Chapter 5: Other Corporation Tax Acts provisions
Section 1166: Scotland
3316.This section provides interpretative rules in relation to Scotland. It is based on sections 24, 488, 780 and 832 of ICTA, paragraph 30(1) of Schedule 12 to FA 1997 and section 1320(1) of CTA 2009. The corresponding provision for income tax is in section 1008 of ITA.
Section 1167: Sources of income within the charge to corporation tax or income tax
3317.This section is based on section 832(1) of ICTA. The corresponding provision for the Income Tax Acts is in section 1009 of ITA.
Section 1168: Payment of dividends
3318.This section provides when dividends are treated as paid. It is based on section 834(3) of ICTA and regulation 15(4) of the Authorised Investment Funds (Tax) Regulations 2006 (SI 2006/964).
3319.The section does not rewrite the words making an exception by reference to provisions in Chapter 3 of Part 12 of ICTA that deal differently with dividends treated as paid under that Chapter. Following earlier amendments of that Chapter, there are now no such provisions nor any such dividends.
3320.However, subsection (2) recognises that other provisions may make such an exception to the general rule. Regulation 15(4) of the Authorised Investment Funds (Tax) Regulations 2006 (SI2006/964) provides a different definition of “distribution date” for a distribution period of an authorised investment fund. That regulation is therefore included as an origin for this subsection.
Section 1169: Settlements and trustees
3321.This sectionprovides interpretative rules in relation to settlements and trustees for the purposes of the Corporation Tax Acts by reference to Chapter 2 of Part 9 of ITA. It is based on section 832(2A) of ICTA.
Section 1170: Territorial sea of the United Kingdom
3322.This section takes the territorial sea of the United Kingdom into account in the meaning of “United Kingdom” for the purposes of the Corporation Tax Acts. It is based on section 830(1) of ICTA.The corresponding provision for income tax is in section 1013 of ITA.
Section 1171: Orders and regulations
3323.This section sets out the rules for making orders and regulations. It is based on section 828 of ICTA. The corresponding provision for income tax is in section 1014 of ITA.
3324.Subsection (2) identifies “excluded powers”. These are the powers that have their own rules. Paragraphs (a) to (h) deal with powers in other Acts, in which sections corresponding to this section provide rules.
3325.Paragraph (g)(i) deals with the power to designate a market, so that it is treated in the same way as a recognised stock exchange. This exclusion rewrites the mention of section 578B(9ZA) of ICTA in section 828(2) of ICTA.
3326.Paragraph (g)(ii) deals with the power to specify an investment transaction for the purposes of the rules for permanent establishments. This exclusion rewrites the mention of paragraph 3(3) of Schedule 26 to FA 2003 in section 828(2) of ICTA.
3327.Subsection (5) sets out three exceptions to the rule in subsection (4) that a statutory instrument is subject to the negative resolution procedure.
3328.Paragraph (a) deals with the power in section 73A of FA 2004 to designate an international organisation so that the construction industry scheme does not apply to it. See Change 64 in Annex 1.
3329.Paragraph (b)(i) deals with the power to designate an international organisation as a bank. This exception rewrites the mention of section 840A(1)(d) of ICTA in section 828(4) of ICTA.
3330.Paragraph (b)(ii) deals with the new power in section 1180(2) to make transitional or savings provision.
Section 1172: Apportionment to different periods
3331.This section sets out how apportionments to different periods are to be made. It is based on section 834(4) of ICTA.
Section 1173: Miscellaneous charges
3332.This section sets out a table of the provisions relevant to any reference in the Corporation Tax Acts to the provisions to which this section applies. It is based on section 834A of ICTA. The equivalent provision is made for income tax in section 1016 of ITA.
3333.The provisions in the table are all types of income or other amounts chargeable under the charge to corporation tax on income that were charged in predecessor legislation under Case VI of Schedule D in section 18 of ICTA.
3334.The reference in Part 3 of the table to regulation 18(4) of the Offshore Funds (Tax) Regulations 2009 (SI 2009/3001) derives from the substitution made by regulation 126(5) of those Regulations in section 834A of ICTA for the former reference there to section 761 of ICTA.
3335.For reference to this table, see in particular section 91 (losses from miscellaneous transactions).
