Corporation Tax Act 2009
Corporation Tax Act 2009 (2009 c. 4)
- Corporation Tax Act 2009 (2009 c. 4)
- Part 1 Introduction
- A1 Overview of the Corporation Tax Acts
- 1 Overview of Act
- Part 2 Charge to corporation tax: basic provisions
- Chapter 1 The charge to corporation tax
- Charge to tax on profits
- 2 Charge to corporation tax
- 3 Exclusion of charge to income tax
- 4 Exclusion of charge to capital gains tax
- General scheme of corporation tax
- 5 Territorial scope of charge
- 5A Arrangements for avoiding tax
- 5B Trade of dealing in or developing UK land
- 6 Profits accruing in fiduciary or representative capacity
- 7 Profits accruing under trusts
- 8 How tax is charged and assessed
- Chapter 2 Accounting periods
- 9 Beginning of accounting period
- 10 End of accounting period
- 11 Companies with more than one accounting date
- 12 Companies being wound up
- Chapter 3 Company residence
- 13 Overview of Chapter
- 14 Companies incorporated in the United Kingdom
- 15 Continuation of residence established under common law
- 16 SEs which transfer registered office to the United Kingdom
- 17 SCEs which transfer registered office to the United Kingdom
- 18 Companies treated as non-UK resident under double taxation arrangements
- CHAPTER 3A UK RESIDENT COMPANIES: PROFITS OF FOREIGN PERMANENT ESTABLISHMENTS
- Exemption
- 18A Exemption for profits or losses of foreign permanent establishments
- 18B Chargeable gains etc
- 18C Capital allowances etc
- 18CA Income arising from immovable property
- 18CB Profits and losses from investment business
- 18D Payments subject to deduction
- 18E Employee share acquisitions
- 18F Effect of election
- Anti-diversion rule
- 18G Anti-diversion rule
- 18H What are “diverted profits”?
- 18HA Modification of Chapter 3 of Part 9A of TIOPA 2010
- 18HB Modification of Chapter 4 of Part 9A of TIOPA 2010
- 18HC Modification of Chapter 5 of Part 9A of TIOPA 2010
- 18HD Modification of Chapter 7 of Part 9A of TIOPA 2010
- 18HE Modification of Chapter 9 of Part 9A of TIOPA 2010
- 18I Exemptions from anti-diversion rule
- 18IA The excluded territories exemption
- 18IB The low profits exemption
- 18IC The low profit margin exemption
- 18ID The tax exemption
- Companies with total opening negative amount
- 18J Companies with total opening negative amount
- 18K Total opening negative amount: “matching”
- 18L Streaming
- 18M Streamed opening negative amounts: “matching”
- 18N Residual opening negative amount: “matching”
- 18O Transfers of foreign permanent establishment business
- Special cases
- 18P Exclusions
- 18Q Insurance companies
- Interpretation
- 18R Meaning of “full treaty territory”
- 18S Other interpretation
- Chapter 4 Non-UK resident companies: chargeable profits
- Chargeable profits
- 19 Chargeable profits
- 20 Profits attributable to permanent establishment: introduction
- The separate enterprise principle
- 21 The separate enterprise principle
- 22 Transactions treated as being on arm's length terms
- 23 Provision of goods or services for permanent establishment
- 24 Application to insurance companies
- The separate enterprise principle: application to non-UK resident banks
- 25 Non-UK resident banks: introduction
- 26 Transfer of financial assets
- 27 Loans: attribution of financial assets and profits arising
- 28 Borrowing: permanent establishment acting as agent or intermediary
- Rules about deductions
- 29 Allowable deductions
- 30 Restriction on deductions: costs
- 31 Restriction on deductions: payments in respect of intangible assets
- 32 Restriction on deductions: interest or other financing costs
- Chapter 5 Supplementary
- 33 Trade includes office
- Part 3 Trading income
- Chapter 1 Introduction
- 34 Overview of Part
- Chapter 2 Income taxed as trade profits
- Charge to tax on trade profits
- 35 Charge to tax on trade profits
- Trades and trade profits
- 36 Farming and market gardening
- 37 Commercial occupation of woodlands
- 38 Commercial occupation of land other than woodlands
- 39 Profits of mines, quarries and other concerns
- 40 Credit unions
- 40A. Payments to company directors
- 40B. Professionals in practice: incidental income from an office or employment
- Starting and ceasing to trade
- 41 Effect of company starting or ceasing to be within charge to corporation tax
- Trading income and property income
- 42 Tied premises
- 43 Caravan sites where trade carried on
- 44 Surplus business accommodation
- 45 Payments for wayleaves
- Chapter 3 Trade profits: basic rules
- 46 Generally accepted accounting practice
- 47 Losses calculated on same basis as profits
- 48 Receipts and expenses
- 49 Items treated as receipts and expenses
- 49A Money's worth
- 50 Animals kept for trade purposes
- 51 Relationship between rules prohibiting and allowing deductions
- 52 Apportionment etc of profits and losses to accounting period
- Chapter 4 Trade profits: rules restricting deductions
- 53 Capital expenditure
- 54 Expenses not wholly and exclusively for trade and unconnected losses
- 55 Bad debts
- 56 Car ... hire
- 57 Car ... hire: supplementary
- 58 Hiring cars (but not motor cycles) with low CO2 emissions before 1 April 2013
- 58A Short-term hiring in and long-term hiring out
- 58B Connected persons: application of section 56
- 59 Patent royalties
- 60 Expenditure on integral features
- 60A Rental rebates
- Chapter 5 Trade profits: rules allowing deductions
- Pre-trading expenses
- 61 Pre-trading expenses
- Tenants under taxed leases
- 62 Tenants under taxed leases: introduction
- 63 Tenants occupying land for purposes of trade treated as incurring expenses
- 64 Limit on deductions if tenant entitled to mineral extraction allowance
- 65 Tenants dealing with land as property employed for purposes of trade
- 66 Restrictions on section 63 expenses: lease premium receipts
- 67 Restrictions on section 63 expenses: lease of part of premises
- ...
- 68 Replacement and alteration of trade tools
- Payments for restrictive undertakings
- 69 Payments for restrictive undertakings
- Seconded employees
- 70 Employees seconded to charities and educational establishments
- 71 Educational establishments
- Contributions to agents' expenses
- 72 Payroll deduction schemes: contributions to agents' expenses
- Counselling and retraining expenses
- 73 Counselling and other outplacement services
- 74 Retraining courses
- 75 Retraining courses: recovery of tax
- Redundancy payments etc
- 76 Redundancy payments and approved contractual payments
- 77 Payments in respect of employment wholly in employer's trade
- 78 Payments in respect of employment in more than one capacity
- 79 Additional payments
- 80 Application of section 79 in cases involving partnerships
- 81 Payments made by the Government
- Contributions to local enterprise organisations or urban regeneration companies
- 82 Contributions to local enterprise organisations or urban regeneration companies
- 83 Meaning of “local enterprise organisation”
- 84 Approval of local enterprise agencies
- 85 Supplementary provisions with respect to approvals
- 86 Meaning of “urban regeneration company”
- Contributions to flood and coastal erosion risk management projects
- 86A Contributions to flood and coastal erosion risk management projects
- 86B Interpretation of section 86A
- Scientific research
- 87 Expenses of research and development
- 88 Payments to research associations, universities etc
- Expenses connected with patents, designs and trade marks
- 89 Expenses connected with patents
- 90 Expenses connected with designs or trade marks
- Export Credits Guarantee Department
- 91 Payments to Export Credits Guarantee Department
- Levies under FISMA 2000
- 92 Levies etc under FISMA 2000
- Limited liability partnerships: salaried members
- 92A Deductions in relation to salaried members
- Chapter 6 Trade profits: receipts
- Capital receipts
- 93 Capital receipts
- Debts released
- 94 Debts incurred and later released
- Amounts received following earlier cessation
- 95 Acquisition of trade: receipts from transferor's trade
- Reverse premiums
- 96 Reverse premiums
- 97 Excluded cases
- 98 Tax treatment of reverse premiums
- 99 Arrangements not at arm's length
- 100 Connected persons and property arrangements
- Other receipts
- 101 Distribution of assets of mutual concerns
- 102 Industrial development grants
- 103 Sums recovered under insurance policies etc
- 104 Repayments under FISMA 2000
- CHAPTER 6A Trade profits: R&D expenditure credits
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- Chapter 7 Trade profits: gifts to charities etc
- Relief for certain gifts
- 105 Gifts of trading stock to charities etc
- 106 Meaning of “designated educational establishment”
- 107 Gifts of medical supplies and equipment
- Benefits associated with gifts
- 108 Receipt of benefits by donor or connected person
- Chapter 8 Trade profits: herd basis rules
- Introduction
- 109 Election for application of herd basis rules
- 110 Meaning of “animal”, “herd”, “production herd” etc
- 111 Other interpretative provisions
- The herd basis rules
- 112 Initial cost of herd and value of herd
- 113 Addition of animals to herd
- 114 Replacement of animals in herd
- 115 Amount of receipt if old animal slaughtered under disease control order
- 116 Sale of animals from herd
- 117 Sale of whole or substantial part of herd
- 118 Acquisition of new herd begun within 5 years of sale
- 119 Section 118: sale for reasons outside farmer's control
- 120 Replacement of part sold begun within 5 years of sale
- 121 Section 120: sale for reasons outside farmer's control
- Elections
- 122 Herd basis elections
- 123 Five year gap in which no production herd kept
- 124 Slaughter under disease control order
- Preventing abuse of the herd basis rules
- 125 Preventing abuse of the herd basis rules
- Supplementary
- 126 Information if election made
- 127 Further assessment etc if herd basis rules apply
- CHAPTER 8A COMPENSATION FOR COMPULSORY SLAUGHTER OF ANIMALS
- 127A Application of Chapter 8A
- 127B Right to make claim
- 127C Book value
- 127D Effect of claim for spreading of profits
- 127E Adjustment: cessation of trading
- 127F Time limits etc for spreading claim
- 127G Interpretation
- Chapter 9 Trade profits: other specific trades
- Dealers in securities etc
- 128 Taxation of amounts taken to reserves
- 129 Conversion etc of securities held as circulating capital
- Insurers
- 130 Insurers receiving distributions etc
- 130A Insurers in financial difficulties: write-down orders
- Building societies
- 131 Incidental costs of issuing qualifying shares
- Registered societies
- 132 Dividends etc granted by registered societies
- Credit unions
- 133 Annual payments paid by a credit union
- Banking companies
- 133A Compensation payments: restriction of deductions
- 133B Companies affected by section 133A: amounts treated as received
- 133C The disclosure condition
- 133D Excluded expenses
- 133E Meaning of “banking company”
- 133F “Excluded company”
- 133G Meaning of “relevant regulated activity”
- 133H Investment bank
- 133I Meaning of “insurance company”
- 133J Meaning of “customer”
- 133K “Compensation” and related expressions
- 133L Associated companies
- 133M Application of sections 133A and 133B in relation to corporate partner
- 133N Powers to amend
- Dealers in land etc
- 134 Purchase or sale of woodlands
- 135 Relief in respect of mineral royalties
- 136 Lease premiums etc: reduction of receipts
- Mineral exploration and access
- 137 Mineral exploration and access
- Companies liable to pool betting duty
- 138 Payments by companies liable to pool betting duty
- Intermediaries treated as making employment payments
- 139 Deduction for deemed employment payment
- 140 Special rules for partnerships
- Managed service companies
- 141 Deduction for deemed employment payments
- Worker's services provided through intermediary to public authority or medium or large client
- 141A Intermediaries providing worker's services to public authority or medium or large client
- Waste disposal
- 142 Deduction for site preparation expenditure
- 143 Allocation of site preparation expenditure
- 144 Site preparation expenditure: supplementary
- 145 Site restoration payments
- Cemeteries and crematoria: interests in land
- 146 Cemeteries and crematoria: introduction
- 147 Deduction for capital expenditure
- 148 Allocation of ancillary capital expenditure
- 149 Exclusion of expenditure met by subsidies
- Crematoria: niches, memorials and inscriptions
- 149A Niches, memorials and inscriptions: introduction
- 149B Allowable deductions: niches
- 149C Allowable deductions: memorials
- 149D Allowable deductions: inscriptions
- 149E Costs of the building
- Sound recordings
- 150 Revenue nature of expenditure
- 151 Allocation of expenditure
- 152 Interpretation of sections 150 and 151
- Reserves of marketing authorities etc
- 153 Reserves of marketing authorities and certain other statutory bodies
- 154 Conditions to be met by reserve fund
- 155 Interpretation of sections 153 and 154
- Chapter 10 Trade profits: changes in trading stock
- Introduction
- 156 Meaning of “trading stock”
- Transfers of trading stock between trade and trader
- 157 Trading stock appropriated by trader
- 158 Trading stock supplied by trader
- Other disposals and acquisitions not made in the course of trade
- 159 Disposals not made in the course of trade
- 160 Acquisitions not made in the course of trade
- Relationship with transfer pricing rules
- 161 Transfer pricing rules to take precedence
- Chapter 11 Trade profits: valuation of stock on cessation of trade
- 162 Valuation of trading stock on cessation
- 163 Meaning of “trading stock”
- 164 Basis of valuation of trading stock
- 165 Sale basis of valuation: sale to unconnected person
- 166 Sale basis of valuation: sale to connected person
- 167 Sale basis of valuation: election by connected persons
- 168 Connected persons
- 169 Cost to buyer of stock valued on sale basis of valuation
- 170 Meaning of “sale” and related expressions
- 171 Determination of questions
- Chapter 12 Deductions from profits: unremittable amounts
- 172 Application of Chapter
- 173 Relief for unremittable amounts
- 174 Restrictions on relief
- 175 Withdrawal of relief
- Chapter 13 Disposal and acquisition of know-how
- 176 Meaning of “know-how” etc
- 177 Disposal of know-how if trade continues to be carried on
- 178 Disposal of know-how as part of disposal of all or part of a trade
- 179 Seller controlled by buyer etc
- Chapter 14 Adjustment on change of basis
- Adjustment on change of basis
- 180 Application of Chapter
- 181 Giving effect to positive and negative adjustments
- 182 Calculation of the adjustment
- Expenses previously brought into account
- 183 No adjustment for certain expenses previously brought into account
- Realising or writing off assets
- 184 Cases where adjustment not required until assets realised or written off
- Mark to market
- 185 Change from realisation basis to mark to market
- 186 Election for spreading if section 185 applies
- 187 Transfer of insurance business
- Chapter 15 Post-cessation receipts
- Charge to tax on post-cessation receipts
- 188 Charge to tax on post-cessation receipts
- 189 Extent of charge to tax
- Meaning of “post-cessation receipts”
- 190 Basic meaning of “post-cessation receipt”
- 191 Other rules about what counts as post-cessation receipts
- Sums treated as post-cessation receipts
- 192 Debts paid after cessation
- 193 Debts released after cessation
- 194 Transfer of rights if transferee does not carry on trade
- Sums that are not post-cessation receipts
- 195 Transfer of trading stock
- Deductions
- 196 Allowable deductions
- 197 Further rules about allowable deductions
- Election to carry back
- 198 Election to carry back
- 199 Deductions already made are not displaced
- 200 Election given effect in accounting period in which receipt is received
- Chapter 16 Priority rules
- 201 Provisions which must be given priority over this Part
- Part 4 Property income
- Chapter 1 Introduction
- 202 Overview of Part
- Chapter 2 Property businesses
- Introduction
- 203 Overview of Chapter
- 204 Meaning of “property business”
- Basic meaning of UK and overseas property business
- 205 UK property business
- 206 Overseas property business
- Generating income from land
- 207 Meaning of “generating income from land”
- 208 Activities not for generating income from land
- Chapter 3 Profits of property businesses: basic rules
- Charge to tax on profits of a property business
- 209 Charge to tax on profits of a property business
- Calculation of profits
- 210 Profits of a property business: application of trading income rules
- 211 Loan relationships and derivative contracts
- 212 Items treated as receipts and expenses
- 213 Certain amounts brought into account under Part 3
- 214 Relationship between rules prohibiting and allowing deductions
- Chapter 4 Profits of property businesses: lease premiums etc
- Introduction
- 215 Overview of Chapter
- 216 Meaning of “short-term lease”
- Amounts treated as receipts: leases
- 217 Lease premiums
- 218 Amount treated as lease premium where work required
- 219 Sums payable instead of rent
- 220 Sums payable for surrender of lease
- 221 Sums payable for variation or waiver of terms of lease
- 221A Sums to which sections 217 to 221 do not apply
- 222 Assignments for profit of lease granted at undervalue
- 223 Provisions supplementary to section 222
- Other amounts treated as receipts
- 224 Sales with right to reconveyance
- 225 Sale and leaseback transactions
- 226 Provisions supplementary to sections 224 and 225
- Additional calculation rule for reducing certain receipts
- 227 Circumstances in which additional calculation rule applies
- 228 The additional calculation rule
- 229 The additional calculation rule: special cases
- 230 Meaning of “unused amount” and “unreduced amount”
- Deductions in relation to certain receipts
- 231 Deductions for expenses under section 232
- 232 Tenants under taxed leases treated as incurring expenses
- 233 Restrictions on section 232 expenses: the additional calculation rule
- 234 Restrictions on section 232 expenses: lease of part of premises
- Limit on effect of additional calculation rule and deductions
- 235 Limit on reductions and deductions
- Certain administrative provisions
- 236 Payment of tax by instalments
- 237 Statement of accuracy for purposes of section 222
- 238 Claim for repayment of tax payable by virtue of section 224
- 239 Claim for repayment of tax payable by virtue of section 225
- Determinations affecting liability of more than one person
- 240 Appeals against proposed determinations
- 241 Section 240: supplementary
- 242 Determination by tribunal
- Effective duration of lease
- 243 Rules for determining effective duration of lease
- 244 Applying the rules in section 243
- 245 Information about effective duration of lease
- Other interpretative provisions
- 246 Provisions about premiums
- 247 Interpretation
- Chapter 5 Profits of property businesses: other rules about receipts and deductions
- Furnished accommodation: receipts and deductions
- 248 Furnished lettings
- ...
