PART XII SPECIAL CLASSES OF COMPANIES AND BUSINESSES
CHAPTER I INSURANCE COMPANIES, UNDERWRITERS AND CAPITAL REDEMPTION BUSINESS
Insurance companies: general
431 Interpretative provisions relating to insurance companies.
F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
431ZAF6Election that assets not be foreign business assets
F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3431A Amendment of Chapter etc
F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
431AAF7 Relevant benefits for purposes of section 431(4)(d) and (e).
F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F16Classes of life assurance business
431BF17 Meaning of “pension business”.
F8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
431BAF18Meaning of “child trust fund business”
F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
431BBMeaning of “individual savings account business”
F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
431C Meaning of “life reinsurance business”.
F11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
431D Meaning of “overseas life assurance business”.
F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
431E Overseas life assurance business: regulations.
F13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
431EAF19Meaning of “gross roll-up business”
F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
431F Meaning of “basic life assurance and general annuity business”.
F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F44F45Basis of taxation etc
Cross-heading before s. 432 inserted (with effect in accordance with Sch. 8 para. 57(1) of the amending Act) by Finance Act 1995 (c. 4), Sch. 8 para. 51(2) (with Sch. 8 para. 55(2))
Ss. 431G, 431H and preceding cross-heading substituted for s. 432 and preceding cross-heading (with effect in accordance with s. 39(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 8 para. 4 (with Sch. 8 Pt. 2)
431GF46Company carrying on life assurance business
F20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
431HF47Company carrying on life assurance business and other insurance business
F21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C2C3432 Separation of different F385categories of business.
1
M1Where an insurance company carries on life assurance business in conjunction with insurance business of any other F386category, the life assurance business shall, for the purposes of the Corporation Tax Acts, be treated as a separate business from any other F386category of business carried on by the company.
2
F387. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
432YAF48F22PHI business other than life assurance business — adjustment consequent on change in Insurance Prudential Sourcebook
F23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
432ZAF49 Linked assets.
F24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F25432A Apportionment of income and gains.
F26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
432AAF50F27UK property business or overseas property business
F28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
432AB Losses from F29UK property business or overseas property business.
F30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F31432B Apportionment of receipts brought into account.
F32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F33432CSection 432B apportionment: non-participating funds
F34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
432CAF51Apportionment of asset value increase where line 51 amount decreases
F35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
432CBF52Transfers of business involving excess assets
F36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F37432D Section 432B apportionment: value of non-participating funds.
F38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F39432ESection 432B apportionment: participating funds.
F40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
432FF53 Section 432B apportionment: supplementary provisions.
F41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
432GF54Section 432B apportionment: business transfers-in
F42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F43433 Profits reserved for policy holders and annuitants.
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F131Miscellaneous provisions relating to life assurance business
Cross-heading before s. 434 inserted (with effect in accordance with Sch. 8 para. 57(1) of the amending Act) by Finance Act 1995 (c. 4), Sch. 8 para. 51(4) (with Sch. 8 para. 55(2))
434 Franked investment income etc.
F55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F56434A Computation of losses and limitation on relief.
F57. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
434AZAF132Reduced loss relief for additions to non-profit funds
F58. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
434AZBAdditions to non-profit funds: amount of loss reduction
F59. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
434AZCSections 434AZA and 434AZB: supplementary
F60. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
434BF133 Treatment of interest and annuities.
1
F61. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
F62. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
434CF134 Interest on repayment of advance corporation tax.
F63. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
434DF135 Capital allowances: management assets.
F64. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
434E Capital allowances: investment assets.
F65. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F66435 Taxation of gains reserved for policy holders and annuitants.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
436F67Pension business: separate charge on profits.
F68. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
436AF136Gross roll-up business: separate charge on profits
F69. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
436BGains referable to gross roll-up business not to be chargeable gains
F70. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
437 General annuity business.
F71. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
437AF137 Meaning of “steep-reduction annuity” etc.
F72. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
438 Pension business: exemption from tax.
F73. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F74438A Pension business: payments on account of tax credits and deducted tax.
F75. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
438BF138 Income or gains arising from property investment LLP
F76. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
438C Determination of policy holders’ share for purposes of s.438B
F77. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
439 Restricted government securities.
F78. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
439AF139 Taxation of pure reinsurance business.
