Finance (No. 3) Act 2010

Amendments of Chapter 10 (other interpretative provisions) U.K.

29 U.K. In the heading of Chapter 10, for “provisions” substitute “ and supplementary provisions ”.

30 U.K. In section 339 (meaning of “ultimate parent”), for subsection (1)(b) to (d) substitute—

“(b) is either—

(i) a corporate entity that is not a limited liability partnership in relation to which section 1273(1) of CTA 2009 (limited liability partnerships) applies, or

(ii) a relevant non-corporate entity,

(c) is not a collective investment scheme or an entity that would be a collective investment scheme but for the fact that it is a body corporate, and

(d) is not a subsidiary (whether direct or indirect) of an entity that meets each of the conditions in paragraphs (a) to (c).”

31 (1) Section 345 (meaning of “UK group company” and “relevant group company”) is amended as follows. U.K.

(2) For subsections (2) and (3) substitute—

“(2) A company is a “UK group company” if—

(a) it is a member of the worldwide group, and

(b) it meets conditions A and B.

(3) A company is a “relevant group company” if—

(a) it is a member of the worldwide group, and

(b) it meets conditions A, B and C.”

(3) After subsection (4) insert—

“(4A) Condition B is that the company is not a securitisation company within the meaning of section 83(2) of FA 2005 or section 623 of CTA 2010.”

(4) In subsection (5), for “B” substitute “ C ”.

32 U.K. In section 351 (expressions taking their meaning from international accounting standards), after subsection (1) insert—

“(1A) The definition of “subsidiary” in subsection (1) does not affect the meaning of the expression “75% subsidiary” (which is defined in section 1154 of CTA 2010).”

33 U.K. After section 353 (other expressions) insert—

“353A Effect of Part on parties to capital market arrangements

(1) This section applies in relation to cases in which a company (“company A”)—

(a) is a party to a capital market arrangement at any time during a period of account of the worldwide group, and

(b) is subject to a liability to corporation tax for a relevant accounting period as a result of the operation of this Part.

(2) The Commissioners may by regulations make provision under which company A and a company that is a relevant group company at any time in the same period of account (“company B”) may jointly elect that company B is to take sole responsibility for discharging the liability.

(3) Where an election has effect, the liability is treated for all purposes as if it were a liability of company B and not of company A.

(4) The regulations may include provision about—

(a) when an election may be made (which may, in particular, be before the accounting period for which the liability arises);

(b) circumstances in which HMRC may or must—

(i) accept or reject an election, or

(ii) terminate the effect of an election that has already been accepted;

(c) the effect of termination by virtue of paragraph (b)(ii);

(d) the transfer from company A to company B of liabilities to penalties.

(5) The provision that may be made by virtue of subsection (4)(b)(i) or (ii) includes provision conferring a discretion on HMRC.

(6) In this section “capital market arrangement” has the same meaning as in section 72B(1) of the Insolvency Act 1986 (see paragraph 1 of Schedule 2A to that Act).

353B Regulations and orders

Regulations or orders under this Part may—

(a) make different provision for different cases or circumstances,

(b) include supplementary, incidental and consequential provision, or

(c) make transitional provision and savings.”