Respond to a Corporation Tax penalty or enquiry
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UK Act of Parliament
2002
United Kingdom
Finance Act 2002
At a glance
What's here
15 compliance obligations, 1 practical guide · 5 journeys
Penalty landscape
2 of 15 obligations carry a criminal penalty. 1 carries different penalties and 12 have no criminal penalty — flagged in the list below.
Who this Act binds
Plus 2 non-business duties on Crown ministers, regulators, local authorities or tribunals — shown collapsed under each section below.
Step-by-step journeys using this legislation
Walkthroughs that take you from a real business situation to compliance.
Manage your tax compliance
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File your first Corporation Tax return
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Corporation Tax quick compliance check
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Grow your tech business
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Relevant guidance
Practical guides for businesses affected by this Act, ordered by how closely they engage with it.
Mentioned in related content
1 guidesWhat this Act requires
Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.
Schedules
Duty charged before 31st March 2002
- Claim pool betting duty credit for duty paid before 24 April 2002
For sections 6 to 8 (pool betting duty: charge, rate...
- Pay pool betting duty on net receipts at 15%
For section 1(1) substitute— (1) A duty of excise (“vehicle...
- Pay vehicle excise duty (VED) on your vehicle if it is registered or used on a public road
For section 2(2) to (4) (rates where duty charged in...
- Pay correct vehicle excise duty rate for keeping or using a vehicle
After section 7 insert— Supplement payable on late renewal of...
Unlimited fine- Fail to renew vehicle licence on time (late renewal supplement)
After section 31 insert— Offence of being registered keeper of...
- Keep an unlicensed vehicle registered in your name
Plant or machinery used for less than five years in a ring fence trade
- Notify HMRC if first-year allowance claim becomes invalid due to non-use in ring fence trade
Power to require information
- Fail to provide information requested by HMRC
Duty of transferee company to notify particulars
- Notify HMRC of group relief withdrawal particulars within 30 days
Determination, collection and recovery of duty and interest
Other duties (1) — Crown / regulator
- HMRC must determine, collect and recover duty under section 111 using stamp duty reserve tax procedures Crown / Minister / Government department
Relief where duty paid on original sale or earlier subsale
- Calculate stamp duty on subsales using relief for earlier duty paid
Repayment of duty in certain cases
Other duties (1) — Crown / regulator
- HMRC must refund overpaid stamp duty when property is broken into cheaper conveyances Crown / Minister / Government department
Reduction of stamp duty where instrument partly relating to goodwill
- Apportion consideration to claim reduced stamp duty on partly-goodwill instruments
Apportionment of consideration for stamp duty purposes
- Apportion goodwill consideration justly and reasonably for stamp duty
Certification of instruments for stamp duty purposes
- Disregard goodwill when certifying instruments for stamp duty
Browse 731 other Schedules — structural / supplementary
(1) Section 36 of the Alcoholic Liquor Duties Act 1979...
In that Act, after that section (and before the heading...
In section 49(1) of the Alcoholic Liquor Duties Act 1979...
(1) The Finance Act 1994 (c. 9) is amended as...
Introduction
Biodiesel and bioblend not to be treated as fuel substitute
Exclusion of bioblend from rebates on heavy oil
Repayment of duty in case of biodiesel used otherwise than as road fuel
Mixing biodiesel and rebated heavy oil
Interpretation
Provision in relation to bioblend corresponding to that made by section 6 of the Finance Act 1998 in relation to section 6 of the Hydrocarbon Oil Duties Act 1979
In the Hydrocarbon Oil Duties Act 1979 (c. 5), after...
In section 100H(1) of the Customs and Excise Management Act...
In the Hydrocarbon Oil Duties Act 1979 (c. 5), after...
(1) Section 27 of the Hydrocarbon Oil Duties Act 1979...
The Hydrocarbon Oil Duties Act 1979 is amended as follows....
In section 12(1) (no rebate allowed on heavy oil intended...
In section 12(2) (oil not to be used in road...
In section 24(2) (regulations made for the purposes of section...
In section 27(1) (interpretation), in the definition of “rebate", after...
The Betting and Gaming Duties Act 1981 (c. 63) is...
(1) Schedule 1 (administration etc of betting duties) is amended...
Amendment in the Excise Duties (Surcharges or Rebates) Act 1979
Amendments in Schedule 5 to the Finance Act 1994
Notifications under paragraph 4(4) of Schedule 1 to that Act of premises used in connection with coupon betting
In section 2(2) (bets to which section 2(1) does not...
In section 4(6) (bets to which subsections (1) to (3)...
In section 9(2) (bets to which section applies), omit “or...
In section 9(3) (bets to which section does not apply)—...
For section 9(6) substitute— (6) Section 8C(1) to (3) above...
Omit section 11 (definition of coupon betting).
In section 12(3) (interpretation of sections 1 to 10 etc),...
The Vehicle Excise and Registration Act 1994 (c. 22) is...
In section 33(3)(b) (offences of not exhibiting licence are without...