F79. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
439BF140 Life reinsurance business: separate charge on profits.
F80. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
440 Transfers of assets etc.
F81. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F82440A Securities.
F83. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
440BF141 Modifications where tax charged under F84section 35 of CTA 2009.
F85. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
440CF142Modifications for change of tax basis
F86. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
440DF143Modifications in relation to BLAGAB group reinsurers
F87. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
441 Overseas life assurance business.
F88. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F89441A Section 441: distributions.
1
F90. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
F91. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F923
F91. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
F91. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
F91. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
F91. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
F91. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
441BF144 Treatment of UK land.
F93. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
442 Overseas business of U.K. companies.
F94. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
442AF145 Taxation of investment return where risk reinsured.
F95. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
443 Life policies carrying rights not in money.
F96. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444 Life policies issued before 5th August 1965.
F97. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F98444A Transfers of business.
F99. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444AZAF146Transfers of life assurance business: F100gross roll-up business losses of the transferor
F101. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444AZBTransfers of life assurance business: F102trade losses of the transferor
F103. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444AAF147Transfers of business: deemed periodical returns
F104. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444ABF148F105Transfer schemes: transferor
F106. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444ABAF149F107Non long-term fund transferred assets
F108. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444ABAAF150Non-profit fund transferred assets
F109. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444ABBF151Retained assets
F110. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444ABBAF152Transfers of business: election for transferee to pay tax of transferor
F111. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444ABCF153Transfer scheme transferring part of business: transferor
F112. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444ABDF154Transferor's period of account including transfer
F113. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444ACF155F114Transfer schemes: reduction of income of transferee
F115. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444ACZAF156Transfer schemes transferring part of business: reduction in income of transferee
F116. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444ACAF157Transfers of business: transferor shares are assets of transferee's long-term insurance fund etc
F117. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444ADTransfers of business: modification of s.83(2B) FA 1989
F118. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444AETransfers of business: FAFTS
F119. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444AEAF158Transfer schemes: anti-avoidance rule
F120. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444AEBF121Life assurance trade profits advantage: transferor
F122. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444AECF123Life assurance trade profits advantage: transferee
F124. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444AECAF159Parts of transfer scheme arrangements: anti-avoidance rule
F125. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444AECBParts of transfer scheme arrangements: F126life assurance trade profits advantage transferor
F127. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444AECCParts of transfer scheme arrangements: F128life assurance trade profits advantage transferee
F129. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444AEDClearance: no avoidance or group advantage
F130. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F198Surpluses of mutual and former mutual businesses
Ss. 444AF-444AL and preceding cross-heading inserted (with effect in accordance with Sch. 11 para. 5(2)-(14) of the amending Act) by Finance Act 2006 (c. 25), Sch. 11 para. 5(1)
444AFDemutualisation surplus: life assurance business
F160. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444AGSection 444AF: “demutualisation transfer surplus”
F161. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444AHModification of section 444AG etc for F162gross roll-up businesses
F163. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444AISection 444AF: “reduction in company's unappropriated surplus”
F164. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444AJSections 444AF and 444AK: “relevant receipts reduction”
F165. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444AKF166Mutual surplus: gross roll-up business
F167. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444ALInterpretation of sections 444AF to 444AK
F168. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F171 Provisions applying in relation to overseas life insurance companies
F169444B Modification of Act in relation to overseas life insurance companies.
F170. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F199 Equalisation reserves
Ss. 444BA-444BD and preceding cross-heading inserted (29.4.1996) by Finance Act 1996 (c. 8), s. 166, Sch. 32 para. 1
444BA Equalisation reserves for general business.
F172. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444BB Modification of s. 444BA for mutual or overseas business and for non-resident companies.
F173. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444BC Modification of s. 444BA for non-annual accounting etc.
F174. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444BD Application of s. 444BA rules to other equalisation reserves.
F175. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444C Modification of section 440.
F176. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444D Qualifying distributions, tax credits, etc.
F177. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
444E Income from investments attributable to BLAGAB, etc.