- 248A Wear and tear allowance: election
- 248B Meaning of “eligible” in relation to a dwelling-house
- 248C Effect of wear and tear allowance election
- Treatment of receipts on acquisition of business
- 249 Acquisition of business: receipts from transferor's UK property business
- Reverse premiums as receipts
- 250 Reverse premiums
- Deduction for replacement of domestic items
- 250A Replacement domestic items relief
- Deductions for expenditure on energy-saving items
- 251 Deduction for expenditure on energy-saving items
- 252 Restrictions on relief
- 253 Regulations
- Deductions for expenditure on sea walls
- 254 Deduction for expenditure on sea walls
- 255 Transfer of interest in premises
- 256 Ending of lease of premises
- 257 Transfer involving person within the charge to income tax
- Mineral royalties
- 258 Relief in respect of mineral royalties
- Apportionments on sale of land
- 259 Nature of item apportioned on sale of estate or interest in land
- Mutual business
- 260 Mutual business
- Adjustment on change of basis
- 261 Adjustment on change of basis
- 262 Giving effect to positive and negative adjustments
- Integral features
- 263 Expenditure on integral features
- Chapter 6 Commercial letting of furnished holiday accommodation
- Introduction
- 264 Overview of Chapter
- Definition
- 265 Meaning of “commercial letting of furnished holiday accommodation”
- 266 Meaning of “relevant period” in sections 267 and 268
- 267 Meaning of “qualifying holiday accommodation”
- 268 Under-used holiday accommodation: averaging elections
- 268A Under-used holiday accommodation: letting condition not met
- Separate profit calculations
- 269 Capital allowances and loss relief: UK property business
- 269A Capital allowances and loss relief: overseas property business
- Chapter 7 Rent receivable in connection with a UK section 39(4) concern
- Charge to tax on rent receivable in connection with a UK section 39(4) concern
- 270 Charge to tax on rent receivable in connection with a UK section 39(4) concern
- 271 Meaning of “rent receivable in connection with a UK section 39(4) concern”
- Management expenses of owner of mineral rights
- 272 Deduction for management expenses of owner of mineral rights
- Mineral royalties
- 273 Relief in respect of mineral royalties
- 274 Meaning of “mineral lease or agreement” and “mineral royalties”
- 275 Extended meaning of “mineral royalties” etc in Northern Ireland
- 276 Power to determine what counts as “mineral royalties”
- Chapter 8 Rent receivable for UK electric-line wayleaves
- Charge to tax on rent receivable for UK electric-line wayleaves
- 277 Charge to tax on rent receivable for a UK electric-line wayleave
- 278 Meaning of “rent receivable for a UK electric-line wayleave”
- 279 Extent of charge to tax
- Chapter 9 Post-cessation receipts
- Charge to tax on post-cessation receipts
- 280 Charge to tax on post-cessation receipts
- 281 Extent of charge to tax
- Meaning of “post-cessation receipts”
- 282 Basic meaning of “post-cessation receipt”
- 283 Other rules about what counts as a “post-cessation receipt”
- 284 Transfer of rights if transferee does not carry on UK property business
- Deductions
- 285 Allowable deductions
- Election to carry back
- 286 Election to carry back
- Chapter 10 Supplementary
- Priority rules
- 287 Provisions which must be given priority over this Part
- 288 Priority between Chapters within this Part
- Other supplementary provisions
- 289 Effect of company starting or ceasing to be within charge to corporation tax
- 290 Overseas property businesses and overseas land: adaptation of rules
- 291 Meaning of “lease” and “premises”
- Part 5 Loan Relationships
- Chapter 1 Introduction
- Introduction
- 292 Overview of Part
- 293 Construction of references to profits or losses from loan relationships
- 294 Matters treated as loan relationships
- How profits and deficits from loan relationships are dealt with
- 295 General rule: profits arising from loan relationships chargeable as income
- 296 Profits and deficits to be calculated using credits and debits given by this Part
- 297 Trading credits and debits to be brought into account under Part 3
- 298 Meaning of trade and purposes of trade
- 299 Charge to tax on non-trading profits
- 300 Method of bringing non-trading deficits into account
- 301 Calculation of non-trading profits and deficits from loan relationships: non-trading credits and debits
- Chapter 2 Basic definitions
- 302 “Loan relationship”, “creditor relationship”, “debtor relationship”
- 303 “Money debt”
- 304 “Related transaction”
- 305 Payments, interest, rights and liabilities under a loan relationship
- Chapter 3 The credits and debits to be brought into account: general
- Introduction
- 306 Overview of Chapter
- Matters in respect of which amounts are to be brought into account
- 306A Matters in respect of which amounts to be brought into account
- General principles about the bringing into account of credits and debits
- 307 General principles about the bringing into account of credits and debits
- Amounts recognised in determining a company's profit or loss
- 308 Amounts recognised in determining a company's profit or loss
- 309 Companies without GAAP-compliant accounts
- 310 Power to make regulations about recognised amounts
- 311 Amounts not fully recognised for accounting purposes: introduction
- 312 Determination of credits and debits where amounts not fully recognised
- Accounting bases
- 313 Basis of accounting: “amortised cost basis”, “fair value accounting” and “fair value”
- 314 Power to make regulations about changes from amortised cost basis
- Adjustments on change of accounting basis
- 315 Introduction to sections 316 and 318
- 316 Change of basis of accounting involving change of value
- 317 Carrying value
- 318 Change of accounting basis following cessation of loan relationship
- 319 General power to make regulations about changes in accounting policy
- Rules differing from generally accepted accounting practice
- 320 Credits and debits treated as relating to capital expenditure
- 320A Amounts recognised in other comprehensive income and not transferred to profit or loss
- 320B Hybrid capital instruments: amounts recognised in equity
- 321 Credits and debits recognised in equity
- 321A Restriction on debits resulting from release of loans to participators etc
- 322 Release of debts: cases where credits not required to be brought into account
- 323 Meaning of expressions relating to insolvency etc
- 323A Substantial modification: cases where credits not required to be brought into account
- 323B Insurers in financial difficulties: write-down orders
- 324 Restriction on debits resulting from revaluation
- 325 Restriction on credits resulting from reversal of disallowed debits
- 326 Writing off government investments
- 327 Disallowance of imported losses etc
- Exchange gains and losses
- 328 Exchange gains and losses
- 328A Arrangements that have a “one-way exchange effect”
- 328B Meaning of “relevant exchange gain” and “relevant exchange loss”
- 328C Meaning of “test day”
- 328D Counterfactual currency movement assumptions
- 328E Counterfactual currency movement assumptions: treatment of options
- 328F Meaning of “option”
- 328G Meaning of “relevant contingent contract” and “operative condition”
- 328H Other interpretative provisions
- Pre-loan relationship, abortive and pre-trading expenses
- 329 Pre-loan relationship and abortive expenses
- 330 Debits in respect of pre-trading expenditure
- Pre-commencement debits of property businesses etc of non-UK resident companies
- 330ZA Debits referable to times before UK property business etc carried on
- Company is not, or has ceased to be, party to loan relationship
- 330A Company is not, or has ceased to be, party to loan relationship
- 330B Exclusion of debit where relief allowed to another
- 330C Avoidance of double charge
- Company ceasing to be party to loan relationship
- 331 Company ceasing to be party to loan relationship
- 332 Repo, stock lending and other transactions
- Company moving abroad
- 333 Company ceasing to be UK resident
- 334 Non-UK resident company ceasing to hold loan relationship for section 333(2) purposes
- Chapter 4 Continuity of treatment on transfers within groups or on reorganisations
- Application of this Chapter
- 335 Introduction to Chapter
- 336 Transfers of loans on group transactions
- 337 Transfers of loans on insurance business transfers
- 338 Meaning of company replacing another as party to loan relationship
- 339 Issues of new securities on certain cross-border reorganisations
- Continuity of treatment: transfer of loan at notional carrying value
- 340 Group transfers and transfers of insurance business: transfer at notional carrying value
- 341 Transferor using fair value accounting
- 342 Issues of new securities on reorganisations: disposal at notional carrying value
- 343 Receiving company using fair value accounting
- Transferee leaving group after replacing transferor as party to loan relationship
- 344 Introduction
- 345 Transferee leaving group otherwise than because of exempt distribution
- 346 Transferee leaving group because of exempt distribution
- Disapplication of Chapter where transferor party to avoidance
- 347 Disapplication of Chapter where transferor party to avoidance
- Chapter 5 Connected companies relationships: introduction and general
- 348 Introduction: meaning of “connected companies relationship”
- 349 Application of amortised cost basis to connected companies relationships
- 350 Companies beginning to be connected
- 351 Companies ceasing to be connected
- 352 Disregard of related transactions
- 352A Exclusion of credits on reversal of disregarded loss
- 352B Eliminating tax mismatch for loan relationships with qualifying link
- Chapter 6 Connected companies relationships: impairment losses and releases of debts
- Introduction
- 353 Introduction to Chapter
- Exclusion of debits for impaired or released connected companies debts
- 354 Exclusion of debits for impaired or released connected companies debts
- 355 Cessation of connection
- 356 Exception to section 354: swapping debt for equity
- 357 Exception to section 354: insolvent creditors
- Exclusion of credits for connected companies debts on release or reversal of impairments
- 358 Exclusion of credits on release of connected companies debts: general
- 359 Exclusion of credits on release of connected companies debts during creditor's insolvency
- 360 Exclusion of credits on reversal of impairments of connected companies debts
- Deemed debt releases on impaired debts becoming held by connected company
- 361 Acquisition of creditor rights by connected company at undervalue
- 361A The corporate rescue exception
- 361B The debt-for-debt exception
- 361C The equity-for-debt exception
- 361D Corporate rescue: debt released shortly after acquisition
- 362 Parties becoming connected where creditor's rights subject to impairment adjustment etc
- 362A Corporate rescue: debt released shortly after connection arises
- 363 Companies connected for sections 361 to 362A
- 363A Arrangements for avoiding section 361 or 362
- Chapter 7 Group relief claims involving impaired or released consortium debts
- 364 Introduction to Chapter
- 365 Reduction of impairment loss debits where group relief claimed
- 366 Effect where credit for release brought into account on amortised cost basis
- 367 Reduction of credits exceeding impairment losses
- 368 Reduction of claims where there are earlier net consortium debits
- 369 Carry forward of claims where there are no net consortium debits
- 370 Group accounting periods
- 371 Interpretation
- Chapter 8 Connected parties relationships: late interest
- 372 Introduction to Chapter
- 373 Late interest treated as not accruing until paid in some cases
- 374 Connection between debtor and person standing in position of creditor
- 375 Loans to close companies by participators etc
- 376 Interpretation of section 375
- 377 Party to loan relationship having major interest in other party
- 378 Loans by trustees of occupational pension schemes
- 379 Persons indirectly standing in the position of creditor
- Chapter 9 Partnerships involving companies
- 380 Partnerships involving companies
- 381 Determinations of credits and debits by company partners: general
- 382 Company partners using fair value accounting
- 383 Lending between partners and the partnership
- 384 Treatment of exchange gains and losses
- 385 Company partners' shares where firm owns deeply discounted securities
- Chapter 10 Insurance companies
- Introduction
- 386 Overview of Chapter
- Treatment of deficit on basic life assurance and general annuity business
- 387 Treatment of deficit on basic life assurance and general annuity business: introduction
- 388 Basic rule: deficit set off against income and gains of deficit period
- 389 Claim to carry back deficit
- 390 Meaning of “available profits”
- 391 Carry forward of surplus deficit to next accounting period
- Exclusion of loan relationships of members of Lloyd's
- 392 Exclusion of loan relationships of members of Lloyd's
- ...
