Taxation (International and Other Provisions) Act 2010

1Overview of Act

Part 2Double taxation relief

CHAPTER 1Double taxation arrangements and unilateral relief arrangements

Double taxation arrangements

2Giving effect to arrangements made in relation to other territories

3Arrangements may include retrospective or supplementary provision

4Meaning of “double taxation” in sections 2 and 3

5Orders under section 2: contents and procedure

6The effect given by section 2 to double taxation arrangements

7General regulations

Unilateral relief arrangements

8Interpretation: “unilateral relief arrangements” means rules 1 to 9, etc

9Rule 1: the unilateral entitlement to credit for non-UK tax

10Rule 2: accrued income profits

11Rule 3: interaction between double taxation arrangements and rules 1 and 2

12Rule 4: cases in which, and calculation of, credit allowed for tax on dividends

13Rule 5: credit for tax charged directly on dividend

14Rule 6: credit for underlying tax on dividend paid to 10% associate of payer

15Rule 7: credit for underlying tax on dividend paid to sub-10% associate

16Rule 8: credit for underlying tax on dividend paid by exchanged associate

17Rule 9: credit in relation to dividends for spared tax

CHAPTER 2Double taxation relief by way of credit

Effect to be given to credit for foreign tax allowed against UK tax

18Entitlement to credit for foreign tax reduces UK tax by amount of the credit

19Time limits for claims for relief under section 18(2)

20Foreign tax includes tax spared because of international development relief

Interpretation of Chapter

21Meaning of “the arrangements”, “the non-UK territory”, “foreign tax” etc

Credits where same income charged to income tax in more than one tax year

22Credit for foreign tax on overlap profit if credit for that tax already allowed

23Time limits for claims for relief under section 22(2)

24Claw-back of relief under section 22(2)

Cases in which credit not allowed

25Credit not allowed if relief allowed against overseas tax

26Credit not allowed under arrangements unless taxpayer is UK resident

27Credit not allowed if person elects against credit

Exceptions to requirement to be UK resident

28Unilateral relief for Isle of Man or Channel Islands tax

29Unilateral relief for tax on income from employment or office

30Unilateral relief for non-UK tax on non-resident's UK branch or agency etc

Calculating income or gains in respect of which credit is allowed

31Calculation of income or gain where remittance basis does not apply

32Calculation of amount received where UK tax charged on remittance basis

Limits on credit: general rules

33Limit on credit: minimisation of the foreign tax

34Reduction in credit: payment by reference to foreign tax

35Disallowed credit: use as a deduction

Limit on, and reduction of, credit against income tax

36Amount of limit

37Credit against tax on trade income: further rules

38Credit against tax on royalties: further rules

39Credit reduced by reference to accrued income losses

Limit on credit against capital gains tax

40Amount of limit

Limit on total credit against income tax and capital gains tax

41Amount of limit

Limit on credit against corporation tax

42Amount of limit

43Profits attributable to permanent establishments for purposes of section 42(2)

44Credit against tax on trade income

45Credit against tax on trade income: anti-avoidance rules

46Applying section 44(2): asset in hedging relationship with derivative contract

47Applying section 44(2): royalty income

48Applying section 44(2): “portfolio” of transactions, arrangements or assets

49Restricting section 44(3) if company is a bank or connected with a bank

49ALimit on credit in cases involving qualifying loan relationships of CFCs

49BApplying section 42(2) to non-trading credits from loan relationships etc

Calculating tax for purposes of section 42(2)

50Tax for period on loan relationships

51Tax for period on intangible fixed assets

Allocation of deductions etc to profits for purposes of section 42

52General deductions

53Earlier years' non-trading deficits on loan relationships

54Non-trading debits on loan relationships

55Current year's non-trading deficits on loan relationships

56Non-trading debits on intangible fixed assets

Taking account of foreign tax underlying dividends

57Credit in respect of dividend: taking account of underlying tax

58Calculation if dividend paid by non-resident company to resident company

59Meaning of “relevant profits” in section 58

60Underlying tax to be left out of account on claim to that effect

61Calculation if section 58 does not apply

62Meaning of “relevant profits” in section 61

Taking account of tax underlying dividends that is not foreign tax

63Non-UK company dividend paid to 10% investor: relief for UK and other tax

Tax underlying dividend treated as underlying tax paid by dividend's recipient

64Meaning of “dividend-paying chain” of companies

65Relief for underlying tax paid by company lower in dividend-paying chain

66Limitations on section 65(4)

Tax underlying dividends: restriction of relief, and particular cases

67Restriction of relief if underlying tax at rate higher than rate of corporation tax

68Meaning of “avoidance scheme” in section 67

69Dividends paid out of transferred profits

70Underlying tax reflecting interest on loans

71Foreign taxation of group as single entity

Adjustment of foreign tax on profits of overseas permanent establishment

71ACircumstances in which section 71B applies

71BReduction of foreign tax paid on profits of overseas PE

Unrelieved foreign tax on profits of overseas permanent establishment

72Application of section 73(1)

73Carry-forward and carry-back of unrelieved foreign tax

74Rules for carrying back unrelieved foreign tax

75Two or more establishments treated as a single establishment

76Former and subsequent establishments regarded as distinct establishments

77Claims for relief under section 73(1)

78Meaning of “overseas permanent establishment”

Action after adjustment of amount payable by way of UK or foreign tax

79Time limits for action if tax adjustment makes credit excessive or insufficient

80Duty to give notice that adjustment has rendered credit excessive

Schemes and arrangements designed to increase relief: anti-avoidance

81Countering effect of avoidance arrangements

82Conditions for the purposes of section 81(1)

83Schemes and arrangements referred to in section 82(4)

84Section 83(2) and (4): schemes enabling attribution of foreign tax

85Section 83(2) and (4): schemes about effect of paying foreign tax

85ASection 83(2) and (4): schemes involving deemed foreign tax

86Section 83(2) and (4): schemes about claims or elections etc

87Section 83(2) and (4): schemes that would reduce a person's tax liability

88Section 83(2) and (4): schemes involving tax-deductible payments

89Contents of counteraction notice

90Consequences of counteraction notices

91Counteraction notices given before tax return made

92Counteraction notices given after tax return made

93Amendment, closure notices and discovery assessments in section 92 cases

94Information made available for the purposes of section 92(4)

95Interpretation of sections 89 to 94

Insurance companies

96Companies with overseas branches: restriction of credit

97Companies with more than one category of business: restriction of credit

97ACommercial allocation of relevant income to different categories of long-term business

98Attribution for section 97 purposes if category is gross roll-up business

99Allocation of expenses etc in calculations under section 35 of CTA 2009

100First limitation for purposes of section 99(2)

101Second limitation for purposes of section 99(2)

102Interpreting sections 99 to 101 for life assurance or gross roll-up business

103Interpreting sections 99 to 101 ...

104Interpreting sections 100 and 101: amounts referable to category of business

CHAPTER 3Miscellaneous provisions

Application of Part for capital gains tax purposes

105Meaning of “chargeable gain”

106Chapters 1 and 2 apply to capital gains tax separately from other taxes

When foreign tax disregarded in applying Part for corporation tax purposes

107Disregard of foreign tax referable to derivative contract

108Disregard of foreign tax attributable to interest under a loan relationship

109Repo cases in which no disregard under section 108

110Stock-lending cases in which no disregard under section 108

Special rules for discretionary trusts

111When payment to beneficiary treated as arising from foreign source

Deduction for foreign tax where no credit allowed

112Deduction from income for foreign tax (instead of credit against UK tax)

113Deduction from capital gain for foreign tax (instead of credit against UK tax)

114Time limits for action if tax adjustment makes reduction too large or too small

115Duty to give notice that adjustment has rendered reduction too large

European cross-border transfers of business

116Introduction to section 117

117Tax treated as chargeable in respect of transfer of loan relationship, derivative contract or intangible fixed assets

European cross-border mergers

118Introduction to section 119

119Tax treated as chargeable in respect of transfer of loan relationship, derivative contract or intangible fixed assets

Transparent entities involved in cross-border transfers and mergers

120Introduction to section 121

121Tax treated as chargeable in respect of relevant transactions

Cross-border transfers and mergers: chargeable gains

122Tax treated as chargeable in respect of gains on transfer of non-UK business

Interpretation of sections related to the Mergers Directive

123Interpretation of sections 116 to 122

Cases about being taxed otherwise than in accordance with double taxation arrangements

124Giving effect to solutions to cases and mutual agreements resolving cases

125Effect of, and deadline for, presenting a case

The Arbitration Convention

126Meaning of “the Arbitration Convention”

127Giving effect to agreements, decisions and opinions under the Convention

128Disclosure under the Convention

International dispute-resolution instruments and agreements

128APower by regulations to give effect to international obligations etc

128BGiving effect to requirements under section 128A regulations

128CDisclosure under international obligations etc

Disclosure of information

129Disclosure where relief given overseas for tax paid in the United Kingdom

Interpretation of double taxation arrangements

130Interpreting provision about UK taxation of profits of foreign enterprises

130AInterpreting provision about UK taxation of pensions etc

131Interpreting provision about interest influenced by special relationship

132Interpreting provision about royalties influenced by special relationship

133Special relationship rule for royalties: matters to be shown by taxpayer

134Correcting assessments where relief is available

Part 3Double taxation relief for special withholding tax

135Relief under this Part: introductory

136Interpretation of Part

Credit etc for special withholding tax

137Income tax credit etc for special withholding tax

138Amount and application of the deemed tax under section 137

139Capital gains tax credit etc for special withholding tax

140Provisions about the deemed tax under section 139

141Credit under Chapter 2 of Part 2 to be allowed first

Calculation of income or gain on remittance basis where special withholding tax levied

142Conditions for purposes of section 143

143Taking account of special withholding tax in calculating income or gains

Certificates to avoid levy of special withholding tax

144Issue of certificate

145Refusal to issue certificate and appeal against refusal

Part 4Transfer pricing

CHAPTER 1Basic transfer-pricing rule

146Application of this Part

147Tax calculations to be based on arm's length, not actual, provision

148The “participation condition”

CHAPTER 2Key interpretative provisions

Meaning of certain expressions that first appear in section 147

149“Actual provision” and “affected persons”

150“Transaction” and “series of transactions”

151“Arm's length provision”

152Arm's length provision where actual provision relates to securities

153Arm's length provision where security issued and guarantee given

154Interpretation of sections 152 and 153

155“Potential advantage” in relation to United Kingdom taxation

156“Losses” and “profits”

“Direct participation” in management, control or capital of a person

157Direct participation

“Indirect participation” in management, control or capital of a person

158Indirect participation: defined by sections 159 to 162

159Indirect participation: potential direct participant

160Indirect participation: one of several major participants

161Indirect participation: sections 148 and 175: financing cases

162Indirect participation: sections 148 and 175: further financing cases

163Meaning of “connected” in section 159

Application of OECD principles

164Part to be interpreted in accordance with OECD principles

CHAPTER 3Exemptions from basic rule

165Exemption for dormant companies

166Exemption for small and medium-sized enterprises

167Small and medium-sized enterprises: exceptions from exemption

167ASmall enterprises: exception from exemption: transfer pricing notice

168Medium-sized enterprises: exception from exemption: transfer pricing notice

169Giving of transfer pricing notices

170Appeals against transfer pricing notices

171Tax returns where transfer pricing notice given

172Meaning of “small enterprise” and “medium-sized enterprise”

173Meaning of “qualifying territory” and “non-qualifying territory”

CHAPTER 4Position, if only one affected person potentially advantaged, of other affected person

Claim by affected person who is not advantaged

174Claim by the affected person who is not potentially advantaged

174AClaims under section 174 where disadvantaged person within charge to income tax

175Claims under section 174 where actual provision relates to a security

176Claims under section 174: advantaged person must have made return

177Time for making, or amending, claim under section 174

178Meaning of “return” in sections 176 and 177

Claims: special cases

179Compensating payment if advantaged person is controlled foreign company

180Application of section 174(2)(a) in relation to transfers of trading stock etc

Alternative way of claiming if a security is involved

181Section 182 applies to claims where actual provision relates to a security

182Making of section 182 claims

183Giving effect to section 182 claims

184Amending a section 182 claim if it is followed by relevant notice

Notification to persons who may be disadvantaged

185Notice to potential claimants

186Extending claim period if notice under section 185 not given or given late

Treatment of interest where claim made

187Tax treatment if actual interest exceeds arm's length interest

Treatment of interest where claim prevented by section 174A

187AExcess interest treated as a ... distribution

Adjustment of double taxation relief where claim made

188Double taxation relief by way of credit for foreign tax

189Double taxation relief by way of deduction for foreign tax

Interpretation of Chapter

190Meaning of “relevant notice”

