Taxation (International and Other Provisions) Act 2010

In section 123 (alternative finance investment bonds) for “falling within section 48A of FA 2005 (alternative finance investment bonds)” substitute “ to which section 564G of ITA 2007 or section 151N of TCGA 1992 (investment bond arrangements) applies ”.

229

• (1) Amend Schedule 61 (alternative finance investment bonds) as follows.

• (2) In paragraph 1(1) (interpretation) in the definition of “alternative finance investment bond” for “within section 48A of FA 2005 (alternative finance investment bond: introduction)” substitute “ to which section 564G of ITA 2007 or section 151N of TCGA 1992 (investment bond arrangements) applies ”.

• (3) For paragraph 2 (issue, transfer and redemption of rights under bond not to be treated as chargeable transaction) substitute—

(2) Section 564S of ITA 2007 (treatment of bond-holder and bond-issuer) applies for the purposes of any enactment about stamp duty land tax as it applies for the purposes of the Income Tax Acts.

• (4) In paragraph 4(1) for “section 48B(2) of FA 2005” substitute “ section 564S of ITA 2007 ”.

Part 8 — Leasing arrangements: finance leases and loans

Taxation of Chargeable Gains Act 1992 (c. 12)

230

The Taxation of Chargeable Gains Act 1992 is amended as follows.

231

In section 37 (consideration chargeable to tax on income) at the end of subsection (2) add—

See also section 37A(4) and (5) (consideration on disposal of certain leases).

Finance Act 1997 (c. 16)

232

• (1) FA 1997 is amended as follows.

• (2) Omit section 82 (finance leases and loans).

• (3) In Schedule 12 (leasing arrangements: finance leases and loans) omit paragraphs 1 to 7, 9 to 17 and 20 to 30.

Capital Allowances Act 2001 (c. 2)

233

The Capital Allowances Act 2001 is amended as follows.

234

In section 60(1)(c) (meaning of “disposal receipt”) for “paragraph 11” to “sum)” substitute “ section 614BS of ITA 2007 ”.

235

In section 420(b) (meaning of “disposal receipt”) for “paragraph 11” to “sum)” substitute “ section 614BS of ITA 2007 ”.

236

In section 476(1)(b) (disposal value of patent rights) for “paragraph 11” to “sum)” substitute “ section 614BS of ITA 2007 ”.

Income Tax Act 2007 (c. 3)

237

The Income Tax Act 2007 is amended as follows.

238

In section 2 (overview of Act) after subsection (11) insert—

(11A) Part 11A is about leasing arrangements involving finance leases or loans.

239

In Schedule 4 (index of defined expressions) at the appropriate places insert—

accountancy rental earnings (in Part 11A)	section 614AB(1)”
“accountancy rental excess (in Chapter 2 of Part 11A)	section 614BH(1) to (4)”
“accountancy rental excess (in Chapter 3 of Part 11A)	section 614BH(1) to (4), as it has effect as a result of section 614CD”
“asset (in Part 11A)	section 614DG”
“asset representing the leased asset (in Part 11A)	section 614DD”
“cumulative accountancy rental excess (in Chapter 2 of Part 11A)	section 614BH(5)”
“cumulative accountancy rental excess (in Chapter 3 of Part 11A)	section 614BH(5), as it has effect as a result of section 614CD”
“cumulative normal rental excess (in Chapter 2 of Part 11A)	section 614BJ(5)”
“cumulative normal rental excess (in Chapter 3 of Part 11A)	section 614BJ(5), as it has effect as a result of section 614CD”
“the current lessor (in Part 11A)	section 614DG”
“finance lessor (in Part 11A)	section 614DG”
“for accounting purposes (in Part 11A)	section 614DG”
“lease (in Part 11A)	section 614DG”
“the leasing arrangements (in Part 11A)	section 614DG”
“the lessee (in Part 11A)	section 614DG”
“the lessor (in Part 11A)	section 614DG”
“major lump sum (in Part 11A)	section 614BC(5)”
“normal rent (in Part 11A)	section 614AA”
“normal rental excess (in Chapter 2 of Part 11A)	section 614BJ(1) to (4)”
“normal rental excess (in Chapter 3 of Part 11A)	section 614BJ(1) to (4), as it has effect as a result of section 614CD”
“pay (in Part 11A)	section 614DG”
“period of account (in Part 11A)	section 614DB(1) to (3)”
“post-25 November 1996 scheme (in Part 11A)	section 614D(1)(b)”
“pre-26 November 1996 scheme (in Part 11A)	section 614D(1)(a)”
“related period of account (in Part 11A)	section 614DB(5)”
“related tax year (in Part 11A)	section 614DB(4)”
“rent (in Part 11A)	section 614DG”
“the rental earnings (in Part 11A)	section 614AC”
“sum (in Part 11A)	section 614DG

Part 9 — Sale and lease-back etc

Income and Corporation Taxes Act 1988 (c. 1)

240

ICTA is amended as follows.

241

Omit section 24 (which has come to apply only for the interpretation of section 780 of ICTA).

242

Omit sections 779 to 785 (sale and lease-back etc).

Taxation of Chargeable Gains Act 1992 (c. 12)

243

TCGA 1992 is amended as follows.

244

In Schedule 8 (leases) in paragraph 9(2) (gain reduced by amount on which income tax charged by reference to a capital sum) for “section 785 of the Taxes Act” substitute “ section 681DM of ITA 2007 ”.

Broadcasting Act 1996 (c. 55)

245

The Broadcasting Act 1996 is amended as follows.

246

• (1) Amend Schedule 7 (transfer schemes: taxation provisions) as follows.

• (2) In paragraph 22(1) after “reliefs)” insert “ , and sections 681AD and 681AE of the Income Tax Act 2007 (which make corresponding provision), ”.

• (3) In paragraph 22(2)—

• (a) before “and” insert “ or section 681AA or 681AB of the Income Tax Act 2007 ”, and

• (b) after the second occurrence of “2010” (which is inserted by CTA 2010) insert “ or section 681AM of the Income Tax Act 2007 ”.

• (4) In paragraph 23(1) after “consideration)” insert “ , and Chapter 2 of Part 12A of the Income Tax Act 2007 (which makes corresponding provision), ”.

• (5) In paragraph 23(3) before “and sub-paragraph (2)” insert “ , or section 681BA of the Income Tax Act 2007, ”.

• (6) In paragraph 24(1) after “others)” insert “ and Chapter 4 of Part 12A of the Income Tax Act 2007 (which makes corresponding provision), ”.

• (7) In paragraph 24(2) for “leases: special cases)” substitute “ lease of trading asset), and section 681CC of the Income Tax Act 2007 (which makes corresponding provision), ”.

• (8) For paragraph 24(3) substitute—

(3) In sub-paragraph (1)— - “lease” has the meaning given by section 884 of the Corporation Tax Act 2010 or section 681DN of the Income Tax Act 2007, and - “relevant asset” has the meaning given by section 885 of the Corporation Tax Act 2010 or section 681DO of the Income Tax Act 2007. (4) In sub-paragraph (2)— - “lease” has the meaning given by section 868 of the Corporation Tax Act 2010 or section 681CF of the Income Tax Act 2007, and - “relevant asset” has the meaning given by section 869 of the Corporation Tax Act 2010 or section 681CG of the Income Tax Act 2007.

Finance Act 1999 (c. 16)

247

FA 1999 is amended as follows.

248

In section 97(6), in the definition of “lease”, for “sections 781 to 784 of the Taxes Act 1988” substitute “ Chapter 3 of Part 19 of CTA 2010 (see section 868) ”.

Greater London Authority Act 1999 (c. 29)

249

The Greater London Authority Act 1999 is amended as follows.

250

• (1) Amend paragraph 13 of Schedule 33 (taxation provisions: public-private partnership agreements: sale and leasebacks) as follows.

• (2) In sub-paragraph (1) before “shall” insert “ , nor any of sections 681AD, 681AE and 681CC of the Income Tax Act 2007 (which make corresponding provision), ”.

• (3) In sub-paragraph (2) for “that Act” substitute “ the Corporation Tax Act 2010 and Chapter 4 of Part 12A of the Income Tax Act 2007 ”.

Transport Act 2000 (c. 38)

251

The Transport Act 2000 is amended as follows.

