting period throughout which the company holds that asset.

(5) For any accounting period not within sub-paragraph (4) in which the company holds that asset, an amount is within this sub-paragraph if it is an amount which, on a just and reasonable apportionment, represents so much of the amount of any exchange gains brought into account under that Part in respect of that asset by the company for that period as is referable to the part of the period for which the company holds that asset.

84

(1) This paragraph applies if—

(a) there has been a reorganisation for the purposes of sections 126 to 132 of TCGA 1992, and

(b) for the purposes of those sections, the asset mentioned in paragraph 82(4) is treated as the original shares.

(2) The reference in paragraph 82(4) to the disposal of that asset is a reference to the disposal of the asset which, as a result of the reorganisation, has become the new holding for the purposes of those sections.

Disapplication of section 648

85

Section 648 (creditor relationships: embedded derivatives which are exactly tracking contracts for differences) does not apply to a derivative contract of a company for an accounting period if the asset representing the creditor relationship is an asset in relation to which paragraph 11(2) of Schedule 10 to FA 2004 has effect.

Existing assets representing creditor relationships: contracts for differences

86

(1) This paragraph applies if section 648 would apply to a derivative contract of a company for an accounting period but for the fact that the asset representing the creditor relationship is an asset in relation to which paragraph 11(2) of Schedule 10 to FA 2004 has effect.

(2) Section 574 (non-trading credits and debits to be brought into account under Part 5) does not apply to the credits and debits which are given in relation to the derivative contract for the accounting period by section 595.

(3) The asset representing the creditor relationship is treated for corporation tax purposes as not being a qualifying corporate bond.

(4) For the purposes of corporation tax on chargeable gains, the amount or value of the consideration for any disposal by the company of the asset representing the creditor relationship is reduced by so much of that amount or value as, on a just and reasonable apportionment, relates to interest within sub-paragraph (5).

(5) Interest is within this sub-paragraph if—

(a) it falls to be brought into account under Part 5 of this Act (loan relationships) as accruing to any company at any time, and

(b) in consequence of, or of the terms of, the disposal, it is not paid or payable to the company to which it is treated for the purposes of that Part as accruing.

87

(1) This paragraph applies if—

(a) there has been a reorganisation for the purposes of sections 126 to 132 of TCGA 1992, and

(b) for the purposes of those sections, the asset mentioned in paragraph 86(4) is treated as the original shares.

(2) The reference in paragraph 86(4) to the disposal of that asset is a reference to the disposal of the asset which, as a result of the reorganisation, has become the new holding for the purposes of those sections.

Disapplication of section 658

88

(1) Section 658 (chargeable gain or allowable loss treated as accruing) does not apply to a derivative contract of a company for an accounting period if the liability representing the debtor relationship was owed by the company immediately before its first accounting period to begin on or after 1 January 2005.

(2) If section 658 would apply to a derivative contract for an accounting period but for sub-paragraph (1), section 574 (non-trading credits and debits to be brought into account under Part 5) does not apply to the credits and debits which are given in relation to the derivative contract for the accounting period by section 595.

Disapplication of section 661

89

Section 661 (contract which becomes derivative contract) does not apply if the relevant contract became a derivative contract before 30 December 2006.

Disapplication of section 666

90

Section 666 (allowable loss treated as accruing) does not apply to a company if the liability representing the debtor relationship was owed by the company immediately before its first accounting period to begin on or after 1 January 2005.

Contracts which became derivative contracts on 16 March 2005

91

(1) This paragraph applies in relation to a company if conditions A, B and C are met in relation to a relevant contract.

(2) Condition A is that the company was a party to the relevant contract both immediately before and at 3.00pm on 16 March 2005.

(3) Condition B is that the relevant contract—

(a) was not a derivative contract immediately before 3.00pm on that date, but

(b) has been a derivative contract as from that time.

(4) Condition C is that the relevant contract was a chargeable asset immediately before that time.

(5) If the company ceases to be a party to the contract, it must bring into account for the accounting period in which it so ceases the amount of any chargeable gain or allowable loss which would have been treated as accruing to it on the assumptions in sub-paragraph (6).

(6) Those assumptions are that—

(a) the company disposed of the contract immediately before 3.00pm on 16 March 2005, and

(b) the disposal was for consideration of an amount equal to the value (if any) given to the contract in the accounts of the company at the end of the company's accounting period immediately before its first accounting period—

(i) beginning on or after 1 January 2005, and

(ii) ending on or after 16 March 2005.

Contracts which became derivative contracts on 28 July 2005

92

(1) This paragraph applies in relation to a company if conditions A, B and C are met in relation to a relevant contract.

(2) Condition A is that the company was a party to the contract both immediately before and on 28 July 2005.

(3) Condition B is that the contract—

(a) was not a derivative contract immediately before that date, but

(b) apart from this paragraph, would have been a derivative contract on that date if an accounting period of the company began on that date.

(4) Condition C is that the contract was a chargeable asset immediately before that date.

(5) The relevant contract is treated for the purposes of Part 7 of this Act as a derivative contract entered into by the company on 28 July 2005 for consideration of an amount equal to the fair value of the contract on that date.

(6) If the company ceases to be a party to the contract, it must bring into account for the accounting period in which it so ceases the amount of any chargeable gain or allowable loss which would have been treated as accruing to it on the assumptions in sub-paragraph (7).

(7) Those assumptions are that—

(a) the company disposed of the contract immediately before 28 July 2005, and

(b) the disposal was for consideration of an amount equal to the fair value of the contract on that date.

Plain vanilla contracts which became derivative contracts before 30 December 2006

93

(1) This paragraph applies if—

(a) a company is a party to a plain vanilla contract which (not having been a derivative contract) became a derivative contract before 30 December 2006,

(b) the company disposes of the derivative contract by ceasing to be a party to it, and

(2) Section 699(1) (priority of this Part for corporation tax purposes) does not apply for the purpose of calculating any chargeable gain accruing to the company on the disposal.

(3) For the purpose of calculating any chargeable gain accruing to the company on the disposal, the sums allowable as a deduction under section 38(1)(a) of TCGA 1992 (acquisition costs) are—

(a) if G exceeds L, increased by the amount of that excess,

(b) if L exceeds G, reduced by the amount of that excess.