- 393 General rules for some debtor relationships
- 394 Special rules for some debtor relationships
- Chapter 11 Other special kinds of company
- Investment trusts' and venture capital trusts' creditor relationships
- 395 Investment trusts: profits or losses of a capital nature
- 396 Venture capital trusts: profits or losses of a capital nature
- Credit unions
- 397 Credit unions
- Chapter 12 Special rules for particular kinds of securities
- Introduction
- 398 Overview of Chapter
- Index-linked gilt-edged securities
- 399 Basic rules
- 400 Adjustments for changes in index
- 400A Adjustments for changes in index: relevant hedging schemes
- 400B Interpretation of section 400A: economic profits and losses
- 400C Meaning of “associated with”
- Other gilt-edged securities
- 401 Gilt strips
- 402 Market value of securities
- 403 Meaning of “strip”
- 404 Restriction on deductions etc relating to FOTRA securities
- 405 Certain non-UK residents with interest on 3½% War Loan 1952 Or After
- Deeply discounted securities: connected companies and close companies
- 406 Introduction
- 407 Postponement until redemption of debits for connected companies' deeply discounted securities
- 408 Companies connected for section 407
- 409 Postponement until redemption of debits for close companies' deeply discounted securities
- 410 Exceptions to section 409
- 411 Interpretation of section 409
- 412 Persons indirectly standing in the position of creditor
- Funding bonds
- 413 Issue of funding bonds
- 414 Redemption of funding bonds
- Derivatives
- 415 Loan relationships with embedded derivatives
- 416 Election for application of sections 415 and 585
- 417 Further provisions about elections under section 416
- 418 Loan relationships involving connected debtor and creditor where debits exceed credits
- 418A Cases involving host contract
- 419 Section 418: supplementary
- Options etc
- 420 Assumptions where options etc apply
- Hybrid capital instruments
- 420A Amounts payable in respect of hybrid capital instruments
- Chapter 13 European cross-border transfers of business
- Introduction
- 421 Introduction to Chapter
- Transfers of loan relationships at notional carrying value
- 422 Transfer of loan relationship at notional carrying value
- 423 Transferor using fair value accounting
- 424 Reorganisations involving loan relationships
- 425 Original holder using fair value accounting
- Exception for tax avoidance cases
- 426 Tax avoidance etc
- 427 Procedure on application for clearance
- 428 Decision on application for clearance
- Transparent entities
- 429 Disapplication of Chapter where transparent entities involved
- Interpretation
- 430 Interpretation
- Chapter 14 European cross-border mergers
- Introduction
- 431 Introduction to Chapter
- 432 Meaning of “the transferee” and “transferor”
- Transfers of loan relationships at notional carrying value
- 433 Transfer of loan relationship at notional carrying value
- 434 Transferor using fair value accounting
- 435 Reorganisations involving loan relationships
- 436 Original holder using fair value accounting
- Exception for tax avoidance cases
- 437 Tax avoidance etc
- Transparent entities
- 438 Disapplication of Chapter where transparent entities involved
- Interpretation
- 439 Interpretation
- Chapter 15 Tax avoidance
- Introduction
- 440 Overview of Chapter
- Unallowable purposes and tax relief schemes
- 441 Loan relationships for unallowable purposes
- 442 Meaning of “unallowable purpose”
- 443 Restriction of relief for interest where tax relief schemes involved
- Transactions not at arm's length: general
- 444 Transactions not at arm's length: general
- 445 Disapplication of section 444 where Part 4 of TIOPA 2010 applies
- 446 Bringing into account adjustments made under Part 4 of TIOPA 2010
- Non-market loans
- 446A Non-market loans
- Transactions not at arm's length: exchange gains and losses
- 447 Exchange gains and losses on debtor relationships: loans disregarded under Part 4 of TIOPA 2010
- 448 Exchange gains and losses on debtor relationships: equity notes where holder associated with issuer
- 449 Exchange gains and losses on creditor relationships: no corresponding debtor relationship
- 450 Meaning of “corresponding debtor relationship”
- 451 Exception to section 449 where loan exceeds arm's length amount
- 452 Exchange gains and losses where loan not on arm's length terms
- Connected parties deriving benefit from creditor relationships
- 453 Connected parties deriving benefit from creditor relationships
- Tax advantages from resetting interest rates (“reset bonds”)
- 454 Application of fair value accounting: reset bonds etc
- Disposals for consideration not fully recognised by accounting practice
- 455 Disposals for consideration not fully recognised by accounting practice
- Derecognition
- 455A Debits arising from derecognition of creditor relationships
- Counteracting avoidance arrangements
- 455B Counteracting effect of avoidance arrangements
- 455C Interpretation of section 455B
- 455D Examples of results that may indicate exclusion not applicable
- Chapter 16 Non-trading deficits: pre-1 April 2017 deficits and charities
- 456 Introduction to Chapter
- 457 Basic rule for deficits: carry forward to accounting periods after deficit period
- 458 Claim to carry forward deficit to later accounting periods
- 459 Claim to set off deficit against profits of deficit period or earlier periods
- 460 Time limits and procedure for claims under section 459(1)
- 461 Claim to set off deficit against other profits for the deficit period
- 462 Claim to carry back deficit to earlier accounting periods
- 463 Profits available for relief under section 462
- Chapter 16A Non-trading deficits: post 1 April 2017 deficits
- 463A Introduction to Chapter
- 463B Claim to set off deficit against profits of deficit period or earlier periods
- 463C Time limits for claims under section 463B(1)
- 463D Claim to set off deficit against profits for the deficit period
- 463E Claim to carry back deficit to earlier periods
- 463F Profits available for relief under section 463E
- 463G Carry forward of unrelieved deficit against total profits
- 463H Carry forward of unrelieved deficit against non-trading profits
- 463I Re-application of section 463G if any deficit remains after previous application
- Chapter 17 Priority rules
- 464 Priority of this Part for corporation tax purposes
- 465 Exclusion of distributions except in tax avoidance cases
- Chapter 18 General and supplementary provisions
- Changes in accounting standards
- 465A Power to make regulations where accounting standards change
- Tax-adjusted carrying value
- 465B “Tax-adjusted carrying value”
- Connections between persons
- 466 Companies connected for an accounting period
- 467 Connections where partnerships are involved
- 468 Connection between companies to be ignored in some circumstances
- 469 Creditors who are financial traders
- 470 Section 469: supplementary provisions
- 471 Creditors who are insurance companies carrying on BLAGAB
- 472 Meaning of “control”
- 473 Meaning of “major interest”
- 474 Treatment of connected companies and partnerships for section 473
- 475 Meaning of expressions relating to exchange gains and losses
- Meaning of “hedging relationship”
- 475A “Hedging relationship”
- Meaning of “matched”
- 475B Meaning of “matched”
- Meaning of “hybrid capital instrument”
- 475C Meaning of “hybrid capital instrument”
- Other general definitions
- 476 Other definitions
- Part 6 Relationships treated as loan relationships etc
- Chapter 1 Introduction
- 477 Overview of Part
- Chapter 2 Relevant non-lending relationships
- Introduction: meaning of “relevant non-lending relationship” etc
- 478 Relevant non-lending relationships: introduction
- 479 Relevant non-lending relationships not involving discounts
- 480 Relevant non-lending relationships involving discounts
- Application of Part 5 to relevant non-lending relationships
- 481 Application of Part 5 to relevant non-lending relationships
- 482 Miscellaneous rules about amounts to be brought into account because of this Chapter
- Meaning of “money debt” and “interest” in this Chapter
- 483 Exchange gains and losses: amounts treated as money debts
- 484 Provision not at arm's length: meaning of “interest” and “money debt”
- Exclusions
- 485 Exclusion of debts where profits or losses within Part 7 or 8
- 486 Exclusion of exchange gains and losses in respect of tax debts etc
- Chapter 2A Disguised interest
- 486A Overview
- 486B Disguised interest to be regarded as profit from loan relationship
- 486C Exclusion where return otherwise taxable
- 486D Exclusion where arrangement has no tax avoidance purpose
- 486E Excluded shares
- Chapter 2B Transferred income streams
- 486F Introduction to Chapter
- 486G Consideration to be treated as loan relationship
- Chapter 3 OEICs, unit trusts and offshore funds
- Introduction
- 487 Overview of Chapter
- 488 Meaning of “open-ended investment company” etc
- 489 Meaning of “offshore fund” etc
- Holdings in OEICs, unit trusts and offshore funds treated as creditor relationship rights
- 490 Holdings in OEICs, unit trusts and offshore funds treated as creditor relationship rights
- 491 Holding coming within section 490: opening valuations
- 492 Holding coming within section 490: calculation to undo avoidance
- The qualifying investments test
- 493 The qualifying investments test
- 494 Meaning of “qualifying investments”
- 495 Qualifying holdings
- 496 Meaning of “hedging relationship”
- Power to change investments that are qualifying investments
- 497 Power to change investments that are qualifying investments
- Chapter 4 Building Societies
- 498 Building society dividends and interest
- Chapter 5 Registered societies
- 499 Registered society payments treated as interest under loan relationship
- 500 Exclusion of interest where failure to make return
- Chapter 6 Alternative finance arrangements
- Introduction
- 501 Introduction to Chapter
- 502 Meaning of “financial institution”
- Arrangements that are alternative finance arrangements
- 503 Purchase and resale arrangements
- 504 Diminishing shared ownership arrangements : initial acquisition
- 504A Diminishing shared ownership arrangements: refinancing
- 505 Deposit arrangements
- 506 Profit share agency arrangements
- 507 Investment bond arrangements
- 508 Provision not at arm's length: exclusion of arrangements from sections 503 to 507
- Treatment as loan relationships
- 509 Application of Part 5: general
- 510 Application of Part 5 to particular alternative finance arrangements
- Meaning of “alternative finance return”
- 511 Purchase and resale arrangements
- 512 Diminishing shared ownership arrangements
- 513 Other arrangements
- Treatment for other tax purposes
- 514 Exclusion of alternative finance return from consideration for sale of assets
- 515 Diminishing shared ownership arrangements : further provision
- 515A Diminishing shared ownership arrangements: further provision in respect of refinancing
- 516 Treatment of principal under profit sharing agency arrangements
- 517 Treatment of bond-holder under investment bond arrangements
- 518 Investment bond arrangements: treatment as securities
- 519 Investment bond arrangements: other provisions
- 520 Provision not at arm's length: non-deductibility of relevant return
- Power to extend this Chapter to other arrangements
- 521 Power to extend this Chapter to other arrangements
- Chapter 6A Shares accounted for as liabilities
- 521A Introduction to Chapter
- 521B Application of Part 5 to certain shares as rights under creditor relationship
- 521C Shares accounted for as liabilities
- 521D Excepted shares
- 521E Unallowable purpose
- 521F Shares becoming or ceasing to be shares to which section 521B applies
- Chapter 7 Shares with guaranteed returns etc
- Application of Part 5 to certain shares as rights under creditor relationship
- 522 Introduction to Chapter
- 523 Application of Part 5 to certain shares as rights under creditor relationship
- Shares subject to outstanding third party obligations
- 524 Shares subject to outstanding third party obligations
- 525 Meaning of “interest-like investment”
- Non-qualifying shares
- 526 Non-qualifying shares
- 527 The increasing value condition
- 528 Regulations about income-producing assets
- 529 The redemption return condition
- 530 The redemption return condition: excepted shares
- 531 The redemption return condition: unallowable purposes
- 532 The associated transactions condition
- 533 Power to change conditions for non-qualifying shares
- Consequences of section 523 applying or ceasing to apply
- 534 Amounts to be brought into account where section 523 applies
- 535 Shares ceasing to be shares to which section 523 applies
- 536 Introduction to Chapter
- 537 Payments in return for capital contribution to partnership
- 538 Change of partnership shares
- Chapter 9 Manufactured interest etc
- 539 Introduction to Chapter
- 540 Manufactured interest treated as interest under loan relationship
- 541 Debits for deemed interest under stock lending arrangements disallowed
- Chapter 10 Repos
- Introduction
- 542 Introduction to Chapter
- Creditor repos and creditor quasi-repos
- 543 Meaning of creditor repo
- 544 Meaning of creditor quasi-repo
- 545 Ignoring effect on lender etc of sale of securities
- 546 Charge on lender for finance return in respect of the advance
- 547 Repo under arrangement designed to produce quasi-interest: tax avoidance
- Debtor repos and debtor quasi-repos
- 548 Meaning of debtor repo
- 549 Meaning of debtor quasi-repo
- 550 Ignoring effect on borrower of sale of securities
- 551 Relief for borrower for finance charges in respect of the advance
- General provisions
- 552 General provisions about arrangements
- 553 Persons buying or selling for others
- 554 Power to modify this Chapter
- 555 Cases where section 554 applies: non-standard repos
- Interpretation
- 556 Meaning of securities and similar securities
- 557 Meaning of person receiving an asset
- 558 Interpretation of accounting expressions
- 559 Minor definitions
- Chapter 11 Investment life insurance contracts
- Introduction
- 560 Introduction to Chapter
- 561 Meaning of “investment life insurance contract”
- Investment life assurance contracts treated as creditor relationships
- 562 Contract to be loan relationship
- 563 Increased non-trading credits for BLAGAB and EEA taxed contracts
- 564 Section 563: interpretation
- 565 Relevant amount where the relevant company uses fair value accounting
- Old accounting period contracts
- 566 Introduction
- 567 Gains on deemed surrenders to be brought into account on related transactions
- 568 Restriction on credits on old contracts: fair value accounting cases
- 569 Restriction on debits on old contracts: non-fair value accounting cases
- Part 7 Derivative contracts
- Chapter 1 Introduction
- Introduction
- 570 Overview of Part
- How profits and losses from derivative contracts are dealt with
- 571 General rule: profits chargeable as income
- 572 Profits and losses to be calculated using credits and debits given by this Part
- 573 Trading credits and debits to be brought into account under Part 3
- 574 Non-trading credits and debits to be brought into account under Part 5
- Chapter 2 Contracts to which this Part applies
- Introduction
- 575 Overview of Chapter
- Meaning of “derivative contract” and other basic definitions
- 576 “Derivative contract”
- 577 “Relevant contract”
- 578 Relevant contracts of a company and being party to such contracts
- 579 The accounting conditions
- 580 “Option”
- 581 “Future”
- 582 “Contract for differences”
- 583 “Underlying subject matter”
- Cases where companies treated as parties to relevant contracts
- 584 Hybrid derivatives with embedded derivatives
- 585 Loan relationships with embedded derivatives
- 586 Other contracts with embedded derivatives
- Other contracts etc treated as derivative contracts
- 587 Contract relating to holding in OEIC, unit trust or offshore fund
- 588 Associated transaction treated as derivative contract
- Exclusions from derivative contracts
- 589 Contracts excluded because of underlying subject matter: general
- 590 Disregard of subordinate or small value underlying subject matter
- 591 Conditions A to E mentioned in section 589(5)
- 592 Embedded derivatives treated as meeting condition in section 591 etc
- 593 Contracts where part of underlying subject matter is excluded property
- Chapter 3 Credits and debits to be brought into account: general
- Introduction
- 594 Overview of Chapter
- Matters in respect of which amounts are to be brought into account
- 594A Matters in respect of which amounts are to be brought into account
- General principles
- 595 General principles about the bringing into account of credits and debits
- 596 Meaning of “related transaction”
- Amounts recognised in determining a company's profit or loss
- 597 Amounts recognised in determining a company's profit or loss
- 598 Regulations about recognised amounts
- 599 Meaning of “amounts recognised for accounting purposes”
- 599A Amounts not fully recognised for accounting purposes: introduction
- 599B Determination of credits and debits where amounts not fully recognised
- Application of fair value accounting
- 600 Contract which is or forms part of financial asset or liability
- 601 Contract relating to holding in OEIC, unit trust or offshore fund
- 602 Contract becoming one relating to holding in OEIC, unit trust or offshore fund
- 603 Associated transaction treated as derivative contract
- Rules differing from generally accepted accounting practice
- 604 Credits and debits treated as relating to capital expenditure
- 604A Amounts recognised in other comprehensive income and not transferred to profit or loss
- 605 Credits and debits recognised in equity
