The basic idea of group relief is to tax the economic unit that gives rise to profits over a corresponding period. Exceptions to the charge under section 455. United Kingdom 1. of members of both group and consortium, Claims relating to losses etc. The charge to corporation tax and exclusion of income tax and capital gains tax. 2. 481.Omit section 82 (sale etc of lessor companies etc). The Transport Act 2000 is amended as follows. Certain items of expenditure which are shown as reducing the profits in the commercial accounts are added back for tax purposes, and deductions may then be allowable. Omit section 508 (scientific research organisations). The Schedules you have selected contains over 200 provisions and might take some time to download. 5.1        Is there a special set of rules for taxing capital gains and losses? 9. The policy objective is to combat loss-buying but the rules can easily apply where there is no tax motivation for the change in ownership. for tax purposes, 493.Valuation of oil disposed of or appropriated in certain circumstances, 497.Restriction on setting ACT against income from oil extraction activities etc, 498.Limited right to carry back surrendered ACT, 499.Surrender of ACT where oil extraction company etc. Omit section 234 (information relating to distributions). 2. 12. 2)). Yes. The Finance Act 1980 is amended as follows. 683.In section 1219 (expenses of management of a company's investment... 684.In section 1220(5)(b) (meaning of “unallowable purpose”) for “section 840ZA... 685.In section 1221(1) (amounts treated as expenses of management)—. Act you have selected contains over 200 provisions and might take some time to download. 89.Omit section 587B (gifts of shares, securities and real property... 90.Omit section 587BA (qualifying interests in land held jointly). 3. 12)). The UK transfer pricing rules apply to both cross-border and domestic transactions between associated companies. 21. Tax payable in a country where the overseas company is taxable by reason of its domicile, residence or place of management is excluded from relief. If the GAAR applies, HMRC can counteract the tax advantage by the making of “just and reasonable” adjustments. Corporation Tax (Northern Ireland) Act 2015: 2015 c. 21: UK Public General Acts: Corporation Tax Act 2010: 2010 c. 4: UK Public General Acts: Corporation Tax Act 2009: 2009 c. 4: UK Public General Acts: Income and Corporation Taxes Act 1988: 1988 c. 1: UK Public General Acts: Income and Corporation Taxes (No. 9. as rent or Schedule D profits, Schedule D charge on assignment of lease granted at an undervalue, Schedule D charge on sale of land with right to reconveyance, Premiums paid etc: deductions from premiums and rent received, Rules for ascertaining duration of leases, Saving for pre-1963 leases, and special relief for individuals, Tax treatment of receipts and outgoings on sale of land, Appeals against determinations under sections 34 to 36, Savings certificates and tax reserve certificates, United Kingdom government securities held by non-residents, Stock and dividends in name of Treasury etc, United Kingdom securities: Treasury directions for payment without deduction of tax, Treasury directions as respects Northern Ireland securities, Taxation of interest on converted government securities and interest which becomes subject to deduction, Farming and other commercial occupation of land (except woodlands), Transactions in deposits with and without certificates or in debts, Special basis at commencement of trade, profession or vocation, Special basis for early years following commencement, Special rules where source of income disposed of or yield ceases, Special rules where property etc. Manufactured dividends and manufactured overseas dividends: distributions paid before 1 July 2009, Manufactured overseas dividends: overseas dividends paid before 22 April 2009, Deemed manufactured payments: stock lending arrangements, New lease of land after assignment or surrender: right to new lease existed pre-22 June 1971, 95. 2. Revised legislation carried on this site may not be fully up to date. 4. In applying section 187(3), as respects any time before or... (1) Any obligation placed on the participant by virtue of... For the purposes of any of the relevant provisions, “the... Subject to paragraph 6(4) below, for the purposes of any... (1) Money or money’s worth is not a capital receipt... (1) This paragraph applies where there occurs in relation to... (1) This paragraph applies in any case where—. Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. 550.In section 809ZC(1) (section 809ZA: lease of plant and machinery... 551.After section 809ZD insert— Capital payment”, “relevant capital payment” etc... 552.In section 809M(3) (meaning of “relevant person”)—. . 86.Omit section 519A (health service bodies). This site additionally contains content derived from EUR-Lex, reused under the terms of the Commission Decision 2011/833/EU on the reuse of documents from the EU institutions. The UK favours user participation. . The Finance Act 2003 is amended as follows. (1) Section 11 of the Finance Act (Northern Ireland) 1954... 