Corporation Tax Act 2010

Part 1 U.K. Income and Corporation Taxes Act 1988

1 U.K. The Income and Corporation Taxes Act 1988 is amended as follows.

2 U.K. Omit section 6(4) (the charge to corporation tax and exclusion of income tax and capital gains tax).

3 U.K. Omit section 7 (treatment of certain payments and repayment of income tax).

4 U.K. Omit section 11(3) and (4) (companies not resident in the United Kingdom).

5 U.K. Omit sections 13 to 13A (small companies' relief).

6 U.K. Omit section 14 (qualifying distributions).

7 (1) Omit section 24 (which has come to apply only for the interpretation of section 780 of ICTA). U.K.

(2) Sub-paragraph (1) has effect for corporation tax purposes only.

8 U.K. Omit section 56(3)(c) (exemption for transactions in deposits).

F1 9 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Sch. 1 para. 9 omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 247(t)

F2 10 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F2 Sch. 1 para. 10 omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 247(t)

11 U.K. Omit section 116 (arrangements for transferring relief).

12 U.K. Omit sections 118 to 118ZD (restrictions on relief for losses made by certain partners).

13 U.K. In section 187(10) (interpretation of sections 185 and 186 etc) for “section 834(1)” substitute “ section 1119 of CTA 2010 ”.

14 U.K. Omit Chapter 2 of Part 6 (matters which are distributions).

15 U.K. Omit Chapter 3 of Part 6 (matters which are not distributions).

16 U.K. Omit section 231 (tax credits for certain recipients of qualifying distributions).

17 U.K. Omit section 231AA (no tax credit for borrower under stock lending arrangement or interim holder under repurchase agreement).

18 U.K. Omit section 231AB (no tax credit for original owner under repurchase agreement in respect of certain manufactured dividends).

F3 19 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F3 Sch. 1 para. 19 omitted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 67

20 U.K. Omit section 234 (information relating to distributions).

21 U.K. Omit section 234A (information relating to distributions: further provisions).

22 U.K. Omit Chapter 6 of Part 6 (miscellaneous and supplemental).

23 U.K. In section 337A (computation of company's profits or income: exclusion of general deductions) omit subsection (1).

24 U.K. Omit section 338 (charges on income deducted from total profits).

25 U.K. Omit section 338A (meaning of “charges on income”).

26 U.K. Omit section 339 (charges on income: donations to charity).

27 U.K. Omit section 342 (tax on company in liquidation).

28 U.K. Omit section 342A (tax on companies in administration).

29 U.K. Omit section 343 (company reconstructions without a change of ownership).

30 U.K. Omit section 343ZA (transfers of trade to obtain balancing allowances).

31 U.K. Omit section 343A (company reconstructions involving business of leasing plant or machinery).

32 U.K. Omit section 344 (company reconstructions: supplemental).

33 U.K. In section 369(6) (mortgage interest payable under deduction of tax) for the words from the beginning to “applies” substitute “ Sections 967(2) and 968(2) of CTA 2010 do not apply to a payment of relevant loan interest to which this section applies, but any person by whom such a payment ”.

34 U.K. Omit Chapter 2 of Part 10 (loss relief).

35 U.K. Omit section 397 (restriction of loss relief in case of farming and market gardening).

36 U.K. In section 398 (transactions in deposits) for “section 396” substitute “ section 91 of CTA 2010 ”.

37 U.K. Omit section 399 (dealings in commodity futures).

38 U.K. Omit section 400 (write-off of government investment).

39 U.K. Omit Chapter 4 of Part 10 (group relief).

40 U.K. Omit Chapter 1 of Part 11 (close companies: interpretation).

41 U.K. Omit Chapter 2 of Part 11 (close companies: charges to tax in connection with loans).

F4 42 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F4 Sch. 1 paras. 42-51 omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 247(t)

F4 43 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F4 Sch. 1 paras. 42-51 omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 247(t)

F4 44 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F4 Sch. 1 paras. 42-51 omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 247(t)

F4 45 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F4 Sch. 1 paras. 42-51 omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 247(t)

F4 46 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F4 Sch. 1 paras. 42-51 omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 247(t)

F4 47 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F4 Sch. 1 paras. 42-51 omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 247(t)

F4 48 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F4 Sch. 1 paras. 42-51 omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 247(t)

F4 49 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F4 Sch. 1 paras. 42-51 omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 247(t)

F4 50 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F4 Sch. 1 paras. 42-51 omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 247(t)

