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178.Paragraph 5 allows for private rights of way to be temporarily suspended and provides that compensation may be payable to anyone who suffers loss as a result of any such extinguishment, with any disputes about such compensation to be determined under the Land Compensation Act 1961.
179.Paragraph 6 makes provisions for the arrangements for the enforcement of any possession required under the paragraph, should the owner or occupier of the land in question refuse to give up possession of it or hinder the taking of possession. It makes similar provision to that applying to the taking of possession following notice of entry on a compulsory purchase.
180.Part 1 sets out in a table the purposes for which certain land may be acquired. The land identified in columns (1) and (2) may be acquired or used for the purpose set out in column (3). This table therefore gives an indication of the purposes for which certain parcels of land may be acquired or used (for example, utility diversions, means of access, or for a worksite).
181.Paragraphs 1, 2 and 3 provide that the Lands Clauses Consolidation Act 1845 will not apply to the compulsory acquisition of land under the Act. Instead, Part 1 of the Compulsory Purchase Act 1965 is to apply, as it applies to a compulsory purchase order to which Schedule 1 to the Acquisition of Land Act 1981 applies, and as if the Act were a compulsory purchase order under the 1981 Act. However, section 4 of the 1965 Act is not to apply and section 11 of and Schedule 3 to the 1965 Act are to have effect with the amendments mentioned in paragraph 3(3) and (4). These amendments extend the normal time period between notice to treat and entering and taking possession of land from 14 days to one month (in the case of subsoil, or where an easement or other right only is sought) and from 14 days to three months (in the case of all other land).
182.Paragraphs 4 and 5 provide that the Compulsory Purchase (Vesting Declarations) Act 1981, an alternative means of obtaining land the subject of compulsory purchase, is to apply with modifications as if the Act were a compulsory purchase order. Similar amendments to the application of the 1981 Act as can be found in paragraph 5 of Schedule 4 to the Channel Tunnel Rail Link Act 1996 are also made.
183.Paragraphs 6 and 7 allow for the Secretary of State, instead of acquiring all of a person’s interests in land outright, to have the power to acquire compulsorily easements and other rights for any purpose for which the land may be acquired, by creating new easements or rights. Where a new right is created, the Compulsory Purchase Act 1965 as applied by the Act is to have effect subject to the modifications mentioned in paragraph 7.
184.Paragraph 8 sets out land where, in order to reduce blight, rights of way only over land may be obtained. In such cases the Secretary of State is not to have power to acquire the land itself.
185.Paragraph 9 sets out land where, because it is railway land comprised in the Heathrow Express Railway or needed for access to such land, rights only over land may be obtained. In this case, the rights that may be acquired are limited to rights of access to, or passage along, the existing railway.
186.Paragraph 10 sets out land where the compulsory purchase power in section 6 is limited to only so much of the land in question as is described in the table in the paragraph. These limitations are intended to reduce blight.
187.Paragraph 11 gives the Secretary of State the power to acquire subsoil only, without being required to acquire any greater interest in any other part of the land. Certain of the land shown on the deposited plans is required for underground running tunnels and ancillary works which will be more than 9 metres deep. In these cases it is proposed that only the subsoil of the land may be taken (that is, where it is at a depth of more than 9 metres below the surface of the land). A table of this “subsoil only” land is included in the paragraph.
188.Paragraph 12 sets out further land where the compulsory purchase power in section 6 is limited to rights of way or subsoil more than 9 metres below the surface only.
189.Paragraph 13 allows the Secretary of State, by order, to provide that new rights may be acquired by such persons as are specified in the order. Some of the land within the Act limits, particularly that outside the limits of deviation but within the limits of land to be acquired or used, is intended to be used for the purposes of diverting statutory undertakers’ apparatus. For apparatus placed underground, it would be common for this to be done by the acquisition of easements by the utility concerned, rather than by acquiring the land outright. This paragraph permits this.
190.Paragraphs 14, 15 and 16 provide, as is traditional in Acts providing for the acquisition of land, an alternative procedure to that set out in section 8(1) of the Compulsory Purchase Act 1965 relating to the acquisition of part only of certain properties. This alternative procedure would have to be invoked by appending the alternative provisions to the relevant notice to treat when it is served.
191.Paragraph 17 applies the provisions about minerals applying to compulsory purchase orders in Schedule 2 to the Acquisition of Land Act 1981.
192.Paragraphs 18 and 19 set out the arrangements to apply if the Secretary of State extends the time limit for the exercise of compulsory purchase powers under section 6(7).