- Exchange gains and losses
- 606 Exchange gains and losses
- 606A Arrangements that have a “one-way exchange effect”
- 606B Meaning of “relevant exchange gain” and “relevant exchange loss”
- 606C Meaning of “test day”
- 606D Counterfactual currency movement assumptions
- 606E Counterfactual currency movement assumptions: treatment of options
- 606F Meaning of “option”
- 606G Meaning of “relevant contingent contract” and “operative condition”
- 606H Other interpretative provisions
- Miscellaneous
- 607 Pre-contract or abortive expenses
- 607ZA Debits referable to times before UK property business etc carried on
- 607A Company is not, or has ceased to be, party to derivative contract
- 607B Exclusion of debit where relief allowed to another
- 607C Avoidance of double charge
- 608 Company ceasing to be party to derivative contract
- 609 Company ceasing to be UK resident
- 610 Non-UK resident company ceasing to hold derivative contract for section 609(2) purposes
- 611 Release under statutory insolvency arrangement of liability under derivative contract
- Chapter 4 Further provision about credits and debits to be brought into account
- Introduction
- 612 Overview of Chapter
- Adjustments on change of accounting basis
- 613 Introduction to sections 614 and 615
- 614 Change of basis of accounting involving change of value
- 615 Change of accounting policy after ceasing to be party to derivative contract
- Certain embedded derivatives
- 616 Disapplication of fair value accounting
- 617 Election for section 616 not to apply
- 618 Elections under section 617: groups of companies
- Partnerships involving companies
- 619 Partnerships involving companies
- 620 Determination of credits and debits by company partners
- 621 Company partners using fair value accounting
- Miscellaneous
- 622 Contracts ceasing to be derivative contracts
- 623 Index-linked gilt-edged securities with embedded contracts for differences
- Chapter 5 Continuity of treatment on transfers within groups
- Introductory
- 624 Introduction to Chapter
- Group member replacing another as party to derivative contract
- 625 Group member replacing another as party to derivative contract
- 626 Transactions to which section 625 applies
- 627 Meaning of company replacing another as party to derivative contract
- Exceptions to section 625
- 628 Transferor using fair value accounting
- 629 Tax avoidance
- Transferee leaving group after replacing transferor as party to derivative contract
- 630 Introduction to sections 631 and 632
- 631 Transferee leaving group otherwise than because of exempt distribution
- 632 Transferee leaving group because of exempt distribution
- Chapter 6 Special kinds of company
- Mutual trading companies
- 633 Mutual trading companies
- Insurance companies
- 634 Insurance companies
- 635 Creditor relationships: embedded derivatives which are options
- 636 Modifications of Chapter 5
- Investment and venture capital trusts
- 637 Investment trusts: profits or losses of a capital nature
- 638 Venture capital trusts: profits or losses of a capital nature
- Chapter 7 Chargeable gains arising in relation to derivative contracts
- Introduction
- 639 Overview of Chapter
- Some credits and debits not to be brought into account under Part 5
- 640 Credits and debits not to be brought into account under Part 5
- Some derivative contracts to be taxed on a chargeable gains basis
- 641 Derivative contracts to be taxed on a chargeable gains basis
- 642 Exception from section 641
- Derivative contracts to which sections 640 and 641 apply
- 643 Contracts relating to land or certain tangible movable property
- 644 Income to be left out of account in determining whether section 643 applies
- 645 Creditor relationships: embedded derivatives which are options
- 646 Exclusions from section 645
- 647 Meaning of certain expressions in section 645
- 648 Creditor relationships: embedded derivatives which are exactly tracking contracts for differences
- 649 Meaning of certain expressions in section 648
- 650 Property based total return swaps
- Some credits and debits not to be brought into account under Part 3 or 5
- 651 Credits and debits not to be brought into account under Part 3 or Part 5
- Issuers of securities with embedded derivatives: deemed options
- 652 Introduction to sections 653 to 655
- 653 Shares issued or transferred as a result of exercise of deemed option
- 654 Payment instead of disposal on exercise of deemed option
- 655 Ceasing to be party to debtor relationship when deemed option not exercised
- Issuers of securities with embedded derivatives: deemed contracts for differences
- 656 Introduction to section 658
- 657 Meaning of “exactly tracking contract” in section 656
- 658 Chargeable gain or allowable loss treated as accruing
- Interpretation
- 659 Meaning of “relevant credits” and “relevant debits”
- Chapter 8 Further provision about chargeable gains and derivative contracts
- Company ceasing to be party to certain contracts
- 660 Contract relating to holding in OEIC, unit trust or offshore fund
- 661 Contract which becomes derivative contract
- Contracts ceasing to be derivative contracts
- 662 Contracts ceasing to be derivative contracts
- Carry back of net losses on certain derivative contracts
- 663 Contracts to which section 641 applies
- 664 Meaning of certain expressions in section 663
- Issuers of securities with embedded derivatives: equity instruments
- 665 Introduction to section 666
- 666 Allowable loss treated as accruing
- Treatment of shares acquired in certain circumstances
- 667 Shares acquired on exercise of non-embedded option
- 668 Shares acquired on running of future to delivery
- 669 Meaning of G and L in sections 667 and 668
- Treatment of net gains and losses on exercise of option
- 670 Treatment of net gains and losses on exercise of option
- 671 Meaning of G, L and CV in section 670
- Treatment of net gains and losses on disposal of certain embedded derivatives
- 672 Treatment of net gains and losses on disposal of certain embedded derivatives
- 673 Meaning of G, L and CV in section 672
- Chapter 9 European cross-border transfers of business
- Introduction
- 674 Introduction to Chapter
- Transfers of derivative contracts at notional carrying value
- 675 Transfer of derivative contract at notional carrying value
- 676 Transferor using fair value accounting
- Exception for tax avoidance cases and clearances
- 677 Tax avoidance etc
- 678 Procedure on application for clearance
- 679 Decision on application for clearance
- Transparent entities
- 680 Disapplication of Chapter where transparent entities involved
- Interpretation
- 681 Interpretation
- Chapter 10 European cross-border mergers
- Introduction
- 682 Introduction to Chapter
- 683 Meaning of “the transferee” and “transferor”
- Transfers of derivative contracts at notional carrying value
- 684 Transfer of derivative contract at notional carrying value
- 685 Transferor using fair value accounting
- Exception for tax avoidance cases and clearances
- 686 Tax avoidance etc
- Transparent entities
- 687 Disapplication of Chapter where transparent entities involved
- Interpretation
- 688 Interpretation
- Chapter 11 Tax avoidance
- Introduction
- 689 Overview of Chapter
- Unallowable purposes
- 690 Derivative contracts for unallowable purposes
- 691 Meaning of “unallowable purpose”
- 692 Allowance of accumulated net losses
- Transactions not at arm's length
- 693 Bringing into account adjustments under Part 4 of TIOPA 2010
- 694 Exchange gains and losses
- 695 Transfers of value to connected companies
- 695A Disguised distribution arrangements involving derivative contracts
- Transactions with non-UK residents
- 696 Derivative contracts with non-UK residents
- 697 Exceptions to section 696
- Disposals for consideration not fully recognised by accounting practice
- 698 Disposals for consideration not fully recognised by accounting practice
- Derecognition
- 698A Debits arising from derecognition of derivative contracts
- Counteracting avoidance arrangements
- 698B Counteracting effect of avoidance arrangements
- 698C Interpretation of section 698B
- 698D Examples of results that may indicate exclusion not applicable
- Chapter 12 Priority rules
- 699 Priority of this Part for corporation tax purposes
- 700 Relationship of this Part to Part 5: loan relationships
- Chapter 13 General and supplementary provisions
- Power to amend certain provisions
- 701 Power to amend some provisions
- Changes to accounting standards
- 701A Power to make regulations where accounting standards change
- Other general definitions
- 702 “Tax-adjusted carrying value”
- 703 “Chargeable asset”
- 704 “Creditor relationship” and “debtor relationship”
- 705 Expressions relating to exchange gains and losses
- 706 “Excluded body”
- 707 “Hedging relationship”
- 708 “Plain vanilla contract”
- 709 “Securities house”
- 710 Other definitions
- Part 8 Intangible fixed assets
- Chapter 1 Introduction
- Introductory
- 711 Overview of Part
- Basic definitions
- 712 “Intangible asset”
- 713 “Intangible fixed asset”
- 714 “Royalty”
- Goodwill
- 715 Application of this Part to goodwill
- Accounting rules and definitions
- 716 “Recognised” amounts and “GAAP-compliant accounts”
- 717 Companies without GAAP-compliant accounts
- 718 GAAP-compliant accounts: reference to consolidated group accounts
- 719 Accounting value
- Chapter 2 Credits in respect of intangible fixed assets
- 720 Introduction
- 721 Receipts recognised as they accrue
- 722 Receipts in respect of royalties so far as not dealt with under section 721
- 723 Revaluation
- 724 Negative goodwill
- 725 Reversal of previous accounting loss
- Chapter 3 Debits in respect of intangible fixed assets
- 726 Introduction
- 727 References to expenditure on an asset
- 728 Expenditure written off as it is incurred
- 729 Writing down on accounting basis
- 730 Writing down at fixed rate: election for fixed-rate basis
- 731 Writing down at fixed rate: calculation
- 732 Reversal of previous accounting gain
- Chapter 4 Realisation of intangible fixed assets
- 733 Overview of Chapter
- 734 Meaning of “realisation”
- 735 Asset written down for tax purposes
- 736 Asset shown in balance sheet and not written down for tax purposes
- 737 Apportionment in case of part realisation
- 738 Asset not shown in balance sheet
- 738A Realisation of assets previously subject to Northern Ireland rate
- 739 Meaning of “proceeds of realisation”
- 740 Abortive expenditure on realisation
- 741 Meaning of “chargeable intangible asset” and “chargeable realisation gain”
- Chapter 5 Calculation of tax written-down value
- 742 Asset written down on accounting basis
- 743 Asset written down at fixed rate
- 744 Effect of part realisation of asset
- Chapter 6 How credits and debits are given effect
- Introductory
- 745 Introduction
- 746 “Non-trading credits” and “non-trading debits”
- Trading etc credits and debits
- 747 Assets held for purposes of trade
- 748 Assets held for purposes of property business
- 749 Assets held for purposes of mines, transport undertakings, etc
- 750 Assets held for purposes falling within more than one section
- Non-trading credits and debits
- 751 Non-trading gains and losses
- 752 Charge to tax on non-trading gains on intangible fixed assets
- 753 Treatment of non-trading losses
- Chapter 7 Roll-over relief in case of realisation and reinvestment
- When the relief is given
- 754 The relief: the “old asset” and “other assets”
- 755 Conditions relating to the old asset and its realisation
- 756 Conditions relating to expenditure on other assets
- 757 Claim for relief
- How the relief is given
- 758 How the relief is given: general
- 759 Determination of appropriate proportion of cost and adjusted cost
- 760 References to cost of asset where asset affected by change of accounting policy
- 761 Declaration of provisional entitlement to relief
- 762 Realisation and reacquisition
- 763 Disregard of deemed realisations and reacquisitions
- Chapter 8 Groups of companies: introduction
- Introductory
- 764 Meaning of “company”, “group” and “subsidiary”
- Rules
- 765 General rule: a company and its 75% subsidiaries form a group
- 766 Only effective 51% subsidiaries of principal company to be members of group
- 767 Principal company cannot be 75% subsidiary of another company
- 768 Company cannot be member of more than one group
- 769 Continuity of identity of group
- 770 Continuity where group includes an SE
- 771 Meaning of “effective 51% subsidiary”
- 772 Equity holders and profits or assets available for distribution
- 773 Supplementary provisions
- Chapter 9 Application of this Part to groups of companies
- Introductory
- 774 Overview of Chapter
- Transfers within a group treated as tax-neutral
- 775 Transfers within a group
- 776 Meaning of “tax-neutral” transfer
- Roll-over relief under Chapter 7 (realisation and reinvestment)
- 777 Relief on realisation and reinvestment: application to group member
- 778 Relief on reinvestment: acquisition of group company: introduction
- 779 Rules that apply to cases within section 778(1)
- Company ceasing to be member of group
- 780 Deemed realisation and reacquisition at market value
- 781 Character of credits and debits brought into account as a result of section 780
- 782 Certain transferees of businesses etc not treated as leaving group
- 782A Company leaving group because of relevant share disposal
- 783 Certain associated companies leaving group at the same time
- 784 Groups with a relevant connection
- 785 Principal company becoming member of another group
- 786 Character of credits and debits brought into account as a result of section 785
- 787 Company ceasing to be member of group because of exempt distribution
- 788 Provisions supplementing sections 780 to 787
- 789 Merger carried out for genuine commercial reasons
- 790 Provisions supplementing section 789
- 791 Application of roll-over relief in relation to degrouping charge
- Reallocation of degrouping charge within group and recovery
- 792 Reallocation of charge within group
- 793 Further requirements about elections under section 792
- 793A Effect of election under section 792
- 794 Application of roll-over relief in relation to reallocated charge
- 795 Recovery of charge from another group company or controlling director
- 796 Interpretation of section 795
- 797 Recovery under section 795: procedure etc
- 798 Recovery under section 795: time limit
- Disregard of payments between group members for reliefs
- 799 Disregard of payments between group members for reliefs
- Chapter 10 Excluded assets
- Introductory
- 800 Introduction
- 801 Right to dispose of or acquire excluded asset also excluded
- 802 Effect of partial exclusion
- Assets wholly excluded from this Part
- 803 Non-commercial purposes etc
- 804 Assets for which capital allowances previously made
- 805 Rights over tangible assets
- 806 Financial assets
- 807 Rights in companies, trusts etc
- 807A Assets representing expenditure on separate creative production trade
- 809 Oil licences
- Assets excluded from this Part except as respects royalties
- 810 Mutual trade or business
- 811 Sound recordings
- 812 Master versions of films
- 813 Computer software treated as part of cost of related hardware
- Assets excluded from this Part to the extent specified
- 814 Research and development
- 815 Election to exclude capital expenditure on software
- 816 Further provision about elections under section 815
- 816A Restrictions on goodwill and certain other assets
- Chapter 11 Transfer of business or trade
- Introduction
- 817 Overview of Chapter
- Tax-neutral transfers
- 818 Company reconstruction involving transfer of business
- 819 European cross-border transfers of business: introduction
- 820 Transfer of assets on European cross-border transfer of business
- 821 European cross-border mergers: introduction
- 822 Transfer of assets on European cross-border merger
- 823 Interpretation of sections 821 and 822
- 824 Transfer of business of building society to company
- 825 Application of sections 780 and 785 where transfer within section 824 occurs
- 826 Amalgamation of, or transfer of engagements by, certain societies
- Transfer of assets to non-UK resident company
- 827 Claims to postpone charge on transfer
- 828 Relief on transfer
- 829 Charge on subsequent realisations
- 830 Exclusion from section 829 of group transfers
- The genuine commercial transaction requirement and clearance
- 831 The genuine commercial transaction requirement and clearance
- 832 Procedure on application for clearance
- 833 Decision on application for clearance
- Chapter 12 Related parties
- Introductory
- 834 Overview of Chapter
- Meaning of “related party”, “control” and “major interest”
- 835 “Related party”
- 836 “Control”
- 837 “Major interest”
- Rights and powers to be taken into account
- 838 General rule
- 839 Rights and powers held jointly
- 840 Partnerships
- Meaning of “participator” and “associate”
- 841 “Participator” and “associate”
- Connected persons
- 842 Introduction
- 843 Who are connected persons
- Chapter 13 Transactions between related parties
- Introductory
- 844 Overview of Chapter
- Transfers treated as being at market value
- 845 Transfer between company and related party treated as at market value
- 846 Transfers where provision subject to transfer pricing but section 147(3) or (5) does not apply
- 847 Transfers involving other taxes
- 848 Tax-neutral transfers
- 848A Assets held for purposes of exempt foreign permanent establishments
- 849 Transfers involving gifts of business assets
- 849A Disincorporation relief: transfer values for post-FA 2002 goodwill
- Grants treated as being at market value
- 849AB Grant of licence or other right treated as at market value
- 849AC Grants not at arm's length
- 849AD Grants involving other taxes
- ...