F4 51 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F4 Sch. 1 paras. 42-51 omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 247(t)

52 U.K. Omit section 467 (exemption for trade unions and employers' associations).

53 U.K. Omit section 468 (authorised unit trusts).

54 U.K. Omit section 468A (open-ended investment companies).

55 U.K. Omit section 469 (other unit trusts).

56 U.K. Omit section 469A (court common investment funds).

57 U.K. Omit section 477A (building societies: loan relationships).

58 U.K. Omit section 486 (industrial and provident societies and co-operative associations).

59 U.K. Omit section 488 (co-operative housing associations).

60 U.K. Omit section 489 (self-build societies).

61 U.K. Omit section 490 (companies carrying on a mutual business or not carrying on a business).

62 U.K. Omit section 492 (treatment of oil extraction activities etc for tax purposes).

63 (1) Omit section 493 (valuation of oil disposed of or appropriated in certain circumstances). U.K.

(2) The repeal of subsections (1) to (6) of that section has effect for corporation tax purposes only.

64 U.K. Omit sections 494 to 494A (loan relationships etc, sale and lease-back and group relief).

65 (1) Omit section 495 (regional development grants). U.K.

(2) Sub-paragraph (1) has effect for corporation tax purposes only.

66 (1) Omit section 496 (tariff receipts and tax-exempt tariffing receipts). U.K.

(2) Sub-paragraph (1) has effect for corporation tax purposes only.

67 U.K. Omit section 496B (ring fence expenditure supplement).

68 U.K. Omit sections 500 to 501B (deduction of PRT, interest on repayment of PRT and supplementary charge in respect of ring fence trades).

69 (1) Omit section 502 (interpretation of Chapter 5). U.K.

(2) The repeal of subsections (1) and (2) of that section has effect for corporation tax purposes only.

70 U.K. Omit Chapter 5A of Part 12 (special rules for long funding leases of plant or machinery: corporation tax).

71 U.K. Omit section 503 (letting of furnished holiday accommodation).

72 U.K. Omit section 505 (charitable companies: general).

73 U.K. Omit section 506 (charitable and non-charitable expenditure).

74 U.K. Omit section 506A (transactions with substantial donors).

75 U.K. Omit section 506B (section 506A: exceptions).

76 U.K. Omit section 506C (sections 506A and 506B: supplemental).

77 U.K. Omit section 507 (the National Heritage Memorial Fund, the Historic Buildings and Monuments Commission etc).

78 U.K. Omit section 508 (scientific research organisations).

79 U.K. Omit section 510 (agricultural societies).

80 U.K. Omit section 510A (European Economic Interest Groupings).

81 U.K. Omit section 511(7) (the Gas Council).

82 U.K. Omit section 513 (British Airways Board and National Freight Corporation).

83 U.K. Omit section 517 (issue departments of Reserve Bank of India and State Bank of Pakistan).

84 U.K. Omit section 518 (harbour reorganisation schemes).

85 U.K. Omit section 519 (local authorities).

86 U.K. Omit section 519A (health service bodies).

87 U.K. In section 552A(11) (tax representatives) for “Section 839” substitute “ Section 1122 of CTA 2010 ”.

88 U.K. Omit Chapter 5A of Part 13 (share loss relief).

89 U.K. Omit section 587B (gifts of shares, securities and real property to charities etc).

90 U.K. Omit section 587BA (qualifying interests in land held jointly).

91 U.K. Omit section 587C (supplementary provision for gifts of real property).

92 U.K. Omit section 687A (discretionary payments by trustees to companies).

93 U.K. Omit section 689B (order in which trustees' expenses are to be set against income).

94 U.K. Omit Chapter 1 of Part 17 (cancellation of corporation tax advantages from certain transactions in securities).

95 U.K. Omit section 736A (manufactured dividends and interest).

96 U.K. Omit section 736B (deemed manufactured payments in the case of stock lending arrangements).

97 U.K. In section 749B(3) (interests in companies) for “Part VI” substitute “ Part 23 of CTA 2010 ”.

98 U.K. In section 750(3)(c)(i) (territories with a lower level of taxation) for “section 7(2)” substitute “ section 967 of CTA 2010 ”.

99 U.K. In section 751(6)(b) (accounting periods and creditable tax) for “section 7(2)” substitute “ section 967 of CTA 2010 ”.