CHAPTER 5Position of guarantor of affected person's liabilities under a security issued by the person

191When sections 192 to 194 apply

192Attribution to guarantor company of things done by issuing company

192AProvision for cases within Part 6A

193Interaction between claims under sections 174 and 192(1)

194Claims under section 192(1): general provisions

CHAPTER 6Balancing payments

195Qualifying conditions for purposes of section 196

196Balancing payments between affected persons: no charge to, or relief from, tax

197Qualifying conditions for purposes of section 198

198Balancing payments by guarantor to issuer: no charge to, or relief from, tax

199Pre-conditions for making election under section 200

200Election to pay tax rather than make balancing payments

201Pre-conditions for making election under section 202

202Election, in guarantee case, to pay tax rather than make balancing payments

203Elections under section 200 or 202

204Meaning of “capital market condition” in sections 199 and 201

CHAPTER 7Oil-related ring-fence trades

205Provision made or imposed between ring-fence trade and other activities

206Meaning of “oil-related ring-fence trade” in sections 205 and 218

206AModification of basic rule where allowances restricted for certain expenditure

CHAPTER 8Supplementary provisions and interpretation of Part

207Application of Part to unit trusts

Determinations requiring Commissioners' sanction

208The determinations which require the Commissioners' sanction

209Determinations exempt from requirement for Commissioners' sanction

210The requirement for the Commissioners' sanction

211Restriction of right to appeal against Commissioners' approval

Effect of Part on capital allowances and chargeable gains

213Capital allowances

214Chargeable gains

215Manner of making adjustments to give effect to Part

216Meaning of “the relevant activities”

217Meaning of “control” and “firm”

Part 5Advance pricing agreements

218Meaning of “advance pricing agreement”

219Meaning of “associate” in section 218(2)(e)

220Effect of agreement on party to it

221Effect of revocation of agreement or breach of its conditions

222Effect of agreement on non-parties

223Application for agreement

224Provision in agreement about years ended or begun before agreement made

225Modification and revocation of agreement

226Annulment of agreement for misrepresentation

227Penalty for misrepresentation in connection with agreement

228Party to agreement: duty to provide information

229Modifications of agreement for double taxation purposes

230Interpretation of Part: meaning of “Commissioners” and “officer”

Part 6Tax arbitrage

Deduction notices

232Deduction notices

233The deduction scheme conditions

234Schemes achieving UK tax advantage for a company

235Further provisions about deduction notices

Deduction schemes

236Schemes involving hybrid entities

237Instruments of alterable character

238Shares subject to conversion

239Securities subject to conversion

240Debt instruments treated as equity

241Scheme including issue of shares not conferring qualifying beneficial entitlement

242Scheme including transfer of rights under a security

Consequences of deduction notices

243Consequences of deduction notices

244The rule against double deduction

245Application of the rule against deduction for untaxable payments

246Cases where payee's non-liability treated as not a result of scheme

247Cases where payee treated as having reduced liability as a result of scheme

248The rule against deduction for untaxable payments

Receipt notices

249Receipt notices

250The receipt scheme conditions

251Amounts within corporation tax

252Further provisions about receipt notices

253Exception for dealers

254Rule for calculation or recalculation of income etc following receipt notice

General provisions about deduction notices and receipt notices

255Notices given before tax return made

256Notices given after tax return made

257Amendments, closure notices and discovery assessments where section 256 applies

258Schemes and series of transactions

259Minor definitions

PART 6AHybrid and other mismatches

CHAPTER 1Introduction

259AOverview of Part

CHAPTER 2Key definitions

Meaning of “tax”

259B“Tax” means certain taxes on income and includes foreign tax etc

Equivalent provision to this Part under foreign law

259BAReferences to equivalent provision to this Part under the law of a territory outside the United Kingdom

Payments and quasi-payments etc

259BBMeaning of “payment”, “quasi-payment”, “payer”, “payee” etc

Ordinary income

259BCThe basic rules

259BDChargeable companies in respect of CFCs and foreign CFCs

Hybrid entity etc

259BEMeaning of “hybrid entity”, “investor” and “investor jurisdiction”

Permanent establishments

259BFMeaning of “permanent establishment”

CHAPTER 3Hybrid and other mismatches from financial instruments

259COverview of Chapter

Application of Chapter

259CACircumstances in which the Chapter applies

259CBHybrid or otherwise impermissible deduction/non-inclusion mismatches and their extent

259CCInterpretation of section 259CB

259CDCounteraction where the payer is within the charge to corporation tax for the payment period

259CECounteraction where a payee is within the charge to corporation tax

CHAPTER 4Hybrid transfer deduction/non-inclusion mismatches

259DOverview of Chapter

Application of Chapter

259DACircumstances in which the Chapter applies

259DBMeaning of “hybrid transfer arrangement”, “underlying instrument” etc

259DCHybrid transfer deduction/non-inclusion mismatches and their extent

259DDInterpretation of section 259DC

259DEThe financial trader exclusion

259DFCounteraction where the payer is within the charge to corporation tax for the payment period

259DGCounteraction where a payee is within the charge to corporation tax

CHAPTER 5Hybrid payer deduction/non-inclusion mismatches

259EOverview of Chapter

Application of Chapter

259EACircumstances in which the Chapter applies

259EBHybrid payer deduction/non-inclusion mismatches and their extent

259ECCounteraction where the hybrid payer is within the charge to corporation tax for the payment period

259EDCounteraction where a payee is within the charge to corporation tax

CHAPTER 6Deduction/non-inclusion mismatches relating to transfers by permanent establishments

259FOverview of Chapter

Application of Chapter

259FACircumstances in which the Chapter applies

259FBCounteraction of the excessive PE deduction

259FCMeaning of excessive PE inclusion income

CHAPTER 7Hybrid payee deduction/non-inclusion mismatches

259GOverview of Chapter

Application of Chapter

259GACircumstances in which the Chapter applies

259GBHybrid payee deduction/non-inclusion mismatches and their extent

259GCCounteraction where the payer is within the charge to corporation tax for the payment period

259GDCounteraction where the investor is within the charge to corporation tax

259GECounteraction where a hybrid payee is an LLP

CHAPTER 8Multinational payee deduction/non-inclusion mismatches

259HOverview of Chapter

Application of Chapter

259HACircumstances in which the Chapter applies

259HBMultinational payee deduction/non-inclusion mismatches and their extent

259HCCounteraction of the multinational payee deduction/non-inclusion mismatch

CHAPTER 9Hybrid entity double deduction mismatches

259IOverview of Chapter

Application of Chapter

259IACircumstances in which the Chapter applies

259IBCounteraction where the investor is within the charge to corporation tax

259ICCounteraction where the hybrid entity is within the charge to corporation tax

259ICADeemed dual inclusion income for the purposes of section 259IC

259IDSection 259ID income for the purposes of section 259IC

CHAPTER 10Dual territory double deduction cases

259JOverview of Chapter

Application of Chapter

259JACircumstances in which the Chapter applies

259JBCounteraction where mismatch arises because of a dual resident company

259JCCounteraction where mismatch arises because of a relevant multinational and the UK is the parent jurisdiction

259JDCounteraction where mismatch arises because of a relevant multinational and is not counteracted in the parent jurisdiction

259JEMeaning of excessive PE inclusion income

CHAPTER 11Imported mismatches

259KOverview of Chapter

Application of Chapter

259KACircumstances in which the Chapter applies

259KBMeaning of “dual territory double deduction”, “excessive PE deduction” and “PE jurisdiction”

259KCDenial of the relevant deduction in relation to the imported mismatch payment

259KDDeductions from dual inclusion income

259KELimit on reduction under section 259KC

259KFProvision for cases within Part 4

CHAPTER 12Adjustments in light of subsequent events etc

259LAdjustments where suppositions cease to be reasonable

259LADeduction from taxable total profits where an amount of ordinary income arises late

259LBAdjustments in light of later treatment for accounting purposes

CHAPTER 12AAllocation of dual inclusion income within group

259ZMOverview of Chapter

Application of Chapter

259ZMACircumstances in which Chapter applies

Allocation of DII surplus

259ZMBClaims for allocation of DII surplus

259ZMCThe unused part of the DII surplus

259ZMDThe unused part of the DII shortfall

259ZMEGroups of companies

“Dual inclusion income” and “counteraction amount”

259ZMFMeaning of “dual inclusion income” and “counteraction amount”

CHAPTER 13Anti-avoidance

259MCountering the effect of avoidance arrangements

CHAPTER 13ASpecial provision concerning transparent funds

259MAMeaning of “transparent fund”

259MBApplication of Chapters 3, 4, 5 and 7

259MCApplication of Chapter 9

259MDApplication of Chapter 11

CHAPTER 14Interpretation

Financial instruments

259NMeaning of “financial instrument”

Relevant investment funds

259NAMeaning of “relevant investment fund”

Control groups and related persons

259NBControl groups

259NCRelated persons

259NDMeaning of “50% investment” and “25% investment”

Qualifying institutional investors etc

259NDAMeaning of “qualifying institutional investor” etc

259NETreatment of a person who is a member of a partnership

Securitisation companies

259NEZASecuritisation companies

Relevant debt relief circumstances

259NEBRelevant debt relief circumstances: introductory

259NECRelease of debts

259NEDRelease of connected companies debts

259NEERelease of connected companies debts during creditor’s insolvency

259NEFCorporate rescue: debt released shortly after connection arises

259NFDefinitions

Part 7Tax treatment of financing costs and income

CHAPTER 1Introduction

260Introduction

CHAPTER 2Application of Part

261Application of Part

262UK net debt of worldwide group for period of account of worldwide group

263Net debt of a company

264Worldwide gross debt of worldwide group for period of account of the group

265References to amounts disclosed in balance sheet of a company

265ADifferent accounting treatment used at company and group levels

266Qualifying financial services groups

267Qualifying activities

268Lending activities and activities ancillary to lending activities

269Insurance activities and insurance-related activities

270Relevant dealing in financial instruments

271UK trading income of the worldwide group

272Worldwide trading income of the worldwide group

273Foreign currency accounting

273AMeaning of “group securitisation company”

CHAPTER 3Disallowance of deductions

274Application of Chapter and meaning of “total disallowed amount”

275Meaning of “company to which this Chapter applies”

275AMeaning of “dual resident investing company”

276Appointment of authorised company for relevant period of account

277Meaning of “the reporting body”

278Statement of allocated disallowances: submission

279Statement of allocated disallowances: submission of revised statement

280Statement of allocated disallowances: requirements

280AStatement of allocated disallowances: dual resident investing companies

281Statement of allocated disallowances: effect

282Company tax returns

283Power to make regulations about statement of allocated disallowances

284Failure of reporting body to submit statement of allocated disallowances

284ASection 284: supplementary

285Powers to make regulations in relation to reductions under section 284

CHAPTER 4Exemption of financing income

286Application of Chapter and meaning of “total disallowed amount”

287Meaning of “company to which this Chapter applies”

288Appointment of authorised company for relevant period of account

289Meaning of “the reporting body”

290Statement of allocated exemptions: submission

291Statement of allocated exemptions: submission of revised statement

292Statement of allocated exemptions: requirements

293Statement of allocated exemptions: effect

294Company tax returns

295Power to make regulations about statement of allocated exemptions

296Failure of reporting body to submit statement of allocated exemptions

297Power to make regulations in relation to reductions under section 296

298Balancing payments between group companies: no tax charge or relief

298AApplication of Chapter to financing income amounts determined under section 314A

CHAPTER 5Intra-group financing income where payer denied deduction

299Tax exemption for certain financing income received from EEA companies

300Meaning of “relevant associate”

301Meaning of “tax-resident” and “EEA territory”

302Qualifying EEA tax relief for payment in current or previous period

303Qualifying EEA tax relief for payment in future period

304References to tax of a territory

305Financing income amounts of a company

CHAPTER 6Tax avoidance

305ASchemes preventing this Part applying to a large group

306Schemes involving manipulation of rules in Chapter 2

307Schemes involving manipulation of rules in Chapters 3 and 4

308Meaning of “relevant net deduction”

309Calculation of amounts

310Meaning of “carried-back amount” and “carried-forward amount”

311Schemes involving manipulation of rules in Chapter 5

312Meaning of “scheme” and “excluded scheme”

CHAPTER 7“Financing expense amount” and “financing income amount”