F178. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provisions applying only to overseas life insurance companies
F179445. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
446 Annuity business.
F1801
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1812
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F1813
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F1824
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447
F1831
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1832
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1843
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1834
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F185448. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F186449. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Underwriters
F187450. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F188451. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F189452. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F190453. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F191454. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F192455. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F193456. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F194457. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital redemption business
458 Capital redemption business.
F195. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
458AF197 Capital redemption business: power to apply life assurance provisions.
F196. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CHAPTER II FRIENDLY SOCIETIES, TRADE UNIONS AND EMPLOYERS’ ASSOCIATIONS
Unregistered friendly societies
459 Exemption from tax.
F200. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Registered friendly societies
460 Exemption from tax in respect of life or endowment business.
F201. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
461 Taxation in respect of other business.
F202. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F203461A Taxation in respect of other business: incorporated friendly societies qualifying for exemption.
F204. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F205461B Taxation in respect of other business: incorporated friendly societies etc.
F206. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F207461C Taxation in respect of other business: withdrawal of “qualifying” status from incorporated friendly society.
F208. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
461DF220Transfers of other business
F209. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
462 Conditions for tax exempt business.
F210. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F211462A Election as to tax exempt business.
F212. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
463F213Long-term business: application of the Corporation Tax Acts.
F214. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
464 Maximum benefits payable to members.
F215. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
465 Old societies.
F216. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F217465A Assets of branch of registered friendly society to be treated as assets of society after incorporation.
F218. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
466 Interpretation of Chapter II.
F219. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trade unions and employers’ associations
467 Exemption for trade unions and employers’ associations.
F221. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CHAPTER III UNIT TRUST SCHEMES, DEALERS IN SECURITIES ETC.
Unit trust schemes
468 Authorised unit trusts.
F222. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F223468AA Authorised unit trusts: futures and options.
F224. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F225468A Certified unit trusts.
F226. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
468AF241Open-ended investment companies
F227. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F228468B Certified unit trusts: corporation tax.
F229. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F230468C Certified unit trusts: distributions.
F231. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F232468D Funds of funds: distributions.
F233. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F234468E Authorised unit trusts: corporation tax.
F235. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
468EEF242 Corporation tax: cases where lower rate applies.
F236. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F237468F Authorised unit trusts: distributions.
F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F239468G Dividends paid to investment trusts.
F240. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F272 Distributions of authorised unit trusts: general
Ss. 468H-468R and cross-headings inserted (with effect in accordance with Sch. 14 para. 7 of the amending Act) by Finance Act 1994 (c. 9), Sch. 14 para. 2
468H Interpretation.
F243. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
468I Distribution accounts.
F244. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividend and foreign income distributions
468J Dividend distributions.
F245. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
468K Foreign income distributions.
F246. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest distributions
468L Interest distributions.
F247. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F248468M Cases where no obligation to deduct tax
F249. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
468N Deduction of tax (mixed funds).
1
Subsection (2) below applies where—
a
an interest distribution is made for a distribution period to a unit holder; and
b
the gross income entered in the distribution accounts for the purposes of computing the total amount available for distribution to unit holders does not derive from eligible income entirely.
2
Where this subsection applies, the obligation to deduct under section 349(2) shall not apply to the relevant amount of the interest distribution to the unit holder if the residence condition is on the distribution date fulfilled with respect to him.
3
Section 468O makes provision with respect to the circumstances in which the residence condition is fulfilled with respect to a unit holder.
4
This is how to calculate the relevant amount of the interest distribution—
Where—
R = the relevant amount;
A = the amount of the interest distribution before deduction of tax to the unit holder in question;
B = such amount of the gross income as derives from eligible income;
C = the amount of the gross income.
5
In subsection (4) above the references to the gross income are references to the gross income entered as mentioned in subsection (1)(b) above.
468O Residence condition F250and reputable intermediary condition.
F251. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
468P Residence declarations.
F252. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
468PAF255Section 468O(1A): consequences of reasonable but incorrect belief
F253. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
468PBRegulations supplementing sections 468M to 468PA
F254. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to corporate unit holder
468Q Dividend distribution to corporate unit holder.
F256. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
468R Foreign income distribution to corporate unit holder.
F257. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
469 Other unit trusts.
F258. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
469AF262 Court common investment funds.