In section 34(4) (rate of duty by reference to which...
In section 47 (proceedings in England and Wales or Northern...
In section 48(3)(a) (proceedings in Scotland: time limit), after “section...
In section 53 (burden of proof of certain matters in...
In section 54 (single witness sufficient in Scottish proceedings), after...
In section 57 (regulations), after subsection (7) insert—
In section 62(1) (definitions), for the definition of “vehicle" substitute—...
For section 7(4) (vehicle licence valid only for vehicle for...
(1) In section 22 (registration regulations), in subsection (1D) (power...
In section 29(7) (rate of duty by reference to which...
(1) In section 32 (sections 29 to 31: supplementary), in...
Share options
Credit-tokens and non-cash vouchers
In each of the following provisions of the Taxes Act...
Taxation of benefit where income received free of tax
Benefits in connection with termination of employment or change in duties or emoluments
Priority between charges under sections 148 and 595 of the Taxes Act 1988
The following Schedule is inserted after Schedule 7AB to the...
Degrouping: time of accrual of chargeable gain or allowable loss
Treatment of furnished holiday lettings
Overseas life insurance companies
Corporate venturing scheme
Share exchanges
Scheme of reconstruction involving issue of securities
Meaning of “scheme of reconstruction"
Taxes Act 1988
Taxation of Chargeable Gains Act 1992
Finance Act 2000
General commencement date
Commencement provision for certain consequential amendments
Introduction
Meaning of “trading group"
Joint venture companies
Joint enterprise companies
Periods of share ownership that do not count because of change of activity by company
Periods of share ownership not to count where company is not active
Meaning of “holding company"
Meaning of “interest in shares"
Meaning of “joint venture company" and “qualifying shareholding"
Meaning of “ordinary share capital"
Debentures to be treated as shares
Meaning of “trading company"
Introduction
Section 2
Section 77
Section 86
Section 86A
Section 87
Commencement
Election for Schedule to apply for years earlier than 2003-04
Entitlement to relief under this Part
Expenditure on research and development directly undertaken on SME’s behalf
(1) A company (“ the SME ”) is entitled to...
For the purposes of this Schedule, the SME ’s “...
For the purposes of this Schedule, the SME 's “capped...
Deduction in computing profits of trade
Treated as large companies
Entitlement to relief in respect of “I minus E" basis
Research and development expenditure of group companies
Refunds of contributions to independent research and development etc
Artificially inflated claims for deduction
Meaning of “relevant research and development”, “staffing costs”, “ software or consumable items ” , “relevant payments to the subjects of a clinical trial” and “qualifying expenditure on externally provided workers"
Meaning of “qualifying body"
Other definitions etc
Meaning of “large company" and “small or medium-sized enterprise"
Transitional provision
Qualifying R&D expenditure
Qualifying expenditure on direct research and development
Expenditure on research and development directly undertaken on company’s behalf
Qualifying expenditure on contributions to independent research and development
Entitlement to relief under this Part
Qualifying sub-contracted R&D expenditure
Expenditure on research and development directly undertaken by the SME
Entitlement to relief under this Schedule
Election for connected persons treatment
Treatment of sub-contractor payment in other cases
Qualifying expenditure on contributions to independent research and development
Application of this Part
Deduction in computing profits of trade
Alternative treatment of pre-trading expenditure: deemed trading loss
Paragraphs 14 and 15: modifications for larger SMEs claiming R&D tax credits
Entitlement to tax credit
Entitlement to tax credit: modification for larger SMEs
Amount of credit
Payment in respect of tax credit
Relief or tax credit only available where company is a going concern
Restriction on losses carried forward
Qualifying expenditure
Payment in respect of tax credit not income
Deduction in computing profits of trade
Treated as large companies
Entitlement to relief in respect of “I minus E" basis
Artificially inflated claims for deduction or tax credit
Refunds of contributions to independent research and development
Funding of tax credits
Interpretation
Commencement and transitional provision
Qualifying expenditure on direct research and development
Qualifying R&D activity
Meaning of “relevant R&D”, “small or medium-sized enterprise”, “staffing costs”, “software or consumable items”, “relevant payments to the subjects of a clinical trial”, “subsidised” and “qualifying expenditure on externally provided workers.
Qualifying expenditure on sub-contracted research and development
Conditions that must be satisfied by qualifying expenditure on sub-contracted research and development
Treatment of sub-contractor payment where principal and sub-contractor are connected persons
Relevant expenditure of the sub-contractor
Interest
Claim must be made in tax return
Recovery of excessive tax credits
Claims for tax credits
Commencement
Schedule 20 to the Finance Act 2000 (c. 17) (R&D...
(1) In paragraph 1 (entitlement to R&D tax relief)—
In paragraph 5 (staffing costs)— (a) in sub-paragraph (1)(c) omit...
In paragraph 8 (subsidised expenditure), for the second sentence of...
In paragraph 12 (treatment of sub-contractor payments where principal and...