(4) If the amount of the excess in sub-paragraph (3)(b) is greater than the amount of the expenditure allowable under section 38(1)(a) of TCGA 1992, the amount of the excess which cannot be deducted from the expenditure so allowable is, for the purpose mentioned in sub-paragraph (3), added to the consideration for the disposal.

(5) In this paragraph—

G is the sum of the credits brought into account under section 574 of this Act (non-trading credits and debits to be brought into account under Part 5) in respect of the derivative contract in each relevant accounting period, and

L is the sum of the debits brought into account under that section in respect of the derivative contract in each such period.

(6) In sub-paragraph (5) “relevant accounting period” means—

(a) the accounting period in which the disposal is made, or

(b) any previous accounting period.

Issuers of securities with embedded derivatives: deemed options

94

(1) This paragraph applies if the company mentioned in section 652(1) was a party to the debtor relationship mentioned in section 652(2) immediately before its first accounting period to begin on or after 1 January 2005.

(2) Section 653 (shares issued or transferred as a result of exercise of deemed option) does not apply.

(3) If section 654(2) (payment instead of disposal on exercise of deemed option) applies—

(a) CV is taken to be nil, and

(b) an allowable loss of an amount equal to X is treated as accruing to the company in the accounting period mentioned in section 654(2).

(4) Section 655 (ceasing to be party to debtor relationship when deemed option not exercised) does not apply.

Contract becoming derivative contract on 12 March 2008

95

(1) This paragraph applies if a company was, immediately before 12 March 2008, a party to a relevant contract which became a derivative contract by virtue of the amendments made by paragraph 20 of Schedule 22 to FA 2008.

(2) The contract is to be regarded for the purposes of Part 7 as having been entered into by the company on 12 March 2008 for consideration of an amount equal to its notional carrying value (within the meaning of section 622) on that date.

Avoidance relying on continuity of treatment provisions: transactions before 16 May 2008

96

Section 629 (disapplication of section 625 where transferor party to avoidance involving subsequent transfer by transferee) does not have effect in relation to transactions taking place, or a series of transactions of which the first takes place, before 16 May 2008.

Disposals for consideration not fully recognised by accounting practice: disposals before 16 May 2008

97

Section 698 (disposals for consideration not fully recognised by accounting practice) does not have effect in relation to disposals before 16 May 2008.

References to Companies Act 2006

98

Until section 658 of the Companies Act 2006 (c. 46) (rule against limited company acquiring own shares) comes into force, references to that section in sections 674(3)(g)(ii) and 682(6)(b) have effect as if they were references to section 143 of the Companies Act 1985 (c. 6).

Repeal of provisions concerning exchange gains and losses from derivative contracts

99

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 11 — Intangible fixed assets

100

(1) Sub-paragraphs (2) and (3) apply in relation to any accounting period that began before 12 March 2008 and ends after 31 March 2009.

(2) For the purposes of section 835(7) to (9)—

(a) so much of the period as falls before 12 March 2008 is treated as an accounting period, and

(b) so much of the period as falls on or after that date is treated as a separate accounting period.

(3) Section 835(7) to (9) only has effect in relation to the credits and debits to be brought into account for the accounting period mentioned in sub-paragraph (2)(b).

(4) Section 835(7) to (9) does not apply for the purposes of determining whether a party was a related party in relation to a company at a time before 12 March 2008.

(5) For the purposes of sections 845 to 849 (transactions between related parties: transfers treated as being at market value) as they apply otherwise than for determining the credits and debits to be brought into account under Part 8, section 835(7) to (9) only has effect in relation to transfers of assets made on or after 12 March 2008.

(6) For the purposes of sections 845 to 849 as they apply otherwise than for determining the debits or credits to be brought into account under Part 8, in relation to any transfer made before 16 March 2005 section 835 (“related party”) applies with the omission of subsection (5)(b).

(7) Sections 847 (transfers involving other taxes) and 849 (transfers involving gifts of business assets) do not have effect in relation to any transfer of assets made before 16 March 2005.

Continuity: formation of an SE before 1 April 2005

101

Section 770 (continuity where group includes an SE) does not apply in relation to the formation of an SE (including its formation by transformation) which occurs before 1 April 2005.

References to Companies Act 2006

102

Until section 658 of the Companies Act 2006 (c. 46) (rule against limited company acquiring own shares) comes into force, references to that section in sections 819(3)(f)(ii) and 821(5)(b) have effect as if they were references to section 143 of the Companies Act 1985 (c. 6).

Part 12 — Beneficiaries' income from estates in administration

Basic amounts

103

(1) Sub-paragraph (2) applies if any previous accounting period to which regard is to be had for the purposes of section 948 (assumed income entitlement) is an accounting period ending before 1 April 2009 (an “old accounting period”).

(2) In relation to the old accounting period, the reference in Step 4 in subsection (1) of that section to basic amounts relating to the person's absolute interest in respect of which the company was liable to corporation tax for that period is to be taken as a reference to the amount deemed to have been paid to that company as income for that period in respect of that interest by virtue of section 696 of ICTA.

(3) Sub-paragraph (4) applies if one or more of the absolute interests referred to in section 954(1) (successive absolute interests) was held in one or more old accounting periods.

(4) The reference in section 954(2)(b) to the basic amounts relating to any previous such interest includes a reference to the amounts deemed to have been paid to the previous holder as income for old accounting periods in respect of that interest by virtue of section 696 of ICTA.

(5) Sub-paragraph (6) applies if any of the limited interests referred to in section 955(1)(d) (successive interests: assumed income entitlement of holder of absolute interest following limited interest) was held in one or more old accounting periods.

(6) The reference in section 955(4) to the basic amounts relating to any previous such interest includes a reference to the amounts deemed to have been paid to the holders of any such interests as income for old accounting periods in respect of those interests by virtue of section 695 of ICTA.

(7) In the case of a UK estate, references in this paragraph to the amounts deemed to have been paid are references to the amounts that would be deemed to have been paid apart from sections 695(4)(a) and 696(4) of ICTA (grossing up).

Income treated as bearing income tax

104

(1) A sum treated as part of the aggregate income of an estate by virtue of section 547(1)(c) of ICTA (gains from life insurance contracts etc) as the result of an event that occurred before 6 April 2004 is treated for the purposes mentioned in section 963(1) of this Act as bearing income tax by deduction at the basic rate (as defined in section 832(1) of ICTA at the time the event occurred).