252

In paragraph 15 of Schedule 7 (transfer schemes: tax: leased assets)—

• (a) in sub-paragraph (1) before “(assets” insert “ or Chapter 4 of Part 12A of the Income Tax Act 2007 ”, and

• (b) in sub-paragraph (2) for “that Act” substitute “ the Corporation Tax Act 2010 and section 681DI of the Income Tax Act 2007 ”.

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

253

ITTOIA 2005 is amended as follows.

254

• (1) Amend section 49 (car or motor cycle hire: supplementary) as follows.

• (2) In subsection (2)(a) omit “(see subsection (3))”.

• (3) For subsections (3) to (5) substitute—

(3) For this purpose “hire-purchase agreement” has the meaning given by section 998A of ITA 2007.

255

In section 100(4) (meaning of sale and lease-back arrangement) after “as is described in” insert “ section 681AA(1) or (2), 681AB(1) or (2) or 681BA of ITA 2007 or ”.

Income Tax Act 2007 (c. 3)

256

ITA 2007 is amended as follows.

257

In section 2 (overview of Act) after subsection (12) insert—

(12A) Part 12A is about sale and lease-back etc.

258

In section 989 at the appropriate place insert—

“hire-purchase agreement” is to be read in accordance with section 998A,

259

After section 998 insert—

(998A) (1) This section applies for the purposes of the provisions of the Income Tax Acts which apply this section. (2) A hire-purchase agreement is an agreement in whose case each of conditions A to C is met. (3) Condition A is that under the agreement goods are bailed (or in Scotland hired) in return for periodical payments by the person to whom they are bailed (or hired). (4) Condition B is that under the agreement the property in the goods will pass to the person to whom they are bailed (or hired) if the terms of the agreement are complied with and one or more of the following events occurs— (a) the exercise of an option to purchase by that person, (b) the doing of another specified act by any party to the agreement, (c) the happening of another specified event. (5) Condition C is that the agreement is not a conditional sale agreement. (6) In subsection (5) “conditional sale agreement” means an agreement for the sale of goods under which— (a) the purchase price or part of it is payable by instalments, and (b) the property in the goods is to remain in the seller (even though they are to be in the possession of the buyer) until conditions specified in the agreement are met (whether as to the payment of instalments or otherwise).

260

• (1) Amend section 1016(2) (table of provisions to which section applies) as follows.

• (2) In Part 2 of the table at the appropriate place insert—

Section 681BB(8) and (9)	New lease after assignment or surrender

• (3) In Part 2 of the table at the appropriate place insert—

Section 681DD	Leased assets: capital sums

• (4) In Part 3 of the table omit the entry for section 780(3A)(a) of ICTA.

• (5) In Part 3 of the table omit the entry for section 781(1) of ICTA.

261

In Schedule 4 (index of defined expressions) at the appropriate places insert—

associated (in Chapter 1 of Part 12A)	section 681AM”
“associates (in Chapter 4 of Part 12A)	section 681DL”
“capital sum (in Chapter 4 of Part 12A)	section 681DM”
“deduction by way of relevant income tax relief (in Chapter 1 of Part 12A)	section 681AC(1)”
“deduction by way of relevant income tax relief (in Chapter 2 of Part 12A)	section 681BK”
“deduction by way of relevant tax relief (in Chapter 4 of Part 12A)	section 681DP”
“dispositions of interests in land outside the United Kingdom (in Chapter 1 of Part 12A)	section 681AN”
“interests in land outside the United Kingdom (in Chapter 1 of Part 12A)	section 681AN”
“lease (in Chapter 1 of Part 12A)	section 681AL(2)”
“lease (in Chapter 2 of Part 12A)	section 681BM(2), (3)”
“lease (in Chapter 3 of Part 12A)	section 681CF”
“lease (in Chapter 4 of Part 12A)	section 681DN”
“lessee (in Chapter 2 of Part 12A)	section 681BM(4)”
“lessor (in Chapter 2 of Part 12A)	section 681BM(4)”
“linked (in relation to a person) (in Chapter 2 of Part 12A)	section 681BL”
“relevant asset (in Chapter 3 of Part 12A)	section 681CG”
“relevant asset (in Chapter 4 of Part 12A)	section 681DO”
“relevant deduction from earnings (in Chapter 1 of Part 12A)	section 681AC(2)”
“rent (in Chapter 1 of Part 12A)	section 681AL(3), (4)”
“rent (in Chapter 2 of Part 12A)	section 681BM(5)”
“sum obtained in respect of an interest in an asset (in Chapter 4 of Part 12A)	section 681DG”
“sum obtained in respect of the lessee's interest in a lease of an asset (in Chapter 4 of Part 12A)	section 681DH

Corporation Tax Act 2009 (c. 4)

262

CTA 2009 is amended as follows.

263

In section 97(4) (meaning of sale and lease-back arrangement) after “as is described in” insert “ section 681AA(1) or (2) or 681AB(1) or (2) of ITA 2007 or ”.

Part 10 — Factoring of income etc

Income and Corporation Taxes Act 1988 (c. 1)

264

ICTA is amended as follows.

265

Omit sections 774A to 774G (factoring of income receipts etc).

266

Omit section 786 (transactions associated with loans or credit).

Taxation of Chargeable Gains Act 1992 (c. 12)

267

TCGA 1992 is amended as follows.

268

• (1) Amend section 263E (structured finance arrangements) as follows.

• (2) In subsection (1)(a) for “section 774B of the Taxes Act” substitute “ section 809BZB or 809BZC of ITA 2007 ”.

• (3) In subsection (6) in the definition of “the borrower” for “section 774A of the Taxes Act” substitute “ the defining section ”.

• (4) In subsection (6) after the definition of “the borrower” insert—

“the defining section” in relation to a structured finance arrangement— (a) means section 809BZA of ITA 2007 if it is section 809BZB or 809BZC of ITA 2007 that applies in relation to the arrangement, and (b) means section 758 of CTA 2010 if it is section 759 or 760 of CTA 2010 that applies in relation to the arrangement,

• (5) In subsection (6) in the definition of “the lender” for “that section” substitute “ the defining section ”.

• (6) In subsection (6) in the definition of “security” for “subsection (2)(c) and (d) of that section” substitute “ subsection (2)(b) and (c) of the defining section ”.

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

269

ITTOIA 2005 is amended as follows.

270

After section 281 insert—

(281A) (1) This section applies if a grant of a lease constitutes a disposal of an asset for the purposes of section 809BZA(2)(b) or 809BZF(2)(a) of ITA 2007 (disposals under finance arrangements). (2) Sections 277 to 281 do not apply in relation to a premium paid in respect of the grant.

Income Tax Act 2007 (c. 3)

271

ITA 2007 is amended as follows.

272

In section 2(13) (overview of Part 13) omit the “or” after paragraph (e), and after paragraph (f) insert—

(g) finance arrangements (Chapter 5B), (h) loan or credit transactions (Chapter 5C),

273

For section 809AZE (transfers of income streams: exception for transfer by way of security) substitute—

(809AZE) (1) This Chapter does not apply if— (a) the consideration for the transfer is the advance under a type 1 finance arrangement, and (b) the transferor is, or is a member of a partnership which is, the borrower in relation to the arrangement. (2) This Chapter does not apply if— (a) the consideration for the transfer is the advance under a type 2 finance arrangement or a type 3 finance arrangement, and (b) the transferor is a member of the partnership which receives that advance under the arrangement. (3) In this section— - “type 1 finance arrangement” has the meaning given for the purposes of Chapter 5B by section 809BZA, - “type 2 finance arrangement” has the meaning given for the purposes of Chapter 5B by section 809BZF, and - “type 3 finance arrangement” has the meaning given for the purposes of Chapter 5B by section 809BZJ.

274

• (1) Amend section 1016(2) (table of provisions to which section applies) as follows.

• (2) In Part 2 of the table at the appropriate place insert—

Section 809CZC(2)	Income transferred under a loan or credit transaction

• (3) In Part 3 of the table omit the entry for section 786(5)(a) of ICTA.