Eligibility for tax relief
Conditions to be satisfied in relation to securities
Conditions to be satisfied in relation to shares
Tax relief certificates
Pre-arranged protection against risks
No control of CDFI by investor
Beneficial ownership
Investor must not be accredited
No acquisition of share in partnership
No tax avoidance purpose
Individual investors
Meaning of “investment"
Company investors
Determination of “the invested amount"
Loans: no claim after disposal or excessive repayments or receipts of value
Securities or shares: no claim after disposal or excessive receipts of value
Loss of accreditation by the CDFI
Accreditation of the investor
Attribution
Manner of withdrawal of relief
Disposal of loan during five year period
Disposal of shares or securities during five year period
Meaning of “the five year period"
Repayments of loan capital
Value received treated as repayment of loan
Value received by investor where the investment consists of securities or shares
Meaning of “period of restriction"
Aggregation of receipts of insignificant value
When value is received
The amount of value received
Value received where there is more than one investment
Effect of receipt of value on future claims for relief
Receipts of value by and from connected persons
(1) Chapter 2 of Part 7 of ITA 2007 applies...
Rights issues etc
Company reconstructions etc
Information to be provided by the investor
Disclosure
Nominees
Application for postponement of tax pending appeal
Meaning of “issue of securities or shares"
Identification of securities or shares on a disposal
Meaning of “disposal"
Construction of references to investment being “held continuously"
Meaning of “associate"
Minor definitions etc
Index of defined expressions
Introduction
Conditions to be satisfied in relation to loans
In section 98 of the Taxes Management Act 1970 (c....
In section 289A of the Taxes Act 1988 (form of...
In Schedule 15B to that Act (venture capital trusts: relief...
In section 25 of the Finance Act 1990 (c. 29)...
In Schedule 18 to the Finance Act 1998 (c. 36)...
The requirements
(1) This paragraph applies where a club holds property and,...
Registration and termination
Information etc
Appeals
“Eligible sport"
“Inland Revenue"
Other expressions
Open to the whole community
Organised on an amateur basis
Exemption for trading income
Exemption for interest and gift aid income
Exemption for property income
Exemption for chargeable gains
Exemption reduced where club incurs non-qualifying expenditure
(1) Chapter 2 of Part 8 of ITA 2007 (gift...
Introductory
Types of expenditure for which first-year allowances available
First-year qualifying expenditure: car with low carbon dioxide emissions
General exclusions affecting first-year qualifying expenditure
Amount of first-year allowances
Single asset pool in relation to cars above cost threshold
Introductory
Types of expenditure for which first-year allowances available
First-year qualifying expenditure: plant or machinery for gas refuelling station
General exclusions affecting first-year qualifying expenditure
Amount of first-year allowance
Introductory
First-year allowances
Artificially inflated claims for first-year allowances
Amount of allowances and charges: balancing charge for period in which expenditure incurred
Unrelieved qualifying expenditure: effect of first-year qualifying expenditure
Types of expenditure for which first-year allowances available
First-year qualifying expenditure: plant and machinery for use wholly in a ring fence trade
General exclusions affecting first-year qualifying expenditure
Amount of first-year allowances
Penalty for failure to provide information etc
Introductory
First-year qualifying expenditure
General scheme
Application of paragraphs 8 and 9 in case of transfer of insurance business
Schedule 22 para.11
Schedule 22 para.12
Application of provisions to partnerships
Schedule 22 para.14
Interpretation
General rule
Application of provisions to certain earlier changes of basis
Period in which change of basis takes effect
Calculation of adjustment
Meaning of items being brought into account
Giving effect to positive adjustment
Giving effect to negative adjustment
No adjustment for certain expenses previously brought into account
Cases where adjustment not required until asset realised or written off
Change from realisation basis to mark to market
Election for spreading where paragraph 8 applies
Introductory
Transactions not at arm’s length
Exchange gains and losses where loan not on arm’s length terms
Continuity of treatment: groups etc
Loan relationships for unallowable purposes
Life assurance business
Special provisions for insurers: apportionments
Savings and transitional provisions in the Finance Act 1996
Charges on income
Supplementary charge in respect of ring fence trades
Schedule 23 para.19
Meaning of “related transaction”
Double taxation relief
Provision not at arm’s length: foreign exchange gains and losses
Miscellaneous amendments
Tonnage tax
Intangible fixed assets: assets entirely excluded: financial assets
Anti-avoidance: change of accounting period
Deferred foreign exchange gains
Exchange gains and losses from loan relationships etc
Authorised accounting methods
Convertible securities etc: exchange gains and losses
Extension of section 100 to exchange gains and losses and to items other than money debts
Interpretation
Bad debt etc: cases where departure allowed from assumption of prompt payment in full
