Office of Public Sector Information

(3) Subsection (4) applies if one or more of the owners is not a company.

(4) For the purpose of determining whether the owners' beneficial interests are disposed of as mentioned in subsection (2), section 587B(9B) and (9C) applies as if references to a company included a reference to a person who is not a company.

(5) Relief under section 587B is available to each of the owners which is a qualifying company.

(6) If one or more of the owners is an individual—

(a) the relevant amount is taken to be the relievable amount calculated for the purposes of Chapter 3 of Part 8 of ITA 2007, and

(b) the amount of relief under section 587B to be given to a qualifying company is such share of the relievable amount as is allocated to the company by the agreement mentioned in section 442(5) of ITA 2007.

(7) Subsections (8) to (12) apply if none of the owners is an individual.

(8) The amount of relief under section 587B to be given to a qualifying company is such share of the relevant amount as is allocated to the company by an agreement made between those owners which are qualifying companies.

(9) Calculate the relevant amount as if—

(a) the owners were a single qualifying company, and

(b) the disposals of the owners' beneficial interests were a single disposal by that single company of the whole of the beneficial interest in the qualifying interest in land.

(10) In particular, for the purposes of section 587B(7) calculate the consideration for which the disposal is made by virtue of section 257(2)(a) of the 1992 Act by—

(a) calculating, for each owner, the consideration for which the disposal of the owner’s beneficial interest is so made, and

(b) adding together all the consideration calculated under paragraph (a).

(11) If one or more of the owners is not a qualifying company, in calculating the relevant amount make just and reasonable adjustments to reduce the relevant amount to reflect the fact that relief under section 587B is not available to that owner or to those owners.

(12) If one or more of the owners is within paragraph (b) of section 587B(8), in calculating the relevant amount make just and reasonable adjustments to reduce the relevant amount to reflect the requirements of sub-paragraph (ii) of that paragraph.

(13) A company is a qualifying company if—

(a) it is not itself a charity, and

(b) it is not within section 587B(8)(a).”

139 (1) Amend section 587C (supplementary provision for gifts of real property) as follows.

(2) Omit subsections (2) and (3).

(3) In subsection (4)—

(a) for “person” substitute “company”, and

(b) for “he” substitute “it”.

(4) In subsection (6)—

(a) for “person (or each of the persons) who made the disposal to the charity” substitute “following”, and

(b) at the end insert—

“(a) in a case to which section 587BA does not apply, the company which made the disposal, and

(b) in a case to which section 587BA applies, each qualifying company which is an owner.”

(5) In subsection (8) for the words from “the person” to “of them)” substitute “a person mentioned in subsection (8A)”.

(6) After that subsection insert—

“(8A) The persons are—

(a) in a case to which section 587BA does not apply—

(i) the company which made the disposal, or

(ii) a person connected with that company, and

(b) in a case to which section 587BA applies—

(i) a person who is an owner, or

(ii) a person connected with such a person.”

(7) In subsection (10)—

(a) omit paragraph (a) and the “and” immediately after it, and

(b) in paragraph (b) omit “in the case of a company,”.

140 In section 615(3) (exemption from tax in respect of certain pensions) for “section 349(1)” substitute “Chapter 6 of Part 15 of ITA 2007 (deduction from annual payments and patent royalties)”.

141 In section 657(2)(b) (purchased life annuities to which section 656 applies) after “or 273” insert “of this Act or section 459 of ITA 2007”.

142 In section 658(4)(b) (supplementary) omit “(notwithstanding anything in section 348)”.

143 In section 659E(1) (treatment of income from property investment LLPs) at the end insert “(see section 1004 of ITA 2007)”.

144 Omit section 660C(3) (nature of charge on settlor).

145 Omit sections 685A to 687 (liability of trustees).

146 (1) Amend section 687A (discretionary payments made by trustees to companies) as follows.

(2) In subsection (1) for paragraph (b) substitute—

“(b) sections 494 and 495 of ITA 2007 apply in relation to the payment;”.