313The financing expense amounts of a company

314The financing income amounts of a company

314AThe financing income amounts of a chargeable company under Part 9A

315Interpretation of sections 313 and 314

316Group treasury companies

317Real estate investment trusts

317ACompanies with permanent establishments profits election

318Companies engaged in oil extraction activities

318AIndustrial and provident societies

319Intra-group short-term finance: financing expense

320Intra-group short-term finance: financing income

321Short-term loan relationships

322Stranded deficits in non-trading loan relationships: financing expense

323Stranded deficits in non-trading loan relationships: financing income

324Stranded management expenses in non-trading loan relationships: financing expense

325Stranded management expenses in non-trading loan relationships: financing income

327Educational and public bodies

328Interpretation of sections 316 to 327

CHAPTER 8“Tested expense amount” and “tested income amount”

329The tested expense amount

330The tested income amount

331Companies with net financing deduction or net financing income that is small

331ZAElections disapplying sections 329(5) and 330(5)

331AMismatches between tax treatment and accounting treatment

CHAPTER 9“Available amount”

332The available amount

332AGroups containing securitisation companies

332AAChange of accounting standards: investment entities

332BPartnerships: expenses of borrowing

332CPartnerships: other expenses

333Group members with income from oil extraction subject to particular tax treatment in UK

334Group members with income from shipping subject to particular tax treatment in UK

335Group members with income from property rental subject to particular tax treatment in UK

336Meaning of accounting expressions used in this Chapter

336AMismatches between tax treatment and accounting treatment

CHAPTER 10Other interpretative and supplementary provisions

337The worldwide group

338Meaning of “group”

339Meaning of “ultimate parent”

340Meaning of “corporate entity”

341Meaning of “relevant non-corporate entity”

342Treatment of entities stapled to corporate, or relevant non-corporate, entities

343Treatment of business combinations

344Meaning of “large” in relation to a group

345Meaning of “UK group company” and “relevant group company”

346Financial statements of the worldwide group

347Non-compliant financial statements of the worldwide group

348Non-existent financial statements of the worldwide group

348AFinancial statements: business combinations to which the worldwide group is a party

349References to amounts disclosed in financial statements

350Translation of amounts disclosed in financial statements

351Expressions taking their meaning from international accounting standards

352Meaning of “relevant accounting period”

353Other expressions

353AEffect of Part on parties to capital market arrangements

353AAPower to make regulations where accounting standards change

353BRegulations and orders

Part 8Offshore funds ETC

Tax treatment of participants in offshore funds

354Power to make regulations about tax treatment of participants

355Meaning of “offshore fund”

356Meaning of “mutual fund”

357Exceptions to definition of “mutual fund”

358Meaning of “relevant income-producing asset”

359Power to make regulations about exceptions to definition of “mutual fund”

360Treatment of umbrella arrangements

361Treatment of arrangements comprising more than one class of interest

362Meaning of “participant” and “participation”

363Meaning of “umbrella arrangements” and “part of umbrella arrangements”

363AResidence of undertakings for collective investment in transferable securities and alterative investment funds

Part 9Amendments to relocate provisions of tax legislation

364Oil activities

365Alternative finance arrangements

366Power to amend the alternative finance provisions

367Leasing arrangements: finance leases and loans

368Sale and lease-back etc

369Factoring of income etc

370UK representatives of non-UK residents

371Miscellaneous relocations

PART 9AControlled foreign companies

Chapter 1Overview

371AAOverview of Part

Chapter 2The CFC charge

371BAIntroduction to the CFC charge

371BBThe CFC charge gateway

371BCCharging the CFC charge

371BDChargeable companies

371BECompanies which are managers of offshore funds etc

371BFCompanies which are participants in offshore funds

371BGCompanies holding shares as trading assets etc

371BHCompanies carrying on BLAGAB

371BIBanking companies

Chapter 3The CFC charge gateway: determining which (if any) of Chapters 4 to 8 applies

371CADoes Chapter 4 apply?

371CBDoes Chapter 5 apply?

371CCIncidental non-trading finance profits: the 5% rule

371CDIncidental non-trading finance profits: the further 5% rule

371CEDoes Chapter 6 apply?

371CEASection 371CE: meaning of “group treasury company”

371CFDoes Chapter 7 apply?

371CGDoes Chapter 8 apply?

Chapter 4The CFC charge gateway: profits attributable to UK activities

371DAIntroduction to Chapter

371DCExclusion: UK activities a minority of total activities

371DDExclusion: economic value

371DEExclusion: independent companies' arrangements

371DFExclusion: trading profits (the basic rule)

371DGExclusion: trading profits (business premises condition)

371DHExclusion: trading profits (income condition)

371DIExclusion: trading profits (management expenditure condition)

371DJExclusion: trading profits (IP condition)

371DKExclusion: trading profits (export of goods condition)

371DLExclusion: trading profits (anti-avoidance)

Chapter 5The CFC charge gateway: non-trading finance profits

371EAThe basic rule

371EB UK activities

371ECCapital investment from the UK

371EDArrangements in lieu of dividends etc to UK resident companies etc

371EELeases to UK resident companies etc

Chapter 6The CFC charge gateway: trading finance profits

371FAThe basic rule

371FBQualifying loan relationships

371FCLoans from foreign permanent establishments of UK resident companies

371FDExclusion: banking business

371FEExclusion: insurance business

Chapter 7The CFC charge gateway: captive insurance business

371GAThe basic rule

Chapter 8The CFC charge gateway: solo consolidation

371HAThe basic rule

Chapter 9Exemptions for profits from qualifying loan relationships

371IAThe basic rule

371IBLoans funded out of qualifying resources

371ICWhat is the “qualifying value” of “relevant pre-acquisition funds or other assets”?

371IDThe 75% exemption

371IEThe “matched interest profits” exemption

371IFDetermining the profits of a qualifying loan relationship

371IGWhat is a “qualifying loan relationship”?

371IHExclusions from definition of “qualifying loan relationship”

371IIPower to amend definitions

Chapter 10The exempt period exemption

371JAIntroduction to Chapter

371JBThe basic rule

371JCWhen does an exempt period begin?

371JDHow long is an exempt period?

371JEAdjustment of profits passing through the CFC charge gateway

371JFAnti-avoidance

371JGAmendment of company tax returns

Chapter 11The excluded territories exemption

371KAIntroduction to Chapter

371KBThe basic rule

371KCHow to determine the territory in which a CFC is resident

371KDWhat is “the threshold amount”?

371KECategory A income: the basic rule

371KFCategory A income: permanent establishments in excluded territories

371KGCategory B income

371KHCategory C income

371KICategory D income

371KJThe IP condition

Chapter 12The low profits exemption

371LAIntroduction to Chapter

371LBThe basic rule

371LCAnti-avoidance

Chapter 13The low profit margin exemption

371MAIntroduction to Chapter

371MBThe basic rule

371MCAnti-avoidance

Chapter 14The tax exemption

371NAIntroduction to Chapter

371NBThe basic rule

371NCReductions to “the local tax amount”

371NDWhat are “designer rate tax provisions”?

371NEHow to determine “the corresponding UK tax”

Chapter 15Relevant interests in a CFC

371OAApplication of Chapter

371OBProvision about interpretation

What is a “relevant interest” in a CFC?

371OC“Relevant interests” of UK resident companies

371OD“Relevant interests” of persons related to UK resident companies

371OEOther “relevant interests”

Chapter 16Creditable tax of a CFC

371PAWhat is “creditable tax”?

Chapter 17Apportionment of a CFC's chargeable profits and creditable tax

371QAApplication of Chapter

371QBProvision about interpretation

How are the apportionments to be made?

371QCThe basic rules

371QDApportionments to be made in proportion to shareholding

371QEIndirect shareholdings

371QFVariable shareholdings

371QGAnti-avoidance

Chapter 18Control etc

371RAOverview of Chapter

371RBLegal and economic control

371RCLegal and economic control: the 40% rule

371RDLegal and economic control: supplementary provision

371REControl determined by reference to accounting standards

371RFPower to amend section 371RE etc

371RGCompanies in which a UK resident company has more than a 50% investment

Chapter 19Assumed taxable total profits, assumed total profits and the corporation tax assumptions

371SAOverview of Chapter

“Assumed taxable total profits” and “assumed total profits”

371SBWhat are “assumed taxable total profits” and “assumed total profits”?

“The corporation tax assumptions”

371SCWhat are “the corporation tax assumptions”?

371SD UK residence etc

371SEClose company

371SFClaims and elections

371SGDisapplication of assumption in section 371SF(1)

371SHElections under section 9A of CTA 2010

371SIModification of sections 6 and 7 of CTA 2010

371SJElections for leases to be treated as long funding leases

371SKIntangible fixed assets

371SKARestrictions on certain deductions: deductions allowances

371SLGroup relief etc

371SLACorporate interest restriction

371SMCapital allowances

371SNUnremittable overseas income

371SOTax advantages

371SPDisguised interest: application of Chapter 2A of Part 6 of CTA 2009

371SQShares accounted for as liabilities: application of section 521C of CTA 2009

371SRDouble taxation relief: countering effect of avoidance arrangements

Chapter 20Residence of CFCs

371TAThe basic rule

371TBHow to determine the territory in which the CFC is resident

371TCElections and designations about residence

Chapter 21Management

371UAIntroduction to Chapter

371UBApplication of the Taxes Acts to the CFC charge

371UBAPayments in respect of a charge on a banking company: information to be provided

371UCJust and reasonable apportionments

371UDRelief against sum charged

371UEAppeals affecting more than one person

371UFRecovery of sum charged from other UK resident companies

Chapter 22Supplementary provision

371VADefinitions

371VBAccounting periods

371VCAccounting profits

371VDAdjustments to accounting profits

371VECell companies etc

371VFConnected persons etc

371VGFinance profits

371VHInterests in companies

371VIProperty business profits

371VIARelevant finance leases

371VJRegulations

Part 10Corporate interest restriction

CHAPTER 1Introduction

373Meaning of “subject to interest restrictions”, “the total disallowed amount” etc

374Interest restriction returns

CHAPTER 2Disallowance and reactivation of tax-interest expense amounts

375Disallowance of deductions: full interest restriction return submitted

376Disallowance of deductions: no return, or non-compliant return, submitted

377Disallowance of deductions: identification of the tax-interest amounts to be left out of account

378Disallowed tax-interest expense amounts carried forward

379Reactivation of interest

380Reactivation of deductions: identification of the tax-interest amounts to be brought into account

381Set-off of disallowances and reactivations in the same accounting period

CHAPTER 3Tax-interest amounts

Tax-interest expense and income amounts: basic rules

382The tax-interest expense amounts of a company

383Relevant loan relationship debits

384Relevant derivative contract debits

385The tax-interest income amounts of a company

386Relevant loan relationship credits

387Relevant derivative contract credits

Double taxation relief

388Double taxation relief

Net tax-interest expense

389The “net tax-interest expense” or “net tax-interest income” of a company

390The worldwide group's aggregate net tax-interest expense and income

391Meaning of “impairment loss”

391AAmounts capitalised in carrying value of intangible fixed assets

CHAPTER 4Interest capacity

392The interest capacity of a worldwide group for a period of account

393Amount of interest allowance for a period that is “available” in a later period

394When interest allowance is “used”

395Amount of interest allowance for a period of account that is “unexpired” in later period

395ACarry forward of interest allowance: new holding company

CHAPTER 5Interest allowance

Interest allowance

396The interest allowance of a worldwide group for a period of account

397Basic interest allowance calculated using fixed ratio method

398Basic interest allowance calculated using group ratio method

399The group ratio percentage

400The debt cap

400ACarry forward of excess debt cap: new holding company

Effect of group ratio (blended) election

401Effect of group ratio (blended) election on group ratio percentage

402Effect of group ratio (blended) election on group ratio debt cap

403Calculations under sections 401 and 402: investor worldwide groups

404Meaning of “investor”, “related party investor” and investor's “share”

CHAPTER 6Tax-EBITDA

405The aggregate tax-EBITDA of a worldwide group

406The tax-EBITDA of a company

407Amounts not brought into account in determining a company's tax-EBITDA

408Excluded relevant intangibles debits and excluded relevant intangibles credits

409Double taxation relief

CHAPTER 7Group-interest and group-EBITDA

410Net group-interest expense

411“Relevant expense amount” and “relevant income amount”