Bad debts etc where parties have a connection
Introductory
The basic rule: sterling to be used
Use of currency other than sterling: accounts as a whole etc in foreign currency
Use of currency other than sterling: accounts etc partly from statements in foreign currency
Rules for ascertaining currency equivalents: general
Rules for ascertaining sterling equivalent for section 93(4) or (5)
Lloyd’s underwriters: corporations etc
Introductory
Changes of accounting method
Payments subject to deduction of tax
Indexed gilt-edged securities
Manufactured interest
Interpretation: “shares” not to include building society shares
Interpretation: miscellaneous
Provision continuing to be made on accruals basis after company ceases to be party
Claims to treat deficit as eligible for group relief
Claim to carry back deficit to previous accounting periods
Deficit carried forward and set against non-trading profits of succeeding accounting periods
Meaning of “loan relationship” etc: method of settlement
Distributions
Life assurance policies and capital redemption policies
Late interest: further cases where paragraph 2 of Schedule 9 applies
Bad debts and consortium relief
Bad debt etc where parties have a connection
Bad debt etc: parties having connection and creditor company in insolvent liquidation etc
Schedule 25 para.26
Bad debt etc: departure not permitted by paragraph 6: subsequent cessation of connection
Imported losses etc
Continuity of treatment: groups etc
Non-trading deficit on loan relationships
Loan relationships for unallowable purposes
Debits and credits treated as relating to capital expenditure
Repo transactions and stock lending
Discounted securities where companies have a connection
Discounted securities of close companies
Partnerships involving companies
Interpretation of Schedule 9: “major interest”
Investment trusts and venture capital trusts: treatment of capital reserves
Authorised unit trusts and open-ended investment companies
Distributing offshore funds
Debits and credits brought into account
Life assurance business
Adjustments in the case of chargeable assets etc
Reduction of paragraph 11 credit where s.251(4) of 1992 Act prevents paragraph 8 loss
Introductory
Incidental costs of obtaining loan finance
Group relief
Schedule 25 para.46
Building society shares: regulations for deduction of tax
Building society shares: incidental costs of issuing qualifying shares
European Economic Interest Groupings
Authorised accounting methods
Funding bonds issued in respect of interest on certain debts
Transfers of income arising from securities
Treatment of price differential on sale and repurchase of securities
Restriction of relief for payments of interest
Limits on credit: corporation tax
Foreign tax on items giving rise to a non-trading credit
Investment trusts
Venture capital trusts
Change in ownership of investment company
Commercial woodlands
Application of accounting methods
Interest charged to capital
Interpretation
Non-trading deficit carried forward from last old accounting period
Discounted securities where companies have a connection
Discounted securities of close companies
Authorised unit trusts and open-ended investment companies
Accounting method where parties have a connection
Meaning of “control” in section 87
Inconsistent application of accounting methods
Profits arising from derivative contracts
Schedule 26 para.10
Meaning of “underlying subject matter”
Definition of terms relating to derivative contracts
Power to amend paragraphs 2 to 12 and Part 9
Method of bringing amounts into account
Credits and debits brought into account
Exchange gains and losses arising from derivative contracts
Computation in accordance with generally accepted accounting practice
Amounts recognised in determining company’s profit or loss
Power to make further provision by regulations
Derivative contracts and relevant contracts
Basis of accounting for contracts falling within paragraph 6, 7 or 8
Release of liability under derivative contract
Deemed assignment of derivative contracts on company ceasing to be resident in UKetc
Derivative contracts for unallowable purposes
Derivative contracts for unallowable purposes: supplementary
Debits and credits treated as relating to capital expenditure
Debits and credits recognised in equity or shareholders' funds
Transfers of value to connected companies
Exchange gains and losses where derivative contracts not on arm’s length terms
Disposals for consideration not fully recognised by accounting practice
Transactions within groups
Transactions within groups: exceptions relating to insurance
Non-financial contracts with embedded derivatives
Hybrid derivatives
Contracts to satisfy accounting requirements etc
Transactions within groups: fair value accounting
Transferee leaving group after replacing transferor as party to derivative contract
(1) This paragraph applies on a merger which satisfies the...
(1) This paragraph applies on a merger which satisfies the...
(1) This paragraph applies where— (a) a company resident in...
Amounts imputed under Schedule 28AA to the Taxes Act 1988
(1) This paragraph applies where— (a) a company resident in...
(1) Paragraph 30D or 30E shall apply in relation to...
(1) This paragraph applies in relation to a transfer of...
(1) This paragraph applies in relation to a merger if—...
(1) In paragraphs 30B to 30H and this paragraph ,...