(2) A sum treated as part of the aggregate income of an estate by virtue of section 547(1)(c) or 701(8)(e) of ICTA (gains from life insurance contracts etc) as the result of an event that occurred on or after 6 April 2004 and before 6 April 2007 is treated for the purposes mentioned in section 963(1) of this Act as bearing income tax by deduction at the lower rate (as defined in section 832(1) of ICTA at the time the event occurred).

(3) A sum treated as part of the aggregate income of an estate by virtue of section 547(1)(c) or 701(8)(e) of ICTA (gains from life insurance contracts etc) as the result of an event that occurred on or after 6 April 2007 and before 6 April 2008 is treated for the purposes mentioned in section 963(1) of this Act as bearing income tax at the savings rate (as defined in section 989 of ITA 2007 at the time the event occurred).

(4) If sub-paragraph (2) or (3) applies section 962(3) applies as if the following paragraph were inserted after paragraph (a)—

(aa) income bearing income tax at the lower rate (as defined in section 832(1) of ICTA at the time the event as a result of which the income arose occurred) or bearing income tax at the savings rate (as defined in section 989 of ITA 2007 at the time that event occurred),

Deduction for contribution to plan trust

105

Section 989(1)(a) does not apply in relation to a payment made before 6 April 2003.

Award of shares to excluded employee

106

(1) This paragraph applies if an amount is received by a company under section 992 as a result of shares having been awarded to an excluded employee in an accounting period that ends before 1 April 2009.

(2) Section 986 does not apply in relation to the amount.

(3) The amount is treated as a trading receipt of the company for the period of account in which the shares were awarded to the excluded employee.

Accounting periods beginning before 1 January 2003

107

(1) Relief is not available under Part 12 in relation to shares acquired so far as a deduction is available or has been made in relation to relevant expenses in calculating the chargeable profits of the employing company or any other company for corporation tax purposes for an accounting period beginning before 1 January 2003.

(2) “Relevant expenses” means any expenses referable, directly or indirectly, to the provision of the shares acquired.

Restricted shares not to include shares acquired before 16 April 2003

108

In Part 12 “restricted shares” does not include shares acquired before 16 April 2003.

Shares acquired before 16 April 2003 that are subject to forfeiture

109

(1) Relief under Part 12 is not available in relation to shares acquired before 16 April 2003 that are subject to forfeiture.

(2) “Subject to forfeiture” is to be read in accordance with paragraph 19 of Schedule 23 to FA 2003 as originally enacted.

(3) Accordingly, Schedule 23 to FA 2003 continues to apply in relation to such shares (despite the repeal by this Act of that Schedule or of any provision modifying, or affecting the application of, that Schedule).

Meaning of “employment” for times before 16 April 2003

110

In relation to any time before 16 April 2003, Part 12 applies as if section 1002(2) were omitted.

Relief under Chapters 4 and 5 of Part 12

111

(1) This paragraph applies for the purposes of Chapters 4 and 5 of Part 12 in their application in relation to shares or other securities acquired during an accounting period that ends before 1 April 2009.

(2) In accordance with Part 1 of this Schedule (continuity of law), references to relief under Chapter 2 or 3 of Part 12 are to be read as references to relief under Schedule 23 to FA 2003 (as that Schedule applied when the shares or other securities were acquired) available on the acquisition.

Part 15 — Research and development

Rates of relief

112

(1) In relation to expenditure incurred before 1 August 2008, Part 13 has effect with the following modifications.

(2) In Chapter 2 (relief for SMEs: cost of R&D incurred by SME)—

(a) in section 1044(8), for “75%” substitute “ 50% ”,

(b) in section 1045(7), for “175%” substitute “ 150% ”,

(d) in section 1058(1)(a), for “14%” substitute “ 16% ”.

(3) In Chapter 7 (relief for SMEs and large companies: vaccine research etc)—

(a) in section 1089(2), for “40%” substitute “ 50% ”,

(b) in section 1090(2), for “40%” substitute “ 50% ”,

(i) in subsection (3), for “40%” substitute “ 50% ”, and

(ii) in subsection (4), for “140%” substitute “ 150% ”,

(d) in section 1092(8)—

(i) in paragraph (a), for “40%” substitute “ 50% ”, and

(ii) in paragraph (b), for “140%” substitute “ 150% ”, and

(e) in section 1104(5), for “140%” substitute “ 150% ”.

R&D threshold in section 1050: qualifying Chapter 3 and 4 expenditure

113

(1) The references in section 1050(3)(b) and (c) to qualifying Chapter 3 expenditure and qualifying Chapter 4 expenditure do not include any such expenditure incurred before 1 April 2002.

(2) For the purposes of sub-paragraph (1) section 61 (pre-trading expenses) is to be ignored.

Chapters 3 to 5 of Part 13: expenditure incurred before 1 April 2002

114

(1) Chapters 3 to 5 of Part 13 do not apply to expenditure incurred before 1 April 2002.

(2) For this purpose section 61 (pre-trading expenses) is to be ignored.

Chapter 7 of Part 13: expenditure incurred before 22 April 2003

115

(1) Chapter 7 of Part 13 (relief for SMEs and large companies: vaccine research etc) does not apply to expenditure incurred before 22 April 2003.

(2) For this purpose section 61 (pre-trading expenses) is to be ignored.

Cap on R&D aid under Chapter 2 or 7 of Part 13

116

For the purposes of any calculation in accordance with section 1114, no account is to be taken of any qualifying R&D relief (as defined in section 1113(4)) in respect of expenditure incurred before 1 August 2008.

Chapter 7 of Part 13: qualifying expenditure on contracted out R&D

117

(1) Section 1135(4) (time limit for notice of election for connected persons treatment) does not apply to a notice of an election under that section in relation to a sub-contractor payment made by a company if—

(a) the company has qualifying expenditure on contracted out research and development (as defined in section 1102),

(b) the sub-contractor is—

(i) a charity,

(ii) a university, or

(iii) an association of a description specified in section 508 of ICTA (scientific research organisations), and

(2) In sub-paragraph (1) “sub-contractor” and “sub-contractor payment” have the same meaning as in Part 13 (see section 1133).

Small or medium-sized enterprises

118

(1) In relation to expenditure incurred before 1 August 2008, Part 13 has effect with the omission of the larger SME provisions.