275

In Schedule 4 (index of defined expressions) at the appropriate places insert—

accounts (in Chapter 5B of Part 13)	section 809BZQ”
“arrangements (in Chapter 5B of Part 13)	section 809BZR”
“disposal of an asset (in Chapter 5B of Part 13)	section 809BZS(3)”
“payments in respect of an asset (in Chapter 5B of Part 13)	section 809BZS(4)”
“person involved in a relevant change (in Chapter 5B of Part 13)	section 809BZG(5)”
“person receiving an asset (in Chapter 5B of Part 13)	section 809BZS(2)”
“relevant change in relation to a partnership (in Chapter 5B of Part 13)	section 809BZG”
“type 1 finance arrangement (in Chapter 5B of Part 13)	section 809BZA”
“type 2 finance arrangement (in Chapter 5B of Part 13)	section 809BZF”
“type 3 finance arrangement (in Chapter 5B of Part 13)	section 809BZJ

Part 11 — UK representatives of non-UK residents

Finance Act 1995 (c. 4)

276

FA 1995 is amended as follows.

277

Omit section 126 (UK representatives of non-residents).

278

Omit section 127 (persons not treated as UK representatives).

279

Omit Schedule 23 (obligations etc imposed on UK representatives).

Income Tax Act 2007 (c. 3)

280

ITA 2007 is amended as follows.

281

In section 2(14) (overview of Act)—

• (a) omit the “and” immediately after paragraph (b), and

• (b) after paragraph (b) insert—

(ba) rules about UK representatives of non-UK residents (Chapters 2B and 2C),

282

In section 813(2) (meaning of “disregarded income”) for “section 126 of, and Schedule 23 to, FA 1995 (UK representatives of non-UK residents)” substitute “ Chapter 2B ”.

283

• (1) Amend section 817 (independent broker conditions) as follows.

• (2) In subsection (3) omit “by the broker”.

• (3) In subsection (5) for “section 126 of, and Schedule 23 to, FA 1995” substitute “ Chapter 2B of this Part, or of Chapter 1 of Part 7A of TCGA 1992, ”.

284

In section 824 (application of 20% rule to collective investment schemes) at the end of subsection (2) insert “ (so far as the transaction is one in respect of which such amounts so arise or accrue) ”.

285

• (1) Amend section 1014(2) (orders and regulations to which section does not apply) as follows.

• (2) Omit paragraph (ba).

• (3) In paragraph (g)—

• (a) omit the word “and” at the end of sub-paragraph (iib), and

• (b) after that sub-paragraph insert—

(iic) section 835S(4) (meaning of “investment transaction”), and

286

In Schedule 4 (index of defined expressions) at the appropriate places insert—

beneficial entitlement (in Chapter 2B of Part 14)	section 835O(4)”
“branch or agency (in Chapter 2B of Part 14)	section 835S(2)”
“independent agent (in Chapter 2C of Part 14)	section 835Y”
“the independent broker conditions (in Chapter 2B of Part 14)	section 835L”
“the independent investment manager conditions (in Chapter 2B of Part 14)	section 835M”
“investment manager (in Chapter 2B of Part 14)	section 835S(3)”
“investment transaction (in Chapter 2B of Part 14)	section 835S(4)”
“qualifying period (in Chapter 2B of Part 14)	section 835O(2)”
“relevant disregarded income (in Chapter 2B of Part 14)	section 835O(3)

Part 12 — Amendments for purposes connected with other tax law rewrite Acts

Solicitors (Northern Ireland) Order 1976 (S.I. 1976/582 (N.I. 12))

287

The Solicitors (Northern Ireland) Order 1976 is amended as follows.

288

In paragraph 38(3) of Schedule 1A for the words from the beginning to “1988” substitute “ In sections 748(4), 749 and 771(5) and (6) of the Income Tax Act 2007 ”.

Administration of Justice Act 1985 (c. 61)

289

The Administration of Justice Act 1985 is amended as follows.

290

In paragraph 36(3) of Schedule 2 for “749,” substitute “ 748(4), 749 and ”.

Income and Corporation Taxes Act 1988 (c. 1)

291

ICTA is amended as follows.

292

Omit section 59(3) and (4) (person answerable for tax charged in accordance with section 12 of ITTOIA 2005 on profits of markets or fairs, or on tolls, fisheries or other profits not distrainable).

Broadcasting Act 1996 (c. 55)

293

The Broadcasting Act 1996 is amended as follows.

294

• (1) Amend paragraph 19 of Schedule 7 (no profit or loss by reason of a direct disposal transfer) as follows.

• (2) For the words from the beginning of the paragraph to “accrue to the BBC” substitute “ In determining for the purposes of Part 3 of the Corporation Tax Act 2009 the profits or losses of a trade or part of a trade carried on by the BBC wholly or partly in the United Kingdom, it is to be assumed that no profits or losses arise to the BBC ”.

• (3) In sub-paragraph (a) for “section 100 of the Taxes Act 1988” substitute “ section 163 of the Corporation Tax Act 2009 ”.

• (4) In the italic heading preceding the paragraph for “Case I of Schedule D” substitute “ Part 3 of the Corporation Tax Act 2009 ”.

Greater London Authority Act 1999 (c. 29)

295

The Greater London Authority Act 1999 is amended as follows.

296

In paragraph 7 of Schedule 33 (taxation provisions: revenue nature of payments under public-private partnership agreements)—

• (a) in sub-paragraph (a) for “Case I of Schedule D” substitute “ Part 3 of the Corporation Tax Act 2009 ”, and

• (b) in sub-paragraph (b) for “Case I of Schedule D” substitute “ Part 3 of the Corporation Tax Act 2009 ”.

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

297

ITEPA 2003 is amended as follows.

298

In section 211(2) (which refers to section 215, which in turn now refers to section 776(1) of ITTOIA 2005 in place of section 331(1) of ICTA) for “section 331 of ICTA” substitute “ section 776(1) of ITTOIA 2005 ”.

299

In section 215 (which now refers to section 776(1) of ITTOIA 2005 in place of section 331(1) of ICTA) in the title for “section 331 of ICTA” substitute “ section 776(1) of ITTOIA 2005 ”.

300

In section 331(1) (Part 5 is to be read with section 835(3) and (4) of ICTA) for “section 835(3) and (4) of ICTA” substitute “ section 25(1) to (3) of ITA 2007 ”.

Finance Act 2004 (c. 12)

301

FA 2004 is amended as follows.

302

• (1) Amend section 318 (interpretation of Part 7) as follows.

• (2) In subsection (1)—

• (a) after the definition of “arrangements” insert—

“company” has the meaning given by section 1121 of the Corporation Tax Act 2010;

, and

• (b) after the definition of “tax” insert—

“trade” includes every venture in the nature of trade.

• (3) Omit subsection (2).

Finance Act 2005 (c. 7)

303

FA 2005 is amended as follows.

304

Omit section 48B(6) to (8) (alternative finance arrangements: alternative finance investment bonds).

305

In Schedule 2 (alternative finance arrangements: further provisions) omit paragraph 9.

Income Tax Act 2007 (c. 3)

306

ITA 2007 is amended as follows.

307

In section 887(4) (industrial and provident society payments) for “section 486(7) of ICTA” substitute “ section 500(2) of CTA 2009 ”.

Corporation Tax Act 2009 (c. 4)

308

CTA 2009 is amended as follows.

309

Before section 1 insert—

(A1) (1) The main Acts relating to corporation tax are— (a) this Act (which covers the ground described in section 1), (b) CTA 2010 (which covers the ground described in section 1 of that Act), and (c) TCGA 1992 (so far as relating to chargeable gains accruing to a company in respect of which the company is chargeable to corporation tax). (2) Enactments relating to corporation tax are also contained in other Acts: see in particular— (a) Chapter 1 of Part 12 of ICTA (insurance companies), (b) Chapter 4 of Part 17 of that Act (controlled foreign companies), (c) Schedule 18 to FA 1998 (company tax returns, assessments and related matters), (d) Schedule 22 to FA 2000 (tonnage tax), (e) CAA 2001 (allowances for capital expenditure), (f) Part 2 of TIOPA 2010 (double taxation relief), (g) Parts 4 and 5 of that Act (transfer pricing and advance pricing agreements), (h) Part 6 of that Act (tax arbitrage), (i) Part 7 of that Act (tax treatment of financing costs and income), and (j) Part 8 of that Act (offshore funds). (3) Schedule 1 to the Interpretation Act 1978 defines “the Corporation Tax Acts” as the enactments relating to the taxation of the income and chargeable gains of companies and of company distributions (including provisions relating to income tax).