100 U.K. In section 755D(10) (“control” and the two “40 per cent” tests) for “subsection (7) of section 839” substitute “ section 1122(4) of CTA 2010 ”.

101 (1) Amend section 756 (interpretation and construction of Chapter 4) as follows. U.K.

(2) In subsection (2)—

(a) in paragraph (a) for “section 839” substitute “ section 1122 of CTA 2010 ”, and

(b) for paragraph (b) substitute—

“(b) subsections (2) to (7) of section 882 of CTA 2010 (meaning of associates) apply.”

(3) For subsection (3) substitute—

“(3) In this Chapter “loan creditor” has the meaning given by section 453 of CTA 2010.”

102 U.K. Omit sections 767A to 769 (change in ownership of company).

F5 103 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F5 Sch. 1 para. 103 repealed (31.1.2013) by Statute Law (Repeals) Act 2013 (c. 2), s. 3(2), Sch. 1 Pt. 10 Group 1

104 (1) Omit sections 774A to 774G (factoring of income receipts etc). U.K.

(2) Sub-paragraph (1) has effect for corporation tax purposes only.

105 U.K. Omit sections 776 to 778 (transactions in land).

106 (1) Omit sections 779 to 785 (sale and lease-back etc). U.K.

(2) Sub-paragraph (1) has effect for corporation tax purposes only.

107 U.K. Omit section 785ZA (restrictions on use of losses: leasing partnerships).

108 U.K. Omit section 785ZB (section 785ZA: definitions).

109 U.K. Omit section 785B (plant and machinery leases: capital receipts to be treated as income).

110 U.K. Omit section 785C (section 785B: interpretation).

111 U.K. Omit section 785D (section 785B: lease of plant and machinery and other property).

112 U.K. Omit section 785E (section 785B: expectation that relevant capital payment will not be paid).

113 (1) Omit section 786 (transactions associated with loans or credit). U.K.

(2) Sub-paragraph (1) has effect for corporation tax purposes only.

114 U.K. In section 806A(2) (eligible unrelieved foreign tax dividends: introductory)—

(a) in paragraph (a) for “trading income for the purposes of section 393” substitute “ a profit of the trade for the purposes of section 45 of CTA 2010 ”, and

(b) in paragraph (b) for the words from “paragraphs” to the end of that paragraph substitute “ subsection (1)(a) and (b) of section 46 of CTA 2010, would by virtue of that section fall to be treated as a profit of the trade for the purposes of section 45 of that Act ”.

115 U.K. Omit section 808 (restriction on deduction of interest or dividends from trading income).

F6 116 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F6 Sch. 1 para. 116 repealed (31.1.2013) by Statute Law (Repeals) Act 2013 (c. 2), s. 3(2), Sch. 1 Pt. 10 Group 1

117 (1) Amend section 826 (interest on tax overpaid) as follows. U.K.

(2) In subsection (4)—

(a) for “section 419(4)”, in the first place, substitute “ section 458 of CTA 2010 ”,

(b) for “section 419(4), in the second place, substitute “ that section ”, and

(c) for “section 419(4A)” substitute “ section 458(4) of CTA 2010 ”.

(3) In subsection (7A)—

(a) in paragraph (b)—

(i) for “section 393A(1)”, in the first place, substitute “ section 37 of CTA 2010 ”,

(ii) for “set off” substitute “ relieved ”, and

(iii) for “section 393A(1) or 393B(3)” substitute “ section 37 or 42 of that Act ”, and

(b) in the words after paragraph (c) for “section 393A(1)” substitute “ section 37 of CTA 2010 ”.

118 (1) Amend section 828 (orders and regulations made by the Treasury or the Board) as follows. U.K.

(2) In subsection (1)—

(a) omit the words “Subject to subsections (2) and (5) below,”, and

(b) omit the words from “or under” to “after this Act)”.

(3) Omit subsection (2).

(4) In subsection (3)—

(a) for “subsections (4) and (5)” substitute “ subsection (4) ”, and

(b) omit the words from “or under” to “after this Act)”.

(5) In subsection (4), omit “or 840A(1)(d)”.

(6) Omit subsections (5) and (6).

119 U.K. Omit section 830(1) (territorial sea of the United Kingdom).

120 U.K. In section 831(3) (interpretation of ICTA) at the appropriate place insert—

““CTA 2010” means the Corporation Tax Act 2010;”.