- 849B Circumstances in which restrictions on debits in respect of goodwill etc apply
- 849C Restrictions in a case within section 849B(4) or (5)
- 849D Restrictions in a case within section 849B(6)
- Other rules
- 850 Part realisation involving related party acquisition: exclusion of roll-over relief
- 851 Delayed payment of royalty by company to related party
- Chapter 14 Miscellaneous provisions
- Grants and other contributions to expenditure
- 852 Treatment of grants and other contributions to expenditure
- 853 Grants to be left out of account for tax purposes
- Finance leasing
- 854 Finance leasing etc
- 855 Further provision about regulations under section 854
- Values to be used in special cases
- 856 Assets acquired or realised together
- 857 Deemed market value or arm’s length acquisition: adjustment where nil or negligible accounting value
- ...
- 858 Fungible assets
- Assets ceasing to be or becoming chargeable intangible assets
- 859 Asset ceasing to be chargeable intangible asset: deemed realisation at market value
- 860 Asset ceasing to be chargeable intangible asset: postponement of gain
- 861 Treatment of postponed gain on subsequent realisation
- 862 Treatment of postponed gain in other cases
- 863 Asset becoming chargeable intangible asset
- 863A Asset becoming chargeable intangible asset: EU exit charge
- Matters to be ignored
- 864 Tax avoidance arrangements to be ignored
- 865 Debits for expenditure not generally deductible for tax purposes
- Delayed payments and bad debts
- 866 Delayed payment of employees' remuneration
- 867 Provisions supplementing section 866
- 868 Delayed payment of pension contributions
- 869 Bad debts etc
- ...
- 870 Assumptions for calculating chargeable profits
- Roll-over relief under TCGA 1992
- 870A Claims for relief made under sections 152 and 153 of TCGA 1992
- Chapter 15 Adjustments on change of accounting policy
- Introductory
- 871 Introduction to Chapter
- Change of policy involving change of value
- 872 Adjustments in respect of change
- 873 Effect of application of section 872 in later period and subsequently
- Change of policy involving disaggregation
- 874 Original asset not subject to fixed-rate writing down
- 875 Effect of application of section 874 in later period and subsequently
- 876 Original asset subject to fixed-rate writing down
- 877 Election for fixed-rate writing down in relation to resulting asset
- Supplementary
- 878 Exclusion of credits or debits brought into account under other provisions
- 879 Subsequent events affecting asset subject to adjustment under this Chapter
- Chapter 15A Debits in respect of goodwill and certain other assets
- Introduction
- 879A Introduction
- Requirement to write down at a fixed rate
- 879B Requirement to write down at a fixed rate
- Restrictions on debits: pre-FA 2019 relevant assets
- 879C Restrictions on debits: pre-FA 2019 relevant assets
- 879D Pre-FA 2019 relevant asset: the first case
- 879E Pre-FA 2019 relevant asset: the second case
- 879F Pre-FA 2019 relevant asset: the third case
- 879G The preserved status condition etc
- 879H Pre-FA 2019 relevant asset: the fourth case
- Restrictions on debits: no business or no qualifying IP assets acquired
- 879I Restrictions on debits: no business or no qualifying IP assets acquired
- 879J Meaning of qualifying IP asset
- Restrictions on debits: acquisition from individual or firm
- 879K Restrictions on debits: acquisition from individual or firm
- 879L Meaning of relevant business and third party acquisition
- Partial restrictions on debits
- 879M When the partial restrictions apply: qualifying IP assets
- 879N When the partial restrictions apply: acquisition from individual or firm
- 879O The partial restrictions on debits
- Supplementary
- 879P Date of acquisition of relevant asset
- Chapter 16 Pre-FA 2002 assets etc
- Introduction
- 880 Overview of Chapter
- 881 Meaning of “pre-FA 2002 assets”
- General rule
- 882 Application of this Part to assets created or acquired on or after 1 April 2002
- When assets are treated as created or acquired
- 883 Assets treated as created or acquired when expenditure incurred
- 884 ... Goodwill: time of creation
- 885 Assets representing non-qualifying expenditure: time of creation
- 886 Assets representing production expenditure on films: time of creation
- When expenditure treated as incurred
- 887 General rule
- 888 Cases where chargeable gains rule applies
- 889 Cases where capital allowances general rule applies
- ...
- 890 Fungible assets: application of section 858
- 891 Realisation and acquisition of fungible assets
- Assets treated as pre-FA 2002 assets
- 892 Certain assets acquired on transfer of business or transfer within a group
- 893 Assets whose value derives from pre-FA 2002 assets
- 894 The preserved status conditions etc
- 895 Assets acquired in connection with disposals of pre-FA 2002 assets
- Application of Part to royalties and telecommunication rights
- 896 Application to royalties
- 897 Application to pre-FA 2002 assets consisting of telecommunication rights
- Roll-over relief for disposals of pre-FA 2002 assets
- 898 Relief where assets disposed of on or after 1 April 2002
- 899 Relief where degrouping charge on asset arises on or after 1 April 2002
- 900 Meaning of “chargeable asset within TCGA” in sections 898 and 899
- Chapter 16A Debits in respect of assets that were pre-FA 2002 assets etc
- Introduction
- 900A Introduction
- When an intangible fixed asset is a restricted asset
- 900B When an intangible fixed asset is a restricted asset: the first case
- 900C When an intangible fixed asset is a restricted asset: the second case
- 900D When an intangible fixed asset is a restricted asset: the third case
- The special rules
- 900E Special rule: section 900B case
- 900F Special rule: section 900C or 900D case
- Supplementary provisions
- 900G Meaning of “relieving acquisition”
- 900H Supplementary provision about when two persons are related
- 900I Acquisition of asset in pursuance of an unconditional obligation
- Chapter 16B Fungible assets
- 900J Fungible assets: general
- 900K Fungible assets: pre-FA 2002 assets and restricted assets
- 900L Realisation of fungible assets: pre-FA 2002 assets and restricted assets
- 900M Acquisition of fungible assets: pre-FA 2002 assets and restricted assets
- 900N Debits in respect of a single asset comprising restricted assets
- 900O Interpretation
- Chapter 17 Insurance companies
- Effect of application of the I minus E basis: non-trading amounts
- 901 Effect of application of the I - E basis: non-trading amounts
- ...
- 902 Excluded assets
- 903 Elections to exclude capital expenditure on computer software
- Miscellaneous
- 904 Transfers of life assurance business: transfers of assets treated as tax-neutral
- 905 Pre-FA 2002 assets: Lloyd's syndicate capacity
- Chapter 18 Priority rules
- 906 Priority of this Part for corporation tax purposes
- Part 9 Intellectual property: know-how and patents
- Chapter 1 Introduction
- 907 Overview of Part
- Chapter 2 Disposals of know-how
- 908 Charge to tax on profits from disposals of know-how
- 909 Exceptions to charge under section 908
- 910 Profits charged under section 908
- Chapter 3 Sales of patent rights
- Introductory
- 911 Overview of Chapter
- Charge to tax
- 912 Charge to tax on profits from sales of patent rights
- 913 Profits charged under section 912
- Spreading of charge to tax
- 914 UK resident companies: proceeds of sale not received in instalments
- 915 UK resident companies: proceeds of sale received in instalments
- 916 Non-UK resident companies: proceeds of sale not received in instalments
- 917 Non-UK resident companies: proceeds of sale received in instalments
- 918 Winding up of a body corporate
- Miscellaneous
- 919 Deduction of tax from payments to non-UK resident companies
- 920 Adjustments where tax has been deducted
- 921 Licences connected with patents
- 922 Rights to acquire future patent rights
- 923 Sums paid for Crown use etc treated as paid under licence
- Chapter 4 Relief from corporation tax on patent income
- 924 Relief for expenses: patent income
- 925 How relief is given under section 924
- Chapter 5 Supplementary
- 926 Contributions to expenditure
- 927 Contributions not made by public bodies nor eligible for tax relief
- 928 Exchanges
- 929 Apportionment where property sold together
- 930 Questions about apportionments affecting two or more persons
- 931 Meaning of “capital sums” etc
- Part 9A Company distributions
- Chapter 1 The charge to tax
- 931A Charge to tax on distributions received
- Chapter 2 Exemption of distributions received by small companies
- 931B Exemption from charge to tax
- 931C Meaning of “qualifying territory”
- 931CA Further exemption where distribution received from CFC
- Chapter 3 Exemption of distributions received by companies that are not small
- 931D Exemption from charge to tax
- Exempt classes
- 931E Distributions from controlled companies
- 931F Distributions in respect of non-redeemable ordinary shares
- 931G Distributions in respect of portfolio holdings
- 931H Distributions derived from transactions not designed to reduce tax
- 931I Dividends in respect of shares accounted for as liabilities
- Exempt classes: anti-avoidance
- 931J Schemes involving manipulation of controlled company rules
- 931K Schemes involving quasi-preference or quasi-redeemable shares
- 931L Schemes involving manipulation of portfolio holdings rule
- 931M Schemes in the nature of loan relationships
- 931N Schemes involving distributions for which deductions are given
- 931O Schemes involving payments for distributions
- 931P Schemes involving payments not on arm's length terms
- 931Q Schemes involving diversion of trade income
- Chapter 4 Supplementary
- Election that distribution should not be exempt
- 931R Election that distribution should not be exempt
- Chargeable gains
- 931RA Chargeable gains
- Interpretation
- 931S Meaning of “small company”
- 931T Meaning of “payer”, “recipient” and “relevant person”
- 931U Meaning of “ordinary share” and “redeemable”
- 931V Meaning of “scheme” and “tax advantage scheme”
- Boundary provisions
- 931W Provisions which must be given priority over this Part
- Part 10 Miscellaneous income
- Chapter 1 Introduction
- 932 Overview of Part
- Chapter 2 Dividends of non-UK resident companies
- 933 Charge to tax on dividends of non-UK resident companies
- Chapter 3 Beneficiaries' income from estates in administration
- Introduction
- 934 Charge to tax on estate income
- 935 Absolute, limited and discretionary interests
- 936 Meaning of “UK estate” and “foreign estate”
- Types of estate income
- 937 Absolute interests in residue
- 938 Meaning of “the administration period”, “the final accounting period” and “the final tax year”
- 939 Limited interests in residue
- 940 Discretionary interests in residue
- Income charged
- 941 UK estates
- 942 Foreign estates
- Basic amount of estate income: general calculations rules
- 943 Absolute interests
- 944 Limited interests
- 945 Discretionary interests
- 946 Applicable rate for grossing up basic amounts of estate income
- 947 Aggregate income of the estate
- Further provisions for calculating estate income relating to absolute interests
- 948 Assumed income entitlement
- 949 Residuary income of the estate
- 950 Shares of residuary income of estate
- 951 Reduction in share of residuary income of estate
- 952 Applicable rate for determining assumed income entitlement (UK estates)
- Successive interests
- 953 Introduction
- 954 Successive absolute interests
- 955 Assumed income entitlement of holder of absolute interest following limited interest
- 956 Payments in respect of limited interests followed by absolute interests
- 957 Holders of limited interests
- 958 Basic amount of estate income: successive limited interests
- 959 Apportionments
- Relief where foreign estates have borne UK income tax
- 960 Relief in respect of tax relating to absolute interests
- 961 Relief in respect of tax relating to limited or discretionary interests
- 961A Meaning of “the relevant tax year”
- General
- 962 Income from which basic amounts are treated as paid
- 962A Income from which sums within section 951(1)(b) are treated as paid
- 963 Income treated as bearing income tax
- 964 Transfers of assets etc treated as payments
- 965 Assessments, adjustments and claims after the administration period
- 966 Power to obtain information from personal representatives and beneficiaries
- 967 Statements relating to estate income
- ...