310

In section 39(2) (profits of mines, quarries and other concerns) for “clause” substitute “ section ”.

311

In section 1269 (interpretation of sections 1267 and 1268) in the title for “clauses” substitute “ sections ”.

312

In paragraph 75 of Schedule 2 (transitional provision and savings: investment bond arrangements) at the end insert—

(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.

Part 13 — General

Taxes Management Act 1970 (c. 9)

313

TMA 1970 is amended as follows.

314

In section 118(1) after the definition of “the 1992 Act” insert—

“TIOPA 2010” means the Taxation (International and Other Provisions) Act 2010,

Income and Corporation Taxes Act 1988 (c. 1)

315

ICTA is amended as follows.

316

In section 831(3) (interpretation of ICTA) after the definition of “the Management Act” insert—

“TIOPA 2010” means the Taxation (International and Other Provisions) Act 2010;

Taxation of Chargeable Gains Act 1992 (c. 12)

317

TCGA 1992 is amended as follows.

318

• (1) Amend section 287 (powers to make orders or regulations under enactments relating to the taxation of chargeable gains) as follows.

• (2) In subsection (1) (powers to be exercisable by statutory instrument) for “subsection (2)” substitute “ subsections (2) and (2A) ”.

• (3) After subsection (2) insert—

(2A) Subsection (1) above shall not apply in relation to any power conferred by TIOPA 2010 (see instead section 372 of that Act).

319

In section 288(1) (interpretation) after the definition of “the Taxes Act” insert—

“TIOPA 2010” means the Taxation (International and Other Provisions) Act 2010;

Finance Act 1998 (c. 36)

320

FA 1998 is amended as follows.

321

• (1) Amend Schedule 18 (company tax returns etc) as follows.

• (2) In paragraph 25(1) (scope of enquiries) for the words from “a transfer pricing notice” to “arbitrage)” substitute “ a notice within sub-paragraph (3) ”.

• (3) In paragraph 25 after sub-paragraph (2) insert—

(3) A notice is within this sub-paragraph if it is— (a) a notice under section 184G or 184H of the Taxation of Chargeable Gains Act 1992 (avoidance involving capital losses), (b) a notice under section 81(2) of TIOPA 2010 (schemes and arrangements designed to increase relief), (c) a transfer pricing notice under section 168(1) of TIOPA 2010 (provision not at arm's length: medium-sized enterprise), or (d) a notice under section 232 or 249 of TIOPA 2010 (avoidance involving tax arbitrage).

• (4) In paragraph 42(2A) (disapplication of restrictions on power to make discovery assessment or determination) for the words after “return, a notice” substitute “ within sub-paragraph (4). ”

• (5) In paragraph 42 after sub-paragraph (3) insert—

(4) A notice is within this sub-paragraph if it is— (a) a notice under section 184G or 184H of the Taxation of Chargeable Gains Act 1992 (avoidance involving capital losses), (b) a notice under section 81(2) of TIOPA 2010 (schemes and arrangements designed to increase relief), or (c) a notice under section 232 or 249 of TIOPA 2010 (avoidance involving tax arbitrage).

• (6) After paragraph 97 insert—

(97A) In this Schedule “TIOPA 2010” means the Taxation (International and Other Provisions) Act 2010.

• (7) In the list in paragraph 98 after the entry for “tax payable” insert—

TIOPA 2010	paragraph 97A

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

322

ITEPA 2003 is amended as follows.

323

In Part 1 of Schedule 1 (abbreviations of Acts etc) after the entry for CTA 2010 (which is inserted by CTA 2010) insert—

TIOPA 2010	The Taxation (International and Other Provisions) Act 2010

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

324

ITTOIA 2005 is amended as follows.

325

In Part 1 of Schedule 4 (abbreviations of Acts) after the entry for CTA 2010 (which is inserted by CTA 2010) insert—

TIOPA 2010	The Taxation (International and Other Provisions) Act 2010

Income Tax Act 2007 (c. 3)

326

ITA 2007 is amended as follows.

327

In section 1014(2) (orders and regulations under the Income Tax Acts to which the section does not apply) for “and” after paragraph (f) substitute—

(fa) TIOPA 2010 (see instead section 372 of that Act), and

328

In section 1017 (abbreviated references to Acts) for the “and” at the end of the definition of “TCGA 1992” substitute—

“TIOPA 2010” means the Taxation (International and Other Provisions) Act 2010, and

Corporation Tax Act 2009 (c. 4)

329

CTA 2009 is amended as follows.

330

In section 1312 (abbreviated references to Acts) after the definition of “TCGA 1992” insert—

“TIOPA 2010” means the Taxation (International and Other Provisions) Act 2010,

Finance Act 2009 (c. 10)

331

FA 2009 is amended as follows.

332

In section 126(1) (abbreviated references to Acts) after the entry for TCGA 1992 insert—

“TIOPA 2010” means the Taxation (International and Other Provisions) Act 2010,

SCHEDULE 9 — Transitionals and savings etc

Part 1 — General provisions

Continuity of the law: general

1

The repeal of provisions and their enactment in a rewritten form by this Act does not affect the continuity of the law.

2

Paragraph 1 does not apply to any change made by this Act in the effect of the law.

3

Any subordinate legislation or other thing which—

• (a) has been made or done, or has effect as if made or done, under or for the purposes of a superseded enactment so far as it applied for relevant tax purposes, and

• (b) is in force or effective immediately before the commencement of the corresponding rewritten provision,

has effect after that commencement as if made or done under or for the purposes of the rewritten provision.

4

• (1) Any reference (express or implied) in this Act, another enactment or an instrument or document to a rewritten provision is to be read as including, in relation to times, circumstances or purposes in relation to which any corresponding superseded enactment had effect for relevant tax purposes, a reference to the superseded enactment so far as applying for those relevant tax purposes.

• (2) Any reference (express or implied) in this Act, another enactment or an instrument or document to—

• (a) things done under or for the purposes of a rewritten provision, or

• (b) things falling to be done under or for the purposes of a rewritten provision,

is to be read as including, in relation to times, circumstances or purposes in relation to which any corresponding superseded enactment had effect for relevant tax purposes, a reference to things done or falling to be done under or for the purposes of the superseded enactment so far as applying for those relevant tax purposes.

5

• (1) Any reference (express or implied) in any enactment, instrument or document to a superseded enactment in its application for relevant tax purposes is to be read, so far as is required for those relevant tax purposes, as including, in relation to times, circumstances or purposes in relation to which any corresponding rewritten provision has effect, a reference to the rewritten provision.

• (2) Any reference (express or implied) in any enactment, instrument or document to—

• (a) things done under or for the purposes of a superseded enactment in its application for relevant tax purposes, or

• (b) things falling to be done under or for the purposes of a superseded enactment in its application for relevant tax purposes,

is to be read, so far as is required for those relevant tax purposes, as including, in relation to times, circumstances or purposes in relation to which any corresponding rewritten provision has effect, a reference to things done or falling to be done under or for the purposes of the rewritten provision.

6

Paragraphs 1 to 5 have effect instead of section 17(2) of the Interpretation Act 1978 (but are without prejudice to any other provision of that Act).

7

Paragraphs 4 and 5 apply only so far as the context permits.

General saving for old transitional provisions and savings

8

• (1) The repeal by this Act of a transitional or saving provision relating to the coming into force of a provision rewritten in this Act does not affect the operation of the transitional or saving provision, so far as it is not specifically rewritten in this Act but remains capable of having effect in relation to the corresponding provision of this Act.

• (2) The repeal by this Act of an enactment previously repealed subject to savings does not affect the continued operation of those savings.

• (3) The repeal by this Act of a saving on the previous repeal of an enactment does not affect the operation of the saving so far as it is not specifically rewritten in this Act but remains capable of having effect.

Interpretation

9

• (1) In this Part—

• “enactment” includes subordinate legislation (within the meaning of the Interpretation Act 1978),

• “relevant tax purposes” means, in relation to a superseded enactment, tax purposes for which the enactment has been rewritten by this Act, and

• “superseded enactment” means an earlier enactment which has been rewritten by this Act for certain tax purposes (whether it applied only for those purposes or for those and other tax purposes).

• (2) References in this Part to the repeal of a provision include references to its revocation and to its express or implied disapplication for particular tax purposes.