121 U.K. Omit section 832 (interpretation of the Corporation Tax Acts).

122 U.K. Omit section 834 (interpretation of the Corporation Tax Acts).

123 U.K. Omit section 834A (miscellaneous charges).

124 U.K. Omit section 834B (meaning of “UK property business” and “overseas property business”).

125 U.K. Omit section 834C (total profits).

126 U.K. Omit section 837A (meaning of “research and development”).

127 U.K. Omit section 837B (meaning of “oil and gas exploration and appraisal”).

128 U.K. Omit section 837C (meaning of “offshore installation”).

129 U.K. Omit section 838 (subsidiaries).

130 U.K. Omit section 839 (connected persons).

131 U.K. Omit section 840 (meaning of “control” in certain contexts).

132 U.K. Omit section 840ZA (meaning of “tax advantage”).

133 U.K. Omit section 840A (banks).

134 U.K. Omit section 841 (meaning of “recognised stock exchange” etc).

135 U.K. Omit section 842 (investment trusts).

136 U.K. Omit section 842A (local authorities).

137 U.K. Omit section 842B (meaning of “property investment LLP”).

138 U.K. In paragraph 5(2) of Schedule 10 (further provisions relating to profit sharing schemes)—

(a) in paragraph (a) for “section 209(2)(c)” substitute “ condition C or D in section 1000(1) of CTA 2010 ”,

(b) in paragraph (b) for “section 210(1)” substitute “ section 1022 of CTA 2010 ”, and

(c) in paragraph (c) for “section 249” substitute “ section 1049 of CTA 2010 ”.

139 U.K. Omit Schedule 17 (dual resident investing companies).

140 U.K. Omit Schedule 18 (group relief: equity holders and profits or assets available for distribution).

141 U.K. Omit Schedule 18A (group relief: overseas losses of non-resident companies).

142 (1) Amend Schedule 19B (petroleum extraction activities: exploration expenditure supplement) as follows. U.K.

(2) In paragraph 15(2) (supplement in respect of a post-commencement period) for “Part 4 of Schedule 19C” substitute “ sections 321 to 329 of CTA 2010 ”.

(3) In paragraph 18A(5) (special rule for straddling periods) for “paragraph 18 of Schedule 19C for the purposes of Part 4 of that Schedule” substitute “ section 324 of CTA 2010 ”.

143 U.K. Omit Schedule 19C (petroleum extraction activities: ring fence expenditure supplement).

144 U.K. Omit Schedule 20 (charitable companies: qualifying investments and loans).

145 U.K. Omit Schedule 23A (manufactured dividends and interest).

146 (1) Amend Schedule 24 (assumptions for calculating chargeable profits etc) as follows. U.K.

(2) In paragraph 5(2) for “Chapter IV of Part X” substitute “ Part 5 of CTA 2010 ”.

(3) In paragraph 8—

(a) for “section 343” substitute “ Chapter 1 of Part 22 of CTA 2010 ”, and

(b) for each reference to “that section” substitute “ that Chapter ”.

147 (1) Amend Schedule 25 (cases where section 747(3) of ICTA does not apply) as follows. U.K.

(2) In paragraph 2—

(a) in sub-paragraph (7)(a) for the words “fixed-rate preference shares as defined in paragraph 1 of Schedule 18” substitute “ restricted preference shares as defined in section 160(2) to (7) of CTA 2010 as modified by sub-paragraph (7A) ”, and

(b) after sub-paragraph (7) insert—

“(7A) The modification referred to in sub-paragraph (7)(a) is, in section 160 of CTA 2010, the substitution for subsection (6) of—”

“(6) Condition D is that the shares do not carry any right to dividends other than dividends which—

(a) are of a fixed amount or are at a fixed percentage rate of the nominal value of the shares, and

(b) represent no more than a reasonable commercial return on the new consideration mentioned in subsection (3).””

(3) In paragraph 12(3) for the words from “section 838” to the end substitute “section 1154 of CTA 2010 has effect with the omission of the following—

(a) in subsection (2), the words “or indirectly”, and

(b) subsection (5).”

148 (1) Amend Schedule 26 (reliefs against liability for tax in respect of chargeable profits) as follows. U.K.

(2) In paragraph 1(3)(a) for “section 392A(1) or 393A(1)” substitute “ section 37 or 62(1) to (3) of CTA 2010 ”.

(3) In paragraph 1(3)(b) for “charge on income to which section 338(1) applies” substitute “ qualifying charitable donation ”.

149 U.K. Omit Schedule 28A (change in ownership of company with investment business: deductions).