(3) In subsection (2)(a) for “charity” substitute “charitable company”.

(4) In subsection (3)—

(a) in paragraph (a)(iii) for “paragraph 5(1) of Schedule 16” substitute “section 952 of ITA 2007 (set off of income tax suffered against income tax payable)”, and

(b) in paragraph (c) for “section 687(2)” substitute “section 494 of ITA 2007”.

(5) In the sidenote for “Payments to companies under section 687” substitute “Discretionary payments by trustees to companies”.

147 Omit section 689A (disregard of trustees' expenses where beneficiary non-UK resident).

148 (1) Amend section 689B (order in which trustees' expenses are to be set against income) as follows.

(2) In subsection (3) for the words from “to which section 1A applies” to the end substitute “of the trustees which is savings income (within the meaning of section 18 of ITA 2007).”

(3) Omit subsection (4).

(4) At the end insert—

“(5) This section applies for corporation tax purposes only.”

149 Omit sections 690 to 694.

150 Omit section 698A.

151 In section 699A(4)(b) (untaxed sums comprised in the income of the estate) for “lower rate” substitute “savings rate”.

152 In section 701(3A) (interpretation of sections 695 to 700) for “lower rate”, wherever it occurs, substitute “savings rate”.

153 In the heading for Chapter 1 of Part 17 (cancellation of tax advantages from certain transactions in securities) for “TAX” substitute “CORPORATION TAX”.

154 (1) Amend section 703 (cancellation of tax advantage) as follows.

(2) In subsection (1)—

(a) for “person” substitute “company”,

(b) for “tax”, in both places where it occurs, substitute “corporation tax”,

(c) for “he” substitute “it”, and

(d) for “him” substitute “it”.

(3) In subsection (2)—

(a) for “tax” substitute “corporation tax”,

(b) for “person” substitute “company”, and

(c) for “him” substitute “it”.

(4) In subsection (3)—

(a) for “tax advantage”, in both places where it occurs, substitute “corporation tax advantage”,

(b) for “person” substitute “company”,

(c) for “him”, in both places where it occurs, substitute “it”,

(d) omit “in the case of corporation tax”, and

(e) for “liability to tax” substitute “liability to corporation tax”.

(5) Omit subsection (3A).

(6) In subsection (9)—

(a) for “person”, in both places where it occurs, substitute “company”,

(b) for “him”, wherever it occurs, substitute “it”, and

(c) for “his” substitute “its”.

(7) In subsection (10) for “person” substitute “company”.

(8) Omit subsection (11).

(9) In subsection (12)—

(a) for “tax advantage”, in both places where it occurs, substitute “corporation tax advantage”,

(b) for “chargeable period”, in the second place where it occurs, substitute “accounting period”, and

(c) for “Tax Acts” substitute “Corporation Tax Acts”.

(10) In the sidenote for “tax” substitute “corporation tax”.

155 (1) Amend section 704 (the prescribed circumstances) as follows.

(2) After “The circumstances mentioned in section 703(1) are” insert “as follows (and in this section references to “the section 703(1) company” are references to the company referred to in that section)”.

(3) In paragraph A—

(a) for “person in question” substitute “section 703(1) company”,

(b) in paragraph (a) for “tax” substitute “corporation tax”, and

(c) omit from “, or” at the end of paragraph (da) to the end of paragraph (g).

(4) In paragraph B(1)—

(a) for “person in question” substitute “section 703(1) company”, and

(b) for “him”, wherever it occurs, substitute “it”.

(5) In paragraph B(2) for “tax advantage” substitute “corporation tax advantage”.

(6) In paragraph C(1)—

(a) for “person in question”, in both places where it occurs, substitute “section 703(1) company”,

(b) at the end of sub-paragraph (b) add “or section 687 of ITA 2007”, and

(c) for “he” substitute “it”.

(7) In paragraph D(1) for “person in question” substitute “section 703(1) company”.