152.The Taxes Management Act 1970 is amended as follows. 12. (1) In the case of dividends and profits attached thereto... 3.Money set apart or retained under paragraph 2 above, and... 4.No deduction of income tax under this Part of this... PART II PUBLIC REVENUE DIVIDENDS PAYABLE BY PUBLIC OFFICES AND DEPARTMENTS. 1. For more information see the EUR-Lex public statement on re-use. (1) Amend section 152 (open-ended investment companies) as follows. 4.7        Are companies subject to any significant taxes not covered elsewhere in this chapter – e.g. may also experience some issues with your browser, such as an alert box that a script is taking a (1) In relation to shares and securities issued before 17... 115.If an order under paragraph 13(2) of Schedule 22 to... Part 2 Repeals and revocations having effect for corporation tax purposes only. The standard charge on the rental element of a new lease is 1% of the net present value (“NPV”) of the rent, determined in accordance with a statutory formula, rising to 2% on the portion of NPV above £5 million. . (1) Subject to the following provisions of this Part of... General rules applicable to endowment assurances. In section 1017 (abbreviated references to Acts) at the appropriate... (1) Amend Schedule 2 (transitional and savings) as follows. In this Schedule references to an employment include references to... (1) A company shall for each of its accounting periods... (1) Subject to paragraph 7(2) below, the return made by... (1) Subject to paragraph 7(2) below, advance corporation tax in... (1) This paragraph shall have effect where—. . (1) Amend Schedule 19B (petroleum extraction activities: exploration expenditure supplement)... 143.Omit Schedule 19C (petroleum extraction activities: ring fence expenditure supplement).... 144.Omit Schedule 20 (charitable companies: qualifying investments and loans). 628. Amount of distribution consisting of share capital issued in lieu of cash dividend, 600.Power to make regulations about cases involving related persons, 602.Effect of deemed disposal and reacquisition, 604.Property rental business: exclusion of listed business, 605.Property rental business: exclusion of business producing listed income, 607.Meaning of “entry” and “cessation” etc, Part 13 Other special types of company etc, Chapter 1 Corporate beneficiaries under trusts, 610.Discretionary payments by trustees to companies, 611.Income tax provisions to apply in relation to trustees' expenses, 613.Meaning of “open-ended investment company”, 616.Meaning of “authorised unit trust” and “unit holder”, 617.Authorised unit trust treated as UK resident company, 622A.Power to make provision about treatment of transactions, 624.Power to make regulations about the taxation of securitisation companies, Chapter 5 Companies in liquidation or administration, 626.Meaning of “final year”, “penultimate year” etc, 627.Meaning of “rate of corporation tax” in case of companies with ring fence profits, 628.Company in liquidation: corporation tax rates, 629.Company in liquidation: making of assessment to tax, 630.Company in administration: corporation tax rates, 631.Company in administration: making of assessment to tax, 632.Meaning of rate being “fixed” or “proposed”, 633.Exemption for interest on overpaid tax in final accounting period, Chapter 6 Banks etc in compulsory liquidation, 636.Charge to corporation tax on winding up receipts, 640.Relationship of Chapter with other corporation tax provisions, Chapter 7 Co-operative housing associations, 642.Disregard of rent from members and of interest payable, 643.Exemption for gains on a sale of property, 645.Tests to be satisfied by the association, 646.Delegation of powers to the Regulator of Social Housing, 652.Exemption for gains on disposals of land to members, 654.Delegation of powers to the Regulator of Social Housing, 658.Meaning of “community amateur sports club” and “registered club”, 659.Meaning of “open to the whole community”, 660.Meaning of “organised on an amateur basis”, 660A.Clubs consisting mainly of social members, 661.Meaning of “eligible sport”, “qualifying purposes” etc, 661C.Periods over which management condition treated as met, 661D.Tax treatment of gifts qualifying for gift aid relief, 661E.Tax treatment of gifts of money from companies, 664.Exemption for interest , gift aid and company gift income, 665A.Claims in relation to interest , gift aid and company gift income, 666.Exemptions reduced if non-qualifying expenditure incurred, 667.Rules for attributing surplus amount to earlier periods etc, 669.Asset ceasing to be held for qualifying purposes etc, 674A.Section 674: exception for certain losses of ring fence trade, 675.Disallowance of trading losses: calculation of balancing charges, CHAPTER 2A Post-1 April 2017 losses: Further cases involving a change in the company's activities, 676AB.Priority of provisions of Chapters 2 and 3 over this Chapter, 676AC.