Finance Act 2008 (c. 9)

Part 2 U.K. Income tax, corporation tax and capital gains tax_general

Other business and investment measures U.K.

34 Tax credits for certain foreign distributions U.K.

(1) Schedule 12 contains provision about tax credits for certain foreign distributions.

(2) The amendments made by that Schedule have effect for the tax year 2008-09 and subsequent tax years.

F1 35 Small companies' relief: associated companies U.K.

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Textual Amendments

F1 S. 35 repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2)

36 Company gains from investment life insurance contracts etc U.K.

F2 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) Schedule 14 contains amendments and repeals consequential on that Schedule etc.

Textual Amendments

F2 S. 36(1) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 730, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

37 Trade profits: changes in trading stock U.K.

(1) Schedule 15 contains provision about the effect of certain changes in trading stock on the calculation of profits of trades for the purposes of income tax or corporation tax.

(2) The amendments made by that Schedule have effect in relation to changes in trading stock occurring on or after 12 March 2008.

(3) In subsection (2) “change in trading stock” means—

(a) in relation to new section 172B of ITTOIA 2005, or paragraph 6 of Schedule 15, an appropriation of trading stock,

(b) in relation to new section 172C of ITTOIA 2005, or paragraph 7 of Schedule 15, a thing becoming trading stock,

(c) in relation to new section 172D of ITTOIA 2005, or paragraph 8 of Schedule 15, a disposal of trading stock, and

(d) in relation to new section 172E of ITTOIA 2005, or paragraph 9 of Schedule 15, an acquisition of trading stock.

38 Non-residents: investment managers U.K.

Schedule 16 contains provision about—

(a) the eligibility of an investment manager to be the UK representative of a non-resident, or an agent of independent status in relation to a non-resident, and

(b) profits or income of non-residents that are to be disregarded if derived from certain investment transactions carried out by investment managers.

[F3 39 Dormant assets U.K.

(1) The Commissioners for Her Majesty’s Revenue and Customs may by regulations—

(a) modify Chapters 2 and 3 of Part 15 of ITA 2007 (deduction of income tax on interest payments at source) in relation to interest paid or credited in respect of a relevant dormant asset, and

(b) provide that, for the purposes of Chapter 2 of Part 4 of ITTOIA 2005 (charge to income tax on interest), such interest is to be treated as not being paid until the time (if any) at which the balance of the dormant asset is paid out following a claim made by virtue of—

(i) section 1(2)(b) or 2(2)(b) of the 2008 Act, or

(ii) section 2(2)(b), 5(2)(b), 5(3)(b), 8(2)(b), 12(2)(b), 14(2)(b) or 22(1) of the 2022 Act.

(2) A relevant dormant asset is an asset in respect of which an amount is to be, or has been, transferred by an institution—

(a) to an authorised reclaim fund, with the result that section 1 of the 2008 Act or section 2, 5, 8, 12 or 14 of the 2022 Act applies in relation to the asset, or

(b) to an authorised reclaim fund and one or more charities, with the result that section 2 of the 2008 Act applies in relation to the asset.

(3) Interest paid or credited in respect of a relevant dormant asset includes interest paid or credited by a person who administers the asset on behalf of an authorised reclaim fund after the balance has been transferred.

(4) In this section—

• “the 2008 Act” means the Dormant Bank and Building Society Accounts Act 2008;

• “the 2022 Act” means the Dormant Assets Act 2022;

• “asset” means an asset within the scope of the dormant assets scheme (see section 1(6) of the 2022 Act);

• “authorised reclaim fund” has the same meaning as in the Dormant Assets Acts 2008 to 2022.]

Textual Amendments

F3 S. 39 substituted (6.6.2022) by Finance Act 2022 (c. 3), Sch. 6 paras. 2, 6; S.I. 2022/569, reg. 2

40 Individual investment plan regulations U.K.

In section 701 of ITTOIA 2005 (investment plan regulations: general and supplementary), insert at the end—

“(4) They may include provision having effect in relation to times before they are made if the provision does not impose or increase any liability to tax.

(5) They may make different provision for different cases or circumstances.”