(8) In paragraph E—

(a) in sub-paragraph (1) for “person in question” substitute “section 703(1) company”,

(b) in sub-paragraph (2)—

(i) for “person” substitute “company”,

(ii) for “tax”, in both places where it occurs, substitute “corporation tax”, and

(iii) for “the year” substitute “the accounting period”, and

(c) in the definition of “non-taxable” in sub-paragraph (3)—

(i) for “person” substitute “section 703(1) company”, and

(ii) for “tax” substitute “corporation tax”.

156 (1) Amend section 705 (appeals against Board’s notices under section 703) as follows.

(2) In subsection (1)—

(a) for “person to whom” substitute “company to which”, and

(b) for “him” substitute “it”.

(3) In subsection (2)—

(a) for “he”, in the first place where it occurs, substitute “the company”, and

(b) for “he or they” substitute “the company or the Board”.

157 (1) Amend section 705A (statement of case by tribunal for opinion of High Court) as follows.

(2) In subsections (1) and (2) for “his” substitute “its”.

(3) In subsection (3) for “he” substitute “that party”.

(4) In subsection (5)—

(a) for “he” and “the party requiring it” substitute “that party”, and

(b) for “his” substitute “that party's”.

(5) In subsections (10) and (11)(a) and (b) for “tax” substitute “corporation tax”.

158 In section 705B(1) (proceedings in Northern Ireland) for the words from “the Taxes Acts” to “shall have effect” substitute “the Management Act and the Corporation Tax Acts shall have effect”.

159 (1) Amend section 707 (procedure for clearance in advance) as follows.

(2) In subsection (1)—

(a) for “person”, wherever it occurs, substitute “company”, and

(b) for “him”, wherever it occurs, substitute “it”.

(3) In subsection (3) for “person” substitute “company”.

160 In section 708 (power to obtain information)—

(a) for “person”, in both places where it occurs, substitute “company”,

(b) for “whom” substitute “which”,

(c) for “him”, wherever it occurs, substitute “it”, and

(d) for “his” substitute “its”.

161 (1) Amend section 709 (meaning of “tax advantage” and other expressions) as follows.

(2) In subsection (1) for “tax”, in each place where it occurs, substitute “corporation tax”.

(3) In subsection (4)(a) for “he”, in both places where it occurs, substitute “the recipient”.

(4) In subsection (6)(a)—

(a) for “he”, in both places where it occurs, substitute “the recipient”, and

(b) for “him” substitute “the recipient”.

(5) In the sidenote for ““tax advantage”” substitute ““corporation tax advantage””.

162 Omit sections 710 to 727A (accrued income scheme).

163 (1) Amend section 728 (information) as follows.

(2) In subsection (1) for “sections 710 to 727A” substitute “Part 12 of ITA 2007 (accrued income profits)”.

(3) In subsection (2) omit the words from “In relation to transactions before” to the end.

(4) In subsection (5) for “sections 710 to 727A” substitute “Part 12 of ITA 2007 (accrued income profits)”.

(5) After subsection (8) insert—

“(9) In this section “securities” has the meaning given by section 619 of ITA 2007.”

164 (1) Amend section 730A (treatment of price differential on sale and repurchase of securities) as follows.

(2) In subsections (2), (3) and (4) for “Tax Acts” substitute “Corporation Tax Acts”.

(3) In subsection (7)—

(a) for “tax” substitute “corporation tax”, and

(b) omit the words from “, 613(4) or” to “Act 2004”.

165 (1) Amend section 730B (interpretation of section 730A) as follows.

(2) In subsection (3) for “has the same meaning as in section 737A” substitute “means United Kingdom equities, United Kingdom securities or overseas securities”.

(3) After subsection (3) insert—

“(3A) In this section “United Kingdom equities”, “United Kingdom securities” and “overseas securities” have the meanings given by paragraph 1(1) of Schedule 23A.”

166 (1) Amend section 730BB (exchange gains and losses on sale and repurchase of securities) as follows.