(2) The “larger SME provisions” are—

sections 1089(4) and 1090 (modification of section 1089 for larger SMEs),

section 1093 (modification of section 1092 for larger SMEs),

section 1104(5) (modification of amount B in section 1104 for larger SMEs),

qualification 1 in section 1120(2) (qualifications to section 1119), and

section 1121 (meaning of “larger SME”).

(3) But for the purpose of determining, in relation to expenditure incurred on or after 1 August 2008, whether a company is a small or medium-sized enterprise within the meaning of Part 13, the larger SME provisions are to be treated as always having had effect.

Staffing costs

119

(1) In its application to expenditure incurred—

(a) before 1 April 2004, and

(b) in an accounting period ending on or after 6 April 2003,

section 1123 has effect with the following modification.

(2) For subsections (2) and (3) substitute—

(2) This subsection applies to earnings paid by the company to directors or employees of the company. For this purpose “earnings” means earnings or amounts treated as earnings which constitute employment income (see section 7(2)(a) or (b) of ITEPA 2003).

120

In its application to expenditure incurred before 1 August 2008, section 1123 has effect with the omission of subsections (5) and (6).

121

(1) In relation to expenditure incurred before 27 September 2003, section 1124 applies, for the purposes of Chapters 2 and 7 of Part 13, with the modification in sub-paragraph (3).

(2) In relation to expenditure incurred before 9 April 2003, section 1124 applies, for the purposes of Chapters 3 to 5 of Part 13, with the modification in sub-paragraph (3).

(3) For subsections (3) and (4) substitute—

(3) In the case of a director (“D”) or employee (“E”) partly engaged directly and actively in relevant research and development the following rules apply— (a) if the time D or E spends so engaged is less than 20% of D's or E's total working time, none of the staffing costs relating to D or E is treated as attributable to relevant research and development, (b) if the time D or E spends so engaged is more than 80% of D's or E's total working time, the whole of the staffing costs relating to D or E is treated as attributable to relevant research and development, (c) in any other case, an appropriate proportion of the staffing costs relating to D or E is treated as attributable to relevant research and development.

Expenditure on software or consumable items

122

(1) In relation to expenditure incurred before 1 April 2004, Part 13 applies with the following modifications.

(2) For “software , data licences, cloud computing services or consumable items” in each place where it occurs, substitute “ consumable stores ”.

(3) For sections 1125 and 1126 substitute—

(1125) (1) For the purposes of this Part expenditure on consumable stores means expenditure that would be treated as expenditure on consumable stores in accordance with normal accounting practice. (2) For the purposes of this Part expenditure on consumable stores is attributable to relevant research and development if the stores are employed directly in such research and development.

Qualifying expenditure on externally provided workers

123

(1) In relation to expenditure incurred before 27 September 2003, Chapters 2 and 4 of Part 13 (relief for SMEs: cost of R&D borne by SME, and subsidised expenditure on R&D) apply with the omission of—

(a) section 1052(2)(c),

(b) section 1071(3)(c),

(d) section 1134(5)(b), and

(e) sections 1127 to 1132, as they apply for the purposes of those Chapters.

(2) In relation to expenditure incurred before 9 April 2003, Chapter 3 of Part 13 (relief for SMEs: R&D sub-contracted to SME) applies with the omission of—

(a) section 1066(3)(c), and

(b) sections 1127 to 1132, as they apply for the purposes of that Chapter.

(3) In relation to expenditure incurred before 9 April 2003, Chapter 5 of Part 13 (relief for large companies) applies with the omission of—

(a) section 1077(2)(c), and

(b) sections 1127 to 1132, as they apply for the purposes of that Chapter.

(4) In relation to expenditure incurred by a large company before 27 September 2003, Chapter 7 of Part 13 (relief for SMEs and large companies: vaccine research etc) applies in the case of such a company with the omission of—

(a) section 1101(4)(c), and

(b) sections 1127 to 1132, as they apply for the purposes of that Chapter.

(5) In sub-paragraph (4) “large company” has the same meaning as in Part 13.

Qualifying expenditure on relevant payments to subjects of clinical trials

124

(1) In relation to expenditure incurred before 1 August 2008, Chapter 2 of Part 13 (relief for SMEs: cost of R&D borne by SME) applies with the omission of—

(a) section 1052(2)(d),

(b) section 1071(3)(d),

(d) section 1140, as it applies for the purposes of that Chapter.

(2) In relation to expenditure incurred before 1 August 2008, Chapter 3 of Part 13 (relief for SMEs: cost of R&D sub-contracted to SME) applies with the omission of—

(a) section 1066(3)(d), and

(b) section 1140, as it applies for the purposes of that Chapter.

(3) In relation to expenditure incurred before 1 April 2006, Chapter 4 of Part 13 (relief for SMEs: subsidised expenditure on R&D) applies with the omission of—

(a) section 1071(3)(d),

(b) in section 1134(3)(c), the words “or relevant payments to the subjects of a clinical trial”, and

(4) In relation to expenditure incurred before 1 April 2006, Chapter 5 of Part 13 (relief for large companies) applies with the omission of—

(a) section 1077(2)(d), and

(b) section 1140, as it applies for the purposes of that Chapter.

(5) In relation to expenditure incurred before 1 August 2008, Chapter 7 of Part 13 (relief for SMEs and large companies: vaccine research etc) applies with the omission of—

(a) section 1101(4)(d), and

(b) section 1140, as it applies for the purposes of that Chapter.

Part 16 — Remediation of contaminated land

Part 14: expenditure incurred before 11 May 2001

125

(1) Part 14 does not apply to expenditure incurred before 11 May 2001.

(2) For this purpose section 61 (pre-trading expenses) is to be ignored.

Staffing costs

126

(1) In its application to expenditure incurred—

(a) before 1 April 2004, and

(b) in an accounting period ending on or after 6 April 2003,

section 1170 has effect with the following modification.

(2) For subsections (2) and (3) substitute—

(2) This subsection applies to earnings paid by the company to directors or employees of the company. For this purpose “earnings” means earnings or amounts treated as earnings which constitute employment income (see section 7(2)(a) or (b) of ITEPA 2003).

Part 17 — Film production

Interpretation

127

The provisions of sections 1181 to 1187 apply for the purposes of this Part of this Schedule as if this Part were contained in Part 15 of this Act.