Derivative contracts with non-residents
Authorised unit trusts: capital profits and losses
Open-ended investment companies: capital profits and losses
Power to amend paragraphs 32 and 33
Distributing offshore funds
Contracts relating to holdings in unit trust schemes, open-ended investment companies and offshore funds
Contract which becomes contract to which paragraph 36 applies
Investment trusts: capital profits, gains or losses
Venture capital trusts: capital profits, gains or losses
Investment trusts: approval for purposes of section 842 of the Taxes Act 1988
Contracts excluded by virtue of their underlying subject matter
Venture capital trusts: approval for purposes of section 842AA of the Taxes Act 1988
Application of Schedule to insurance and mutual trading companies
Application of section 103(3)(c) of the Finance Act 1996
Schedule 26 para.43
Contracts which become derivative contracts
Contracts which cease to be derivative contracts
Mutual trading and non-life mutual business
Schedule 26 para.44
Derivative contracts which are to be taxed on a chargeable gains basis
Carry back of net losses on derivative contracts to which paragraph 45A applies
Derivative contracts relating to land or certain tangible movable property
Creditor relationships: embedded derivatives which are options
Exclusions from paragraph 45D
Creditor relationships: embedded derivatives which are exactly tracking contracts for differences
Creditor relationships: existing assets
Property based total return swaps
Treatment of net gains and losses on terminal exercise of option
Treatment of credits and debits on terminal exercise of non-embedded option or running to delivery of future
Schedule 26 para.45Hn1
Treatment of net gains and losses on disposal of certain embedded derivatives
Index-linked gilt-edged securities with embedded contracts for differences
Issuers of securities with embedded derivatives: deemed options
Issuers of securities with embedded derivatives: equity instruments
Issuers of securities with embedded derivatives: deemed contracts for differences
Securities with embedded options: existing liabilities
Derivatives not embedded in a loan relationship
Elections under paragraph 45L(2A): further provisions
Treatment of host contract as a loan relationship
Schedule 26 para.45n1
Contracts where part of underlying subject matter of excluded type
Schedule 26 para.47
Schedule 26 para.48
Schedule 26 para.48A
Partnerships involving companies
Contracts which become derivative contracts: chargeable assets
(1) This paragraph applies to a company if the conditions...
Treatment of credits and debits on former chargeable asset
Schedule 26 para.5
Partnerships involving companies: use of fair value accounting
Adjustment on company changing to international accounting standards
Prevention of deduction of tax
Statutory accounts
Derivative and relevant contracts of person
General interpretation
Schedule 26 para.5A
Schedule 26 para.6
Schedule 26 para.7
Schedule 26 para.8
Underlying subject matter which is subordinate or of small value disregarded
The Taxes Act 1988
In section 768C (deductions: asset transferred within group) in subsection...
In section 798B (restriction of relief on certain interest and...
(1) Section 807A (disposals and acquisitions of company loan relationships...
In section 834(1) (interpretation of the Corporation Tax Acts) insert...
(1) Schedule 28AA (provision not at arm’s length) is amended...
The Finance Act 1994
The Finance Act 1996
(1) Section 101 (financial instruments) is amended as follows.
In section 15(1) (Schedule A) in paragraph 2(3) of Schedule...
(1) Schedule 10 (loan relationships: collective investment schemes) is amended...
Omit Schedule 12(meaning of debt contract or option).
The Finance Act 2000
(1) Schedule 22 (tonnage tax) is amended as follows.
The Finance Act 2002
Section 78 (which amends the provision made by Schedule 5AA...
In Schedule 29 (taxation of intangible fixed assets) in paragraph...
(1) . . . . . . . . ....
(1) . . . . . . . . ....
In section 440 (transfers between categories of assets held by...
Omit section 468AA (authorised unit trusts: futures and options).
(1) Section 468L (interest distributions) is amended as follows.
In section 501A (supplementary charge in respect of ring fence...
In section 768B (change in ownership of investment company: deductions...
Anti-avoidance: change of accounting period
Qualifying contracts to which company ceases to be party before commencement day
Qualifying contracts which become derivative contracts
Contracts which become derivative contracts: chargeable assets
Contracts: election to treat as two assets
Contracts which become derivative contracts: contracts within Schedule 5AA to the Taxes Act 1988
Interpretation
Gains and losses in respect of intangible fixed assets
Writing down at fixed rate: election for fixed-rate basis
Meaning of “participator" and “associate"
Connected persons
Treatment of grants and other contributions to expenditure
Grants to be left out of account for tax purposes
Finance leasing etc
Assets acquired or realised together
Deemed market value acquisition: adjustment of amounts in case of nil accounting value
Treatment of fungible assets
Asset ceasing to be chargeable intangible asset: deemed realisation at market value
Asset ceasing to be chargeable intangible asset: postponement of gain in certain cases
Writing down at fixed rate: calculation
Asset becoming chargeable intangible asset
Tax avoidance arrangements to be disregarded
Debits not allowed in respect of expenditure not generally deductible for tax purposes
Delayed payment of employees' remuneration
Delayed payment of pension contributions
Bad debts etc
Assumptions for computing chargeable profits of controlled foreign companies
Introduction
Change of accounting policy involving change of value
Change of accounting policy involving disaggregation
Change of accounting policy involving disaggregation: original asset subject to fixed rate writing down
Change of accounting policy involving disaggregation: election for fixed rate writing down in relation to resulting asset
Cap on credit to be brought into account on change of accounting policy
Exclusion of debits or credits brought into account under other provisions