F259. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
470 Transitional provisions relating to unit trusts.
1
F260. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2612
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
F260. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dealers in securities, banks and insurance businesses
471 Exchange of securities in connection with conversion operations, nationalisation etc.
F263. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
472 Distribution of securities issued in connection with nationalisation etc.
F264. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
472AF271Trading profits etc. from securities: taxation of amounts taken to reserves
F265. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
473 Conversion etc. of securities held as circulating capital.
F266. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
474 Treatment of tax-free income.
1
F267. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
F268. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2693
F267. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
475 Tax-free Treasury securities: exclusion of interest on borrowed money.
F270. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CHAPTER IV BUILDING SOCIETIES, BANKS, SAVINGS BANKS, INDUSTRIAL AND PROVIDENT SOCIETIES AND OTHERS
476 Building societies: regulations for payment of tax.
F273. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
477 Investments becoming or ceasing to be relevant building society investments.
F274. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F276477A Building societies: F275loan relationships.
F277. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F298477B Building societies: incidental costs of issuing qualifying shares.
F299. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
478 Building societies: time for payment of tax.
F278. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
479 Interest paid on deposits with banks etc.
F279. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
480 Deposits becoming or ceasing to be composite rate deposits.
F280. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F281480A Relevant deposits: deduction of tax from interest payments.
F282. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F283480B Relevant deposits: exception from section 480A.
F284. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F285480C Relevant deposits: computation of tax on interest.
F286. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
481“Deposit-taker”, “deposit” and “relevant deposit”.
F287. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
482 Supplementary provisions.
F288. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F300482A Audit powers in relation to non-residents.
F301. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
483 Determination of reduced rate for building societies and composite rate for banks etc.
F2891
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2892
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2893
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
If the order made under section 26 of the Finance Act 1984 in the year 1987-88 is made in pursuance of subsection (4) of that section, that order shall, notwithstanding that that subsection is not re-enacted by this Act, apply for the purposes of sections 476 and 479 for the year 1988-89.
F2895
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
484 Savings banks: exemption from tax.
F290. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
485 Savings banks: supplemental.
F291. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
486 Industrial and provident societies and co-operative associations.
F292. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
487 Credit unions.
F293. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
488 Co-operative housing associations.
F294. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
489 Self-build societies.
F295. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
490 Companies carrying on a mutual business or not carrying on a business.
F296. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
491 Distribution of assets of body corporate carrying on mutual business.
F297. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C1CHAPTER V
Pt. 12 Ch. 5 modified (27.7.1999) by Finance Act 1999 (c. 16), s. 98
PETROLEUM EXTRACTION ACTIVITIES
492 Treatment of oil extraction activities etc. for tax purposes.
F302. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
493 Valuation of oil disposed of or appropriated in certain circumstances.
F303. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
494F304Loan relationships etc.
F305. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
494AAF320 Sale and lease-back.
F306. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
494AF321 Computation of amount available for surrender by way of group relief.
F307. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
495 Regional development grants.
F308. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
496F309Tariff receipts and tax-exempt tariffing receipts
F310. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
496AF322Exploration expenditure supplement
Schedule 19B to this Act (exploration expenditure supplement) shall have effect.