Chapters 2 and 3 of Part 15 to apply only to films that commence principal photography on or after 1 January 2007

128

Chapters 2 and 3 of Part 15 apply only in relation to films that commence principal photography on or after 1 January 2007 (but see paragraphs 130 and 131).

129

The references in section 1206 to the functions of the Secretary of State under Schedule 1 to the Films Act 1985 (c. 21) are to those functions only so far as they are exercised in relation to films that commence principal photography on or after 1 January 2007 (but see paragraphs 130 and 131).

Application of Part 15 etc to films that commenced principal photography before 1 January 2007 but were not completed before that date

130

(1) The Treasury may make provision by regulations for the application of the provisions of—

(a) Part 15 or section 812 of this Act, and

(b) Chapter 3 of Part 3 of FA 2006 and any enactment amended by that Chapter,

in relation to films that commenced principal photography before 1 January 2007 but were not completed before that date.

(2) The regulations may provide for such adaptations and modifications of—

(a) the provisions mentioned in sub-paragraph (1), and

(b) any other provision of the Corporation Tax Acts,

as appear to the Treasury appropriate for that purpose.

(3) The regulations may—

(a) provide that the provisions of Part 15 or section 812 of this Act (or any specified provisions of that Part or section) or Chapter 3 of Part 3 of FA 2006 (or any specified provisions of that Chapter) have effect as if they had been in force at all material times,

(b) require or authorise the making or amendment of returns, or the making of assessments, in relation to past accounting periods or tax years (whenever beginning), and

(c) authorise the making of any such return, amendment or assessment despite any limitation on the time within which a return, amendment or assessment may normally be made.

131

(1) In accordance with Part 1 of this Schedule, the Corporation Tax (Taxation of Films) (Transitional Provisions) Regulations 2007 (S.I. 2007/1050) have effect as if made under paragraph 130 above.

(2) For that purpose they are amended as follows.

(3) In regulation 1(2) for “(films and sound recordings)” substitute “ and Part 15 and section 812 of the Corporation Tax Act 2009 (film production) ”.

(4) Omit regulation 2.

(5) In regulation 3 for “Chapter 3 of Part 3” substitute “ Part 15 and section 812 of the Corporation Tax Act 2009, Chapter 3 of Part 3 of the Finance Act 2006 ”.

(6) In regulation 4 for “section 32” substitute “ section 1182 of the Corporation Tax Act 2009 ” (and make a corresponding change in the heading for regulation 4).

(7) In regulation 5 for “section 40” substitute “ section 1197 of the Corporation Tax Act 2009 ” (and make a corresponding change in the heading for regulation 5).

(8) In regulation 6(1) after “section 46” insert “ of the Finance Act 2006 ” (and make a corresponding change in the heading for regulation 6).

(9) In regulation 7(1) after “section 47” insert “ of the Finance Act 2006 ” (and make a corresponding change in the heading for regulation 7).

(10) For regulation 8 substitute—

(8) In section 812(1) of the Corporation Tax Act 2009— (a) in paragraph (a) for “that began principal photography before 1st January 2007” substitute “ to which Chapter 2 of Part 15 of the Corporation Tax Act 2009 does not apply ”, and (b) in paragraph (b) for “1st October 2007” substitute “31st March 2008

(11) For regulation 9 substitute—

(9) In section 1188(1) of the Corporation Tax Act 2009 (taxation of activities of film production company) after “a film” insert if the film— (a) is certified by the Secretary of State under Schedule 1 to the Films Act 1985 as a British film for the purposes of film tax relief, and (b) is intended for theatrical release at the time principal photography commences

(12) In regulation 10(1) after “Schedule 5” insert “ to the Finance Act 2006 ” (and make a corresponding change in the heading for regulation 10).

(13) Omit regulation 10(2).

(14) In regulation 10(5) for the words after “sections 46 and 47” substitute “ of the Finance Act 2006 (films: withdrawal of existing reliefs) and section 1188(1) of the Corporation Tax Act 2009 (taxation of activities of film production company) ”.

(15) In regulation 13(1)—

(a) for “Chapter 3 of Part 3” substitute “ Part 15 or section 812 of the Corporation Tax Act 2009, of Chapter 3 of Part 3 of the Finance Act 2006 ”, and

(b) for “whether before or after the commencement of that Chapter” substitute “ whenever beginning ”.

Prohibition on double counting

132

(1) Expenditure is not to be taken into account for the purposes of Chapter 2 of Part 15 if relief has been given in respect of it under—

(a) section 40B, 41 or 42 of F(No.2)A 1992,

(b) section 48 of F(No.2)A 1997, or

(2) For the purposes of paragraph 130 and any regulations made under that paragraph, sub-paragraph (1) of this paragraph is treated as if contained in Part 15.

Part 18 — Management expenses

Unpaid remuneration

133

(1) This paragraph applies for the purposes of section 1249.

(2) In relation to a period of account ending before 27 November 2002, an amount charged in the accounts in respect of employees' remuneration includes an amount which is held by an intermediary with a view to its becoming employees' remuneration.

(3) In relation to a period of account ending on or after 27 November 2002, an amount charged in the accounts in respect of employees' remuneration includes an amount—

(a) in respect of employee benefit contributions (within the meaning of sections 1290 to 1296) made before that date, and

(b) which is held by an intermediary,

with a view to its becoming employees' remuneration.

Part 19 — Unremittable income

Unremittable income that arose in an accounting period ending before 1 April 2009

134

(1) A claim may be made under section 1275 (claim for relief for unremittable income) for an accounting period ending after 31 March 2009, despite the income having arisen in an accounting period ending before 1 April 2009.

(2) Section 1276 (withdrawal of relief) applies for an accounting period ending after 31 March 2009, despite the income having arisen originally in an accounting period ending before 1 April 2009 (whether the claim in respect of it was made under section 584 of ICTA (relief for unremittable overseas income) or section 1275 of this Act).

Withdrawal of relief: income that arose in an accounting period ending before 1 October 1993

135

Section 1277 (income charged on withdrawal of relief after source ceases) does not apply if the income originally arose in an accounting period ending before 1 October 1993.

Part 20 — General exemptions

Ulster savings certificates

136

In the case of certificates acquired before 27 July 1981, in section 1282(4) for “the Department of Finance and Personnel” substitute “ the Treasury ”.