“Major change in the business” of a company, 676AD.Notional split of accounting period in which change in ownership occurs, 676AF.Restriction on use of carried-forward post-1 April 2017 trade losses, 676AG.Restriction on debits to be brought into account, 676AH.Restriction on the carry forward of post-1 April 2017 non-trading deficit from loan relationships, 676AI.Restriction on relief for post-1 April 2017 non-trading loss on intangible fixed assets, 676AJ.Restriction on deduction of post-1 April 2017 expenses of management, 676AK.Restriction on use of post-1 April 2017 UK property business losses, 676AL.“Co-transferred company” and “related company”, CHAPTER 2B Asset transferred within group: restriction of relief for post-1 April trade losses, 676BB.Notional split of accounting period in which change in ownership occurs, 676BC.Disallowance of relief for trade losses, 676BD.Meaning of “the relevant provisions”, 676BE.Meaning of “amount of profits which represents a relevant gain”, CHAPTER 2C Disallowance of group relief for carried-forward losses: general provision, 676CB.Restriction on surrender of carried-forward losses, 676CC.Cases where consortium condition 1 or 2 was previously met, 676CD.Cases where consortium condition 3 or 4 was previously met, 676CF.Cases where Chapter 2, 2A or 3 also applies, CHAPTER 2D Asset transferred within group: Restriction of group relief for carried-forward losses, 676DB.Notional split of accounting period in which change in ownership occurs, 676DC.Disallowance of group relief for carried-forward losses, 676DD.Meaning of “the relevant provisions”, 676DE.Meaning of “amount of profits which represents a relevant gain”, CHAPTER 2E Post-1 April 2017 trade losses: cases involving the transfer of a trade, 676EB.Restriction on use of trade losses carried-forward on transfer of trade, 676EC.Restriction on surrender of trade losses carried forward on transfer of trade, Chapter 3 Company with investment business: restrictions on relief: general provision, Notional split of accounting period in which change in ownership occurs, 678.Notional split of accounting period in which change in ownership occurs, 679.Restriction on debits to be brought into account, 680.Restriction on the carry forward of non-trading deficit from loan relationships, 681.Restriction on relief for non-trading loss on intangible fixed assets, 682.Restriction on the deduction of expenses of management, 683.Disallowance of UK property business losses, 684.Disallowance of overseas property business losses, 686.Meaning of certain expressions in section 685, Adjustment to balancing charges if relief is restricted, 687.Adjustment to balancing charges if relief is restricted, Meaning of “significant increase in the amount of a company's capital”, 688.Meaning of “significant increase in the amount of a company's capital”, Chapter 4 Company with investment business: restrictions on relief: asset transferred within group, 693.Meaning of “amount of profits which represents a relevant gain”, 695.Notional split of accounting period in which change in ownership occurs, 696.Restriction on debits to be brought into account, 697.Restriction on the carry forward of non-trading deficit from loan relationships, 698.Restriction on relief for non-trading loss on intangible fixed assets, 699.Restrictions on the deduction of expenses of management, 700.Disallowance of UK property business losses, 701.Disallowance of overseas property business losses, 703.Meaning of certain expressions in section 702, Chapter 5 Company without investment business: disallowance of property losses, 704.Company carrying on UK property business, 705.Company carrying on overseas property business, CHAPTER 5A Shell companies: restrictions on relief, 705B.Notional split of accounting period in which change in ownership occurs, 705C.Restriction on debits to be brought into account, 705D.Restriction on carry forward of non-trading deficit from loan relationships, 705E.Restriction on relief for non-trading loss on intangible fixed assets, 705G.Meaning of certain expressions in section 705F, Chapter 6 Recovery of unpaid corporation tax, 708.Rights to be attributed for the purposes of section 707, Recovery of unpaid corporation tax for accounting period beginning before change, 710.Recovery of unpaid corporation tax for accounting period beginning before change, 711.Conditions relating to company's trade or business, 712.Meaning of “a major change in the nature or conduct of a trade or business”, Recovery of unpaid corporation tax for accounting period ending on or after change, 713.Recovery of unpaid corporation tax for accounting period ending on or after change, 715.Meaning of “transaction entered into in connection with change in ownership”, 717.Effect of payment in pursuance of assessment under section 710 or 713, Chapter 7 Meaning of “change in the ownership of a company”, Meaning of “change in the ownership of a company”, 719.Meaning of “change in the ownership of