Part 2 — Changes in the law

10

• (1) This paragraph applies if, in the case of any person—

• (a) a thing is done or an event occurs before 1 April 2010, and

• (b) because of a change in the law made by this Act, the corporation tax consequences of that thing or event for the relevant period are different from what they would otherwise have been.

• (2) This paragraph also applies if, in the case of any person—

• (a) a thing is done or an event occurs before 6 April 2010, and

• (b) because of a change in the law made by this Act, the income tax consequences of that thing or event for the relevant period are different from what they would otherwise have been.

• (3) If the person so elects, this Act applies with such modifications as may be necessary to secure that the consequences for that tax for that period are the same as they would have been if the change in the law had not been made.

• (4) In sub-paragraphs (1) and (2) “the relevant period” means—

• (a) for corporation tax purposes, any accounting period beginning before and ending on or after 1 April 2010, and

• (b) for income tax purposes, any period of account beginning before and ending on or after 6 April 2010.

• (5) If this paragraph applies in the case of two or more persons in relation to the same thing or event, an election made under this paragraph by any one of those persons is of no effect unless a corresponding election is made by the other or each of the others.

• (6) An election under this paragraph must be made—

• (a) for corporation tax purposes, not later than 2 years after the end of the accounting period, and

• (b) for income tax purposes, on or before the first anniversary of the 31 January following the tax year in which the period of account ends.

Part 3 — Double taxation relief

Conversion of references to the profits tax in old arrangements

11

• (1) Sub-paragraph (2) applies to any arrangements—

• (a) made in relation to the profits tax (which was abolished by section 46(3) of FA 1965), and

• (b) specified in an Order in Council made—

• (i) under section 347 of the Income Tax Act 1952, or

• (ii) under any earlier enactment corresponding to that section.

• (2) The arrangements have effect—

• (a) in relation to corporation tax as they are expressed to have effect in relation to the profits tax (and not as they had effect in relation to income tax), and

• (b) in relation to income to which the charge to corporation tax on income applies, and in relation to gains to which the charge to corporation tax on chargeable gains applies, as they are expressed to have effect in relation to profits chargeable to the profits tax,

but with the substitution of accounting periods for chargeable accounting periods.

• (3) Sub-paragraph (2) applies subject to any contrary provision contained in arrangements—

• (a) made after the passing of FA 1965 (which was passed on 5 August 1965), and

• (b) specified in an Order in Council made—

• (i) under section 347 of the Income Tax Act 1952, or

• (ii) under any later enactment corresponding to that section.

• (4) Sub-paragraph (2) applies despite section 18(5) of this Act.

Effect in relation to capital gains tax of arrangements given effect before introduction of that tax

12

Any arrangements specified in an Order in Council made under section 347 of the Income Tax Act 1952 before 5 August 1965, so far as they provide (in whatever terms) for relief from tax chargeable in the United Kingdom on capital gains, have effect in relation to capital gains tax.

Double taxation arrangements to which section 11(3) applies

13

Section 11(3) does not have effect in relation to arrangements made before 21 March 2000.

Unilateral relief for underlying tax on dividends

14

• (1) Condition C in section 15 (credit for underlying tax on dividend paid to sub-10% associate) is not met if the reduction below the 10% limit took place before 1 April 1972.

• (2) Condition C in section 16 (credit for underlying tax on dividend paid by exchanged associate) is not met if the exchange took place before 1 April 1972.

Time limits for claims for relief

15

• (1) If article 10 of the 2009 Order applies—

• (a) section 19(2)(a) (claims for relief under section 18(2) in relation to income tax or capital gains to be made by fourth anniversary of end of tax year) has effect at times before 1 April 2012 as if for “fourth anniversary of the end of” there were substituted “ fifth anniversary of the 31 January next following ”,

• (b) section 19(3)(a) (claims for relief under section 18(2) in relation to corporation tax to be made within 4 years) has effect at times before 1 April 2012 as if for “4” there were substituted “ 6 ”,

• (c) section 77(3)(a) (claims for relief under section 73(1) to be made within 4 years) has effect at times before 1 April 2012 as if for “four” there were substituted “ 6 ”, and

• (d) section 43D(5) of TMA 1970 (which is inserted by Part 1 of Schedule 8 and is about claims for relief under sections 2 to 6 in relation to petroleum revenue tax) has effect at times before 1 April 2012 as if for “4 years after the end of” there were substituted “ 5 years after the 31 January next following ”.

• (2) In sub-paragraph (1) “the 2009 Order” means the Finance Act 2008, Schedule 39 (Appointed Day, Transitional Provision and Savings) Order 2009 (S.I. 2009/403).

Taking account of underlying tax

16

In relation to distributions paid before 1 July 2009, the amount of any income or gain is not to be increased under section 31(2)(b) by so much of any underlying tax within section 31(3)(a) as represents relievable underlying tax, within the meaning of sections 806A to 806J of ICTA, arising in respect of another dividend and treated as underlying tax under those sections.

Reduction in credit: payment by reference to foreign tax

17

Section 34 does not have effect in relation to payments made before 22 April 2009.

Credit against corporation tax on trade income: anti-avoidance

18

Section 45(2) has effect in relation to a credit for foreign tax only if the credit relates to—

• (a) a payment of foreign tax on or after 22 April 2009, or

• (b) income received on or after that date in respect of which foreign tax has been deducted at source.

Credit against corporation tax on trade income: banks

19

Section 49 has effect in relation to a credit for foreign tax only if the credit relates to—

• (a) a payment of foreign tax on or after 22 April 2009, or

• (b) income received on or after that date in respect of which foreign tax has been deducted at source.

Meaning of “relevant profits” in section 58

20

In relation to dividends paid before 1 July 2009, section 59 has effect with the following modifications—

• (a) the omission of subsections (2) and (3),

• (b) in subsection (4), the omission of “is not within subsection (3) but”, and

• (c) in subsection (5), the omission of “is not within subsection (3) and”.

Conditions for relief for underlying tax paid by company lower in dividend-paying chain

21

Section 65(3)(a) applies with the omission of sub-paragraph (ii) if the dividend paid by the second company to the first company is paid before 22 April 2009.

Application of sections 109 and 110 in relation to pre-1 October 2007 cases

22

• (1) Section 109 does not apply in the case of a debtor repo, within the meaning given by section 548 of CTA 2009, if the arrangement mentioned in that section of that Act came into force before 1 October 2007.

• (2) Section 110 does not apply in the case of a stock lending arrangement, within the meaning given by section 263B of TCGA 1992, under which the lender transfers securities to the borrower otherwise than by way of sale before 1 October 2007.

• (3) This Act has effect with the modifications set out in sub-paragraphs (4) and (5), but those modifications—

• (a) do not apply in the case of a debtor repo, within the meaning given by section 548 of CTA 2009, if the arrangement mentioned in that section comes into force on or after 1 October 2007, and

• (b) do not apply in the case of a stock lending arrangement, within the meaning given by section 263B of TCGA 1992, under which the lender transfers securities to the borrower otherwise than by way of sale on or after 1 October 2007.

• (4) In section 108(3) for “section 109 or 110” substitute “ section 109A ”.

• (5) For sections 109 and 110 substitute—

(109A) (1) Tax attributable to interest accruing to a company under a loan relationship is within this section if— (a) at the time when the interest accrues, the company has ceased to be a party to the relationship as a result of having made the initial transfer under or in accordance with any repo or stock-lending arrangements relating to the relationship, and (b) that time is in the period for which those arrangements have effect. (2) In this section “repo or stock-lending arrangements”, in relation to a loan relationship, means (subject to subsection (3)) any arrangements consisting in or involving an agreement or series of agreements under which provision is made— (a) for the transfer from one person (“A”) to another of any rights under the relationship, and (b) for A subsequently to be or become entitled, or required— (i) to have the same or equivalent rights transferred to A, or (ii) to have rights in respect of benefits accruing in respect of the relationship on redemption. (3) Arrangements are not repo or stock-lending arrangements for the purposes of this section if they are excluded from section 730A of ICTA by section 730A(8) of ICTA. (4) For the purposes of subsection (2) rights under a loan relationship are equivalent to rights under another loan relationship if they entitle the holder of an asset representing the relationship— (a) to the same rights against the same persons as to capital, interest and dividends, and (b) to the same remedies for the enforcement of those rights, despite any difference in the total nominal amounts of the assets, in the form in which they are held or in the manner in which they can be transferred. (5) In this section— (a) “the initial transfer”, in relation to any repo or stock-lending arrangements, is a reference to the transfer mentioned in subsection (2)(a), and (b) a reference to the period for which repo or stock-lending arrangements have effect is a reference to the period from the making of the initial transfer until whichever is the earlier of the following— (i) the discharge of the obligations arising by virtue of the entitlement or requirement mentioned in subsection (2)(b), or (ii) the time when it becomes apparent that the discharge of those obligations will not take place.