- 968 Meaning of “personal representatives”
- Chapter 4 Income from holding an office
- 969 Charge to tax on income from holding an office
- 970 Rule restricting deductions for bad debts
- Chapter 5 Distributions from unauthorised unit trusts
- 971 Overview of Chapter
- 972 Charge to tax under this Chapter
- 973 Amount of income treated as received
- Chapter 6 Sale of foreign dividend coupons
- 974 Charge to tax under this Chapter
- 975 Meaning of “foreign holdings” etc
- Chapter 7 Annual payments not otherwise charged
- 976 Overview of Chapter
- 977 Charge to tax on annual payments not otherwise charged
- 978 Exemption for payments by persons liable to pool betting duty
- Chapter 8 Income not otherwise charged
- 979 Charge to tax on income not otherwise charged
- 980 Exemption for commercial occupation of woodlands in UK
- 981 Exemption for gains on financial futures
- Chapter 9 Priority rules
- 982 Provisions which must be given priority over this Part
- Part 11 Relief for particular employee share acquisition schemes
- Chapter 1 Share incentive plans
- Introductory
- 983 Overview of Chapter
- 984 Chapter to form part of SIP code etc
- Deductions and receipts: general
- 985 References to a deduction being allowed to a company
- 986 Treatment of receipts under Chapter
- Deductions relating to setting up and running costs
- 987 Deduction for costs of setting up a Schedule 2 share incentive plan
- 988 Deductions for running expenses of a Schedule 2 share incentive plan
- Deductions relating to payments used to acquire shares
- 989 Deduction for contribution to plan trust
- 990 Withdrawal of deduction under section 989
- 991 Another deduction to be allowed if all acquired shares are awarded
- 992 Award of shares to excluded employee
- 993 Plan termination notice
- Deductions relating to provision of certain types of shares
- 994 Deduction for providing free or matching shares
- 995 Deduction for additional expense in providing partnership shares
- 996 Shares excluded from sections 994 and 995
- 997 No deduction for expenses in providing dividend shares
- Plan ceasing to be a Schedule 2 SIP
- 998 Withdrawal of deductions if share incentive plan ceases to be a Schedule 2 share incentive plan
- Chapter 2 SAYE option schemes, company share option schemes and employee share options trusts
- 999 Deduction for costs of setting up SAYE option scheme or CSOP scheme
- 1000 Deduction for costs of setting up employee share ownership trust
- Part 12 Other relief for employee share acquisitions
- Chapter 1 Introduction
- Introductory
- 1001 Overview of Part
- Interpretation
- 1002 “Employment”
- 1003 “Shares” etc
- 1004 Groups, consortiums and commercial associations of companies
- 1005 Other definitions
- Chapter 2 Relief if shares acquired by employee or other person
- Introductory
- 1006 Overview of Chapter
- Requirements to be met for relief to be available
- 1007 Basic requirements for relief under Chapter 2
- 1007A Application of Chapter in relation to employees of overseas companies who work for companies in the UK
- 1008 Conditions relating to shares acquired
- 1009 Conditions relating to employee's income tax position
- Calculation of amount of relief
- 1010 Calculation of relief if shares are neither restricted nor convertible
- 1011 Calculation of relief if shares are restricted or convertible
- 1012 Reduction in amount of relief
- Giving of relief
- 1013 How the relief is given
- Chapter 3 Relief if employee or other person obtains option to acquire shares
- Introductory
- 1014 Overview of Chapter
- Requirements to be met for relief to be available
- 1015 Basic requirements for relief under Chapter 3
- 1015A Application of Chapter: employees of overseas companies who take up employment with a UK company
- 1015B Application of Chapter in relation to employees of overseas companies who work for companies in the UK
- 1016 Conditions relating to shares acquired
- 1017 Condition relating to employee's income tax position
- Calculation of amount of relief
- 1018 Calculation of relief if shares are neither restricted nor convertible
- 1019 Calculation of relief if shares are restricted or convertible
- 1020 Reduction in amount of relief
- Giving of relief
- 1021 How the relief is given
- Takeovers and transfers of businesses
- 1022 Takeover of company whose shares are subject to option
- 1023 Supplementary provision for purposes of section 1022
- 1024 Transfer of qualifying business by group transfers
- Chapter 4 Additional relief in cases involving restricted shares
- 1025 Additional relief available if shares acquired are restricted shares
- 1025A Application of Chapter: employees of overseas companies who take up employment with, or work for, a UK company
- 1025B Application of Chapter where original relief a consequence of section 1007A, 1015A or 1015B
- 1026 Relief available on occurrence of chargeable event
- 1027 Relief available on death of employee
- 1028 Supplementary provision for purposes of sections 1026 and 1027
- 1029 Transfer of qualifying business by group transfers
- Chapter 5 Additional relief in cases involving convertible securities
- 1030 Application of Chapter
- 1030A Application of Chapter: employees of overseas companies who take up employment with, or work for, a UK company
- 1030B Application of Chapter where original relief a consequence of section 1007A, 1015A or 1015B
- 1031 Additional relief available if shares acquired are convertible shares etc
- 1032 Meaning of “chargeable event”
- 1033 Relief available on occurrence of chargeable event
- 1034 Relief available following death of employee
- 1035 Supplementary provision for purposes of sections 1033 and 1034
- 1036 Transfer of qualifying business by group transfers
- Chapter 6 Relationship between relief under this Part and other reliefs ETC
- 1037 Priority of Chapter 1 of Part 11
- 1038 Exclusion of other deductions
- 1038A Exclusion of deductions for share options: shares not acquired
- 1038B Employee shareholder shares
- Part 13 ... expenditure on research and development
- Chapter 1 Introduction
- Introductory
- 1039 Overview of Part
- 1040 No overlapping claims under Chapters 1A and 2
- 1040ZA Restriction on claiming other tax reliefs
- 1040A R&D expenditure credits
- Interpretation
- 1041 “Research and development”
- 1042 “Relevant research and development”
- Chapter 1A R&D expenditure credit
- Introductory
- 1042A Overview of Chapter
- Entitlement and claims
- 1042B Entitlement to credit
- 1042C Claiming the credit
- Qualifying expenditure
- 1042D Qualifying expenditure: in-house R&D
- 1042E Qualifying expenditure: payments for contracted out R&D
- 1042F Qualifying expenditure: activity as contractor for irrelievable client
- Rate of credit
- 1042G Percentage of qualifying expenditure translated into credit
- Treatment of credit: main provisions
- 1042H Expenditure credit to count as taxable receipt
- 1042I Redemption of value of expenditure credit
- 1042J Treatment of deduction to comply with PAYE and NIC limit
- Notional tax deduction
- 1042K Amount of notional tax deduction
- 1042L Treatment of notional tax deduction
- 1042M Priority of discharge
- Intra-group surrenders
- 1042N Amounts surrendered to other group companies
- Basic life assurance and general annuity businesses
- 1042O Adaptation of entitlement for certain insurance businesses
- Chapter 2 Relief for loss-making, R&D-intensive SMEs
- Introductory
- 1043 Overview of Chapter
- Reliefs
- 1044 Additional deduction in calculating profits of trade
- 1045 Alternative treatment for pre-trading expenditure: deemed trading loss
- 1045ZA R&D intensity condition
- Reliefs: further provision
- 1045A Requirement to make a claim notification
- 1046 Relief only available where company is going concern
- 1047 Elections under section 1045
- 1048 Treatment of deemed trading loss under section 1045
- 1049 Restriction on consortium relief
- Threshold
- 1050 R&D threshold
- Qualifying expenditure
- 1051 Qualifying Chapter 2 expenditure
- 1052 Qualifying expenditure: in-house R&D
- 1053 Qualifying expenditure: payments for contracted out R&D
- 1053A Qualifying expenditure: activity as contractor for irrelievable client
- Tax credit: entitlement and payment
- 1054 Entitlement to and payment of tax credit
- 1054A Requirement to make a claim notification
- 1055 Meaning of “Chapter 2 surrenderable loss”
- 1056 Amount of trading loss which is “unrelieved”
- 1057 Tax credit only available where company is going concern
- Amount of tax credit
- 1058 Amount of tax credit
- 1058A Relevant expenditure on workers
- 1058B Total amount of company's PAYE and NIC liabilities
- 1058C Avoiding double counting of PAYE and NIC liabilities
- 1058D Exceptions to tax credit cap
- 1059 Total amount of company's PAYE and NIC liabilities
- Supplementary
- 1060 Use of credit to pay corporation tax
- 1061 Tax credit payment not income of company
- 1062 Restriction on losses carried forward where tax credit claimed
- 1062A Insurance company to be treated as large company
- Chapter 3 Relief for SMEs: R&D sub-contracted to SME
- Relief
- 1063 Additional deduction in calculating profits of trade
- Threshold
- 1064 R&D threshold
- Qualifying expenditure
- 1065 Qualifying Chapter 3 expenditure
- 1066 Expenditure on sub-contracted R&D undertaken in-house
- 1067 Expenditure on sub-contracted R&D not undertaken in-house
- Chapter 4 Relief for SMEs: subsidised and capped expenditure on R&D
- Relief
- 1068 Additional deduction in calculating profits of trade
- Threshold
- 1069 R&D threshold
- Qualifying expenditure
- 1070 Qualifying Chapter 4 expenditure
- 1071 Subsidised qualifying expenditure on in-house direct R&D
- 1072 Subsidised qualifying expenditure on contracted out R&D
- 1073 Capped R&D expenditure
- Chapter 5 Relief for large companies
- Relief
- 1074 Additional deduction in calculating profits of trade
- Threshold
- 1075 R&D threshold
- Qualifying expenditure
- 1076 Qualifying Chapter 5 expenditure
- 1077 Qualifying expenditure on in-house direct R&D
- 1078 Qualifying expenditure on contracted out R&D
- 1079 Qualifying expenditure on contributions to independent R&D
- Insurance companies
- 1080 Entitlement to relief: I minus E basis
- Chapter 6 Chapters 2 to 5: further provision
- ...
- Chapter 7 Relief for large companies: vaccine research etc
- Introductory
- 1085 Overview of Chapter
- 1086 Meaning of “qualifying R&D activity”
- Reliefs
- 1087 Deduction in calculating profits of trade
- 1088 Declaration about effect of relief
- 1089 SMEs: amount of deduction
- 1090 Modification of section 1089 for larger SMEs
- 1091 Amount of deduction
- 1092 SMEs: deemed trading loss for pre-trading expenditure
- 1093 Modification of section 1092 for larger SMEs
- 1094 Relief only available to SME where company is going concern
- Deemed trading loss: further provision
- 1095 Elections under section 1092
- 1096 Treatment of deemed trading loss under section 1092
- Threshold
- 1097 R&D threshold
- Qualifying expenditure
- 1098 Meaning of “qualifying Chapter 7 expenditure”
- 1099 SMEs: qualifying expenditure “for” an accounting period
- 1100 Qualifying expenditure “for” an accounting period
- 1101 Qualifying expenditure on in-house direct R&D
- 1102 Qualifying expenditure on contracted out R&D
- Tax credit: entitlement and payment
- 1103 Entitlement to and payment of tax credit
- 1104 Meaning of “Chapter 7 surrenderable loss”
- 1105 Amount of trading loss which is “unrelieved”
- 1106 Tax credit only available where company is going concern
- Amount of tax credit
- 1107 Amount of tax credit
- 1108 Total amount of company's PAYE and NIC liabilities
- Supplementary
- 1109 Payment of tax credit
- 1110 Tax credit payment not income of company
- 1111 Restriction on losses carried forward where tax credit claimed
- Tax avoidance
- 1112 Artificially inflated claims for relief
- Chapter 8 Restrictions on relief under this Part
- Introductory
- 1112A Overview of Chapter
- PAYE and NIC liabilities
- 1112B Cap by reference to PAYE and NIC liabilities
- 1112C Calculation of relevant PAYE and NIC liabilities
- 1112D Total PAYE and NIC liabilities
- 1112E Exception for companies creating or managing intellectual property
- Going concerns
- 1112F Restriction of credit and relief to companies that are going concerns
- 1112G Meaning of “going concern”
- Outstanding tax matters
- 1112H No credit payable if certain tax matters outstanding
- Artificially inflated claims
- 1112I Transactions aimed at obtaining credit or relief to be disregarded
- Northern Ireland companies
- 1112J Chapter 2 relief for Northern Ireland companies
- Chapter 9 Supplementary
- SMEs and large companies
- 1119 “Small or medium-sized enterprise”
- 1120 Qualifications to section 1119
- 1120A Enterprise treated as an SME where related enterprise becomes large
- 1120B Enterprise treated as an SME where acquired by an SME
- 1121 “Larger SME”
- 1122 “Large company”
- Staffing costs
- 1123 “Staffing costs”
- 1124 Staffing costs: attributable expenditure
- Software , data licences, cloud computing services or consumable items
- 1125 “Software , data licences, cloud computing services or consumable items”
- 1126 Software , data licences, cloud computing services or consumable items: attributable expenditure
- 1126ZA Attributable expenditure: special rules for data and cloud computing
- 1126A Attributable expenditure: special rules for consumable items
- 1126B Attributable expenditure: further provision
- Qualifying expenditure on externally provided workers
- 1127 “Qualifying expenditure on externally provided workers”
- 1128 “Externally provided worker”
- 1129 Qualifying expenditure on externally provided workers: connected persons
- 1130 Election for connected persons treatment
- 1131 Qualifying expenditure on externally provided workers: other cases
- 1131A Sections 1129 and 1131: secondary Class 1 NICS paid by company
- 1132 External workers: attributable expenditure
- 1132A “Qualifying earnings”
- Contracting out
- 1133 Contracted out research and development
- 1134 Qualifying element of contractor payment: connected persons
- 1135 Election for connected persons treatment
- 1136 Qualifying element of contractor payment: other cases
- Miscellaneous
- 1137 Accounting periods: company not within charge to corporation tax
- 1138 “Subsidised expenditure”
- 1138A Externally provided workers and contractors: R&D undertaken abroad
- 1138B Exempt foreign permanent establishments
- 1139 “Intellectual property”
- 1139A Expenditure incurred on payments
- 1140 “Relevant payments to the subjects of a clinical trial”
- 1140A Groups
- 1141 “Payment period”
- 1142 Ineligible companies
- 1142A “Claim notification” and “claim notification period”
- 1142B “R&D claim”
- 1142C Right to payment of credit inalienable
- 1142D General rule against payments of credit to nominees
- 1142E Orders and regulations: ancillary provision
- Part 14 Remediation of contaminated or derelict land
- Chapter 1 Introduction
- Introductory
- 1143 Overview of Part
- Basic definitions
- 1144 “Qualifying land remediation expenditure”
- 1145 Land “in a contaminated state”
- 1145A Land “in a derelict state”
- 1145B Exclusion of nuclear sites
- 1146 “Relevant contaminated land remediation”
- 1146A “Relevant derelict land remediation”
- Chapter 2 Reliefs for expenditure on contaminated or derelict land
- 1147 Deduction for capital expenditure
- 1148 Election under section 1147
- 1149 Additional deduction for qualifying land remediation expenditure
- 1150 No relief if company responsible for contamination or dereliction or polluter has interest
- Chapter 3 Land remediation tax credit
- Entitlement and payment
- 1151 Entitlement to and payment of tax credit
- 1152 Meaning of “qualifying land remediation loss”
- 1153 Amount of a loss which is “unrelieved”
- Amount of tax credit
- 1154 Amount of tax credit
- Supplementary
- 1155 Payment of tax credit
- 1156 Tax credit payment not income of company
- 1157 Exclusion for capital gains purposes of certain expenditure
- 1158 Restriction on losses carried forward where tax credit claimed
- Chapter 4 Special provision for BLAGAB
- ...