412Section 411: interpretation

413Adjusted net group-interest expense

414Qualifying net group-interest expense

415Section 414: interpretation

416Group-EBITDA

417The capital (expenditure) adjustment

418The capital (fair value movement) adjustment

419The capital (disposals) adjustment

Treatment of derivative contracts in financial statements of worldwide group

420Derivative contracts subject to fair value accounting

421Derivative contracts subject to fair value accounting: interpretation

Effect of group-EBITDA (chargeable gains) election

422Group-EBITDA (chargeable gains) election

Effect of interest allowance (alternative calculation) election

423Capitalised interest brought into account for tax purposes in accordance with GAAP

424Employers' pension contributions

424AUnpaid employees’ remuneration

425Employee share acquisitions

426Changes in accounting policy

Effect of interest allowance (non-consolidated investment) election

427Group interest and group-EBITDA

428Section 427: associated worldwide groups

429Meaning of “non-consolidated associate”

Effect of interest allowance (consolidated partnerships) election

430Interest allowance (consolidated partnerships) election

431Interpretation of Chapter

CHAPTER 8Public infrastructure

432Overview of Chapter

433Meaning of “qualifying infrastructure company”

434Elections under section 433

435Group elections modifying the operation of sections 433 and 434

436Meaning of “qualifying infrastructure activity”

437Section 436: supplementary

Exemption and related provision

438Exemption for interest payable to third parties etc

438AApplication of section 438: certain creditors treated as qualifying infrastructure companies

439Exemption in respect of certain pre-13 May 2016 loan relationships

440Loans etc made by qualifying infrastructure companies to be ignored

441Tax-EBITDA of qualifying infrastructure company to be nil

442Amounts of qualifying infrastructure company left out of account for other purposes

443Interest capacity for group with qualifying infrastructure company etc

444Joint venture companies

445Joint venture groups

446Joint ventures: supplementary

447Partnerships and other transparent entities

448Decommissioning

449Minor definitions for purposes of this Chapter

CHAPTER 9Cases involving particular types of company or business

Banking companies

450Banking companies

452Real Estate Investment Trusts

Insurance companies etc

453Insurance entities

454Members of Lloyd's

Investment managers

454AInvestments held by investment managers

Shipping companies

455Shipping companies subject to tonnage tax

Fair value accounting

456Creditor relationships of companies determined on basis of fair value accounting

457Elections under section 456: deemed debits and credits

Exemption for tax-interest expense or income amounts

458Co-operative and community benefit societies etc

460Long funding operating leases and finance leases

CHAPTER 10Anti-avoidance

461Counteracting effect of avoidance arrangements

CHAPTER 11Interpretation etc

Related parties

462Expressions relating to “related parties”: introduction

463Whether a person is generally a “related party” of another

464Meaning of “25% investment”

465Attribution of rights and interests

466Certain loan relationships etc to be treated as made between related parties

467Holdings of debt and equity in same proportions

468Debts with same rights where unrelated parties hold more than 50%

469Debt restructuring

470Ordinary independent financing arrangements by banks and others

471Loans made by relevant public bodies

472Finance leases granted before 20 March 2017

Determining the worldwide group

473Meaning of “a worldwide group”, “ultimate parent” etc

474Interpretation of section 473: “relevant entity”

475Meaning of “non-consolidated subsidiary” and “consolidated subsidiary”

476Continuity of identity of a worldwide group through time

477Treatment of stapled entities

478Treatment of business combinations

Financial statements and periods of account

479“Financial statements” of a worldwide group

480“Period of account” of worldwide group

481Actual financial statements not drawn up on acceptable principles

482Actual financial statements drawn up on acceptable principles but consolidating wrong subsidiaries

483Actual financial statements covering more than one worldwide group

484No actual financial statements: ultimate parent draws up financial statements

485No actual financial statements: other cases

486Election altering period of account deemed under section 485

487Actual financial statements ignored if for too long a period or too late

488Meaning of “IAS financial statements”

489References to amounts recognised in financial statements

Other definitions

490Meaning of “relevant accounting period”

491Meaning of “relevant public body”

492Meaning of “UK group company”

493Embedded derivatives

494Other interpretation

495Financial statements: different treatment by group or members

496Parties to capital market arrangements

497Change in accounting standards

Part 11General provisions

Subordinate legislation

499Orders and regulations

500Abbreviated references to Acts

Final provisions

501Minor and consequential amendments

502Transitional provisions and savings

503Repeals and revocations

504Index of defined expressions

506Commencement

SCHEDULE 1Oil activities: new Chapter 16A of Part 2 of ITTOIA 2005

1ITTOIA 2005 is amended as follows.

2After section 225 insert— Chapter 16A Oil activities Basic definitions...

SCHEDULE 2Alternative finance arrangements

Part 1New Part 10A of ITA 2007

1ITA 2007 is amended as follows.

2After Part 10 insert— Part 10A Alternative finance arrangements Introduction...

3After section 564A insert— Meaning of “financial institution” (1) In this Part “financial institution” means—

4After section 564B insert— Arrangements that are alternative finance arrangements...

5After section 564C insert— Diminishing shared ownership arrangements (1) This section applies to arrangements if under them—

6After section 564D insert— Deposit arrangements (1) This section applies to arrangements if under them—

7After section 564E insert— Profit share agency arrangements (1) This section applies to arrangements if under them—

8After section 564F insert— Investment bond arrangements (1) This section applies to arrangements if—

9After section 564G insert— Provision not at arm's length: exclusion...

10After section 564H insert— Meaning of “alternative finance return” Purchase...

11After section 564I insert— Purchase and resale arrangements where return...

12After section 564J insert— Diminishing shared ownership arrangements (1) In the case of diminishing shared ownership arrangements, payments...

13After section 564K insert— Other arrangements (1) In the case of deposit arrangements, amounts paid or...

14After section 564L insert— Treatment of alternative finance return as...

15After section 564M insert— Alternative finance return under arrangements for...

16After section 564N insert— Relief for some alternative finance return...

17After section 564O insert— Tax relief schemes and arrangements Section 809ZG (tax relief schemes and arrangements) applies to alternative...

18After section 564P insert— Deduction of income tax at source...

19After section 564Q insert— Special rules for investment bond arrangements...

20After section 564R insert— Treatment of bond-holder and bond-issuer (1) This section applies for the purposes of the Income...

21After section 564S insert— Treatment as securities (1) Investment bond arrangements are securities for the purposes of...

22After section 564T insert— Arrangements not unit trust scheme or...

23After section 564U insert— Other rules Exclusion of alternative finance...

24After section 564V insert— Diminishing shared ownership arrangements not partnerships...

25After section 564W insert— Treatment of principal under profit share...

26After section 564X insert— Provision not at arm's length: relevant...

Part 2New Chapter 4 of Part 4 of TCGA 1992

27TCGA 1992 is amended as follows.

28After Chapter 3 of Part 4 insert— Chapter 4 Alternative...

29After section 151H insert— Meaning of “financial institution” (1) In this Chapter “financial institution” means—

30After section 151I insert— Arrangements that are alternative finance arrangements...

31After section 151J insert— Diminishing shared ownership arrangements (1) This section applies to arrangements if under them—

32After section 151K insert— Deposit arrangements (1) This section applies to arrangements if under them—

33After section 151L insert— Profit share agency arrangements (1) This section applies to arrangements if under them—

34After section 151M insert— Investment bond arrangements (1) This section applies to arrangements if—

35After section 151N insert— Provision not at arm's length: exclusion...

36After section 151O insert— Meaning of “alternative finance return” Purchase...

37After section 151P insert— Purchase and resale arrangements where return...

38After section 151Q insert— Diminishing shared ownership arrangements (1) In the case of diminishing shared ownership arrangements, payments...

39After section 151R insert— Other arrangements (1) In the case of deposit arrangements, amounts paid or...

40After section 151S insert— Special rules for investment bond arrangements...

41After section 151T insert— Treatment of bond-holder and bond-issuer (1) This section applies for the purposes of this Act...

42After section 151U insert— Treatment as securities (1) Investment bond arrangements are securities for the purposes of...

43After section 151V insert— Investment bond arrangements not unit trust...

44After section 151W insert— Other rules Exclusion of some alternative...

45After section 151X insert— Diminishing shared ownership arrangements not partnerships...

Part 3Other amendments

Income and Corporation Taxes Act 1988 (c. 1)

46ICTA is amended as follows.

47After section 367 insert— Alternative finance arrangements (1) Sections 353 and 365 have effect as if—

Income Tax (Earnings and Pensions) Act 2003 (c. 1)

48ITEPA 2003 is amended as follows.

49After section 173 (loans to which Chapter 7 of Part...

Income Tax Act 2007 (c. 3)

50ITA 2007 is amended as follows.

51At the beginning of Chapter 7 of Part 7 (Community...

52After section 372A insert— Purchase and resale arrangements (1) This section applies if, under arrangements to which section...

53After section 372B insert— Deposit arrangements (1) This section applies if, under arrangements to which section...

54After section 372C insert— Profit share agency arrangements (1) This section applies if, under arrangements to which section...

55In section 1005 (meaning of “recognised stock exchange” etc) after...

SCHEDULE 3Leasing arrangements: finance leases and loans

Part 1New Part 11A of ITA 2007

1ITA 2007 is amended as follows.

2After Part 11 insert— Part 11A Leasing arrangements: finance leases...

3After section 614AC insert— Chapter 2 Finance leases with return...

4After section 614BY insert— Chapter 3 Other finance leases Introduction...

5After section 614CD insert— Chapter 4 Supplementary provisions Pre-26 November...

Part 2New section 37A of TCGA 1992

6TCGA 1992 is amended as follows.

7After section 37 insert— Consideration on disposal of certain leases...

SCHEDULE 4Sale and lease-back etc: new Part 12A of ITA 2007

1ITA 2007 is amended as follows.

2After section 681 insert— Part 12A Sale and lease-back etc...

3After section 681AN insert— Chapter 2 New lease of land...

4After section 681BM insert— Chapter 3 Leased trading assets Overview...

5After section 681CG insert— Chapter 4 Leased assets: capital sums...

SCHEDULE 5Factoring of income etc: new Chapters 5B and 5C of Part 13 of ITA 2007

1ITA 2007 is amended as follows.

2After section 809AZG insert— Chapter 5B Finance arrangements Type 1...

3After section 809BZE insert— Type 2 arrangements Type 2 finance...

4After section 809BZI insert— Type 3 arrangements Type 3 finance...

5After section 809BZL insert— Exceptions Exceptions: preliminary (1) Sections 809BZN to 809BZP make provision for finance arrangement...

6After section 809BZP insert— Supplementary Accounts (1) This section applies for the purposes of this Chapter....

7After section 809BZS insert— Chapter 5C Loan or credit transactions...

SCHEDULE 6UK Representatives of non-UK residents

Part 1New Chapters 2B and 2C of Part 14 of ITA 2007

1After section 835B of ITA 2007 (which is inserted by...

2After section 835C insert— Income tax chargeable on company's income:...

3After section 835D insert— Branches and agencies Branch or agency...

4After section 835E insert— Trade or profession carried on in...

5After section 835F insert— Persons who are not UK representatives...

6After section 835G insert— Brokers (1) This section applies if a non-UK resident carries on...

7After section 835H insert— Investment managers (1) This section applies if a non-UK resident carries on...

8After section 835I insert— Persons acting under alternative finance arrangements...

9After section 835J insert— Lloyd's agents (1) This section applies if— (a) a non-UK resident (“X”)...

10After section 835K insert— The independent broker conditions The independent...

11After section 835L insert— The independent investment manager conditions The...

12After section 835M insert— Investment managers: the 20% rule (1) The requirements of the 20% rule are met if...

13After section 835N insert— Meaning of “qualifying period”, “relevant disregarded...

14After section 835O insert— Treatment of transactions where 20% rule...

15After section 835P insert— Application of 20% rule to collective...

16After section 835Q insert— Supplementary Supplementary provision (1) For the purposes of this Chapter a person is...

17After section 835R insert— Interpretation of Chapter (1) This section applies for the purposes of this Chapter....

18After section 835S insert— Chapter 2C Income tax obligations and...

19After section 835T insert— Obligations and liabilities of UK representative...

20After section 835U insert— Exceptions: notices and information (1) An obligation or liability attaching to a non-UK resident...

21After section 835V insert— Exceptions: criminal offences and penalties etc...

22After section 835W insert— Indemnities (1) An independent agent of a non-UK resident is entitled...

23After section 835X insert— Meaning of “independent agent” (1) In this Chapter “independent agent”, in relation to a...

Part 2New Part 7A of TCGA 1992

24After section 271 of TCGA 1992 insert— Part 7A UK...