496BF323Ring fence expenditure supplement
F311. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
497 Restriction on setting ACT against income from oil extraction activities etc.
F312. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
498 Limited right to carry back surrendered ACT.
F313. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
499 Surrender of ACT where oil extraction company etc. owned by a consortium.
F314. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
500 Deduction of PRT in computing income for corporation tax purposes.
F315. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
501 Interest on repayment of PRT.
F316. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
501AF324 Supplementary charge in respect of ring fence trades
F317. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
501BF325 Assessment, recovery and postponement of supplementary charge
F318. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
502 Interpretation of Chapter V.
F319. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F384Chapter 5ASpecial rules for long funding leases of plant or machinery: corporation tax
Pt. 12 Ch. 5A (ss. 502A-502L) inserted (with effect in accordance with Sch. 8 para. 15 of the amending Act) by Finance Act 2006 (c. 25), Sch. 8 para. 11
Introductory
502AScope of Chapter 5A
F326. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Lessors under long funding finance leases
502BLessor under long funding finance lease: rental earnings
F327. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
502CLessor under long funding finance lease: exceptional items
F328. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
502DLessor under long funding finance lease making termination payment
F329. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Lessors under long funding operating leases
502ELessor under long funding operating lease: periodic deduction
F330. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
502FLong funding operating lease: lessor's additional expenditure
F331. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
502GLessor under long funding operating lease: termination of lease
F332. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F345Lessors under long funding finance or operating leases: avoidance etc
S. 502GA and preceding cross-heading inserted (with effect in accordance with Sch. 20 para. 9(5) of the amending Act) by Finance Act 2008 (c. 9), Sch. 20 para. 9(2)
502GACases where ss. 502B to 502G do not apply: plant or machinery held as trading stock
F333. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
502GBF337Cases where ss. 502B to 502G do not apply: lessor also lessee under non-long funding lease
F334. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
502GCF338Cases where ss. 502B to 502G do not apply: other avoidance
F335. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
502GDF339Cases where ss 502B to 502G do not apply: films
F336. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Insurance company as lessor
502HInsurance company as lessor
F340. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Lessees under long funding finance leases
502ILessee under long funding finance lease: limit on deductions
F341. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
502JLessee under long funding finance lease: termination
F342. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Lessees under long funding operating leases
502KLessee under long funding operating lease
F343. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interpretation of Chapter
502LInterpretation of this Chapter
F344. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CHAPTER VI MISCELLANEOUS BUSINESSES AND BODIES
F347503 Letting of furnished holiday accommodation treated as a trade for certain F346corporation tax purposes.
F348. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
504 Supplementary provisions.
F349. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
504AF380Letting of furnished holiday accommodation treated as trade for certain income tax purposes
F350. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
505F351Charitable companies: general.
F352. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
506F353Charitable and non-charitable expenditure
F354. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
506AF381Transactions with substantial donors
F355. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
506BSection 506A: exceptions
F356. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
506CSections 506A and 506B: supplemental
F357. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
507 The National Heritage Memorial Fund, the Historic Buildings and Monuments Commission for England and the British Museum.
F358. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
508 Scientific research organisations.
F359. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
508AF382 Investment trusts investing in housing.
F360. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
508B Interpretation of section 508A.
F361. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
508AF383Contemplative religious communities: profits exempt from corporation tax
1
Subsection (2) applies in a case where members of a qualifying contemplative religious community transfer all their income and assets, or covenant all their income, to the community (“the independent community”) (and for this purpose it is irrelevant whether or not the community is part of an order or religious institution).
2
As respects each chargeable period of the independent community, and each person who is a qualifying member of the independent community at any time in that period, the independent community shall be treated for the purposes of corporation tax as if an amount of its profits for the chargeable period equal to the relevant amount (see subsections (5) to (7)) were income of the qualifying member.
3
Subsection (4) applies in a case where—
a
one or more qualifying contemplative religious communities (“constituent communities”) are part of an order or religious institution (“the parent body”), and
b
members of the constituent communities transfer all their income and assets, or covenant all their income, to the parent body.
4
As respects each chargeable period of the parent body, and each person who is a qualifying member of a constituent community at any time in that period, the parent body shall be treated for the purposes of corporation tax as if an amount of its profits for the chargeable period equal to the relevant amount (see subsections (5) to (7)) were income of the qualifying member.
5
For the purposes of subsections (2) and (4), the relevant amount, in relation to a chargeable period, is the amount of the annual personal allowance for persons F362born after 5 April 1948 (see section 35 of ITA 2007) for—
a
the tax year which begins in the chargeable period, or
b
if no tax year begins in the chargeable period, the tax year which is current when the chargeable period begins.
6
But, if the chargeable period is less than 12 months, the relevant amount is—
where—
P is the number of days in the chargeable period;
A is the amount determined under subsection (5) in relation to the chargeable period.
7
If, during the chargeable period, an individual ceases to be a qualifying member of the independent community or a constituent community (otherwise than on death), the relevant amount, in relation to the chargeable period and that qualifying member, is—
where—
Q is the number of days in the chargeable period for which the individual is a qualifying member of the independent community or constituent community;
P is the number of days in the chargeable period;
B is the amount determined under subsection (5), or subsections (5) and (6), in relation to the chargeable period.
8
So far as the exemption from corporation tax conferred by this section calls for repayment of tax, no repayment shall be made except on a claim made by the independent community or parent body.