Income increased by amounts paid by reference to foreign tax for which deduction allowed

23

Section 112(3) does not have effect in relation to payments made before 22 April 2009.

Offshore fund treated after 1 December 2009 as distributing fund under repealed Chapter 5 of Part 17 of ICTA

24

In paragraph 5(4)(b) of Schedule 27 to ICTA (offshore funds: distributing funds) as it has effect as a result of paragraph 3 of Schedule 1 to the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), the reference to section 811 of ICTA is to be treated as a reference to section 112 of this Act.

Limited effect of amendments of sections 806A to 806J of ICTA

25

The amendments in sections 806A to 806J of ICTA that are made by Part 1 of Schedule 8 have effect only in relation to distributions paid before 1 July 2009.

Interpretative rules saved for the purposes of applying sections 806A to 806K of ICTA to distributions paid before 1 July 2009

26

• (1) Despite their repeal by this Act, the saved rules have effect for the purposes of applying sections 806A to 806K of ICTA in relation to distributions paid—

• (a) before 1st July 2009, but

• (b) in accounting periods ending on or after 1st April 2010.

• (2) In this paragraph “the saved rules” means the following provisions of ICTA—

• (a) section 788(4),

• (b) in section 788(5), the first two sentences,

• (c) section 790(12), and

• (d) section 792.

• (3) The saved rules, so far as having effect as mentioned in sub-paragraph (1), have effect with the following modifications.

• (4) Section 788(4) of ICTA has effect as if for “by virtue of this section” there were substituted “ under section 2(1) of TIOPA 2010 ”.

• (5) In section 788(5) of ICTA the first sentence has effect as if for the words before “any amount of tax” there were substituted “ For the purposes of Chapter 2 of this Part in its application to relief under sections 2 and 6 of TIOPA 2010, but subject to section 31(4) of TIOPA 2010, ”.

• (6) Section 790(12) of ICTA has effect as if for the words from the beginning to “unilateral relief,” there were substituted “ In Chapter 2 of this Part in its application to relief under section 18(1)(b) and (2) of TIOPA 2010, ”.

• (7) Section 792(1) of ICTA has effect as if—

• (a) for “by virtue of section 788” (in both places) there were substituted “ under section 2(1) of TIOPA 2010 ”,

• (b) for “Chapter 7 of Part 3 of the Finance Act 2004” there were substituted “ Part 3 of TIOPA 2010 ”, and

• (c) for “section 790” there were substituted “ section 18(1)(b) and (2) of TIOPA 2010 ”.

• (8) Section 792 of ICTA has effect as if after subsection (3) there were (by way of relocation of provisions of section 790(3) of ICTA) inserted—

(4) Any expression in this Chapter which imports a reference to relief under arrangements for the time being having effect under section 2(1) of TIOPA 2010 shall be deemed to import also a reference to unilateral relief.

Repealed references to Part 18 of ICTA saved for purposes of sections 806A to 806K of ICTA

27

• (1) Sub-paragraph (2) has effect for the purposes of applying sections 806A to 806K of ICTA in relation to distributions paid—

• (a) before 1st July 2009, but

• (b) in accounting periods ending on or after 1st April 2010.

• (2) The reference to Part 2 of this Act contained in each of the provisions mentioned in sub-paragraph (3) is to be treated as including a reference to Part 18 of ICTA.

• (3) The provisions are—

• (a) paragraph 4(2) of Schedule 26 to ICTA (controlled foreign companies: dividends), and

• (b) sections 140H(3), 140I(3) and 140J(3) of TCGA 1992 (foreign tax not charged as a result of Mergers Directive to be treated as charged).

Part 4 — Transfer pricing

Transfer pricing: meaning of potential advantage

28

Section 155(6)(b) does not have effect in relation to distributions paid before 1 July 2009.

Part 5 — Advance pricing agreements

29

• (1) An agreement made before 27 July 1999 cannot have effect as an advance pricing agreement for the purposes of Part 5.

• (2) Section 218(1)(c) (agreement must contain declaration that it is made for the purposes of section 218) applies in relation to an agreement made before 1 April 2010 as if after “this section” there were inserted “ or a declaration that it is made for the purposes of section 85 of FA 1999 ”.

Part 6 — Tax avoidance (arbitrage)

Arbitrage: contributions to capital of UK resident companies before 16 March 2005

30

Sections 249 to 254 (tax arbitrage: receipt notices) do not apply in relation to any contribution to the capital of a UK resident company made before 16 March 2005.

Part 7 — Tax treatment of financing costs and income

Periods of account in relation to which Part 7 does not have effect

31

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

Exclusion of certain debits and credits

32

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

Part 8 — Offshore funds

Restriction on regulation-making power under section 354

33

• (1) Regulations under section 354 may not make provision about the treatment of a person in respect of any rights in an affected offshore fund that are acquired by the person—

• (a) before 1 December 2009, or

• (b) in accordance with sub-paragraph (3).

• (2) Sub-paragraph (1) is subject to paragraph 34.

• (3) Rights are acquired by a person in accordance with this sub-paragraph if—

• (a) the rights are acquired by the person in accordance with a legally enforceable agreement in writing that was entered into by the person before 30 April 2009,

• (b) in the case of a conditional agreement, the conditions are satisfied before that date, and

• (c) the agreement is not varied on or after that date.

• (4) For the purposes of this paragraph rights of a person in a fund are rights in an affected offshore fund if—

• (a) the fund is an offshore fund within the meaning of section 354, but

• (b) on the date on which the person acquired them, the fund was not an offshore fund within the meaning of Chapter 5 of Part 17 of ICTA.

34

Paragraph 33 does not prevent regulations under section 354 making—

• (a) provision for a person to elect to be treated in accordance with the regulations in respect of rights referred to in that paragraph, or

• (b) provision that does not increase the person's liability to tax in respect of such rights.

Part 9 — Oil activities

Regional development grants

35

In relation to periods of account (within the meaning given by section 6 of CAA 2001) beginning before 6 April 2011—

• (a) section 225K(3)(b) of ITTOIA 2005 has effect as if—

• (i) “ , 3 ” were inserted after “Part 2”, and

• (ii) “ , industrial buildings ” were inserted after “machinery”, and

• (b) section 225L(3) and (7) of that Act have effect as if “ , 3 ” were inserted after “Part 2”.

Reimbursement by defaulter in respect of certain abandonment expenditure

36

• (1) If article 10 of the 2009 Order applies, section 225T(5) of ITTOIA 2005 has effect at times before 1 April 2012 as if for “4” there were substituted “ 6 ”.

• (2) In sub-paragraph (1) “the 2009 Order” means the Finance Act 2008, Schedule 39 (Appointed Day, Transitional Provision and Savings) Order 2009 (S.I. 2009/403).

Part 10 — Alternative finance arrangements

Alternative finance arrangements entered into before certain dates etc

37

• (1) The alternative finance provisions do not apply to purchase and resale arrangements entered into before 6 April 2005 or diminishing shared ownership arrangements entered into before the relevant date.

• (2) If deposit arrangements, profit share agency arrangements or investment bond arrangements were entered into before the relevant date, the alternative finance provisions only apply if alternative finance return is payable under the arrangements on or after the relevant date and then—

• (a) apply for the purposes of income tax in relation to payments of alternative finance return under the arrangements to a person other than a company on or after the relevant date (so far as relevant to the tax year 2010-11 and subsequent tax years), and

• (b) if a company is a party to the arrangements, apply in relation to the company in respect of the arrangements with effect from the relevant date (so far as relevant to those tax years or, as the case may be, any accounting period ending on or after 1 April 2010).

• (3) Sub-paragraph (2) is subject to sub-paragraph (4).

