The Postal Services Act 2011 (Taxation) (Amendment) Regulations 2016

Statutory Instruments

2016 No. 881

Corporation Tax

The Postal Services Act 2011 (Taxation) (Amendment) Regulations 2016

Made

6th September 2016

Laid before the House of Commons

7th September 2016

Coming into force

30th September 2016

The Treasury make the following Regulations in exercise of the powers conferred by sections 23(1) and (5) of the Postal Services Act 2011(1).

Citation, commencement and effect

1.—(1) These Regulations may be cited as the Postal Services Act 2011 (Taxation) (Amendment) Regulations 2016 and come into force on 30th September 2016.

(2) These Regulations have effect for accounting periods commencing on or after 1st April 2015.

Amendments to the Postal Services Act 2011 (Taxation) Regulations 2012

2.—(1) Regulation 6 (exemption from corporation tax) of the Postal Services Act 2011 (Taxation) Regulations 2012(2) is amended as follows.

(2) In paragraph (1), for “that begins and ends before 1st April 2015” substitute “in which it is wholly owned by the Crown within the meaning of sections 14 and 15(1) of the Act”.

(3) After paragraph (1) insert—

“(1A) Where BCL ceases to be wholly owned by the Crown otherwise than at the end of an accounting period—

(a) the accounting period during which it ceases to be wholly owned by the Crown is treated for the purposes of corporation tax as ending when it so ceases; and

(b) its profits and losses are to be computed accordingly for those purposes.”

Guy Opperman

Andrew Griffiths

Two of the Lords Commissioners of Her Majesty’s Treasury

6th September 2016

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Postal Services Act 2011 (Taxation) Regulations 2012 to exempt BIS (Postal Services Act 2011) Company Limited (registered number 07941521) from corporation tax for as long as it remains wholly owned by the Crown, within the meaning of sections 14 and 15(1) of the Postal Services Act 2011 (c.5).

The previous exemption expired on 31st March 2015 so regulation 1(2) makes retrospective provision to continue the company’s exemption from 1st April 2015. Section 23(5) of the Postal Services Act 2011 contains a power to make retrospective provision, other than provision withdrawing a relief or charging a relevant tax (relevant taxes are listed in section 23(9) and include corporation tax).

A Tax Information and Impact Note covering this instrument will be published on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.

(1)

2011 c.5; these Regulations are made in respect of corporation tax which is a relevant tax under section 23(9); BCL is a fund within section 21(1)(c) as it was established by the Secretary of State to hold the assets transferred pursuant to the Postal Services Act 2011 (Transfer of Assets) Order 2012 (S.I. 2012/688).

(2)

S.I. 2012/764.