9
In a case where a member of an independent community or constituent community—
a
has transferred or covenanted income to the community (in the case of an independent community) or the parent body (in the case of a constituent community), and
b
has income for a tax year which does not exceed 20% of the annual personal allowance for persons F362born after 5 April 1948 (see section 35 of ITA 2007) for that tax year,
the member is, for the purposes of this section, to be taken to have transferred or covenanted all his or her income for that tax year to the community or parent body.
10
For the purposes of this section a contemplative religious community is a “qualifying” contemplative religious community if—
a
the community is established in the United Kingdom,
b
the members of the community live and practise their religion in a communal establishment, and
c
the community is not a charity, but the religion that is professed by the members of the community does not prevent the community from being a charity.
11
In this section—
“member”, in relation to a religious community, means an individual who—
- a
is living in the community, and
- b
has taken vows or made equivalent commitments (whether probationary or not);
- a
“qualifying member”, in relation to a religious community, means a member of the community who—
- a
has been a member of the community for a period of at least six months, and
- b
has transferred all his or her income and assets, or covenanted all his or her income, to the community (in the case of an independent community) or the parent body (in the case of a constituent community).
- a
508BContemplative religious communities: gains exempt from corporation tax
1
Subsection (2) applies if, as respects a chargeable period—
a
section 508A(2) applies in relation to an independent community,
b
the profits of the independent community in the chargeable period are less than the total of the amounts that fall to be treated as income of the qualifying members of the community in accordance with section 508A(2), and
c
the independent community has chargeable gains in the chargeable period.
2
As respects the chargeable period and each qualifying member of the independent community, the community shall be treated for the purposes of corporation tax as if the relevant amount of its chargeable gains for that period were income of the qualifying member.
3
Subsection (4) applies if, as respects a chargeable period—
a
section 508A(4) applies in relation to a parent body,
b
the profits of the parent body in the chargeable period are less than the total of the amounts that fall to be treated as income of the qualifying members of the constituent communities in accordance with section 508A(4), and
c
the parent body has chargeable gains in the chargeable period.
4
As respects the chargeable period and each qualifying member of a constituent community, the parent body shall be treated for the purposes of corporation tax as if the relevant amount of its chargeable gains for that period were income of the qualifying member.
5
For the purposes of subsections (2) and (4), the relevant amount, in relation to a qualifying member of the independent community or a constituent community, is the smaller of—
a
the shortfall in profits, and
b
the average gain.
6
The shortfall in profits is the difference between—
a
the relevant amount determined under section 508A(5) to (7) in relation to the qualifying member, and
b
the amount that has actually been treated as the income of the qualifying member.
7
The average gain is—
where—
G is the amount of the chargeable gains which the independent community or parent body has in the chargeable period;
N is the number calculated by adding together the relevant value for each qualifying member of the independent community or constituent communities who, under section 508A(2) or (4), falls to be treated as having income.
8
For the purposes of calculating “N” in subsection (7)—
a
the relevant value for a qualifying member is 1;
b
but, if section 508A(7) applies in relation to the qualifying member, the relevant value for that member is—
where Q and P have the same meanings as in section 508A(7).
9
So far as the exemption from corporation tax conferred by this section calls for repayment of tax, no repayment shall be made except on a claim made by the independent community or parent body.
509 Reserves of marketing boards and certain other statutory bodies.
F363. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
510 Agricultural societies.
F364. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F365510A European economic interest groupings.
F366. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
511 The Electricity Council and Boards, the Northern Ireland Electricity Service and the Gas Council.
1
F367. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
F367. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
F367. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3684
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3685
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
F367. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
F369. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
512 Atomic Energy Authority and National Radiological Protection Board.
F370. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
513 British Airways Board and National Freight Corporation.
F371. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
514 Funds for reducing the National Debt.
F372. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
515 Signatories to Operating Agreement for INMARSAT.
F373. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
516 Government securities held by non-resident central banks.
F374. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
517 Issue departments of the Reserve Bank of India and the State Bank of Pakistan.
F375. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
518 Harbour reorganisation schemes.
F376. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
519 Local authorities.
F377. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F378519A Health service bodies.
F379. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ss. 431B-431F and cross-heading inserted (with effect in accordance with Sch. 8 paras. 55, 57 of the amending Act) by Finance Act 1995 (c. 4), Sch. 8 para. 2