a company”, 721.When things other than ordinary share capital may be taken into account: Chapters 2 to 5A, 722.When things other than ordinary share capital may be taken into account: Chapter 6, 724.Disregard of change in company ownership, 724A.Disregard of change in parent company, 725.Provision applying for the purposes of Chapters 2 to 5A, 728.Provision of information about ownership of shares etc, 729.Meaning of “company with investment business”, 730.Meaning of “relevant non-trading debit”, 730C.Disallowance of deductible amounts: relevant claims, 730D.Disallowance of deductible amounts: profit transfers, PART 14B Tax avoidance involving carried-forward losses, 730F.Meaning of “relevant carried-forward loss”, 730G.Disallowance of deductions for relevant carried-forward losses, 732.Meaning of “corporation tax advantage”, Company liable to counteraction of corporation tax advantage, 733.Company liable to counteraction of corporation tax advantage, 734.Exception where no tax avoidance object shown, Circumstances in which corporation tax advantages obtained or obtainable, 735.Abnormal dividends used for exemptions or reliefs (circumstance A), 736.Receipt of consideration representing company's assets, future receipts or trading stock (circumstance C), 737.Receipt of consideration in connection with relevant company distribution (circumstance D), 738.Receipt of assets of relevant company (circumstance E), 739.Meaning of “relevant company” in sections 737 and 738, 741.Abnormal dividends: the excessive return condition, 742.Abnormal dividends: the excessive accrual condition, Procedure for counteraction of corporation tax advantages, 743.Preliminary notification that section 733 may apply, 744.Opposed notifications: statutory declarations, 745.Opposed notifications: determinations by tribunal, 747.Timing of assessments in section 738 cases, 748.Application for clearance of transactions, 749.Effect of clearance notification under section 748, 750.Appeals against counteraction notices, 753.Value of transferred income stream treated as income, 755.Exception: transfer by way of security, Chapter 1A Disposals of income streams through partnerships, 757B.Relevant amount to be treated as income, 759.Certain tax consequences not to have effect, 760.Payments treated as borrower's income, 761.Deemed loan relationship if borrower is a company, 762.Deemed loan relationship if borrower is partnership with corporate member, 764.Relevant change in relation to partnership, 765.Certain tax consequences not to have effect, 768.Certain tax consequences not to have effect, Chapter 4 Disposals of assets through partnerships, 779B.Relevant amount to be treated as income, 783.Treatment of payer of manufactured dividend, 784.Treatment of recipient of manufactured dividend, 785.Treatment of payer: Real Estate Investment Trusts, 786.Treatment of recipient: Real Estate Investment Trusts, 788.Statements about manufactured dividends, 789.Powers about administrative provisions, Chapter 3 Manufactured overseas dividends, 790.Meaning of “manufactured overseas dividend”, 791.Treatment of payer of manufactured overseas dividend, 792.Company receiving manufactured overseas dividend from UK resident etc, 793.Section 792: amount treated as withheld, 794.Company receiving manufactured overseas dividend from foreign payer, 795.Exemption of manufactured overseas dividends, Chapter 4 Further provision about manufactured payments, Manufactured payments exceeding, or less than, underlying payments, 796.Manufactured dividends: amounts exceeding underlying payments, 797.Manufactured overseas dividends: amounts exceeding underlying payments, 798.Manufactured overseas dividends less than underlying payments, Manufactured payments under arrangements with unallowable purpose, 799.Manufactured payments under arrangements with unallowable purpose, 800.Arrangements with an unallowable purpose, 802.Powers about amounts representative of overseas dividends, Chapter 5 Stock lending arrangements and repos, 807.“Creditor repo”, “creditor quasi-repo”, “debtor repo” and “debtor quasi-repo”, Tax credits: stock lending arrangements and repos, 808.No tax credits for borrower under stock lending arrangement, 809.No tax credits for lender under creditor repo or creditor quasi-repo, 810.No tax credits for borrower under debtor repo or debtor quasi-repo, 811.Arrangements between companies to make distributions, 812.Deemed manufactured payments: stock lending arrangements, 813.The gross amount of a manufactured overseas dividend etc, 814C.Treatment of payer of manufactured dividend, 814D.Treatment of recipient of manufactured dividend, Charge to tax on gains from transactions in land, 818.Charge to tax on gains from transactions in land, 819.Gains obtained from land disposals in some circumstances, Further provisions relevant to the charge, 823.Transactions, arrangements, sales and realisations relevant for Part, 827.Gain attributable to period before intention to develop formed, 828.Disposals of shares in companies