Part 21 — Other provisions

Training courses for employees

137

(1) This paragraph applies if, without the repeal by this Act of section 588 of ICTA (training courses for employees)—

(a) section 588(5) of ICTA would operate in relation to an employee by virtue of paragraph (a) of that provision and paragraph 37 of Schedule 7 to ITEPA 2003 (savings in relation to tax years before 2003-04),

(b) section 588(5) of ICTA would operate in relation to an employer by virtue of paragraph (b) of that provision and paragraph 37 of Schedule 7 to ITEPA 2003, or

(c) section 588(6) ... of ICTA would operate in relation to an employer by virtue of paragraph 37 of Schedule 7 to ITEPA 2003.

(2) That repeal does not apply in relation to—

(a) the operation of section 588(5) of ICTA in relation to the employee as mentioned in sub-paragraph (1)(a),

(b) the operation of section 588(5) of ICTA in relation to the employer as mentioned in sub-paragraph (1)(b), or

138

In the Table in section 98 of TMA 1970 (special returns etc)—

(a) the entry relating to section 588(6) of ICTA, ...

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

continue to have effect (despite the repeal by this Act of those entries) in relation to section 588(6) ... as it has effect by virtue of paragraph 137.

139

(1) This paragraph applies if—

(a) at any time during the period beginning with 6 April 2003 and ending with 31 March 2009, a company (“the employer”) incurred expenditure in paying or reimbursing retraining course expenses within the meaning of section 311 of ITEPA 2003,

(b) the employer's liability to corporation tax for any accounting period has been determined (before or after 1 April 2009, and by assessment or otherwise) on the assumption that, by virtue only of subsection (3) (or subsections (3) and (4)) of section 588 of ICTA, the employer is entitled to a deduction on account of the expenditure, and

(c) before 1 April 2009, no assessment has been made under paragraph 41 of Schedule 18 to FA 1998 by virtue of section 588(5) of ICTA of an amount due in consequence of the failure by the person in respect of whom the expenditure was incurred to meet a condition of the kind mentioned in section 312(1)(b)(i) or (ii) of ITEPA 2003.

(2) Section 75 (retraining courses: recovery of tax) applies in relation to the employer as if the condition in subsection (1) of that section were met.

(3) Section 81(4) of FA 2012 (which, in the case of companies carrying on basic life assurance and general annuity business, applies section 75(2) to (4)) applies in relation to the employer as if the conditions in paragraphs (a) and (b) of that subsection were met.

(4) In the application of section 75 of this Act (including as applied by section 81(4) of FA 2012) to the employer, references to “the employee” are to the person in respect of whom the expenditure was incurred by the employer.

Unpaid remuneration

140

(1) This paragraph applies for the purposes of—

(a) section 1288 of this Act (unpaid remuneration), and

(b) the application by section 82 of FA 2012 of section 1249(1) to (3) of this Act (corresponding provision for companies carrying on life assurance business).

(2) In relation to a period of account ending before 27 November 2002, an amount charged in the accounts in respect of employees' remuneration includes an amount which is held by an intermediary with a view to its becoming employees' remuneration.

(3) In relation to a period of account ending on or after 27 November 2002, an amount charged in the accounts in respect of employees' remuneration includes an amount—

(a) in respect of employee benefit contributions (within the meaning of sections 1290 to 1296) made before that date, and

(b) which is held by an intermediary,

with a view to its becoming employees' remuneration.

Employee benefit contributions

141

Section 1290 does not apply to deductions that would otherwise be allowed—

(a) for a period ending before 27 November 2002, or

(b) in respect of employee benefit contributions made before that date.

Interest on overdue corporation tax etc

142

(1) The repeal by this Act of section 90(1)(b) of TMA 1970 does not affect the following rules.

(2) In calculating profits for any corporation tax purpose, no deduction is allowed for interest payable under section 86 of TMA 1970 (interest on overdue tax for accounting periods ending before 1 October 1993).

(3) In calculating profits for any corporation tax purpose, no deduction is allowed for interest payable under section 87 of TMA 1970 (interest on overdue advance corporation tax and income tax on company payments) or section 87A of TMA 1970 (interest on overdue corporation tax etc) on—

(a) corporation tax for accounting periods ending before 1 July 1999, or

(b) tax assessable in accordance with Schedule 13 or 16 of ICTA for return periods in accounting periods ending before 1 July 1999.

Miscellaneous profits and losses: apportionment to accounting periods ending before 1 April 2009

143

(1) This paragraph applies if—

(a) a relevant period of account begins before 1 April 2009 and ends on or after that date, and

(b) in order to arrive at the profits or losses of an accounting period ending before 1 April 2009 it is necessary to apportion the profits or losses of the relevant period of account to any part of that period before 1 April 2009.

(2) A period of account is a “relevant period” if—

(a) section 1307 applies to the period of account, and

(b) the profits or losses of the part of the period of account falling in an accounting period ending after 31 March 2009 are calculated in accordance with this Act.

(3) The profits or losses of the relevant period of account—

(a) are calculated in accordance with this Act (and therefore, to that extent, this Act has effect for accounting periods ending before 1 April 2009), and

(b) may be apportioned in accordance with section 1307 to any part of the period of account falling in an accounting period ending before 1 April 2009.

Purchase and sale of securities: references to setting up and commencement etc of a trade

144

In section 731 of ICTA, as that section has effect in accordance with section 66(6) of FA 2008 (purchase and sale of securities: securities purchased before 1 April 2008)—

(a) the reference in subsection (7) to the setting up and commencement of a trade is to be read as including any event that would be treated as the setting up and commencement of the trade if sections 114(1) and 337(1) of ICTA were not repealed by this Act, and

(b) the reference in subsection (8) to the deemed discontinuance of a trade is to be read as including any event that would be treated as the discontinuance of the trade if sections 114(1) and 337(1) of ICTA were not repealed by this Act.

References to Companies Act 2006

145

Until section 658 of the Companies Act 2006 (c. 46) (rule against limited company acquiring own shares) comes into force, references to that section in sections 807B(3)(f)(ii) and 807D(7)(b) of ICTA (which are inserted by Schedule 1 to this Act) have effect as if they were references to section 143 of the Companies Act 1985 (c. 6).