25After section 271A insert— Branches and agencies Branch or agency...

26After section 271B insert— Trade or profession carried on in...

27After section 271C insert— Interpretation of Chapter In this Chapter— “branch or agency” means any factorship, agency,...

28After section 271D insert— Chapter 2 Capital gains tax obligations...

29After section 271E insert— Obligations and liabilities of UK representative...

30After section 271F insert— Exceptions: notices and information (1) An obligation or liability attaching to a non-UK resident...

31After section 271G insert— Exceptions: criminal offences and penalties etc...

32After section 271H insert— Indemnities (1) An independent agent of a non-UK resident is entitled...

33After section 271I insert— Meaning of “non-UK resident” and “independent...

SCHEDULE 7Miscellaneous relocations

Part 1Relocation of section 38 of, and Schedule 15 to, FA 1973

Taxes Management Act 1970 (c. 9)

1TMA 1970 is amended as follows.

2After Part 7 insert— Part 7A Holders of licences under...

3After section 77E insert— Exemption certificates Issue, cancellation and effect...

4After section 77G insert— Supplementary Calculations under sections 77C(3) and...

5(1) Amend the first column of the Table in section...

Finance Act 1973 (c. 51)

6FA 1973 is amended as follows.

7Omit section 38 (which introduces and interprets Schedule 15).

8Omit Schedule 15 (territorial extension of charge to tax: supplementary...

Oil Taxation Act 1975 (c. 22)

9The Oil Taxation Act 1975 is amended as follows.

10In section 3(4) (expenditure not allowable under the section) for...

Part 2Relocation of section 24 of FA 1974

Taxes Management Act 1970 (c. 9)

11TMA 1970 is amended as follows.

12In section 8 (personal return) after subsection (4) insert—

13After section 8 insert— Interpretation of section 8(4A) (1) For the purposes of section 8(4A) of this Act,...

14After section 15 insert— Non-resident's staff are UK client's employees...

Finance Act 1974 (c. 30)

15FA 1974 is amended as follows.

16Omit section 24 (returns of persons treated as employees).

Part 3Relocation of section 42 of ICTA

Taxes Management Act 1970 (c. 9)

17TMA 1970 is amended as follows.

18(1) Amend the first column of the Table in section...

Income and Corporation Taxes Act 1988 (c. 1)

19ICTA is amended as follows.

20Omit section 42 (appeals against determinations under Chapter 4 of...

Income Tax (Trading and Other Income) Act 2005 (c. 5)

21ITTOIA 2005 is amended as follows.

22After section 302 insert— Determinations affecting liability of more than...

Corporation Tax Act 2009 (c. 4)

23CTA 2009 is amended as follows.

24In section 242(2) (determination by tribunal) for the words from...

Part 4Relocation of section 84A of ICTA

Income and Corporation Taxes Act 1988 (c. 1)

25ICTA is amended as follows.

26Omit section 84A (costs of establishing share option or profit...

Income Tax (Trading and Other Income) Act 2005 (c. 5)

27ITTOIA 2005 is amended as follows.

28In Chapter 5 of Part 2, after section 94 insert—...

29In section 272(2) (profits of property business: application of trading...

Part 5Relocation of section 152 of ICTA

Taxes Management Act 1970 (c. 9)

30TMA 1970 is amended as follows.

31(1) Amend section 48 (application of following provisions of Part...

32After section 54 insert— No questioning in appeal of amounts...

Income and Corporation Taxes Act 1988 (c. 1)

33ICTA is amended as follows.

34Omit section 152 (notification of taxable amount of certain benefits)....

Part 6Relocation of section 337A(2) of ICTA

Income and Corporation Taxes Act 1988

35ICTA is amended as follows.

36Omit section 6(5) (signpost to Part 8 of the Act)....

37Omit section 337A(2) (in calculating a company's income, deductions in...

Corporation Tax Act 2009 (c. 4)

38CTA 2009 is amended as follows.

39After section 1301 insert— Restriction of deductions for interest In calculating a company's income from any source for corporation...

Part 7Relocation of section 475 of ICTA

Income and Corporation Taxes Act 1988 (c. 1)

40ICTA is amended as follows.

41Omit section 475 (tax-free Treasury securities: exclusion of interest on...

Income Tax (Trading and Other Income) Act 2005 (c. 5)

42ITTOIA 2005 is amended as follows.

43Before section 155 (before the italic cross-heading) insert— Certain non-UK...

Part 8Relocation of section 700 of ICTA

Income and Corporation Taxes Act 1988 (c. 1)

44ICTA is amended as follows.

45Omit section 700 (adjustments and information).

Income Tax (Trading and Other Income) Act 2005 (c. 5)

46ITTOIA 2005 is amended as follows.

47After section 682 (assessments, adjustments and claims after the administration...

Part 9Relocation of section 787 of ICTA

Income and Corporation Taxes Act 1988 (c. 1)

48ICTA is amended as follows.

49Omit section 787 (restriction of relief for payments of interest)....

Income Tax Act 2007 (c. 3)

50ITA 2007 is amended as follows.

51In section 2(13) (overview of Part 13) after paragraph (h)...

52After section 809ZF (which is inserted by CTA 2010) insert—...

Part 10Relocation of sections 130 to 132 of FA 1988

Taxes Management Act 1970 (c. 9)

53TMA 1970 is amended as follows.

54After section 109A insert— Companies ceasing to be UK resident...

Finance Act 1988 (c. 39)

55FA 1988 is amended as follows.

56Omit sections 130 to 132 (company migration).

Part 11Relocation of section 151 of FA 1989

Taxes Management Act 1970 (c. 9)

57TMA 1970 is amended as follows.

58After section 30A insert— Assessing income tax on trustees and...

Finance Act 1989 (c. 26)

59FA 1989 is amended as follows.

60Omit section 151 (assessment of trustees and personal representatives).

Income Tax (Trading and Other Income) Act 2005 (c. 5)

61ITTOIA 2005 is amended as follows.

62In Schedule 2 (transitionals and savings etc) omit paragraph 91...

Part 12Relocation of Schedule 12 to F(No.2)A 1992 so far as applying for income tax purposes

Finance (No.2) Act 1992 (c. 48)

63F(No.2)A 1992 is amended as follows.

64Omit section 66 (which introduces Schedule 12).

65Omit Schedule 12 (banks etc in compulsory liquidation).

Income Tax (Trading and Other Income) Act 2005 (c. 5)

66ITTOIA 2005 is amended as follows.

67In section 369 (charge to tax on interest) after subsection...

Income Tax Act 2007 (c. 3)

68ITA 2007 is amended as follows.

69In section 2(14) (overview of Act: Part 14) after paragraph...

70In section 3(2) (overview of charges to income tax)—

71After section 837 insert— Chapter 3A Banks etc in compulsory...

72In Schedule 4 (index of defined expressions) at the appropriate...

Part 13Relocation of section 200 of FA 1996 so far as applying for income tax purposes

Finance Act 1996 (c. 8)

73FA 1996 is amended as follows.

74(1) Amend section 200 (domicile for tax purposes of overseas...

Income Tax Act 2007 (c. 3)

75ITA 2007 is amended as follows.

76In section 2(14)(b) (overview of Act: reference to Chapter 2...

77After section 835A insert— Chapter 2A Domicile Domicile for income...

Part 14Relocation of section 36 of FA 1998 and section 111 of FA 2009

Taxes Management Act 1970 (c. 9)

78TMA 1970 is amended as follows.

79In Part 5A (payment of tax) after section 59E insert—...

80In Part 5A after section 59F insert— Managed payment plans...

Finance Act 1998 (c. 36)

81FA 1998 is amended as follows.

82Omit section 36 (arrangements with respect to payment of corporation...

Finance Act 2009 (c. 10)

83FA 2009 is amended as follows.

84Omit section 111 (managed payment plans).

Part 15Relocation of section 118 of FA 1998

Taxes Management Act 1970 (c. 9)

85TMA 1970 is amended as follows.

86In Part 4, after section 43D (which is inserted by...

Finance Act 1998 (c. 36)

87FA 1998 is amended as follows.

88Omit section 118 (claims for income tax purposes).

Income Tax (Trading and Other Income) Act 2005 (c. 5)

89ITTOIA 2005 is amended as follows.

90(1) Amend section 878 (other definitions) as follows.

Income Tax Act 2007 (c. 3)

91ITA 2007 is amended as follows.

92In section 989 (interpretation of Income Tax Acts) in the...

93(1) Amend section 1020 (claims and elections) as follows.

Part 16Relocation of section 144 of FA 2000

Taxes Management Act 1970 (c. 9)

94TMA 1970 is amended as follows.

95After section 106 insert— Evasion Offence of fraudulent evasion of...

Finance Act 2000 (c. 17)

96FA 2000 is amended as follows.

97Omit section 144 (offence of fraudulent evasion of income tax)....

Serious Organised Crime and Police Act 2005 (c. 15)

98The Serious Organised Crime and Police Act 2005 is amended...

99In section 76(3)(n) (offence under section 144 of FA 2000...

Serious Crime Act 2007 (c. 27)

100The Serious Crime Act 2007 is amended as follows.

101(1) Amend Schedule 1 as follows. (2) In paragraph 8(3)...

Part 17Relocation of section 199 of FA 2003

Taxes Management Act 1970 (c. 9)

102TMA 1970 is amended as follows.

103After section 18A insert— Savings income: regulations about European and...

104(1) Amend the first column of the Table in section...

Finance Act 2003 (c. 14)

105FA 2003 is amended as follows.

106Omit section 199 (savings income: power to make regulations in...

Part 18Relocation of section 61 of F(No.2)A 2005

Finance Act 1998 (c. 36)

107FA 1998 is amended as follows.

108(1) Amend Schedule 18 (company tax returns, assessments and related...

Finance (No. 2) Act 2005 (c. 22)

109F(No.2) A 2005 is amended as follows.

110Omit section 61 (continuity for transitional purposes in cases involving...

Part 19Relocation of paragraph 13 of Schedule 13 to FA 2007

Income Tax Act 2007 (c. 3)

111ITA 2007 is amended as follows.

112After section 925 insert— Repos Creditor repos (1) Subsection (2) applies if a company (“the lender”) has...

113In section 926 (interpretation of Chapter 9 of Part 15)...

Finance Act 2007 (c. 11)

114FA 2007 is amended as follows.

115In Schedule 13 (sale and repurchase of securities) omit paragraph...

SCHEDULE 7AInterest restriction returns

PART 1The reporting company

Appointment by a worldwide group of a reporting company

1(1) A member of a worldwide group may, by notice...

Revocation by worldwide group of appointment under paragraph 1

2(1) A member of a worldwide group may, by notice...

Regulations supplementing paragraphs 1 and 2

3The Commissioners may by regulations make further provision about an...

Appointment of reporting company by Revenue and Customs

4(1) This paragraph applies where— (a) no appointment of a...

Appointment by officer of Revenue and Customs of replacement reporting company

5(1) This paragraph applies where— (a) an appointment of a...

Obligation of reporting company to notify group members of its status

6(1) This paragraph applies where the appointment of a reporting...

Obligation of reporting company to submit interest restriction return

7(1) This paragraph applies where the appointment of a reporting...

7A(1) This paragraph applies if— (a) a period of account...

Revised interest restriction return

8(1) This paragraph applies where— (a) the appointment of a...

Extended period for submission of full return for period where no restriction

9(1) This paragraph applies where— (a) a reporting company has...

Meaning of “consenting company” and “non-consenting company”

10(1) This paragraph makes provision for the purposes of this...

Company authorising reporting company appointment treated as consenting company

11(1) This paragraph applies where a company—

PART 2Contents of interest restriction return

12(1) An election to which this paragraph applies must be...

Group ratio election

13(1) This paragraph applies where the appointment of a reporting...

Group ratio (blended) election

14(1) This paragraph applies where— (a) the appointment of a...

Group-EBITDA (chargeable gains) election

15(1) This paragraph applies where the appointment of a reporting...

Interest allowance (alternative calculation) election

16(1) This paragraph applies where the appointment of a reporting...

Interest allowance (non-consolidated investment) election

17(1) This paragraph applies where the appointment of a reporting...

Interest allowance (consolidated partnerships) election

18(1) This paragraph applies where the appointment of a reporting...

Abbreviated return election

19(1) This paragraph applies where the appointment of a reporting...

Required contents of interest restriction return: full returns and abbreviated returns

20(1) This paragraph makes provision about the contents of an...

Statement of calculations

21The statement of calculations required by paragraph 20(3)(d) to be...