holding land as trading stock, 829.Cases where consideration receivable by person not assessed, Clearances and power to obtain information, Chapter 1 Payments connected with transferred land, 835.Transferor or associate becomes liable for payment of rent, 836.Transferor or associate becomes liable for payment other than rent, Relief (other than for certain insurance company expenses): restriction and carrying forward, 838.Relevant corporation tax relief: deduction not to exceed commercial rent, Insurance company expenses: restriction and carrying forward of relief, 839.Deduction ... not to exceed commercial rent, 841.Aggregation and apportionment of payments, 844.Commercial rent: comparison with rent under a lease, 845.Commercial rent: comparison with payments other than rent, Chapter 2 New lease of land after assignment or surrender, 850.New lease after assignment or surrender, 852.Position where new lease does not include all original property, Lease varied to provide for increased rent, 859.Lease varied to provide for increased rent, 865.Tax deduction not to exceed commercial rent, 876.Adjustments where sum obtained before payment made, 878.Sum obtained in respect of lessee's interest, 880.Apportionment of payments made and of sums obtained, Part 20 Tax avoidance involving leasing plant or machinery, Chapter 1 Restrictions on use of losses in leasing partnerships, 887.When restrictions on leasing partnership losses under this Chapter apply, 888.Restrictions on leasing partnership losses, Chapter 2 Capital payments in respect of leases treated as income, 890.Capital payments in respect of leases treated as income, 891.Apportionments for leases of plant or machinery and other property, 892.Deduction where failure to make relevant capital payment expected, 893.Meaning of “capital payment”, “relevant capital payment” etc, Chapter 3 Consideration for taking over payment obligations as lessee treated as income, 894A.Consideration for taking over payment obligations as lessee treated as income, Part 21 Leasing arrangements: finance leases and loans, Chapter 2 Finance leases with return in capital form, 899.Arrangements to which this Chapter applies, 902.The conditions referred to in section 901(1), 904.The arrangements and circumstances referred to in section 902(8), Current lessor taxed by reference to accountancy rental earnings, 905.Current lessor taxed by reference to accountancy rental earnings, Reduction of taxable rent by cumulative rental excesses, 906.Reduction of taxable rent by cumulative rental excesses: introduction, 907.Meaning of “accountancy rental excess” and “cumulative accountancy rental excess”, 908.Reduction of taxable rent by the cumulative accountancy rental excess, 909.Meaning of “normal rental excess” and “cumulative normal rental excess”, 910.Reduction of taxable rent by the cumulative normal rental excess, Relief for bad debts by reduction of cumulative rental excesses, 911.Relief for bad debts: reduction of cumulative accountancy rental excess, 912.Recovery of bad debts following reduction under section 911, 913.Relief for bad debts: reduction of cumulative normal rental excess, 914.Recovery of bad debts following reduction under section 913, 915.Effect of disposals of leases: general, 916.Assignments on which neither a gain nor a loss accrues, Capital allowances: clawback of major lump sum, 917.Effect of capital allowances: introduction, 918.Cases where expenditure taken into account under Part 2, 5 or 8 of CAA 2001, 919.Cases where expenditure taken into account under other provisions of CAA 2001, 920.Capital allowances deductions: waste disposal and cemeteries, Schemes to which this Chapter does not at first apply, 923.Pre-26 November 1996 schemes where this Chapter does not at first apply, 924.Post-25 November 1996 schemes to which Chapter 3 applied first, 928.Current lessor taxed by reference to accountancy rental earnings, Application of provisions of Chapter 2 for purposes of this Chapter, 929.Application of provisions of Chapter 2 for purposes of this Chapter, 930.Pre-26 November 1996 schemes and post-25 November 1996 schemes, 931.Time apportionment where periods of account do not coincide, 932.Periods of account and related periods of account and accounting periods, 934.Assets which represent the leased asset, 935.Parent undertakings and consolidated group accounts, 937B.Group schemes and single company schemes, 937D.Meaning of “the scheme rate, index or value”, 937F.Ring-fenced scheme losses and relevant scheme profits, 937G.Ring-fenced scheme loss: treatment in period in which made, 937H.Ring-fenced scheme loss: treatment in subsequent periods, 937I.A company's losses pool and profits pool, 937L.Interpretation of references to economic losses and profits, 937O.Power to amend this Part in its application to dealers in securities, 938A.Losses and profits from group mismatch schemes to be disregarded, 938B.Meaning of “a group mismatch scheme” and “the scheme group”, 938C.Meaning of “scheme loss” and “scheme profit”, 938D.