• (4) For the purposes of income tax and capital gains tax in relation to the disposal after 6 April 2007 of investment bond arrangements (whenever entered into), the relevant provisions are treated as always having had effect.

• (5) An order made under section 1005 of ITA 2007 (recognised stock exchanges: designation) that includes such provision as is mentioned in section 1005(2A) may be expressed as respects that provision—

• (a) to have had effect as from 1 April 2007 for the purposes of arrangements entered into on or after that date, and

• (b) for the purposes mentioned in sub-paragraph (4) as always having had effect.

• (6) In this paragraph—

• “alternative finance provisions” means—section 367A of ICTA 1988,Chapter 4 of Part 4 of TCGA 1992, andPart 10A and section 1005(2A) of ITA 2007,

• “alternative finance return” has the same meaning as in Chapter 4 of Part 4 of TCGA 1992 (see section 151S of that Act) or Chapter 10A of ITA 2007 (see section 564L of that Act),

• “deposit arrangements”, “diminishing shared ownership arrangements”, “investment bond arrangements”, “profit share agency arrangements” and “purchase and resale arrangements” have the same meaning as in Chapter 4 of Part 4 of TCGA 1992 (see section 151H(3) of that Act) or Chapter 10A of ITA 2007 (see section 564A(3) of that Act),

• “the relevant date” means—in the case of deposit arrangements, 6 April 2005,in the case of diminishing shared ownership arrangements or profit share agency arrangements, for income tax purposes 6 April 2006, andin the case of investment bond arrangements, for corporation tax purposes 1 April 2007 and for income tax and capital gains tax purposes 6 April 2007, and

• “the relevant provisions” means—for income tax purposes, sections 564G, 564L(3) to (5), and 564S to 564U of ITA 2007 and section 1005(2A) of that Act so far as it relates to section 564G of that Act, andfor capital gains tax purposes, sections 151N, 151S(3) and (4) and 151T to 151W of TCGA 1992 and section 1005(2A) of ITA 2007 so far as it relates to section 151N of TCGA 1992.

Alternative finance arrangements not offshore funds

38

So far as Chapter 5 of Part 17 of ICTA continues to apply for any purpose, references to section 354 of this Act in section 151W(b) of TCGA 1992, section 564U(b) of ITA 2007 and section 519(4)(b) of CTA 2009 are to be read for that purpose as references to that Chapter.

Alternative finance arrangements entered into before 15 October 2009

39

• (1) In relation to arrangements entered into before 15 October 2009, Part 10A of ITA 2007 (alternative finance arrangements) applies with the following modifications.

• (2) In section 564B(1) (meaning of “financial institution”)—

• (a) in paragraph (e) for “, diminishing shared ownership arrangements or profit share agency arrangements” substitute “ or diminishing shared ownership arrangements ”,

• (b) at the end of that paragraph insert “ or ”,

• (c) omit paragraph (g) and “or” at the end of that paragraph, and

• (d) omit paragraph (h).

• (3) In section 564F(1) (profit share agency arrangements)—

• (a) in paragraph (a) for “an agent” substitute “ a financial institution as agent ”, and

• (b) omit paragraph (b).

40

• (1) In relation to arrangements entered into before 15 October 2009, Chapter 4 of Part 4 of TCGA 1992 (alternative finance arrangements) applies with the following modifications.

• (2) In section 151I(1) (meaning of “financial institution”)—

• (a) in paragraph (e) for “, diminishing shared ownership arrangements or profit share agency arrangements” substitute “ or diminishing shared ownership arrangements ”,

• (b) at the end of that paragraph insert “ or ”,

• (c) omit paragraph (g) and “or” at the end of that paragraph, and

• (d) omit paragraph (h).

• (3) In section 151M(1) (profit share agency arrangements)—

• (a) in paragraph (a) for “an agent” substitute “ a financial institution as agent ”, and

• (b) omit paragraph (b).

Part 11 — Sale and lease-back etc

New lease of land after assignment or surrender: right to new lease existed pre-22 June 1971

41

• (1) Sub-paragraphs (2) and (3) apply if—

• (a) each of conditions A to D in section 681BA of ITA 2007, or each of conditions A to D in section 850 of CTA 2010, is met (new lease granted to, or to person linked with, lessee under assigned or surrendered lease),

• (b) condition E in that section is not met (condition that no right to new lease existed before 22 June 1971), and

• (c) the rent under the new lease is payable by a person within the charge to income tax.

• (2) No part of the rent paid under the new lease is to be treated as a payment of capital.

• (3) The provisions of ITTOIA 2005 providing for deductions or allowances by way of income tax relief in respect of payments of rent apply in relation to the rent under the new lease.

• (4) Section 681BM of ITA 2007 (meaning of “rent” etc) applies for the purposes of this paragraph.

Part 12 — Factoring of income etc

Application of Chapter 5B of Part 13 of ITA 2007 (finance arrangements) to pre-6 June 2006 arrangements

42

Chapter 5B of Part 13 of ITA 2007 (which is inserted by Schedule 5 to this Act) has no effect in relation to an arrangement made before 6 June 2006 so far as section 43B or 43D of ICTA applies to the arrangement (sections 43B and 43D of ICTA contain provision about rent factoring: their repeal by paragraph 1 of Schedule 6 to FA 2006 does not apply in relation to pre-6 June 2006 transactions).

Application of section 809BZN of ITA 2007 (finance arrangements: exceptions)

43

• (1) In relation to a transfer before 22 April 2009, section 809BZN of ITA 2007 (which is inserted by Schedule 5 to this Act) has effect as if after subsection (1) there were inserted—

(1A) For the purposes of subsection (1) the effect of section 785A of ICTA (rent factoring of leases of plant or machinery) is to be disregarded.

• (2) If the arrangement mentioned in section 809BZN of ITA 2007 came into force before 1 October 2007, subsection (5)(b) of that section applies as if for “Schedule 13 to FA 2007 or Chapter 10 of Part 6 of CTA 2009” there were substituted “ paragraph 15 of Schedule 9 to FA 1996 ”.

• (3) Paragraph 14(6) of Schedule 13 to FA 2007 (when an arrangement is in force) applies for the purposes of sub-paragraph (2) of this paragraph as for those of that Schedule.

• (4) In the case of plant or machinery which is the subject of a sale and finance leaseback (as defined in section 221 of CAA 2001) where the date of the transaction (within the meaning of that section) is before 9 October 2007, section 809BZN(8) of ITA 2007 has effect as if at the end there were inserted “, but in applying that section it is to be assumed that the words “and which are not a long funding lease in the case of the lessor” were omitted from section 219(1)(b) of that Act (meaning of “finance lease”)”.

• (5) In relation to transactions referred to in section 228A(2)(a) of CAA 2001 (as substituted by paragraph 12 of Schedule 20 to FA 2008) and entered into before 9 October 2007, section 809BZN(9) of ITA 2007 has effect as if at the end there were inserted “ with the modifications contained in section 228F of that Act ”.

Application of section 809CZC of ITA 2007 (income-transfer under loan or credit transaction)

44

In relation to a transfer before 22 April 2009, section 809CZC(4) of ITA 2007 (which is inserted by Schedule 5 to this Act) has effect as if—

• (a) after “the person” there were inserted “ assigns, ” and

• (b) after “it” there were inserted “ (without a sale or transfer of the property) ”.

Part 13 — Miscellaneous relocations

Application of sections 925A to 925F of ITA 2007 (repos)

45

• (1) Sections 925A to 925F and 926(1A) of ITA 2007 (which are inserted by Part 19 of Schedule 7 to this Act) do not have effect in relation to an arrangement that comes into force before 1 October 2007.

• (2) Paragraph 14(6) of Schedule 13 to FA 2007 (when an arrangement is in force) applies for the purposes of sub-paragraph (1) of this paragraph as for those of that Schedule.