- 1159 Limitation on relief under Chapter 2
- I minus E basis
- 1160 Provision in respect of I minus E basis
- Relief ...
- 1161 Relief in respect of I minus E basis: ... expenses payable
- 1162 Additional relief
- 1163 No relief if company responsible for contamination or dereliction or polluter has interest
- BLAGAB company tax credits
- 1164 Entitlement to tax credit
- 1165 Meaning of “qualifying BLAGAB loss”
- 1166 Amount of tax credit
- 1167 Payment of tax credit etc
- 1168 Restriction on carrying forward expenses payable where tax credit claimed
- Chapter 5 Tax avoidance
- 1169 Artificially inflated claims for relief or tax credit
- Chapter 6 Supplementary
- 1170 “Staffing costs”
- 1171 Staffing costs attributable to relevant land remediation
- 1172 Expenditure on materials
- 1173 Expenditure incurred because of contamination or dereliction
- 1174 Sub-contractor payments
- 1175 Connected sub-contractors
- 1176 “Qualifying expenditure on sub-contracted land remediation”: other cases
- 1177 “Subsidised expenditure”
- 1178 Persons having a “relevant connection” to a company
- 1178A “Major interest in land”
- 1179 Other definitions
- Part 14A Films, television programmes and video games
- Chapter 1 Introduction and interpretation
- Introduction to Part
- 1179A Overview of Part
- 1179AA Qualifying companies and productions
- Definitions and miscellaneous provision
- 1179AB UK expenditure
- 1179AC Company tax returns
- 1179AD Groups
- 1179AE Regulations
- Chapter 2 Special rules about taxation
- The separate production trade
- 1179B Election to tax qualifying production as separate trade
- 1179BA Duration of separate trade
- Accounting for the separate trade
- 1179BB Calculation of profits
- 1179BC When costs are to be taken as incurred
- 1179BD Preliminary expenditure
- 1179BE Treatment of certain capital amounts as revenue
- Losses in the separate trade
- 1179BF Carrying forward of production losses
- 1179BG Transfer of terminal loss to other qualifying production
- Chapter 3 Expenditure credit
- The entitlement
- 1179C Entitlement to expenditure credit
- 1179CA Amount of expenditure credit
- Treatment of credit
- 1179CB Expenditure credit to count as taxable receipt
- 1179CC Redemption of value of expenditure credit
- 1179CD Treatment of notional tax deduction
- 1179CE Amounts surrendered to other group companies
- 1179CF Priority of discharge
- Restrictions on payment
- 1179CG No credit payable if company in administration or liquidation
- 1179CH No credit payable if certain tax matters outstanding
- Artificial arrangements
- 1179CI Disqualifying arrangements and non-commercial transactions
- Chapter 4 Films and television programmes
- General
- 1179D Application of Chapters 2 and 3 to films and television programmes
- Qualifying films
- 1179DA Meaning of “film”
- 1179DB Qualifying films
- 1179DC Theatrical release condition
- Qualifying television programmes
- 1179DD Meaning of “television programme”
- 1179DE Qualifying television programmes
- 1179DF Categories of qualifying programme
- 1179DG Excluded programmes
- 1179DH Broadcast condition
- 1179DI Slot length and hourly cost conditions
- British certification condition
- 1179DJ British certification condition: provisional and final satisfaction
- 1179DJA Films: certification as low-budget film
- 1179DK Television programmes: test for certification
- 1179DL Television programmes: applications for certification
- 1179DM Television programmes: certification and revocation
- 1179DN Disclosure of information for certification purposes
- UK expenditure condition
- 1179DO UK expenditure condition: provisional and final satisfaction
- Production companies
- 1179DP Meaning of “production company”
- 1179DQ Qualifying co-productions and co-producers
- Qualifying expenditure and rate of credit
- 1179DR Expenditure that qualifies for credit
- 1179DS Meaning of “core expenditure”
- 1179DT Excluded expenditure: research and development and unpaid amounts
- 1179DU Excluded expenditure: non-arm’s-length dealings with connected parties
- 1179DV Percentage of qualifying expenditure translated into credit
- Accounting for the separate trade
- 1179DW When the separate trade begins
- 1179DX Costs and income of separate trade
- 1179DY Accounting periods
- Miscellaneous
- 1179DZ Effect of move out of higher-percentage category
- 1179E Production qualifying consecutively as film and television programme
- 1179EA Meaning of “production activities”, “principal photography” and “animation”
- 1179EB When film or programme is completed
- 1179EC Special credit for visual effects
- Chapter 5 Video games
- General
- 1179F Application of Chapters 2 and 3 to video games
- Qualifying video games
- 1179FA Video games that are qualifying video games
- 1179FB Intended supply condition
- British certification condition
- 1179FC British certification condition: provisional and final satisfaction
- 1179FD Test for certification
- 1179FE Applications for certification
- 1179FF Certification and revocation
- 1179FG Disclosure of information for certification purposes
- UK expenditure condition
- 1179FH UK expenditure condition
- Development companies
- 1179FI Meaning of “development company”
- Qualifying expenditure and rate of credit
- 1179FJ Expenditure that qualifies for credit
- 1179FK Meaning of “core expenditure”
- 1179FL Excluded expenditure: research and development and unpaid amounts
- 1179FM Excluded expenditure: non-arm’s-length dealings with connected parties
- 1179FN Percentage of qualifying expenditure translated into credit
- Accounting for the separate trade
- 1179FO When the separate trade begins
- 1179FP Costs and income of separate trade
- 1179FQ Accounting periods
- Miscellaneous
- 1179FR Meaning of “development activities”
- 1179FS When video game is completed
- Part 15 Film production
- Chapter 1 Introduction
- Introductory
- 1180 Overview of Part
- Interpretation
- 1181 “Film” etc
- 1182 “Film production company”
- 1183 “Film-making activities” etc
- 1184 “Production expenditure”, “core expenditure” ...
- 1185 “UK expenditure” etc
- 1186 “Qualifying co-production” and “co-producer”
- 1187 “Company tax return”
- Chapter 2 Taxation of activities of film production company
- Separate film trade
- 1188 Activities of film production company treated as a separate trade
- 1189 Calculation of profits or losses of separate film trade
- Supplementary
- 1190 Income from the film
- 1191 Costs of the film
- 1192 When costs are taken to be incurred
- 1193 Pre-trading expenditure
- 1194 Estimates
- Chapter 3 Film tax relief
- Introductory
- 1195 Availability and overview of film tax relief
- Conditions of relief
- 1196 Intended theatrical release
- 1196A Intended release or broadcast
- 1197 British film
- 1198 UK expenditure
- Additional deductions
- 1199 Additional deduction for qualifying expenditure
- 1200 Amount of additional deduction
- Film tax credits
- 1201 Film tax credit claimable if company has surrenderable loss
- 1202 Surrendering of loss and amount of film tax credit
- 1203 Payment in respect of film tax credit
- Miscellaneous
- 1204 No account to be taken of amount if unpaid
- 1205 Artificially inflated claims for additional deduction or film tax credit
- 1206 Confidentiality of information
- 1207 Wrongful disclosure
- Chapter 4 Film losses
- 1208 Application of sections 1209 and 1210
- 1209 Restriction on use of losses while film in production
- 1210 Use of losses in later periods
- 1211 Terminal losses
- Chapter 5 Provisional entitlement to relief
- 1212 Introduction
- 1213 Certification as a British film
- 1214 The UK expenditure condition
- 1215 Film tax relief on basis that film is limited-budget film
- 1216 Time limit for amendments and assessments
- PART 15A Television production
- CHAPTER 1 Introduction
- Introductory
- 1216A Overview of Part
- Meaning of “television programme”, “relevant programme” etc
- 1216AA “Television programme”
- 1216AB “Relevant programme”
- 1216AC Types of programme eligible to be relevant programmes
- 1216AD Excluded programmes
- 1216ADA Certain children's programmes not to be excluded programmes
- Other interpretation
- 1216AE Television production company
- 1216AF “Television production activities” etc
- 1216AG “Production expenditure” and “core expenditure”
- 1216AH “UK expenditure” etc
- 1216AI “Qualifying co-production” and “co-producer”
- 1216AJ “Company tax return”
- CHAPTER 2 Taxation of activities of television production company
- Separate programme trade
- 1216B Activities of television production company treated as a separate trade
- 1216BA Calculation of profits or losses of separate programme trade
- Supplementary
- 1216BB Income from the relevant programme
- 1216BC Costs of the relevant programme
- 1216BD When costs are taken to be incurred
- 1216BE Pre-trading expenditure
- 1216BF Estimates
- CHAPTER 3 Television tax relief
- Introductory
- 1216C Availability and overview of television tax relief
- “Intended for broadcast”
- 1216CA Intended for broadcast
- British programmes
- 1216CB British programme
- 1216CC Applications for certification
- 1216CD Certification and withdrawal of certification
- UK expenditure
- 1216CE UK expenditure
- Additional deductions
- 1216CF Additional deduction for qualifying expenditure
- 1216CG Amount of additional deduction
- Television tax credits
- 1216CH Television tax credit claimable if company has surrenderable loss
- 1216CI Surrendering of loss and amount of television tax credit
- 1216CJ Payment in respect of television tax credit
- Miscellaneous
- 1216CK No account to be taken of amount if unpaid
- 1216CL Artificially inflated claims for additional deduction or tax credit
- 1216CM Confidentiality of information
- 1216CN Wrongful disclosure
- CHAPTER 4 Programme losses
- 1216D Application of sections 1216DA and 1216DB
- 1216DA Restriction on use of losses while programme in production
- 1216DB Use of losses in later periods
- 1216DC Terminal losses
- CHAPTER 5 Provisional entitlement to relief
- 1216E Introduction
- 1216EA Certification as a British programme
- 1216EB The UK expenditure condition
- 1216EC Time limit for amendments and assessments
- PART 15B Video games development
- CHAPTER 1 Introduction
- Introductory
- 1217A Overview of Part
- Interpretation
- 1217AA “Video game” etc
- 1217AB Video games development company
- 1217AC “Video game development activities” etc
- 1217AD “Core expenditure”
- 1217AE “European expenditure” etc
- 1217AF “Company tax return”
- CHAPTER 2 Taxation of activities of video games development company
- Separate video game trade
- 1217B Activities of video games development company treated as a separate trade
- 1217BA Calculation of profits or losses of separate video game trade
- Supplementary
- 1217BB Income from the video game
- 1217BC Costs of the video game
- 1217BD When costs are taken to be incurred
- 1217BE Estimates
- CHAPTER 3 Video games tax relief
- Introductory
- 1217C Availability and overview of video games tax relief
- “Intended for supply”
- 1217CA Intended for supply
- British video games
- 1217CB British video game
- 1217CC Applications for certification
- 1217CD Certification and withdrawal of certification
- EEA expenditure
- 1217CE European expenditure
- Additional deductions
- 1217CF Additional deduction for qualifying expenditure
- 1217CG Amount of additional deduction
- Video game tax credits
- 1217CH Video game tax credit claimable if company has surrenderable loss
- 1217CI Surrendering of loss and amount of video game tax credit
- 1217CJ Payment in respect of video game tax credit
- Miscellaneous
- 1217CK No account to be taken of amount if unpaid
- 1217CL Artificially inflated claims for additional deduction or tax credit
- 1217CM Confidentiality of information
- 1217CN Wrongful disclosure
- CHAPTER 4 Video game losses
- 1217D Application of sections 1217DA and 1217DB
- 1217DA Restriction on use of losses while video game in development
- 1217DB Use of losses in later periods
- 1217DC Terminal losses
- CHAPTER 5 Provisional entitlement to relief
- 1217E Introduction
- 1217EA Certification as a British video game
- 1217EB The European expenditure condition
- 1217EC Time limit for amendments and assessments
- PART 15C Theatrical Productions
- Introduction
- 1217F Overview
- 1217FA “Theatrical production”
- 1217FB Productions not regarded as theatrical
- 1217FC “Production company”
- Companies qualifying for relief
- 1217G How a company qualifies for relief
- 1217GA The commercial purpose condition
- 1217GB The UK expenditure condition
- 1217GC “Core expenditure”
- Claim for additional deduction
- 1217H Claim for additional deduction
- The separate theatrical trade
- 1217I Introduction to sections 1217IA to 1217IF
- 1217IA Calculation of profits or losses of separate theatrical trade
- 1217IB Income from the production
- 1217IC Costs of the production
- 1217ID When costs are taken to be incurred
- 1217IE Pre-trading expenditure
- 1217IF Estimates
- Amount of additional deduction
- 1217J Amount of additional deduction
- 1217JA “Qualifying expenditure”
- Theatre tax credits
- 1217K Theatre tax credit claimable if company has surrenderable loss
- 1217KA Amount of surrenderable loss
- 1217KB Payment in respect of theatre tax credit
- 1217KC Limit on State aid
- Companies in insolvency
- 1217KD No claim if company in administration or liquidation
- Anti-avoidance etc
- 1217LA Tax avoidance arrangements
- 1217LB Transactions not entered into for genuine commercial reasons
- Use of losses
- 1217M Application of sections 1217MA to 1217MC
- 1217MA Restriction on use of losses before completion period
- 1217MB Use of losses in the completion period
- 1217MC Terminal losses
- Provisional entitlement to relief
- 1217N Provisional entitlement to relief
- 1217NA Clawback of provisional relief
- Interpretation
- 1217O Activities involved in developing, producing, running or closing a production
- 1217OA “Company tax return”
- 1217OB Index
- PART 15D Orchestra tax relief