(2) In subsection (7) for “this section and sections 730A, 737A and 737C” substitute “the excepted provisions specified in subsection (7A) below”.

(3) After subsection (7) insert—

“(7A) The excepted provisions are—

(a) this section,

(b) section 730A,

(c) section 737A,

(d) section 737C,

(e) Chapter 4 of Part 11 of ITA 2007 (deemed manufactured payments), and

(f) Chapter 5 of Part 11 of ITA 2007 (price differences under repos).”

167 (1) Amend section 731 (application and interpretation of sections 732 to 734) as follows.

(2) In subsection (2A) after “737A(5)” insert “below or section 602(1) of ITA 2007”.

(3) In subsection (9) in the definition of “securities” for “for the purposes of sections 710 to 728” substitute “within the meaning of Chapter 2 of Part 12 of ITA 2007 (accrued income profits)”.

168 Omit section 733(2) (persons entitled to exemptions).

169 In section 734(1) (persons other than dealers in securities) for “section 380 or 381” substitute “section 64 or 72 of ITA 2007”.

170 In section 736(4) (company dealing in securities: distribution materially reducing value of holding) for “section 839 shall have effect in relation to paragraph (b) above” substitute “, for the purposes of paragraph (b) above, whether persons are connected is determined in accordance with section 839, but”.

171 (1) Amend section 736B (deemed manufactured payments in the case of stock lending arrangements) as follows.

(2) In subsection (2)—

(a) after “that Schedule” insert “, and section 97 of the Finance Act 1996 (loan relationships: manufactured interest),”, and

(b) after “apply” insert “for corporation tax purposes”.

(3) In subsection (2A)—

(a) in paragraph (a) omit “income tax or”, and

(b) in paragraph (b) omit “total income or, as the case may be,”.

172 (1) Amend section 736C (deemed interest: cash collateral under stock lending arrangements) as follows.

(2) In subsections (2), (3) and (4) for “Tax Acts” substitute “Corporation Tax Acts”.

(3) Omit subsection (8).

(4) In subsection (11) in the definition of “tax advantage” for “section 709(1)” substitute “section 840ZA”.

173 (1) Amend section 737A (sale and repurchase of securities: deemed manufactured payments) as follows.

(2) In subsection (5) —

(a) after “dividend manufacturing regulations” insert “, and section 97 of the Finance Act 1996 (loan relationships: manufactured interest),”, and

(b) after “apply” insert “for corporation tax purposes”.

(3) In subsection (5A), omit “income tax or”, “total income or” and “Where the relevant person is a company,”.

174 (1) Amend section 737C (deemed manufactured payments: further provisions) as follows.

(2) In subsection (7)—

(a) for “Subsection (8)” substitute “Subsection (9)”,

(b) for “paragraph 3 of Schedule 23A” substitute “section 97 of the Finance Act 1996”, and

(c) omit the words from “and in subsection (8) below” to the end.

(3) Omit subsection (8).

(4) For subsection (9) substitute—

“(9) Where this subsection applies, the repurchase price of the securities shall be treated, for the purposes of section 730A, as increased by an amount equal to the amount of the dividend mentioned in section 737A(2)(a) or (2A)(a).”

175 In section 737D(1) (power to provide for manufactured payments to be eligible for relief)—

(a) after “from” insert “corporation”, and

(b) omit the words from “, 613(4) or” to “Act 2004”.

176 (1) Amend section 737E (power to modify sections 727A, 730A, 730BB and 737A to 737C) as follows.

(2) In subsections (1) and (2) omit “727A,”.

(3) In subsections (4) and (6)(b) omit “or 263D”.

(4) In the sidenote omit “727A,”.

177 Omit sections 739 to 746 (transfer of assets abroad).

178 In section 747(4) (imputation of chargeable profits and creditable tax of controlled foreign companies) omit paragraph (b) and the “and” immediately before it.

179 (1) Amend section 761 (offshore income gains) as follows.