Statement of allocated interest restrictions

22(1) The statement of allocated interest restrictions required by paragraph...

A company's pro-rata share of the total disallowed amount

23(1) This paragraph— (a) applies in relation to a worldwide...

Accounting period's pro-rata share of the total disallowed amount

24(1) This paragraph— (a) applies in relation to a worldwide...

Statement of allocated interest reactivations

25(1) The statement of allocated interest reactivations required by paragraph...

“Amount available for reactivation” of company in period of account of group

26(1) This paragraph applies for the purposes of this Part...

Estimated information in statements

27(1) This paragraph applies in relation to a statement under—...

Correction of return by officer of Revenue and Customs

28(1) An officer of Revenue and Customs may amend an...

Penalty for failure to deliver return

29(1) A company is liable to a penalty if the...

29A(1) Liability to a penalty under paragraph 29 does not...

Penalty for incorrect or uncorrected return

30(1) A company is liable to a penalty if—

Meaning of “deliberate inaccuracy that is concealed” and discovering inaccuracy after return submitted

31(1) For the purposes of this Part of this Schedule...

Inaccuracy in return attributable to another company

32(1) A company (“C”) is liable to a penalty if—...

Reductions in amount of penalty for disclosure or special circumstances

33(1) If a company liable to a penalty under paragraph...

Assessment, payment and enforcement of penalty

34(1) If a person becomes liable to a penalty under...

Right to appeal against penalty or its amount

35A person may, by notice, appeal against—

Procedure on appeal

36(1) Notice of an appeal under paragraph 35 must be...

Payments between companies in respect of penalties

37(1) This paragraph applies if— (a) a company (“P”) liable...

PART 3Duty to keep and preserve records

Duty to keep and preserve records

38(1) A company which is a reporting company in relation...

Penalty for failure to keep and preserve records

39(1) A company which fails to comply with paragraph 38...

PART 4Enquiry into interest restriction return

Notice of enquiry

40(1) An officer of Revenue and Customs may enquire into...

Normal time limits for opening enquiry

41(1) This paragraph applies where an interest restriction return is...

Extended time limits for opening enquiries: discovery of errors

42(1) Notice of enquiry may be given later than the...

Scope of enquiry

43(1) An enquiry into an interest restriction return extends to...

Enquiry into return for wrong period or wrong group

44(1) If it appears to an officer of Revenue and...

Amendment of self-assessment during enquiry to prevent loss of tax

45(1) If after notice of enquiry has been given into...

Revision of interest restriction return during enquiry

46(1) This paragraph applies if a reporting company submits a...

Completion of enquiry

47(1) An enquiry into an interest restriction return submitted by...

Direction to complete enquiry

48(1) An application may be made at any time to...

Conclusions of enquiry

49(1) This paragraph applies where a closure notice is given...

Interest restriction returns to be submitted to an officer of Revenue and Customs

50(1) If, as a result of a closure notice given...

Return in relation to a worldwide group: other entities part of another group

51(1) This paragraph applies if— (a) an enquiry has been...

Appeal against closure notice or notice under paragraph 51

52(1) If a closure notice — (a) is given to...

New groups without existing reporting company

53(1) This paragraph applies if— (a) a closure notice is...

Matters required to be done on a “just and reasonable” basis

54(1) This paragraph applies if— (a) anything is required to...

References to a reporting company where replaced

55(1) This paragraph applies where— (a) the appointment of a...

PART 5Determinations by officers of Revenue and Customs

Power of Revenue and Customs to make determinations where no return filed etc

56(1) This paragraph applies where— (a) an officer of Revenue...

Time limit: interest restriction return following determination under paragraph 56

57(1) Sub-paragraph (2) applies where— (a) a notice of determination...

Power of Revenue and Customs to make determinations following enquiry

58(1) This paragraph applies where— (a) as a result of...

Appeal against determination under paragraph 58

59(1) If a notice of determination under paragraph 58 is...

PART 6Information powers exercisable by members of group

Provision of information to and by the reporting company

60(1) The reporting company in relation to a period of...

Provision of information between members of group where no reporting company appointed

61(1) This paragraph applies where condition A or B is...

PART 7Information powers exercisable by officers of Revenue and Customs

Power to obtain information and documents from members of worldwide group

62(1) An officer of Revenue and Customs may, by notice,...

Power to obtain information and documents from third parties

63(1) An officer of Revenue and Customs may, by notice,...

Notices following submitted interest restriction returns

64(1) The general rule is that, if an interest restriction...

65(1) A group member may appeal against a notice under...

Application of provisions of Schedule 36 to FA 2008

66(1) The following provisions of Schedule 36 to FA 2008...

References to checking an interest restriction return etc

67(1) For the purposes of this Part of this Schedule...

PART 8Company tax returns

Elections under section 375, 377 or 380

68The following elections (or their revocation) must be made by...

Amendments to take account of operation of this Part of this Act (including elections)

69(1) A company may amend its company tax return for...

Other cases where company must amend its return etc

70(1) If— (a) a company has delivered a company tax...

Failure to comply with a requirement to amend company tax return

70A(1) This paragraph applies if a company—

Regulations for purposes of paragraph 70(2) etc

71(1) The Commissioners may by regulations— (a) make provision generally...

Consequential claims to company tax returns

72(1) This paragraph applies if— (a) a company amends, or...

Meaning of “company tax return”

73In this Schedule “ company tax return ” has the...

PART 9Supplementary

Double jeopardy

74A person is not liable to a penalty under any...

Notice of appeal

75Notice of an appeal under this Schedule must specify the...

Conclusiveness of amounts stated in interest restriction return

76(1) This paragraph applies to an amount stated in an...

SCHEDULE 8Minor and consequential amendments

Part 1Double taxation relief

Taxes Management Act 1970 (c. 9)

1TMA 1970 is amended as follows.

2In section 9A(4)(c) (scope of enquiries) for “section 804ZA of...

3(1) Amend section 12B (records to be kept for purposes...

4In section 24 (power to obtain information about income from...

5In section 29(7A) (discovery assessments: relaxation of pre-conditions) for “section...

6In section 43C(5) (meaning of consequential claim) for “or 43A”...

7In Part 4, after section 43C insert— Claims for double...

Income and Corporation Taxes Act 1988 (c. 1)

8ICTA is amended as follows.

9In section 444BB(6) (meaning of “double taxation relief”)—

10In section 750(3)(b) (disregard of certain double taxation relief) for...

11In section 751(6)(a) (“creditable tax” includes amounts of double taxation...

12In section 755A(4A)(b) (dividend paid by controlled foreign company to...

13Omit section 788 (giving effect to double taxation arrangements).

14Omit section 789 (conversion of references to the profits tax...

15Omit section 790 (unilateral relief).

16Omit section 791 (power to make regulations giving effect to...

17Omit sections 792 to 798C (which contain rules about double...

18Omit sections 799 and 801 to 801B (double taxation relief:...

19Omit sections 803 to 804E and 804G to 806 (further...

20(1) Amend section 806A as follows. (2) In subsection (2)—...

21(1) Amend section 806B as follows. (2) In subsection (2)(b)...

22In section 806C(3) and (4) for “this Part” substitute “...

23In section 806D(3), (4) and (5) for “this Part” substitute...

24In section 806F(1) and (2) for “this Part” substitute “...

25(1) Amend section 806J (interpretation of sections 806A to 806J)...

26Omit sections 806L and 806M (unrelieved foreign tax).

27Omit sections 807 and 807A (provision, in connection with relief,...

28Omit sections 807B to 807G (provisions related to the Mergers...

29Omit sections 808A to 809 and 811 (provision, in connection...

30. . . . . . . . . ....

31In section 814(1)(a) for “section 788(1)” substitute “ section 2(1)...

32Omit sections 815A to 815B and 816 (provision, in connection...

33In section 828(4) (orders and regulations not subject to annulment)...

34(1) Amend Schedule 19ABA (modification of life assurance provisions of...

35(1) Amend Schedule 26 (reliefs against liability for tax in...

36Omit Schedule 28AB (prescribed schemes and arrangements for purposes of...

Finance Act 1989 (c. 26)

37FA 1989 is amended as follows.

38In section 115(1) (tax credits for dividends paid to non-residents...

39In section 182A(6) (double taxation: disclosure of information: interpretation) for...

Taxation of Chargeable Gains Act 1992 (c. 12)

40TCGA 1992 is amended as follows.

41In section 10(4) (persons exempt under Part 18 of ICTA)...

42In section 10B(3) (companies exempt under Part 18 of ICTA)...

43In section 59(2)(b) (arrangements giving relief for partnership gains) for...

44In sections 140H(3), 140I(3) and 140J(3) (gains on which tax...

45Omit section 277 (application to capital gains tax of provisions...

46Omit section 278 (deduction for foreign gains tax in respect...

47In section 288(1) (interpretation) for the definition of “double taxation...

Finance Act 1993 (c. 34)

48FA 1993 is amended as follows.

49Omit section 194 (application to petroleum revenue tax of provisions...

50In section 195(3) (interpretation of Part 3) omit “, other...

Finance (No. 2) Act 1997 (c. 58)

51F(No.2) A 1997 is amended as follows.

52(1) Amend section 30 (tax credits) as follows.

Finance Act 1998 (c. 36)

53FA 1998 is amended as follows.

54(1) Amend Schedule 18 (company tax returns etc) as follows....

Finance Act 2000 (c. 17)

55FA 2000 is amended as follows.

56(1) Amend Schedule 22 (tonnage tax) as follows.

Capital Allowances Act 2001 (c. 2)

57CAA 2001 is amended as follows.

58In section 105(4) (meaning of “double taxation arrangements”) for the...

Income Tax (Earnings and Pensions) Act 2003 (c. 1)

59ITEPA 2003 is amended as follows.

60In section 643(6) in the definition of “double taxation relief...

Finance Act 2004 (c. 12)

61FA 2004 is amended as follows.

62In Chapter 7 of Part 3 (special withholding tax) omit—...

63In section 189(3) (treatment of relevant UK earnings) for “by...

64In Schedule 34 (non-UK pensions schemes: application of certain charges)...

Income Tax (Trading and Other Income) Act 2005 (c. 5)

65ITTOIA 2005 is amended as follows.

66In section 397A(7) (interpretation of section) in the definition of...

67For section 397BA(2)(a) (which refers to arrangements to which section...

68In section 763(3) (priority of double taxation arrangements) for “section...

69(1) Section 764 (application of ICTA provisions about special relationships)...

70In section 858(1)(b) (resident partners and double taxation agreements) for...

Income Tax Act 2007 (c. 3)

71ITA 2007 is amended as follows.

72In section 1(2)(a) (example of income tax provisions located outside...

73(1) Amend section 26(1)(b) (provisions referred to at Step 6...

74In section 27(6) (tax reductions for individuals by way of...

75In section 28(4) (tax reductions for non-individuals by way of...

76(1) Amend section 29 (tax reductions: supplementary) as follows.

77(1) Amend section 32 (liabilities not dealt with in calculation...

78(1) Amend section 53 (transfer of unused relief: general) as...

79(1) In section 424(2) (gift aid: charge to tax: interpretation)...

80(1) Amend section 425 (“total amount of income tax” in...

81In section 527(2) omit paragraph (b) (subsection (1) does not...

82In section 582(2) (regulations may remove or reduce rights to...

83In section 828C(4) (entitlement to double taxation relief)—

84In section 849(1) (interaction between Part 15 of ITA 2007...

85In section 1023 (meaning in Act of “double taxation arrangements”)...

86In section 1026— (a) after paragraph (e) insert “ or...

Finance Act 2008 (c. 9)

87FA 2008 is amended as follows.

88In Schedule 17 in paragraph 10(3) after paragraph (c) insert...

Corporation Tax Act 2009 (c. 4)

89CTA 2009 is amended as follows.

90In section 464(3)— (a) in paragraph (f) for “section 795(4)...

91In section 486(2) for “section 811 of ICTA” substitute “...

92In section 550(7) (meaning of “double taxation relief”) for “Part...

93In section 697(3)(a) (exceptions to section 696) for “because of...

94In section 782(1)(a) (intangible fixed assets transferred in the course...

95In section 793(3)(b) (when election under section 792 may be...

96In section 827(7) (no claim under section if claim made...

97In section 906(3)— (a) omit “and” after paragraph (a), and...

98For section 931C(1)(a) (which refers to arrangements to which section...

99In section 931H(5) for “Part 18 of ICTA” substitute “...

100In section 931J(7) for “Part 18 of ICTA” substitute “...