Charges to tax under Case VI of Schedule D in subordinate legislation

146

(1) This paragraph applies if—

(a) a provision of the Corporation Tax Acts (“the rule”) contains a reference such as is mentioned in section 1173(1) of CTA 2010 (that is, a reference to any provision to which section 1173 of CTA 2010 applies),

(b) immediately before 1 April 2009 the reference was to Case VI of Schedule D (or, if the rule rewrites a provision that is repealed by this Act, the corresponding reference in that provision was to Case VI of Schedule D), and

(c) by virtue of that reference, the rule (or the provision that it rewrites) then applied in relation to amounts charged, under a provision of subordinate legislation, to corporation tax under Case VI of Schedule D.

(2) As long as the provision of subordinate legislation continues to be expressed by reference to Case VI of Schedule D, the Corporation Tax Acts have effect as if it were listed in the table in section 1173(2) of CTA 2010 .

(3) In this paragraph “subordinate legislation” has the same meaning as in the Interpretation Act 1978 (c. 30).

147

(1) This paragraph applies if immediately before 1 April 2009 a provision of subordinate legislation (within the meaning of the Interpretation Act 1978) treated amounts as losses incurred in a transaction in respect of which a person is within the charge to corporation tax under Case VI of Schedule D.

(2) As long as the provision continues to be expressed by reference to Case VI of Schedule D, it has effect as if it treated the amounts as losses incurred in a transaction in respect of which the person is within the charge to corporation tax under a provision to which section 1173 of CTA 2010 applies.

SCHEDULE 3

Part 1 — Repeals and revocations on 1 April 2009

Part 2 — Prospective repeals

SCHEDULE 4

Overview of Act

Chargeable gains etc

Modification of Chapter 5 of Part 9A of TIOPA 2010

Car ... hire: supplementary

Credit unions

Car ... hire: supplementary

Amounts to be brought into account where section 523 applies

Relevant non-lending relationships involving discounts

Meaning of “amounts recognised for accounting purposes”

Overview of Chapter

Overview of Part

Assets acquired or realised together

Overview of Part

Deduction in calculating profits of trade

Total R&D aid

Exclusion of interest where failure to make return

Introduction

Income from Ulster Savings Certificates

Apportionment to different periods

Power to undo changes

Transitional provisions and savings

Finance Act 1950 (c. 15)

Taxes Management Act 1970 (c. 9)

Finance Act 1973 (c. 51)

Oil Taxation Act 1975 (c. 22)

Inheritance Tax Act 1984 (c. 51)

Films Act 1985 (c. 21)

Airports Act 1986 (c. 31)

Finance Act 1986 (c. 41)

Gas Act 1986 (c. 44)

British Steel Act 1988 (c. 35)

Finance Act 1988 (c. 39)

Finance Act 1989 (c. 26)

Finance Act 1990 (c. 29)

Finance Act 1991 (c. 31)

Taxation of Chargeable Gains Act 1992 (c. 12)

Finance (No. 2) Act 1992 (c. 48)

Finance Act 1994 (c. 9)

Finance Act 1995 (c. 4)

Finance Act 1996 (c. 8)

Broadcasting Act 1996 (c. 55)

Finance Act 1997 (c. 16)

Finance (No. 2) Act 1997 (c. 58)

Finance Act 1998 (c. 36)

Finance Act 1999 (c. 16)

Commonwealth Development Corporation Act 1999 (c. 20)

Finance Act 2000 (c. 17)

Transport Act 2000 (c. 38)

Capital Allowances Act 2001 (c. 2)

Finance Act 2001 (c. 9)

Finance Act 2002 (c. 23)

Proceeds of Crime Act 2002 (c. 29)

Income Tax (Earnings and Pensions) Act 2003 (c. 1)

Finance Act 2003 (c. 14)

Finance Act 2004 (c. 12)

Energy Act 2004 (c. 20)

Income Tax (Trading and Other Income) Act 2005 (c. 5)

Finance Act 2005 (c. 7)

Railways Act 2005 (c. 14)

Finance (No. 2) Act 2005 (c. 22)

Finance Act 2006 (c. 25)

Income Tax Act 2007 (c. 3)

Finance Act 2007 (c. 11)

Finance Act 2008 (c. 9)

Crossrail Act 2008 (c. 18)

Continuity of the law: general

General saving for old transitional provisions and savings

Interpretation

Effect of repeal of section 9(1) of ICTA on relevance of case law

Companies in administration

...

Tenants under taxed leases

Local enterprise agencies

Expenses connected with patents, designs and trade marks

Payments to Export Credits Guarantee Department

Reverse premiums

Sums recovered under insurance policies etc

Meaning of “designated educational establishment”

Dealers in securities etc

Purchase or sale of woodlands

Waste disposal

Reserves of marketing authorities etc

Adjustment on change of basis

Lease premiums

Lease premiums: sums payable instead of rent

Lease premiums: sums payable for surrender of lease

Lease premiums: assignments for profit of lease granted at undervalue

Lease premiums: pre-commencement receipts under ICTA treated as taxed receipts

Lease premiums: taking account of reductions under section 37(2) or (3) of ICTA

Lease premiums: taking account of deductions for rent as a result of section 37(4) or 87(2) of ICTA

Lease premiums: time limits for claims for repayment of tax

Lease premiums: rules for determining effective duration of lease

Lease premiums: meaning of “premium”

Reverse premiums

Deductions for expenditure on energy-saving items

Adjustment on change of basis

Meaning of “mineral royalties”

Interpretation

Opening and closing values determined under Schedule 15 to the Finance Act 1996

References to Part 5 to include Schedule 15 to FA 1996

Exemption for interest on tax overpaid for accounting periods ending before 1 July 1999

Regulations under section 81 of FA 2002

Continuity on transfers: transferees becoming party to loan relationship before 9 April 2003

Deeply discounted securities held before 1 October 2002

Restriction on bringing into account credits resulting from reversal of debits disallowed in a period of account beginning before 1 January 2005

Disregard of pre-2005 disallowed debits

Bringing into account losses on overseas sovereign debt etc

Saving for old elections for treating loan relationships with embedded derivatives as two assets

Deeply discounted securities of close companies: discounts for accounting periods beginning before 1 April 2007

Repo, stock lending and other transactions before 1 October 2007: disapplication of section 332

Avoidance relying on continuity of treatment provisions: transactions before 16 May 2008

Disposals for consideration not fully recognised by accounting practice: disposals before 16 May 2008

5½% Treasury Stock 2008-2012 not redeemed before 6 April 2009

References to Companies Act 2006

Prospective repeal of provisions concerning exchange gains and losses from loan relationships

Relevant non-lending relationships: discounts accruing and profits arising before 16 March 2005

Relevant non-lending relationships: discounts on disposals before 22 March 2006

72A

(1) Section 480 (relevant non-lending relationships involving discounts) applies with the modifications set out in sub-paragraph (2) if—

(a) the money debt mentioned in section 480(1) is some or all of the consideration payable for a disposal of property, and

(b) the disposal is made before 22 March 2006.