193.Paragraph 20 applies section 4 of the Acquisition of Land Act 1981, which deals with situations where unnecessary things have been done to obtain compensation or increased compensation, as if the Act were a compulsory purchase order for the purposes of the 1981 Act.
194.Paragraph 1 requires the Secretary of State, by means of an order, to name “qualifying authorities” for the purposes of Schedule 7. These are the eighteen local planning authorities which, by the time the Select Committee in the House of Lords had reported, had given the Secretary of State satisfactory undertakings about the handling of planning applications (set out in a Planning Memorandum developed with local authorities). A similar arrangement was adopted for the planning aspects of the Channel Tunnel Rail Link.
195.Paragraph 1 also allows the Secretary of State to make orders revoking the conferring of “qualifying authority” status and to make subsequent naming orders in certain circumstances. Before making such an order, the Secretary of State is to consult the nominated undertaker and, if it is not the body requesting the order, the relevant local planning authority.
196.Paragraph 2 allows for any order under paragraph 1 to set out any transitional arrangements that may be necessary (for example, were a local planning authority to cease to be a qualifying authority for the purposes of the Act whilst a number of undetermined planning applications were before it).
197.Paragraph 3 establishes Part 2 as the regime to apply in respect of development carried out in the area of unitary authorities (for example, those local planning authorities in London).
198.Paragraph 4 establishes the circumstances in which the planning conditions for which the Part provides apply, different conditions applying, in general, according to whether the development is in the area of a non-qualifying or qualifying authority.
199.Paragraph 5 provides for certain matters of detail to be the subject of requests for the approval of the non-qualifying unitary authorities and provides that the only grounds on which they can refuse a request is that the development to which it relates should and could reasonably be carried out elsewhere within Act limits, or that the design or external appearance of any building to which they relate ought to be modified to preserve the local environment or amenity, and is capable of being reasonably modified to do so.
200.Paragraph 6 provides for certain matters of detail to be the subject of requests for the approval of the qualifying unitary authorities and sets out the grounds on which such authorities can refuse a request. The list of operations and works includes construction works, minor constructions works, fences and walls, artificial lighting, waste and spoil disposal and borrow pits.
201.Paragraph 7 sets out construction arrangements over which a qualifying unitary authority shall have some control, including road transport, the handling of re-useable spoil and top soil, storage sites, construction camps, screening, artificial lighting, the suppression of dust and mud on the highway.
202.Paragraph 8 provides that for the disposal of waste or spoil, or the excavation of bulk materials from borrow pits, no disposal or excavation shall commence unless the nominated undertaker has first agreed with a qualifying unitary authority a scheme for the restoration of the land on which the disposal or excavation is to take place. The only ground on which the authority can refuse to agree such a scheme is that the scheme ought to be modified, and is reasonably capable of being so modified.
203.Paragraphs 9 and 10 provide for a qualifying unitary authority to grant approval before any Crossrail works are brought into use, other than for stations, depots and the tunnelled sections of Crossrail. That approval is to be granted if the authority considers that no reasonably practicable measures to mitigate the effect on the local environment or amenity are necessary, or it has agreed a scheme for such measures.
204.Paragraph 11 provides for any land used for construction purposes with respect to the scheduled works, where other restoration provisions of the Act do not apply to it, to be restored in accordance with a scheme agreed with the unitary authority. If no scheme is so agreed within 6 months of completion of the scheduled works concerned, the scheme is determined by the appropriate Ministers. This provision applies to both qualifying and non-qualifying unitary authorities.
205.Paragraph 12 establishes Part 3 as the regime to apply to development carried out in non-unitary authority areas (for example, Essex). Responsibility for such development is split between district councils and the county council. The Part therefore provides for conditions which apply to the development for which district councils are responsible and conditions which apply to the development for which the county council is responsible.
206.Paragraph 13 establishes the circumstances in which the district planning conditions for which the Part provides apply, different conditions applying, in general, according to whether the development is in the area of a non-qualifying district council or qualifying district council. Paragraph 14 and 15 apply do not apply in relation to certain development, referred to in this paragraph as “excepted development”. The development in question is development for which the county council is responsible (and in relation to which the corresponding conditions found in paragraphs 21 and 22 apply).
207.Paragraph 14 provides for certain matters of detail to be the subject of requests for the approval of the non-qualifying district councils and the only grounds on which they can refuse a request is that the development to which it relates should and could reasonably be carried out elsewhere within Act limits, or that the design or external appearance of any building to which they relate ought to be modified to preserve the local environment or amenity, and is capable of being reasonably modified to do so.