101In section 1266(1)(b) (resident partners and double taxation agreements) for...

Finance Act 2009 (c. 10)

102FA 2009 is amended as follows.

103In section 56(1) (tax in respect of MEPs' pay) for...

104In Schedule 16 in paragraph 7(2)(a) (purposes for which straddling...

105In Schedule 35 in paragraph 2(4)(b) for “section 788 of...

Part 2Transfer pricing and advance pricing agreements

Taxes Management Act 1970 (c. 9)

106TMA 1970 is amended as follows.

107In section 9A(4)(b) (scope of enquiries) for “paragraph 5C of...

108(1) Amend the second column of the Table in section...

Income and Corporation Taxes Act 1988 (c. 1)

109ICTA is amended as follows.

110Omit section 770A (which introduces Schedule 28AA).

111Omit Schedule 28AA (transfer pricing).

Finance Act 1998 (c. 36)

112FA 1998 is amended as follows.

113Omit section 110 (determinations requiring the sanction of the Commissioners...

114Omit section 111 (duty to give notice to persons who...

Finance Act 1999 (c. 16)

115FA 1999 is amended as follows.

116Omit section 85 (advance pricing agreements).

117Omit section 86(1) to (8) and (10) (provisions supplementary to...

118Omit section 87 (effect of advance pricing agreements on non-parties)....

Finance Act 2000 (c. 17)

119(1) Schedule 22 to FA 2000 (tonnage tax) is amended...

Income Tax (Trading and Other Income) Act 2005 (c. 5)

120ITTOIA 2005 is amended as follows.

121(1) Amend section 172F (transfer pricing rules to take precedence...

122In section 173(2) (trading stock not to be valued if...

Corporation Tax Act 2009 (c. 4)

123CTA 2009 is amended as follows.

124(1) Amend section 161 (transfer pricing rules take precedence over...

125In section 162(2) (trading stock not to be valued if...

126In section 340(7) (Schedule 28AA to ICTA does not apply...

127In section 374(3)(a) (meaning of non-qualifying territory) for “paragraph 5E...

128(1) Amend section 376(5) (interpretation of section 375) as follows....

129In section 377(3)(a) (meaning of non-qualifying territory) for “paragraph 5E...

130In section 407(6)(a) (meaning of non-qualifying territory) for “paragraph 5E...

131(1) Amend section 410(5) (interpretation of section) as follows.

132In section 444(3) (section is subject to section 445) for...

133(1) Amend section 445 (disapplication of section 444 where Schedule...

134(1) Amend section 446 (bringing into account adjustments made under...

135(1) Amend section 447 (exchange gains and losses on debtor...

136In section 452(1)(a) and (3)(a) (exchange gains and losses where...

137In section 455(5) (section does not apply if paragraph 1(2)...

138In section 464(3)(a) (which refers to and describes section 445(2))...

139In section 484(1) (non-lending relationships treated as loan relationships: meaning...

140In section 508(2) (arrangements which are not alternative finance arrangements)—...

141In section 625(7) (Schedule 28AA to ICTA does not apply...

142(1) Amend section 693 (bringing into account adjustments under Schedule...

143(1) Amend section 694 (exchange gains and losses where derivative...

144In section 698(5) (section does not apply if paragraph 1(2)...

145(1) In the provisions mentioned in sub-paragraph (2) (provisions which...

146In section 775(3) (intangible fixed assets: transfers within a group)...

147(1) Amend section 846 (intangible fixed assets: transfers not at...

148In section 931P(4) (section does not apply if Schedule 28AA...

Finance Act 2009 (c. 10)

149FA 2009 is amended as follows.

150In Schedule 17 (international movement of capital) in paragraph 12(5)...

Part 3Tax arbitrage

Finance (No. 2) Act 2005 (c. 22)

151F(No.2)A 2005 is amended as follows.

152Omit sections 24 to 28 (avoidance involving tax arbitrage).

153Omit section 30 (interpretation of Chapter 4 of Part 2)....

154Omit section 31 (commencement of Chapter 4 of Part 2)....

155Omit Schedule 3 (qualifying schemes).

Part 4Tax treatment of financing costs and income

Taxes Management Act 1970 (c. 9)

156TMA 1970 is amended as follows.

157(1) Amend the first column of the Table in section...

Finance Act 2009

158FA 2009 is amended as follows.

159Omit section 35 (which introduces Schedule 15).

160Omit paragraphs 1 to 94 and 97 to 99 of...

Part 5Offshore funds

Inheritance Tax Act 1984 (c. 51)

161The Inheritance Tax Act 1984 is amended as follows.

162In section 174(1)(a) (income tax and unpaid inheritance tax) for...

Taxation of Chargeable Gains Act 1992 (c. 12)

163TCGA 1992 is amended as follows.

164In section 108(1)(c) (identification of relevant securities for corporation tax)...

165In section 212(1)(b) (annual deemed disposal of unit trusts etc)...

166In Schedule 7AD (gains of insurance company from venture capital...

Income Tax (Trading and Other Income) Act 2005 (c. 5)

167ITTOIA 2005 is amended as follows.

168In section 378A(7) (offshore fund distributions) for “section 40A of...

Finance Act 2008 (c. 9)

169FA 2008 is amended as follows.

170Omit sections 40A to 42A (offshore funds).

Corporation Tax Act 2009 (c. 4)

171CTA 2009 is amended as follows.

172In section 489 (meaning of “offshore fund etc”)—

Finance Act 2009 (c. 10)

173FA 2009 is amended as follows.

174Omit paragraph 6 of Schedule 22 (restriction on regulation-making power...

Part 6Oil activities

Finance Act 1980 (c. 48)

175FA 1980 is amended as follows.

176In section 107(7) (transmedian fields) for “Chapter V of Part...

Finance Act 1982 (c. 39)

177FA 1982 is amended as follows.

178In section 134(1) (alternative valuation of ethane used for petrochemical...

179In Schedule 19 (supplementary provisions relating to advance petroleum revenue...

Income and Corporation Taxes Act 1988 (c. 1)

180ICTA is amended as follows.

181Omit section 493(1) to (6) (valuation of oil disposed of...

182Omit section 495 (regional development grants).

183Omit section 496 (tariff receipts and tax-exempt tariffing receipts).

184Omit section 502(1) and (2) (interpretation of Chapter 5).

Finance Act 1991 (c. 31)

185FA 1991 is amended as follows.

186Omit sections 62 to 65 (abandonment guarantees and abandonment expenditure)....

Finance Act 1999 (c. 16)

187FA 1999 is amended as follows.

188In section 98(7) (qualifying assets) for paragraphs (b) and (c)...

Income Tax (Trading and Other Income) Act 2005 (c. 5)

189ITTOIA 2005 is amended as follows.

190In section 16(3) (oil extraction and related activities) for “section...

191In Part 2 of Schedule 4 (index of defined expressions)...

Income Tax Act 2007 (c. 3)

192ITA 2007 is amended as follows.

193In section 80(3) (ring fence income) for “same meaning as...

Part 7Alternative finance arrangements

Finance Act 1986 (c. 41)

194FA 1986 is amended as follows.

195In section 78(7)(d) (loan capital)— (a) for “which fall within...

196In section 79 (loan capital: new provisions)—

197In section 99(9A) (interpretation)— (a) for “falling within section 48A...

Taxation of Chargeable Gains Act 1992 (c. 12)

198TCGA 1992 is amended as follows.

199In section 99(2) (application of Act to unit trust schemes)...

200In section 117 (meaning of “qualifying corporate bond”) for subsection...

201Omit section 151F (treatment of alternative finance arrangements).

202In the Table in section 288(8) (interpretation), in the entry...

Income Tax (Earnings and Pensions) Act 2003 (c. 1)

203ITEPA 2003 is amended as follows.

204In section 420(1) (meaning of securities etc) for paragraph (h)...

Finance Act 2003 (c. 14)

205FA 2003 is amended as follows.

206In section 71A(8) (alternative property finance: land sold to a...

207In section 72(7) (alternative property finance in Scotland: land sold...

208In section 72A(8) (alternative property finance in Scotland: land sold...

209In section 73(5)(a) (alternative property finance: land sold to a...

210In section 73C (alternative finance investment bonds) for “falling within...

Income Tax (Trading and Other Income) Act 2005 (c. 5)

211ITTOIA 2005 is amended as follows.

212In Part 2 of Schedule 4 (index of defined expressions)...

Finance Act 2005 (c. 7)

213FA 2005 is amended as follows.

214Omit sections 46 to 47A, 48(1), 48A, 48B(1) to (5)...

215In Schedule 2 (alternative finance arrangements: further provisions) omit paragraphs...

Finance Act 2006 (c. 25)

216FA 2006 is amended as follows.

217Omit section 97 (beneficial loans to employees).

218Omit section 98 (orders amending Chapter 5 of Part 2...

Income Tax Act 2007 (c. 3)

219ITA 2007 is amended as follows.

220In section 2 (overview of Act) after subsection (10) insert—...

221In section 383(6) (relief for interest payments)—

222In section 849(4) (interaction with other Income Tax Acts provisions)...

223In Schedule 4 (index of expressions defined in that Act)...

Corporation Tax Act 2009 (c. 4)

224CTA 2009 is amended as follows.

225Omit section 521 (power to extend Chapter 6 of Part...

226Omit section 1310(5) (orders and regulations).

Finance Act 2009 (c. 10)

227FA 2009 is amended as follows.

228In section 123 (alternative finance investment bonds) for “falling within...

229(1) Amend Schedule 61 (alternative finance investment bonds) as follows....

Part 8Leasing arrangements: finance leases and loans

Taxation of Chargeable Gains Act 1992 (c. 12)

230The Taxation of Chargeable Gains Act 1992 is amended as...

231In section 37 (consideration chargeable to tax on income) at...

Finance Act 1997 (c. 16)

232(1) FA 1997 is amended as follows.

Capital Allowances Act 2001 (c. 2)

233The Capital Allowances Act 2001 is amended as follows.

234In section 60(1)(c) (meaning of “disposal receipt”) for “paragraph 11”...

235In section 420(b) (meaning of “disposal receipt”) for “paragraph 11”...

236In section 476(1)(b) (disposal value of patent rights) for “paragraph...

Income Tax Act 2007 (c. 3)

237The Income Tax Act 2007 is amended as follows.

238In section 2 (overview of Act) after subsection (11) insert—...

239In Schedule 4 (index of defined expressions) at the appropriate...

Part 9Sale and lease-back etc

Income and Corporation Taxes Act 1988 (c. 1)

240ICTA is amended as follows.

241Omit section 24 (which has come to apply only for...

242Omit sections 779 to 785 (sale and lease-back etc).

Taxation of Chargeable Gains Act 1992 (c. 12)

243TCGA 1992 is amended as follows.

244In Schedule 8 (leases) in paragraph 9(2) (gain reduced by...

Broadcasting Act 1996 (c. 55)

245The Broadcasting Act 1996 is amended as follows.

246(1) Amend Schedule 7 (transfer schemes: taxation provisions) as follows....

Finance Act 1999 (c. 16)

247FA 1999 is amended as follows.

248In section 97(6), in the definition of “lease”, for “sections...

Greater London Authority Act 1999 (c. 29)

249The Greater London Authority Act 1999 is amended as follows....

250(1) Amend paragraph 13 of Schedule 33 (taxation provisions: public-private...

Transport Act 2000 (c. 38)

251The Transport Act 2000 is amended as follows.

252In paragraph 15 of Schedule 7 (transfer schemes: tax: leased...

Income Tax (Trading and Other Income) Act 2005 (c. 5)

253ITTOIA 2005 is amended as follows.

254(1) Amend section 49 (car or motor cycle hire: supplementary)...

255In section 100(4) (meaning of sale and lease-back arrangement) after...

Income Tax Act 2007 (c. 3)

256ITA 2007 is amended as follows.

257In section 2 (overview of Act) after subsection (12) insert—...

258In section 989 at the appropriate place insert— “hire-purchase agreement”...

259After section 998 insert— Meaning of “hire-purchase agreement” (1) This section applies for the purposes of the provisions...

260(1) Amend section 1016(2) (table of provisions to which section...

261In Schedule 4 (index of defined expressions) at the appropriate...

Corporation Tax Act 2009 (c. 4)

262CTA 2009 is amended as follows.

263In section 97(4) (meaning of sale and lease-back arrangement) after...

Part 10Factoring of income etc

Income and Corporation Taxes Act 1988 (c. 1)

264ICTA is amended as follows.