- CHAPTER 1 Introduction
- Overview
- 1217P Overview
- Interpretation
- 1217PA “Orchestral concert”
- 1217PB Production company
- CHAPTER 2 Taxation of activities of production company
- Separate orchestral trade
- 1217Q Separate orchestral trade
- 1217QA Election for concert series
- Profits and losses of separate orchestral trade
- 1217QB Calculation of profits or losses of separate orchestral trade
- 1217QC Income from the production
- 1217QD Costs of the production
- 1217QE When costs are taken to be incurred
- 1217QF Pre-trading expenditure
- 1217QG Estimates
- CHAPTER 3 Orchestra tax relief
- Introduction
- 1217R Overview of orchestra tax relief
- Companies qualifying for orchestra tax relief
- 1217RA Companies qualifying for orchestra tax relief
- 1217RB The UK expenditure condition
- 1217RC “Core expenditure”
- Additional deduction
- 1217RD Claim for additional deduction
- 1217RE Amount of additional deduction
- 1217RF “Qualifying expenditure”
- Orchestra tax credits
- 1217RG Orchestra tax credit claimable if company has surrenderable loss
- 1217RH Amount of surrenderable loss
- 1217RI Payment in respect of orchestra tax credit
- 1217RJ Limit on State aid
- 1217RK No account to be taken of amount if unpaid
- Companies in insolvency
- 1217RKA No claim if company in administration or liquidation
- Anti-avoidance etc
- 1217RL Tax avoidance arrangements
- 1217RM Transactions not entered into for genuine commercial reasons
- CHAPTER 4 Losses of separate orchestral trade
- 1217S Application of sections 1217SA to 1217SC
- 1217SA Restriction on use of losses before completion period
- 1217SB Use of losses in the completion period
- 1217SC Terminal losses
- CHAPTER 5 Provisional entitlement to relief
- 1217T Provisional entitlement to relief
- 1217TA Clawback of provisional relief
- CHAPTER 6 Interpretation
- 1217U Interpretation
- PART 15E Museums and galleries exhibition tax relief
- CHAPTER 1 Introduction
- Overview
- 1218ZA Overview
- Interpretation
- 1218ZAA “Exhibition”
- 1218ZAB “Touring exhibition”
- 1218ZAC Primary production company
- 1218ZAD Secondary production company
- CHAPTER 2 Taxation of activities of production company
- Separate exhibition trade
- 1218ZB Separate exhibition trade
- Profits and losses of separate exhibition trade
- 1218ZBA Calculation of profits or losses of separate exhibition trade
- 1218ZBB Income from the production
- 1218ZBC Costs of the production
- 1218ZBD When costs are taken to be incurred
- 1218ZBE Pre-trading expenditure
- 1218ZBF Estimates
- CHAPTER 3 Museums and galleries exhibition tax relief
- Introduction
- 1218ZC Overview of museums and galleries exhibition tax relief
- Companies qualifying for museums and galleries exhibition tax relief
- 1218ZCA Companies qualifying for museums and galleries exhibition tax relief
- 1218ZCB Interpretation of section 1218ZCA(3)(b) and (c)
- 1218ZCC The UK expenditure condition
- 1218ZCD “Core expenditure”
- Additional deduction
- 1218ZCE Claim for additional deduction
- 1218ZCF Amount of additional deduction
- 1218ZCG “Qualifying expenditure”
- Museums and galleries exhibition tax credits
- 1218ZCH Museums and galleries exhibition tax credit claimable if company has surrenderable loss
- 1218ZCI Amount of surrenderable loss
- 1218ZCJ Payment in respect of museums and galleries exhibition tax credit
- 1218ZCK Maximum museums and galleries exhibition tax credits payable
- 1218ZCL No account to be taken of amount if unpaid
- Companies in insolvency
- 1218ZCLA No claim if company in administration or liquidation
- Anti-avoidance etc
- 1218ZCM Tax avoidance arrangements
- 1218ZCN Transactions not entered into for genuine commercial reasons
- CHAPTER 4 Losses of separate exhibition trade
- 1218ZD Application of sections 1218ZDA to 1218ZDC
- 1218ZDA Restriction on use of losses before completion period
- 1218ZDB Use of losses in the completion period
- 1218ZDC Terminal losses
- CHAPTER 5 Provisional entitlement to relief
- 1218ZE Provisional entitlement to relief
- 1218ZEA Clawback of provisional relief
- CHAPTER 6 Interpretation
- 1218ZF Regulations about activities in relation to an exhibition
- 1218ZFA Interpretation
- Part 16 Companies with investment business
- Chapter 1 Introduction
- 1217 Overview of Part
- 1218 “Company with investment business” and “investment business”
- 1218A Overview of Part
- 1218B Overview of Part
- Chapter 2 Management expenses
- Relief for expenses of management
- 1219 Expenses of management of a company's investment business
- 1220 Meaning of “unallowable purpose”
- 1221 Amounts treated as expenses of management
- 1222 Income from a source not charged to tax
- 1223 Carrying forward expenses of management and other amounts
- 1223A Exception for basic life assurance and general annuity business
- Accounting period to which expenses are referable
- 1224 Accounting period to which expenses are referable
- 1225 Accounts conforming with GAAP
- 1226 Accounts not conforming with GAAP
- 1227 Accounts not drawn up
- 1227A Management expenses in relation to salaried members of limited liability partnerships
- Claw back of relief
- 1228 Credits that reverse debits
- 1229 Claw back of relief
- 1230 Meaning of “reversal amount”
- 1231 Absence of accounts
- Chapter 3 Amounts treated as expenses of management
- Preliminary
- 1232 Chapter applies to amounts not otherwise relieved
- Excess capital allowances
- 1233 Excess capital allowances
- Payments for restrictive undertakings
- 1234 Payments for restrictive undertakings
- Seconded employees
- 1235 Employees seconded to charities and educational establishments
- Contributions to agents' expenses
- 1236 Payroll deduction schemes
- Counselling and retraining expenses
- 1237 Counselling and other outplacement services
- 1238 Retraining courses
- Redundancy payments etc
- 1239 Redundancy payments and approved contractual payments
- 1240 Payments in respect of employment wholly in employer's business
- 1241 Payments in respect of employment in more than one capacity
- 1242 Additional payments
- 1243 Payments made by the Government
- Contributions to local enterprise organisations or urban regeneration companies
- 1244 Contributions to local enterprise organisations or urban regeneration companies
- Contributions to flood and coastal erosion risk management projects
- 1244A Contributions to flood and coastal erosion risk management projects
- Export Credits Guarantee Department
- 1245 Payments to Export Credits Guarantee Department
- Levies under FISMA 2000
- 1246 Levies under FISMA 2000
- Chapter 4 Rules restricting deductions
- 1247 Introduction
- 1248 Expenses in connection with arrangements for securing a tax advantage
- 1249 Unpaid remuneration
- 1250 Unpaid remuneration: supplementary
- 1251 Car ... hire
- Chapter 5 Companies with investment business: receipts
- 1252 Industrial development grants
- 1253 Contributions to local enterprise organisations or urban regeneration companies: disqualifying benefits
- 1253A Contributions to flood and coastal erosion risk management projects: refunds etc
- 1254 Repayments under FISMA 2000
- Chapter 6 Supplementary
- 1255 Meaning of some accounting terms
- Part 17 Partnerships
- Introduction
- 1256 Overview of Part
- 1257 General provisions
- 1258 Assessment of firms
- 1258A Bare trusts
- Calculation of partners' shares
- 1259 Calculation of firm's profits and losses
- 1260 Section 1259: supplementary
- 1261 Accounting periods of firms
- 1262 Allocation of firm's profits or losses between partners
- 1263 Profit-making period in which some partners have losses
- 1264 Loss-making period in which some partners have profits
- 1264A Excess profit allocation to non-individual partners etc
- 1265 Apportionment of profit share between partner's accounting periods
- Firms with a foreign element
- 1266 Resident partners and double taxation agreements
- Adjustment on change of basis
- 1267 Various rules for trades and property businesses
- 1268 Election for spreading under Chapter 14 of Part 3
- 1269 Interpretation of sections 1267 and 1268
- Miscellaneous
- 1270 Special provisions about farming and property income
- 1271 Sale of patent rights: effect of partnership changes
- 1272 Sale of patent rights: effect of later cessation of trade
- 1273 Limited liability partnerships
- 1273A Limited liability partnerships: salaried members
- Part 18 Unremittable income
- 1274 Unremittable income: introduction
- 1275 Claim for relief for unremittable income
- 1276 Withdrawal of relief
- 1277 Income charged on withdrawal of relief after source ceases
- 1278 Valuing unremittable income
- Part 19 General exemptions
- Profits from FOTRA securities
- 1279 Exemption of profits from securities free of tax to residents abroad (“FOTRA securities”)
- 1280 Section 1279: supplementary provision
- Income from savings certificates
- 1281 Income from savings certificates
- 1282 Income from Ulster Savings Certificates
- Miscellaneous
- 1283 Interest from tax reserve certificates
- 1284 Housing grants
- 1285 UK company distributions
- 1286 VAT repayment supplements
- 1287 Incentives to use electronic communications
- Part 20 General calculation rules
- Chapter 1 Restriction of deductions
- Unpaid remuneration
- 1288 Unpaid remuneration
- 1289 Unpaid remuneration: supplementary
- Employee benefit contributions
- 1290 Employee benefit contributions
- 1291 Making of “employee benefit contributions”
- 1292 Provision of qualifying benefits
- 1293 Timing and amount of certain qualifying benefits
- 1294 Provision or payment out of employee benefit contributions
- 1295 Profits calculated before end of 9 month period
- 1296 Interpretation of sections 1290 to 1296
- 1297 Basic life assurance and general annuity business
- Business entertainment and gifts
- 1298 Business entertainment and gifts
- 1299 Business entertainment: exceptions
- 1300 Business gifts: exceptions
- Miscellaneous
- 1301 Restriction of deductions for annual payments
- 1301A Restriction of deductions for interest
- 1301B Qualifying charitable donations
- 1302 Social security contributions
- 1303 Penalties, interest and VAT surchargesand interest
- 1304 Crime-related payments
- 1305 Dividends and other distributions
- 1305A Avoidance schemes involving the transfer of corporate profits
- 1305B Avoidance schemes involving certain non-derecognition liabilities
- Chapter 2 Other general rules
- Miscellaneous profits and losses
- 1306 Losses calculated on same basis as miscellaneous income
- 1307 Apportionment etc of miscellaneous profits and losses to accounting period
- Expenditure on research and development
- 1308 Expenditure brought into account in determining value of intangible asset
- Visiting performers
- 1309 Payments treated as made to visiting performers
- Part 21 Other general provisions
- Orders and regulations
- 1310 Orders and regulations
- ...
- 1311 Apportionment to different periods
- Interpretation
- 1312 Abbreviated references to Acts
- 1313 Activities in UK sector of continental shelf
- 1314 Meaning of “caravan”
- 1315 Claims and elections
- 1316 Meaning of “connected” persons and “control”
- 1317 Meaning of “farming” and related expressions
- 1318 Meaning of grossing up
- 1319 Other definitions
- 1320 Interpretation: Scotland
- 1321 Interpretation: Northern Ireland
- Final provisions
- 1322 Minor and consequential amendments
- 1323 Power to make consequential provision
- 1324 Power to undo changes
- 1325 Transitional provisions and savings
- 1326 Repeals and revocations
- 1327 Index of defined expressions
- 1328 Extent
- 1329 Commencement
- 1330 Short title
- SCHEDULES
- SCHEDULE 1 Minor and consequential amendments
- Part 1 Income and Corporation Taxes Act 1988
- Part 2 Other enactments
- 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)
- SCHEDULE 2 Transitionals and savings
- Part 1 General provisions
- Continuity of the law: general
- General saving for old transitional provisions and savings
- Interpretation
- Part 2 Changes in the law
- Part 3 Charge to corporation tax on income
- Effect of repeal of section 9(1) of ICTA on relevance of case law
- Part 4 Accounting periods
- Companies in administration
- Part 5 Company residence: exceptions to section 14
- Part 6 Trading income
- ...
- 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
- Part 7 Property income
- 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”
- Part 8 Loan relationships
- 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
- Part 9 Relationships treated as 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
- 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
- Part 10 Derivative contracts
- 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
- Part 11 Intangible fixed assets
- Transactions between related parties
- Continuity: formation of an SE before 1 April 2005
- References to Companies Act 2006
- Part 12 Beneficiaries' income from estates in administration
- Basic amounts
- Income treated as bearing income tax
- Part 13 Relief for share incentive plans
- Deduction for contribution to plan trust
- Award of shares to excluded employee
- Part 14 Other relief for employee share acquisitions
- 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
- Part 15 Research and development
- 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 16 Remediation of contaminated land
- Part 14: expenditure incurred before 11 May 2001
- Staffing costs
- Part 17 Film production
- 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
- Part 18 Management expenses
- Unpaid remuneration
- Part 19 Unremittable income
- 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
- Part 20 General exemptions
- Ulster savings certificates
- Part 21 Other provisions
- 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
- SCHEDULE 3 Repeals and revocations
- Part 1 Repeals and revocations on 1 April 2009
- Part 2 Prospective repeals
- SCHEDULE 4 Index of defined expressions
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