Finance Act 2006

Miscellaneous E+W+S+N.I.

137 Insurance companies E+W+S+N.I.

In section 212(1) of TCGA 1992 (annual deemed disposal of holdings of certain assets) after paragraph (b) insert— “, or

(c) shares in a company to which Part 4 of the Finance Act 2006 applies (Real Estate Investment Trusts),”.

138 Joint ventures E+W+S+N.I.

(1) The Treasury may by regulations provide for this Part to apply in relation to property rental business (“the joint venture”) carried on—

(a) jointly by a company to which this Part applies and another person, or

(b) by a person in which a company to which this Part applies has an interest.

(2) The regulations may, in particular, modify or disapply a provision of this Part in its application—

(a) by virtue of this section, or

(b) in relation to a company to which this Part applies where the company also carries on business in relation to which this Part applies by virtue of this section.

(3) The regulations may, in particular, make application of this Part conditional on—

(a) a company to which this Part applies having a minimum percentage interest of a specified kind in the joint venture;

(b) an election by a company to which this Part applies.

[F1 (4) Regulations may make provision having retrospective effect in respect of the calendar year in which they are made.]

Annotations:

Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

F1 S. 138(4) inserted (with effect as mentioned in s. 52(2) of the amending Act) by Finance Act 2007 (c. 11), s. 52, Sch. 17 para. 14

139 Manufactured dividends E+W+S+N.I.

(1) This section applies to a manufactured dividend [F2 for the purposes of the Corporation Tax Acts]F2 if and to the extent that it is representative of a dividend paid by a company to which this Part applies in respect of profits of C (tax-exempt).

(2) Schedule 23A to ICTA shall have effect with the substitution of the following for paragraph 2(2)—

“(2) Sub-paragraphs [F3 (2A) and (2B)]F3 apply if and to the extent that a manufactured dividend is representative of a dividend in respect of profits of the tax-exempt business of a company to which Part 4 of the Finance Act 2006 applies.

(2A) The [F4 Corporation]F4 Tax Acts shall have effect in relation to the recipient, and persons claiming title through or under him, as if the manufactured dividend were a dividend to which section 121 of that Act applied.

(2B) In relation to the dividend manufacturer—

(a) if the dividend manufacturer is a company and the manufactured dividend is paid in the course of a trade carried on in the United Kingdom, it shall be treated as an expense of the trade;

(b) if the manufactured dividend is paid in connection with investment business, it shall be treated for the purposes of section 75 of this Act as expenses of management;

(c) in the case of a company carrying on life assurance business, in so far as the manufactured dividend is referable to basic life assurance and general annuity business (or is or would be, if received by the company, be treated as referable to business of that kind by virtue of section 432A) it shall be treated for the purposes of section 76 as if it were an expense payable falling to be brought into account at Step 3 of section 76(7);

(d) F5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2C) F6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2D) F6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2E) F6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .”

(3) F7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) F7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) F8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) In section 737D(2) of ICTA (manufactured payments: relief) after “any” insert “ manufactured dividend, ”.

(7) In this section “dividend manufacturer” and “manufactured dividend” have the meaning given by Schedule 23A to ICTA.

Annotations:

Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

F2 Words in s. 139(1) inserted (6.4.2007 with effect as mentioned in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1027, Sch. 1 para. 621(2) (with transitional provisions and savings in Sch. 2)

F3 Words in s. 139(2) substituted (6.4.2007 with effect as mentioned in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1027, Sch. 1 para. 621(3)(a) (with transitional provisions and savings in Sch. 2)

F4 Word in s. 139(2) inserted (6.4.2007 with effect as mentioned in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1027, Sch. 1 para. 621(3)(b) (with transitional provisions and savings in Sch. 2)

F5 Words in s. 139(2) repealed (6.4.2007 with effect as mentioned in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1027, 1031, Sch. 1 para. 621(3)(c), Sch. 3 Pt. 1 (with transitional provisions and savings in Sch. 2)

F6 Words in s. 139(2) repealed (6.4.2007 with effect as mentioned in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1027, 1031, Sch. 1 para. 621(3)(d), Sch. 3 Pt. 1 (with transitional provisions and savings in Sch. 2)

F7 S. 139(3)(4) repealed (6.4.2007 with effect as mentioned in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1027, 1031, Sch. 1 para. 621(4), Sch. 3 Pt. 1 (with transitional provisions and savings in Sch. 2)

F8 S. 139(5) repealed (with effect in accordance with s. 47 of the amending Act and art. 3 of the affecting S.I.) by Finance Act 2007 (c. 11), ss. 47, 114, Sch. 14 para. 20, {Sch. 27 Pt. 2(14) Note}; S.I. 2007/2483, art. 3

140 Penalties for failure to give notice, etc E+W+S+N.I.

At the end of the second column of the Table in section 98(5) of TMA 1970 (penalties) add—

“Section 106 of FA 2006 as modified by Schedule 17 to that Act.

Section 116 of FA 2006.

Regulations under section 116 of FA 2006.

Regulations under section 122 of FA 2006.

Section 130 of FA 2006.”

141 Effect of deemed disposal and re-acquisition E+W+S+N.I.

A deemed disposal and re-acquisition of an asset under this Part shall have effect for the purposes of any subsequent disposal of the asset (whether actual or deemed).

142 Interpretation E+W+S+N.I.

In this Part—

(a) a reference to an asset includes a reference to—

(i) part of an asset, and

(ii) an interest in, or right in relation to, an asset,

(b) a reference to assets used in business of a company includes a reference to assets—

(i) which were acquired for the purpose of that business and which are not being used in another business,

(ii) which are available for use in that business, or

(iii) which are in any other way held in respect of, or associated or connected with, that business,

(c) “company” has the meaning given by section 170(9) of TCGA 1992,

(d) “international accounting standards” has the meaning given by section 50(2) of FA 2004,

(e) “market value” has the same meaning as in TCGA 1992 (see sections 272 and 273 and Schedule 11), and

(f) “profits” means income (except where the context otherwise requires).

143 Housing investment trusts: repeal E+W+S+N.I.

Section 160 of, and Schedule 30 to, FA 1996 (housing investment trusts) shall cease to have effect (and accordingly—

(a) sections 508A and 508B of ICTA shall cease to have effect,

(b) the amendments of section 842(1)(a) and (e) of ICTA effected by paragraph 2(2) of Schedule 30 shall cease to have effect, and

(c) section 842(1AA) of ICTA shall cease to have effect).