Subsequent events affecting asset subject to adjustment under this Part
Commencement date
Application of Schedule to assets created or acquired after commencement
Application of Schedule to royalties
Reversal of previous accounting gain
Assets regarded as created or acquired when expenditure incurred
Internally-generated goodwill: whether created before or after commencement
Certain other internally-generated assets: whether created before or after commencement
Expenditure on acquisition treated as incurred when recognised for accounting purposes
When expenditure treated as incurred: chargeable gains rule to be followed in certain cases
When expenditure treated as incurred: capital allowances general rule to be followed in certain cases
Application of Schedule to fungible assets
Certain assets acquired on transfer of business treated as existing assets
Assets whose value derives from existing assets treated as existing assets
Assets acquired in connection with disposals of existing assets treated as existing assets
Application of Schedule to certain existing telecommunication rights
Application of Schedule to existing Lloyd’s syndicate capacity
Introduction
Roll-over relief: application in relation to disposal of existing asset after commencement
Roll-over relief: application in relation to degrouping charge on existing asset arising after commencement
Roll-over relief: transitory interaction with relief on replacement of business asset
References to expenditure on an asset
References to amounts recognised in determining profit or loss
Meaning of “accounting value"
Meaning of “adjustments required for tax purposes"
Meaning of “chargeable intangible asset" and “chargeable realisation gain"
Interpretation provisions relating to insurance companies
Meaning of “royalty"
Receipts recognised as they accrue
Meaning of “tax-neutral transfer"
Meaning of “the Inland Revenue"
Meaning of “the Taxes Acts"
Index of defined expressions
Receipts in respect of royalties so far as not dealt with under paragraph 14
Revaluation
Negative goodwill
Reversal of previous accounting loss
Introduction
Meaning of “realisation"
Intangible assets
Realisation of asset written down for tax purposes
Realisation of asset shown in balance sheet and not written down for tax purposes
Apportionment in case of part realisation
Realisation of asset not shown in balance sheet
Meaning of “proceeds of realisation"
Relief in case of reinvestment
Abortive expenditure on realisation
Asset written down on accounting basis
Asset written down at fixed rate
Effect of part realisation of asset
Intangible fixed assets
Introduction
Asset held for purposes of trade
Asset held for purposes of property business
Assets held for purposes of mines, transport undertakings, etc
Non-trading credits and debits
Claim to set non-trading loss against total profits
Special provisions relating to insurance companies
The relief
Conditions to be met in relation to the old asset and its realisation
Conditions to be met in relation to the expenditure on other assets
Goodwill
Claim for relief
How the relief is given: general
Determination of appropriate proportion or adjusted cost
References to cost of asset where asset affected by change of accounting policy
Declaration of provisional entitlement to relief
Realisation and reacquisition
Deemed realisations and deemed acquisitions to be disregarded
Introduction
General rule: a company and its 75% subsidiaries form a group
Membership of group restricted to effective 51% subsidiaries of principal company
Principal company cannot be 75% subsidiary of another company
Company not drawing up correct accounts
Company cannot be member of more than one group
Continuity of identity of group
For the purposes of this Schedule where the principal company...
Meaning of “effective 51% subsidiary"
Meaning of equity holder and profits or assets available for distribution
Supplementary provisions
Transfers within a group
Roll-over relief on reinvestment: application to group member
Roll-over relief on reinvestment: acquisition of group company treated as equivalent to acquisition of underlying assets
Company ceasing to be member of group (“degrouping")
Degrouping: associated companies leaving group at the same time
Reference to consolidated group accounts
Degrouping: principal company becoming member of another group
Degrouping: company ceasing to be member of group by reason of exempt distribution
Degrouping: merger carried out for bona fide commercial reasons
Degrouping: group member ceasing to exist
Degrouping: supplementary provisions
Degrouping: application of roll-over relief in relation to degrouping charge
Reallocation of degrouping charge within group
Application of roll-over relief in relation to reallocated degrouping charge
Recovery of degrouping charge from another group company or controlling director
Recovery of degrouping charge from another group company or controlling director: procedure etc
Introduction
Recovery of degrouping charge from another group company or controlling director: time limit
Payments between group members in respect of reliefs
Introduction
Assets entirely excluded: rights over tangible assets
Assets entirely excluded: assets in respect of which capital allowance previously made
Assets entirely excluded: oil licences
Assets entirely excluded: financial assets
Assets entirely excluded: rights in companies, trusts, etc
Assets entirely excluded: non-commercial purposes etc
Assets excluded except as regards royalties: life assurance business
Assets excluded except as regards royalties: mutual trade or business
Expenditure written off as it is incurred
Assets excluded except as regards royalties: films and sound recordings
Assets excluded: certain films
Assets excluded except as regards royalties: sound recordings
Assets excluded except as regards royalties: computer software treated as part of cost of related hardware
Assets excluded to extent specified: research and development
Assets excluded to extent specified: election to exclude capital expenditure on computer software
Company reconstruction involving transfer of business
Transfer of UK business between companies resident in different EU member States
European cross-border merger: transfer of UK business
(1) This paragraph applies in relation to a transfer of...