SCHEDULE 10 — Repeals and revocations

Part 1 — Double taxation relief

In section 88—

In section 153—

In section 26(1)(b)—

In section 32—

Part 2 — Transfer pricing and advance pricing agreements

Reference	Extent of repeal or revocation
Taxes Management Act 1970 (c. 9)	In the second column of the Table in section 98, the entry for section 86(4) of FA 1999.
Income and Corporation Taxes Act 1988 (c. 1)	Section 770A.
Income and Corporation Taxes Act 1988 (c. 1)	Schedule 28AA.
Finance Act 1998 (c. 36)	Section 108(1) and (2).
Finance Act 1998 (c. 36)	Sections 110 and 111.
Finance Act 1998 (c. 36)	Schedule 16.
Finance Act 1999 (c. 16)	Sections 85 to 87.
Capital Allowances Act 2001 (c. 2)	In Schedule 2, paragraph 68.
Finance Act 2001 (c. 9)	In Schedule 29, paragraphs 35 and 38(1) to (3).
Finance Act 2002 (c. 23)	In Schedule 23, paragraph 21.
Finance Act 2002 (c. 23)	In Schedule 27, paragraph 15.
Finance Act 2004 (c. 12)	Sections 30 to 32.
Finance Act 2004 (c. 12)	Section 34(2) and (3).
Finance Act 2004 (c. 12)	Sections 35 and 36.
Finance Act 2004 (c. 12)	In Schedule 5, paragraphs 11 to 13.
Income Tax (Trading and Other Income) Act 2005 (c. 5)	In Schedule 1, paragraphs 351 and 508.
Finance (No. 2) Act 2005 (c. 22)	In Schedule 8, paragraph 1.
Finance Act 2006 (c. 25)	In Schedule 13, paragraph 26.
Income Tax Act 2007 (c. 3)	In Schedule 1, paragraph 239.
Income Tax Act 2007 (Amendment) (No. 3) Order 2007 (S.I. 2007/3506)	Article 2(4).
Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56)	In Schedule 1, paragraphs 162(2) and (4) and 252.
Corporation Tax Act 2009 (c. 4)	In Schedule 1, paragraph 291(2) to (4), (5)(b), (6) and (8).
Finance Act 2009 (c. 10)	In Schedule 14, paragraph 14.
Finance Act 2009 (c. 10)	In Schedule 15, paragraph 96.

Part 3 — Tax arbitrage

Reference	Extent of repeal
Finance (No. 2) Act 2005 (c. 22)	Sections 24 to 31 and Schedule 3.
Corporation Tax Act 2009 (c. 4)	In Schedule 1, paragraphs 670 and 671.
Finance Act 2009 (c. 10)	In Schedule 24, paragraph 6.

Part 4 — Tax treatment of financing costs and income

Reference	Extent of repeal
Taxes Management Act 1970 (c. 9)	In the first column of the Table in section 98, the entry for regulations under Schedule 15 to FA 2009.
Finance Act 2009	Section 35.
Finance Act 2009	In Schedule 15, paragraphs 1 to 95 and 97 to 99.

Part 5 — Offshore funds

Reference	Extent of repeal
Finance Act 2008 (c. 9)	Sections 40A to 42A.
Finance Act 2009	In section 44, the words from “Part 1” to “funds), and”.
Finance Act 2009	In Schedule 22, Part 1.

Part 6 — Oil activities

Reference	Extent of repeal
Finance Act 1982 (c. 39)	In Schedule 19, paragraph 10(7).
Income and Corporation Taxes Act 1988 (c. 1)	Section 493(1) to (6).
Income and Corporation Taxes Act 1988 (c. 1)	Sections 495 and 496.
Income and Corporation Taxes Act 1988 (c. 1)	Section 502(1) and (2).
Finance Act 1990 (c. 29)	Section 62(3).
Finance Act 1991 (c. 31)	Sections 62 to 65.
Finance (No. 2) Act 1992 (c. 48)	Section 55.
Petroleum Act 1998 (c. 17)	In Schedule 4, paragraph 25.
Finance Act 1998 (c. 36)	Section 152(3).
Capital Allowances Act 2001 (c. 2)	In Schedule 2, paragraphs 42 and 73.
Finance Act 2004 (c. 12)	Section 285(7).
Finance Act 2004 (c. 12)	In Schedule 37, paragraphs 10 and 11.
Income Tax (Trading and Other Income) Act 2005 (c. 5)	In Schedule 1, paragraphs 192 to 194.
Finance Act 2006 (c. 25)	Section 151.
Finance Act 2006 (c. 25)	In Schedule 18, paragraph 12(3)(b) and (7).
Finance Act 2008 (c. 9)	Section 104.
Finance Act 2008 (c. 9)	In Schedule 27, paragraph 21.
Finance Act 2008 (c. 9)	In Schedule 39, paragraph 27.
Corporation Tax Act 2009 (c. 4)	In Schedule 1, paragraph 356.

Part 7 — Alternative finance arrangements

Reference	Extent of repeal or revocation
Taxation of Chargeable Gains Act 1992 (c. 12)	Section 151F.
Finance Act 2005 (c. 7)	Sections 46 to 47A, 48(1), 48A, 48B(1) to (5) and (9) and 49 to 57.
Finance Act 2005 (c. 7)	In Schedule 2, paragraphs 1, 8 and 10 to 13.
Finance Act 2006	Section 95(1) to (8) and (11).
Finance Act 2006	Sections 96 to 98.
Income Tax Act 2007 (c. 3)	In Schedule 1, paragraphs 597 to 599.
Finance Act 2007 (c. 11)	Section 53(1) to (10), (13) and (14).
Finance Act 2007 (c. 11)	Section 54.
Employment Income (Meaning of Securities) Order 2007 (S.I. 2007/2130)	The whole Order.
Finance Act 2008	Section 156.
Alternative Finance Arrangements (Community Investment Tax Relief) Order 2008 (S.I. 2008/1821)	The whole Order.
Corporation Tax Act 2009	Section 521.
Corporation Tax Act 2009	Section 1310(5).
Corporation Tax Act 2009	In Schedule 1, paragraphs 649 to 661 and 683.
Finance Act 2009 (c. 10)	In Schedule 61, paragraph 27.

Part 8 — Leasing arrangements: finance leases and loans

Reference	Extent of repeal
Finance Act 1997 (c. 16)	Section 82.
Finance Act 1997 (c. 16)	In Schedule 12, paragraphs 1 to 7, 9 to 17 and 20 to 30.
Finance Act 1998 (c. 36)	In Schedule 7, paragraph 12.
Capital Allowances Act 2001 (c. 2)	In Schedule 2, paragraph 98.
Finance Act 2002 (c. 23)	Section 103(4)(e).
Income Tax (Trading and Other Income) Act 2005 (c. 5)	In Schedule 1, paragraph 494.
Finance Act 2006 (c. 25)	In Schedule 9, paragraph 7.
Finance Act 2008 (c. 9)	In Schedule 2, paragraph 69(3).
Corporation Tax Act 2009 (c. 4)	In Schedule 1, paragraphs 447 and 448.

Part 9 — Sale and lease-back etc

Reference	Extent of repeal or revocation
Income and Corporation Taxes Act 1988 (c. 1)	Section 24.
Income and Corporation Taxes Act 1988 (c. 1)	Sections 779 to 785.
Finance Act 1996 (c. 8)	In Schedule 21, paragraph 21.
Finance Act 1998	In Schedule 7, in paragraph 1, the entries for provisions of sections 779, 780, 781, 782 and 785 of ICTA.
Capital Allowances Act 2001	In Schedule 2, paragraph 57.
Income Tax (Earnings and Pensions) Act 2003 (c. 1)	In Schedule 6, paragraphs 101 and 102.
Finance Act 2004, Sections 38 to 40 and 45 and Schedule 6 (Consequential Amendment of Enactments) Order 2004 (S.I. 2004/2310)	In the Schedule, paragraphs 32 and 33.
Income Tax (Trading and Other Income) Act 2005	In section 49(2)(a), the words “(see subsection (3))”.
Income Tax (Trading and Other Income) Act 2005	In Schedule 1, paragraphs 314 to 319.
Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229)	Regulation 98.
Finance Act 2006	In Schedule 9, paragraph 3.
Income Tax Act 2007 (c. 3)	In section 1016(2), in Part 3 of the table, the entries for sections 780(3A)(a) and 781(1) of ICTA.
Income Tax Act 2007 (c. 3)	In Schedule 1, paragraphs 187 to 190.
Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56)	In Schedule 1, paragraph 156(2).
Corporation Tax Act 2009 (c. 4)	In Schedule 1, paragraphs 13(2)(a), 232(2) and (3)(b) and (d), 233, 234(3) and (4)(a) and (c) and 236.

Part 10 — Factoring of income etc