265Omit sections 774A to 774G (factoring of income receipts etc)....

266Omit section 786 (transactions associated with loans or credit).

Taxation of Chargeable Gains Act 1992 (c. 12)

267TCGA 1992 is amended as follows.

268(1) Amend section 263E (structured finance arrangements) as follows.

Income Tax (Trading and Other Income) Act 2005 (c. 5)

269ITTOIA 2005 is amended as follows.

270After section 281 insert— Sums to which sections 277 to...

Income Tax Act 2007 (c. 3)

271ITA 2007 is amended as follows.

272In section 2(13) (overview of Part 13) omit the “or”...

273For section 809AZE (transfers of income streams: exception for transfer...

274(1) Amend section 1016(2) (table of provisions to which section...

275In Schedule 4 (index of defined expressions) at the appropriate...

Part 11UK representatives of non-UK residents

Finance Act 1995 (c. 4)

276FA 1995 is amended as follows.

277Omit section 126 (UK representatives of non-residents).

278Omit section 127 (persons not treated as UK representatives).

279Omit Schedule 23 (obligations etc imposed on UK representatives).

Income Tax Act 2007 (c. 3)

280ITA 2007 is amended as follows.

281In section 2(14) (overview of Act)— (a) omit the “and”...

282In section 813(2) (meaning of “disregarded income”) for “section 126...

283(1) Amend section 817 (independent broker conditions) as follows.

284In section 824 (application of 20% rule to collective investment...

285(1) Amend section 1014(2) (orders and regulations to which section...

286In Schedule 4 (index of defined expressions) at the appropriate...

Part 12Amendments for purposes connected with other tax law rewrite Acts

Solicitors (Northern Ireland) Order 1976 (S.I. 1976/582 (N.I. 12))

287The Solicitors (Northern Ireland) Order 1976 is amended as follows....

288In paragraph 38(3) of Schedule 1A for the words from...

Administration of Justice Act 1985 (c. 61)

289The Administration of Justice Act 1985 is amended as follows....

290In paragraph 36(3) of Schedule 2 for “749,” substitute “...

Income and Corporation Taxes Act 1988 (c. 1)

291ICTA is amended as follows.

292Omit section 59(3) and (4) (person answerable for tax charged...

Broadcasting Act 1996 (c. 55)

293The Broadcasting Act 1996 is amended as follows.

294(1) Amend paragraph 19 of Schedule 7 (no profit or...

Greater London Authority Act 1999 (c. 29)

295The Greater London Authority Act 1999 is amended as follows....

296In paragraph 7 of Schedule 33 (taxation provisions: revenue nature...

Income Tax (Earnings and Pensions) Act 2003 (c. 1)

297ITEPA 2003 is amended as follows.

298In section 211(2) (which refers to section 215, which in...

299In section 215 (which now refers to section 776(1) of...

300In section 331(1) (Part 5 is to be read with...

Finance Act 2004 (c. 12)

301FA 2004 is amended as follows.

302(1) Amend section 318 (interpretation of Part 7) as follows....

Finance Act 2005 (c. 7)

303FA 2005 is amended as follows.

304Omit section 48B(6) to (8) (alternative finance arrangements: alternative finance...

305In Schedule 2 (alternative finance arrangements: further provisions) omit paragraph...

Income Tax Act 2007 (c. 3)

306ITA 2007 is amended as follows.

307In section 887(4) (industrial and provident society payments) for “section...

Corporation Tax Act 2009 (c. 4)

308CTA 2009 is amended as follows.

309Before section 1 insert— Overview of the Corporation Tax Acts...

310In section 39(2) (profits of mines, quarries and other concerns)...

311In section 1269 (interpretation of sections 1267 and 1268) in...

312In paragraph 75 of Schedule 2 (transitional provision and savings:...

Taxes Management Act 1970 (c. 9)

313TMA 1970 is amended as follows.

314In section 118(1) after the definition of “the 1992 Act”...

Income and Corporation Taxes Act 1988 (c. 1)

315ICTA is amended as follows.

316In section 831(3) (interpretation of ICTA) after the definition of...

Taxation of Chargeable Gains Act 1992 (c. 12)

317TCGA 1992 is amended as follows.

318(1) Amend section 287 (powers to make orders or regulations...

319In section 288(1) (interpretation) after the definition of “the Taxes...

Finance Act 1998 (c. 36)

320FA 1998 is amended as follows.

321(1) Amend Schedule 18 (company tax returns etc) as follows....

Income Tax (Earnings and Pensions) Act 2003 (c. 1)

322ITEPA 2003 is amended as follows.

323In Part 1 of Schedule 1 (abbreviations of Acts etc)...

Income Tax (Trading and Other Income) Act 2005 (c. 5)

324ITTOIA 2005 is amended as follows.

325In Part 1 of Schedule 4 (abbreviations of Acts) after...

Income Tax Act 2007 (c. 3)

326ITA 2007 is amended as follows.

327In section 1014(2) (orders and regulations under the Income Tax...

328In section 1017 (abbreviated references to Acts) for the “and”...

Corporation Tax Act 2009 (c. 4)

329CTA 2009 is amended as follows.

330In section 1312 (abbreviated references to Acts) after the definition...

Finance Act 2009 (c. 10)

331FA 2009 is amended as follows.

332In section 126(1) (abbreviated references to Acts) after the entry...

SCHEDULE 9Transitionals and savings etc

Part 1General provisions

Continuity of the law: general

1The repeal of provisions and their enactment in a rewritten...

2Paragraph 1 does not apply to any change made by...

3Any subordinate legislation or other thing which—

4(1) Any reference (express or implied) in this Act, another...

5(1) Any reference (express or implied) in any enactment, instrument...

6Paragraphs 1 to 5 have effect instead of section 17(2)...

7Paragraphs 4 and 5 apply only so far as the...

General saving for old transitional provisions and savings

8(1) The repeal by this Act of a transitional or...

9(1) In this Part— “enactment” includes subordinate legislation (within the...

Part 2Changes in the law

10(1) This paragraph applies if, in the case of any...

Part 3Double taxation relief

Conversion of references to the profits tax in old arrangements

11(1) Sub-paragraph (2) applies to any arrangements—

Effect in relation to capital gains tax of arrangements given effect before introduction of that tax

12Any arrangements specified in an Order in Council made under...

Double taxation arrangements to which section 11(3) applies

13Section 11(3) does not have effect in relation to arrangements...

Unilateral relief for underlying tax on dividends

14(1) Condition C in section 15 (credit for underlying tax...

Time limits for claims for relief

15(1) If article 10 of the 2009 Order applies—

Taking account of underlying tax

16In relation to distributions paid before 1 July 2009, the...

Reduction in credit: payment by reference to foreign tax

17Section 34 does not have effect in relation to payments...

Credit against corporation tax on trade income: anti-avoidance

18Section 45(2) has effect in relation to a credit for...

Credit against corporation tax on trade income: banks

19Section 49 has effect in relation to a credit for...

Meaning of “relevant profits” in section 58

20In relation to dividends paid before 1 July 2009, section...

Conditions for relief for underlying tax paid by company lower in dividend-paying chain

21Section 65(3)(a) applies with the omission of sub-paragraph (ii) if...

Application of sections 109 and 110 in relation to pre-1 October 2007 cases

22(1) Section 109 does not apply in the case of...

Income increased by amounts paid by reference to foreign tax for which deduction allowed

23Section 112(3) does not have effect in relation to payments...

Offshore fund treated after 1 December 2009 as distributing fund under repealed Chapter 5 of Part 17 of ICTA

24In paragraph 5(4)(b) of Schedule 27 to ICTA (offshore funds:...

Limited effect of amendments of sections 806A to 806J of ICTA

25The amendments in sections 806A to 806J of ICTA that...

Interpretative rules saved for the purposes of applying sections 806A to 806K of ICTA to distributions paid before 1 July 2009

26(1) Despite their repeal by this Act, the saved rules...

Repealed references to Part 18 of ICTA saved for purposes of sections 806A to 806K of ICTA

27(1) Sub-paragraph (2) has effect for the purposes of applying...

Part 4Transfer pricing

Transfer pricing: meaning of potential advantage

28Section 155(6)(b) does not have effect in relation to distributions...

Part 5Advance pricing agreements

29(1) An agreement made before 27 July 1999 cannot have...

Part 6Tax avoidance (arbitrage)

Arbitrage: contributions to capital of UK resident companies before 16 March 2005

30Sections 249 to 254 (tax arbitrage: receipt notices) do not...

Part 7Tax treatment of financing costs and income

Periods of account in relation to which Part 7 does not have effect

31(1) Part 7 of this Act does not have effect...

Exclusion of certain debits and credits

32(1) An amount that would, apart from this paragraph, meet...

Part 8Offshore funds

Restriction on regulation-making power under section 354

33(1) Regulations under section 354 may not make provision about...

34Paragraph 33 does not prevent regulations under section 354 making—...

Part 9Oil activities

Regional development grants

35In relation to periods of account (within the meaning given...

Reimbursement by defaulter in respect of certain abandonment expenditure

36(1) If article 10 of the 2009 Order applies, section...

Part 10Alternative finance arrangements

Alternative finance arrangements entered into before certain dates etc

37(1) The alternative finance provisions do not apply to purchase...

Alternative finance arrangements not offshore funds

38So far as Chapter 5 of Part 17 of ICTA...

Alternative finance arrangements entered into before 15 October 2009

39(1) In relation to arrangements entered into before 15 October...

40(1) In relation to arrangements entered into before 15 October...

Part 11Sale and lease-back etc

New lease of land after assignment or surrender: right to new lease existed pre-22 June 1971

41(1) Sub-paragraphs (2) and (3) apply if—

Part 12Factoring of income etc

Application of Chapter 5B of Part 13 of ITA 2007 (finance arrangements) to pre-6 June 2006 arrangements

42Chapter 5B of Part 13 of ITA 2007 (which is...

Application of section 809BZN of ITA 2007 (finance arrangements: exceptions)

43(1) In relation to a transfer before 22 April 2009,...

Application of section 809CZC of ITA 2007 (income-transfer under loan or credit transaction)

44In relation to a transfer before 22 April 2009, section...

Part 13Miscellaneous relocations

Application of sections 925A to 925F of ITA 2007 (repos)

45(1) Sections 925A to 925F and 926(1A) of ITA 2007...

SCHEDULE 10Repeals and revocations

Part 1Double taxation relief

Part 2Transfer pricing and advance pricing agreements

Part 3Tax arbitrage

Part 4Tax treatment of financing costs and income

Part 5Offshore funds

Part 6Oil activities

Part 7Alternative finance arrangements

Part 8Leasing arrangements: finance leases and loans

Part 9Sale and lease-back etc

Part 10Factoring of income etc

Part 11UK representatives of non-UK residents

Part 12Miscellaneous relocations

Part 13Repeals for purposes connected with other tax law rewrite Acts

SCHEDULE 11Index of defined expressions used in Parts 2 to 8

Part 1Double taxation relief: index of defined expressions used in Parts 2 and 3

Part 2Transfer pricing: index of defined expressions used in Part 4

Part 3Advance pricing agreements: index of defined expressions used in Part 5

Part 4Tax arbitrage: index of defined expressions used in Part 6

PART 4AHybrid and other mismatches: index of defined expressions used in Part 6A

Part 5Tax treatment of financing costs and income: index of defined expressions used in Part 7

. . . . . . . . . ....

Part 6Offshore funds: index of defined expressions used in Part 8

PART 7Corporate interest restriction: index of defined expressions used in Part 10

Taxation (International and Other Provisions) Act 2010

2010 c. 8

An Act to restate, with minor changes, certain enactments relating to tax; to make provision for purposes connected with the restatement of enactments by other tax law rewrite Acts; and for connected purposes.

[18th March 2010]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—C1 C2 C3

Annotations:

Modifications etc. (not altering text)

C1

Act applied (with modifications) (8.2.2011) by The Investment Bank Special Administration Regulations 2011 (S.I. 2011/245), reg. 1, Sch. 6 Pt. 1 (with reg. 27(a))

C2

Act modified (17.12.2020) by Taxation (Post-transition Period) Act 2020 (c. 26), Sch. 4 (with Sch. 2 para. 7(7)-(9))

C3

Act applied (with modifications) (8.7.2021) by The Payment and Electronic Money Institution Insolvency Regulations 2021 (S.I. 2021/716), reg. 2, Sch. 3 paras. 2, 3 (with reg. 5) (as amended (4.1.2024) by The Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023 (S.I. 2023/1399), regs. 1(2), 4, 21(4))