(1) This paragraph applies in relation to a merger if—...
(1) In paragraphs 85, 85A, 85B, 85C, 87 and 87A...
Postponement of charge on transfer of assets to non-resident company.
Transfer of non-UK business
European cross-border merger: transfer of non-UK business
Procedure on application for clearance
Transfer of life assurance business
Writing down on accounting basis
Transfer of business of building society to company
Amalgamation of or transfer of engagements by certain societies
Transfer between company and related party treated as being at market value
Exclusion of roll-over relief in case of part realisation involving related party
Delayed payment of royalty payable by company to related party
Meaning of “related party"
Persons treated as “related parties”
Meaning of “control" and “major interest"
Rights and powers to be taken into account: general
Rights and powers to be taken into account: rights and powers held jointly
Rights and powers to be taken into account: partnerships
General provisions about deductions
Surrender of non-trading loss by way of group relief
Extension of charitable exemption to non-trading gains
Change in ownership of company with unused non-trading loss
Double taxation relief
Value-shifting provisions
Schedule 31 para.wrapper1n2
Individuals
In section 230(1) (interpretation), in the definition of “stop-loss insurance",...
In section 178(stop loss and quota share insurance), in subsection...
After subsection (3) of that section insert—
For subsection (4) of that section substitute—
In section 184(1) (interpretation), in the definition of “stop-loss insurance",...
Corporate bodies
In section 225 (stop loss and quota share insurance), in...
After subsection (3) of that section insert—
For subsection (4) of that section substitute—
Meaning of “VCT-in-liquidation"
Meaning of “merger" and “successor company"
Power to disapply, or limit operation of, section 842AA(5B) of the Taxes Act 1988
Withdrawal of VCT approval in cases for which provision made under paragraph 11
Consequential amendment in section 842AA(5A) of the Taxes Act 1988
Extension of existing powers to give effect to VCT reliefs
Penalties for non-compliance with regulations under this Schedule
Regulations under this Schedule: inclusion of supplementary etc provisions
Interpretation of Schedule
Power to treat VCT-in-liquidation as VCT
Power to treat conditions for VCT approval as fulfilled with respect to VCT-in-liquidation
Power to make provision about distributions by VCT-in-liquidation
Power to facilitate disposals to VCT by VCT-in-liquidation
Provision in respect of periods before and after winding-up
Part 1: supplementary provisions and interpretation
Power to facilitate mergers of VCTs
Provision that may be made by regulations under paragraph 8(1)
Introduction
Supplementary
Relief not withdrawn if transferor company leaves group
Relief not withdrawn in case of winding-up
Relief not withdrawn in case of exempt acquisition
Interest
Recovery of group relief from from another group company or controlling director
Recovery of group relief from another group company or controlling director: procedure and time limit
Introduction
Recovery of section 76 relief from another group company or controlling director: procedure and time limit
Power to require information
Supplementary
Change of control due to exempt transfer
Change of control due to intra-group transfer
Change of control due to exempt share acquisition
Change of control due to interest of loan creditor
Interest
Duty of acquiring company to notify particulars
Determination, collection and recovery of duty and interest
Recovery of section 76 relief from from another group company or controlling director
Introduction
Construction as one
Meaning of “subsale"
Introduction
Conveyance or transfer of property contracted to be sold
Construction of references to duty on transactions
Transactions relating to land in the UK and to other property
Person claiming relief to establish entitlement
Acquisition under statute
Interpretation
Introduction
Restriction on powers to provide for set-off
The charge
Meaning of “aggregate" etc
Exempt processes
Commercial exploitation
Responsibility for commercial exploitation
The register
Insolvency etc
Notification of registrability etc
Introduction
Enforcement of claims in the United Kingdom
Power to make supplementary provision by regulations
Proceedings on contested claims
Claims determined in taxpayer’s favour
Other supplementary provisions
Browse 143 other sections — procedural / definitional / commencement
Rates of tobacco products duty
Rates of duty on cider
Duty on beverages made with spirits to be at spirits rate
Reduced rates of duty on beer from small breweries
Biodiesel
Regulating trade in rebated heavy oil
Fuel substitutes
Amusement machine licences: excepted machines
Amusement machine licence duty: rates
Rates of gaming duty
Gaming duty to be chargeable in respect of sic bo and three card poker
Pool betting duty etc
General betting duty: spread bets
General betting duty: overseas bet-brokers
Cars registered on or after 1st March 2001: rates of duty
Vans registered on or after 1st March 2001: rates of duty
Disclosure of information for vehicle excise duty exemptions
Motorcycles (and motorcycle trade licences): rates of duty
Registered vehicles etc
Calculating cylinder capacity of vehicles
Drawback of excise duty
Disallowance of input tax where consideration not paid
Flat-rate scheme
Invoices
Relief from VAT on acquisition if importation would attract relief
Charge and rates for 2002-03
Indexed rate bands for 2002-03: PAYE deductions etc
Personal allowance for 2003-04 for those aged under 65
Personal allowances for 2003-04 for those aged 65 or over
