Finance Act 2004

Income and Corporation Taxes Act 1988

Levies and repayments under Financial Services and Markets Act 2000: investment companies

1 (1) Section 76B of the Taxes Act 1988 is amended as follows.

(2) In subsection (1) (certain sums paid by an investment company to be treated as expenses of management) for “an investment company” substitute “a company with investment business”.

(3) In subsection (2) (repayment to investment company to be charged under Case VI of Schedule D)—

(a) at the beginning, insert “For the purposes of corporation tax,”, and

(b) for “an investment company” substitute “a company with investment business”.

Incidental costs of obtaining loan finance

2 (1) Section 77 of the Taxes Act 1988 is amended as follows.

(2) In subsection (1) (which does not apply for the purposes of corporation tax but which includes provision for the costs in question to be treated as expenses of management) omit the words from “and the incidental costs” to the end of the subsection.

Change in ownership of investment company: deductions generally.

3 (1) Section 768B of the Taxes Act 1988 is amended as follows.

(2) In subsection (1) (case where section applies) for “an investment company” substitute “a company with investment business”.

(3) In subsection (6) (treatment of expenses of management disbursed in the accounting period)—

(a) for “are disbursed or treated as disbursed as expenses of management in the accounting period” substitute “are, or are treated as, expenses of management referable to the accounting period”;

(b) in the words following paragraph (b), for “as disbursed in that part” substitute “expenses of management referable to that part”.

(4) In subsection (8) (treatment of capital allowances apportioned to either part of the accounting period) for “75(4)” substitute “75(7)”.

(5) In subsection (9) (which prevents certain sums being deducted under section 75 of the Taxes Act 1988) in paragraph (a) for “sums disbursed” substitute “expenses of management deductible”.

(6) In subsection (14) (meaning of “investment company”) for ““investment company”” substitute ““company with investment business””.

(7) The sidenote to the section accordingly becomes “Change in ownership of company with investment business: deductions generally”.

Deductions: assets transferred within group

4 (1) Section 768C of the Taxes Act 1988 is amended as follows.

(2) In subsection (1) (case where section applies) in paragraph (a) for “an investment company” substitute “a company with investment business”.

(3) In subsection (7) (no deduction under section 75 from an amount of total profits equal to the amount of the relevant gain) in paragraph (a) for “sums disbursed” substitute “expenses of management deductible”.

(4) In subsection (12), for the definition of “investment company” substitute—

““company with investment business” has the same meaning as in Part 4.”.

Change in ownership of company carrying on property business

5 (1) Section 768D of the Taxes Act 1988 is amended as follows.

(2) In subsection (1) (case where section applies)—

(a) in paragraph (a) (investment company) for “an investment company” substitute “a company with investment business”, and

(b) in paragraph (b) (company other than investment company) for “an investment company” substitute “a company with investment business”.

(3) In subsection (4) (apportionment of profits and losses to two periods)—

(a) in paragraph (a) (investment company) for “an investment company” substitute “a company with investment business”, and

(b) in paragraph (b) (company other than investment company) for “an investment company” substitute “a company with investment business”.

(4) In subsection (6) (restriction of profits from which certain losses may be deducted) for “an investment company”, wherever occurring, substitute “a company with investment business”.

(5) In subsection (8) (definitions) for paragraph (b) (investment company) substitute—

“(b) “company with investment business” has the same meaning as in Part 4.”.

Change in ownership of company with unused non-trading loss on intangible fixed assets

6 (1) Section 768E of the Taxes Act 1988 is amended as follows.

(2) In subsection (1) (change in ownership of investment company) for “an investment company” substitute “a company with investment business”.

(3) In subsection (7) (definition of “investment company”) for ““investment company”” substitute ““company with investment business””.