(2) The modifications are—

(a) in section 480(1)(e) for “conditions A and B are met” substitute “the property is neither—

(i) an asset representing a loan relationship, nor

(ii) a derivative contract”, and

(b) omit subsections (2) to (4).

Alternative finance arrangements entered into before certain dates

...

Shares with guaranteed returns: redeemable shares where public issue before 22 March 2006

Shares with guaranteed returns: income-producing assets for the increasing value condition

Repo transactions and stock lending arrangements before 1 October 2007

Interpretation

Extended meaning of reference in section 591(6)(b)

Disapplication of section 645

Existing assets representing creditor relationships: options

Disapplication of section 648

Existing assets representing creditor relationships: contracts for differences

Disapplication of section 658

Disapplication of section 661

Disapplication of section 666

Contracts which became derivative contracts on 16 March 2005

Contracts which became derivative contracts on 28 July 2005

Plain vanilla contracts which became derivative contracts before 30 December 2006

Issuers of securities with embedded derivatives: deemed options

Contract becoming derivative contract on 12 March 2008

Avoidance relying on continuity of treatment provisions: transactions before 16 May 2008

Disposals for consideration not fully recognised by accounting practice: disposals before 16 May 2008

References to Companies Act 2006

Repeal of provisions concerning exchange gains and losses from derivative contracts

Continuity: formation of an SE before 1 April 2005

References to Companies Act 2006

Basic amounts

Income treated as bearing income tax

Deduction for contribution to plan trust

Award of shares to excluded employee

Accounting periods beginning before 1 January 2003

Restricted shares not to include shares acquired before 16 April 2003

Shares acquired before 16 April 2003 that are subject to forfeiture

Meaning of “employment” for times before 16 April 2003

Relief under Chapters 4 and 5 of Part 12

Rates of relief

R&D threshold in section 1050: qualifying Chapter 3 and 4 expenditure

Chapters 3 to 5 of Part 13: expenditure incurred before 1 April 2002

Chapter 7 of Part 13: expenditure incurred before 22 April 2003

Cap on R&D aid under Chapter 2 or 7 of Part 13

Chapter 7 of Part 13: qualifying expenditure on contracted out R&D

Small or medium-sized enterprises

Staffing costs

Expenditure on software , data licences, cloud computing services or consumable items

Qualifying expenditure on externally provided workers

Qualifying expenditure on relevant payments to subjects of clinical trials

Part 14: expenditure incurred before 11 May 2001

Staffing costs

Interpretation

Chapters 2 and 3 of Part 15 to apply only to films that commence principal photography on or after 1 January 2007

Application of Part 15 etc to films that commenced principal photography before 1 January 2007 but were not completed before that date

Prohibition on double counting

Unpaid remuneration

Unremittable income that arose in an accounting period ending before 1 April 2009

Withdrawal of relief: income that arose in an accounting period ending before 1 October 1993

Ulster savings certificates

Training courses for employees

Unpaid remuneration

Employee benefit contributions

Interest on overdue corporation tax etc

Miscellaneous profits and losses: apportionment to accounting periods ending before 1 April 2009

Purchase and sale of securities: references to setting up and commencement etc of a trade

References to Companies Act 2006

Charges to tax under Case VI of Schedule D in subordinate legislation

Editorial notes

S. 1325 partly in force; s. 1325(1) in force at 1.4.2009 for specified purposes and s. 1325(2)(3) in force at Royal assent, see s. 1329

S. 1326 partly in force; s. 1326 in force at 1.4.2009 for specified purposes, see s. 1329(1)(3)

S. 1310(4)(zza) inserted (8.4.2010) by Finance Act 2010 (c. 13), Sch. 19 para. 3

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Corporation Tax Act 2009

Repo, stock lending and other transactions before 1 October 2007: disapplication of section 332

66

Avoidance relying on continuity of treatment provisions: transactions before 16 May 2008

67

Disposals for consideration not fully recognised by accounting practice: disposals before 16 May 2008

68

5½% Treasury Stock 2008-2012 not redeemed before 6 April 2009

69

References to Companies Act 2006

70

Prospective repeal of provisions concerning exchange gains and losses from loan relationships

71

Part 9 — Relationships treated as loan relationships

Relevant non-lending relationships: discounts accruing and profits arising before 16 March 2005

72

Alternative finance arrangements entered into before 6 April 2005

73

Profit share agency arrangements entered into before 1 April 2006

74

Investment bond arrangements entered into before 1 April 2007

75

Shares with guaranteed returns: redeemable shares where public issue before 22 March 2006

76

Shares with guaranteed returns: income-producing assets for the increasing value condition

77

Repo transactions and stock lending arrangements before 1 October 2007

78

Part 10 — Derivative contracts

Interpretation

79

Extended meaning of reference in section 591(6)(b)

80

Disapplication of section 645

81

Existing assets representing creditor relationships: options

82

83

84

Disapplication of section 648

85

Existing assets representing creditor relationships: contracts for differences

86

87

Disapplication of section 658

88

Disapplication of section 661

89

Disapplication of section 666

90

Contracts which became derivative contracts on 16 March 2005

91

Contracts which became derivative contracts on 28 July 2005

92

Plain vanilla contracts which became derivative contracts before 30 December 2006

93

Issuers of securities with embedded derivatives: deemed options

94

Contract becoming derivative contract on 12 March 2008

95

Avoidance relying on continuity of treatment provisions: transactions before 16 May 2008

96

Disposals for consideration not fully recognised by accounting practice: disposals before 16 May 2008

97

References to Companies Act 2006

98

Repeal of provisions concerning exchange gains and losses from derivative contracts

99

Part 11 — Intangible fixed assets

Transactions between related parties

100

Continuity: formation of an SE before 1 April 2005

101

References to Companies Act 2006

102

Part 12 — Beneficiaries' income from estates in administration

Basic amounts

103

Income treated as bearing income tax

104