Charge and main rate for financial year 2003
Small companies’ rate and fraction for financial year 2002
Corporation tax starting rate and fraction for financial year 2002
Employer-subsidised public transport bus services
Car fuel: calculation of cash equivalent of benefit
Statutory paternity pay and statutory adoption pay
Exemption of minor benefits: application to non-cash vouchers
Minor amendments to Schedule E charge
Provision of services through an intermediary: minor amendments
Employee share ownership plans: minor amendments
Treatment of deductions from payments to sub-contractors
Parliamentary visits to EU candidate countries: tax treatment of members’ expenses
Reallocation within group of gain or loss accruing under section 179
Roll-over of degrouping charge on business assets
Exemptions for disposals by companies with substantial shareholding
Share exchanges and company reconstructions
Taper relief: holding period for business assets
Taper relief: minor amendments
Use of trading losses against chargeable gains
Election to forgo roll-over relief on transfer of business
Shares acquired on same day: election for alternative treatment
Deduction of personal losses from gains treated as accruing to settlors
Capital gains tax: variation of dispositions taking effect on death
Tax relief for expenditure on research and development
Tax relief for expenditure on vaccine research etc
Gifts of medical supplies and equipment
R&D tax relief for small and medium-sized enterprises: minor and consequential amendments
Community investment tax relief
Relief for community amateur sports clubs
Cars with low carbon dioxide emissions
Expense of hiring cars with low carbon dioxide emissions
Plant or machinery for gas refuelling station: first-year allowances
Expenditure on green technologies: leasing
First-year allowances for expenditure wholly for a ring fence trade
Adjustment on change of basis
Postponement of change to mark to market in certain cases
Election to continue postponement of mark to market
Mark to market: miscellaneous amendments
Expenditure involving crime
Qualifying contracts for unallowable purposes
Forward premiums and discounts under currency contracts
Accounting method where rate of interest etc is reset
Convertible securities etc: loan relationships
Convertible securities etc: issuing company not to be connected company
Convertible securities etc: debtor relationships
Asset-linked loan relationships
Asset-linked loan relationships involving guaranteed returns
Loan relationships ceasing to be within section 93 of the Finance Act 1996
Guaranteed returns on transactions involving futures and options
Forex and exchange gains and losses from loan relationships etc
Corporation tax: currency
Transitional provision
Loan relationships: general amendments
Derivative contracts
Gains and losses from intangible fixed assets of company
Gains of insurance company from venture capital investment partnership
Lloyd’s underwriters
Life policies etc: chargeable events
Extension of power to give effect to double taxation arrangements
Controlled foreign companies: territorial exclusions from s.748 exemptions
Controlled foreign companies and treaty non-resident companies
Supplementary charge in respect of ring fence trades
Assessment, recovery and postponement of supplementary charge
Supplementary charge: transitional provisions
Deduction of tax: payments to exempt bodies etc
Deduction of tax by persons dealing in financial instruments
Cross-border royalties
Gifts of real property to charity
Gift aid: election to be treated as if gift made in previous tax year
Restriction of relief to films genuinely intended for theatrical release
Exclusion of deferments from production expenditure
Restriction of relief for successive acquisitions of the same film
Distributions: reasonable commercial return for use of principal secured
References to accounting practice and periods of account
Discounted securities etc
Financial trading stock
Valuation of trading stock on transfer of trade
Banks etc in compulsory liquidation
Manufactured dividends and interest
Venture capital trusts
Land in disadvantaged areas
Withdrawal of group relief
Restriction of relief for company acquisitions
Withdrawal of relief for company acquisitions
Penalties for late stamping
Contracts for the sale of an estate or interest in land chargeable as conveyances
Abolition of duty on instruments relating to goodwill
Power to extend exceptions relating to recognised exchanges
IHT: rate bands
IHT: powers over, or exercisable in relation to, settled property or a settlement
IHT: variation of dispositions taking effect on death
Air passenger duty: extension of area to which EEA rates apply
Landfill tax: rate
Climate change levy: electricity produced in combined heat and power station
Climate change levy: certification requirement
Climate change levy: exemption for renewable sources
Climate change levy: electricity produced from coal mine methane
Climate change levy: incorrect certificates
Climate change levy: invoices incorrectly showing levy due
Aggregates levy: transitional relief for Northern Ireland
Aggregates levy: amendments to provisions exempting spoil etc
Aggregates levy: crushing and cutting rock
Aggregates levy: miscellaneous amendments
Aggregates levy: amendments to provisions about civil penalties
Recovery of taxes etc due in other member States
Mandatory e-filing
Use of electronic communications under other provisions
Lorry road-user charge
Authority of Bank of England to discharge functions in place of Bank of Ireland
Closure of UK gilts registers kept in Ireland
Administration of UK gilts
Repeals
Interpretation
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