(2) In subsection (6)—

(a) for “charity” in the first place where it occurs, substitute “charitable company”,

(b) for “tax” substitute “corporation tax”, and

(c) omit the words from “; but” to the end.

(3) After that subsection insert—

“(6A) See section 535 of ITA 2007 for an exemption for income tax purposes for offshore income gains accruing to a charitable trust.

(6B) If property held on charitable trusts ceases to be subject to charitable trusts and that property represents directly or indirectly an offshore income gain, the trustees shall be treated as if they had disposed of and immediately reacquired that property for a consideration equal to its market value, any gain (calculated in accordance with Schedule 28) accruing being treated as an offshore income gain not accruing to a charity.

(6C) In this section “charity” and “charitable company” have the same meaning as in section 506 and “market value” has the same meaning as in the 1992 Act.”

180 In section 762 (offshore income gains accruing to persons resident or domiciled abroad)—

(a) in subsection (5)—

(i) in paragraph (a) for “sections 739 and 740” substitute “Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad)”, and

(ii) in paragraph (b) for “those sections” substitute “that Chapter”, and

(b) in subsection (6) for “section 739 or 740 above” substitute “Chapter 2 of Part 13 of ITA 2007”.

181 In section 763 (deduction of offshore income gain in determining capital gain) for subsection (8) substitute—

“(8) For the purposes of subsection (7)(b) above, whether the person who made the disposal is connected with another person is determined in accordance with section 839.”

182 Omit section 775 (sale by individual of income derived from his personal activities).

183 In section 775A(4)(c) (transfer of rights to receive annual payments) for “(annual payments that are not charges on income)” substitute “(certain annual payments not to form part of the income of a company for corporation tax purposes)”.

184 (1) Amend section 776 (transactions in land: taxation of capital gains) as follows.

(2) In subsection (1) for “persons” substitute “companies”.

(3) In subsection (3)—

(a) for “Tax Acts” substitute “Corporation Tax Acts”, and

(b) for “person by whom” substitute “company by which”.

(4) In subsection (3A) omit paragraph (a).

(5) Omit subsection (3B).

(6) In subsection (6)—

(a) in paragraph (a)—

(i) omit “Part 2 of ITTOIA 2005 or”, and

(ii) for “person” substitute “company”, and

(b) in paragraph (b) omit from “section 158” to “be)”.

(7) In subsection (7)—

(a) omit “Part 2 of ITTOIA 2005 or”, and

(b) for “person who” substitute “company which”.

(8) In subsection (8)—

(a) for “some other person” substitute “another person which is a company”, and

(b) for “that other person” substitute “that company”.

(9) Omit subsection (9).

(10) In subsection (11)—

(a) for “person” wherever it occurs substitute “company”,

(b) for “who” substitute “which”,

(c) for “he”, in the first two places where it occurs, substitute “it”, and

(d) for “his”, in the first place where it occurs, substitute “its”.

185 (1) Amend section 777 (provisions supplementary to sections 775 and 776) as follows.

(2) In subsection (1) for the words from “sections 775” to the end substitute “section 776”.

(3) In subsection (2)—

(a) for “the relevant provisions” substitute “section 776 and this section”, and

(b) for “sections 775 and 776” substitute “section 776”.

(4) In subsection (4) for “the relevant provisions” substitute “section 776 and this section”.

(5) In subsection (6)—

(a) for “the relevant provisions” substitute “section 776 and this section”, and

(b) for “sections 775 and 776” substitute “section 776”.

(6) In subsection (7) for “the relevant provisions” to “receipts)” substitute “section 776 and this section”.

(7) In subsection (8)—

(a) for “a person” substitute “a company”,

(b) for “tax under the relevant provisions” substitute “corporation tax under section 776”,

(c) in paragraph (a) for “he”, in both places where it occurs, substitute “it”,

(d) in paragraph (b) for “the person”, in both places where it occurs, substitute “the company”, and

(e) omit the second sentence.