208.Paragraph 15 provides for certain matters of detail to be the subject of requests for the approval of the qualifying district council and sets out the grounds on which a qualifying district council can refuse a request. The list of operations and works includes construction works, minor constructions works, fences and walls and artificial lighting.
209.Paragraph 16 sets out construction arrangements over which a qualifying district council shall have some control, including storage sites, construction camps, screening, artificial lighting, the suppression of dust and mud on the highway.
210.Paragraphs 17 and 18 provide for a qualifying district council to grant approval before any Crossrail works are brought into use, other than for stations, depots and the tunnelled sections of Crossrail. That approval is to be granted if the council considers that no reasonably practicable measures to mitigate the effect on the local environment or amenity are necessary, or it has agreed a scheme for such measures.
211.Paragraph 19 provides for any land used for construction purposes with respect to the scheduled works, where other restoration provisions of the Act do not apply to it, to be restored in accordance with a scheme agreed with the district council. If no scheme is so agreed within 6 months of completion of the scheduled works concerned, the scheme is determined by the appropriate Ministers. This provision applies to both qualifying and non-qualifying district councils.
212.Paragraph 20 establishes the circumstances in which the country planning conditions for which the Part provides apply. The conditions only apply if the county council concerned is a qualifying authority.
213.Paragraph 21 sets out the conditions that may be applied to requests for the approval of details in respect of a qualifying county council for the disposal of waste or spoil, or the excavation of bulk materials from borrow pits.
214.Paragraph 22 sets out construction arrangements over which a qualifying county council shall have some control, including storage sites, construction camps, screening, artificial lighting, the suppression of dust and mud on the highway.
215.Paragraph 23 provides that for the disposal of waste or spoil, or the excavation of bulk materials from borrow pits, no disposal or excavation shall commence unless the nominated undertaker has first agreed with the qualifying county council a scheme for the restoration of the land on which the disposal or excavation is to take place. The only ground on which the council can refuse to agree such a scheme is that the scheme ought to be modified, and is reasonably capable of being so modified.
216.Paragraph 24 provide for a qualifying county council to have some control over the routes by which heavy goods vehicles travel by road to and from working and storage sites, sites where material might be re-used, and waste disposal sites.
217.Paragraph 25 provides that the local planning authority is not required to entertain a request for detailed planning permission unless the nominated undertaker has first submitted to that authority a programme of the permissions it intends to seek from the authority in question, and an explanation of how the matters dealt with in the permission sought fit into the wider Crossrail scheme.
218.Paragraph 26 sets out a process for local planning authorities, where they consider a request for detailed planning permission relates to matters which may affect nature conservation, the conservation of the natural beauty or amenity of the countryside, or a site of archaeological or historic interest, to seek the views of Natural England or the Historic Buildings and Monuments Commission for England (commonly known as English Heritage), as appropriate. Those bodies are to have 21 days to comment on any such request.
219.Paragraph 27 sets out a similar consultation provision in respect of the Environment Agency.
220.Paragraphs 28 and 29 set out a mechanism for the Secretary of State for Transport, and the Secretary of State for Communities and Local Government, acting jointly, to issue directions either restricting a local planning authority’s powers under the Schedule, or to “call-in” a particular request for approval under the Schedule.
221.Paragraphs 30-35 set out a mechanism for the nominated undertaker to appeal decisions by local planning authorities under the Schedule to the Secretary of State for Transport, and the Secretary of State for Communities and Local Government, acting jointly.
222.Paragraph 36 empowers the Secretary of State, by order subject to negative resolution, to amend Schedule 7 to allow the Olympic Delivery Authority to become a “qualifying authority” in connection with Crossrail. A qualifying authority is a local planning authority which has given the Secretary of State undertakings concerning the handling of planning applications for Crossrail.
223.Section 15 of the Act allows statutory undertakers to rely on their own permitted development rights for works they carry out in relation to Crossrail, provided that the significant impacts of such diversions have been environmentally assessed for the purpose of the project as a whole. However, Schedule 8 enables the Secretary of State to intervene in this process for the purposes of avoiding a breach of a relevant Parliamentary undertaking or securing that the environmental effects of carrying out the development are not materially different from those assessed.
224.Paragraph 1 provides the power for the Secretary of State to intervene to impose conditions on such development.
225.Paragraphs 2 and 3 provide a further power for the Secretary of State to intervene in respect of proposed development where he is of the opinion that such development has not been the subject of environmental assessment or where it appears to the Secretary of State that a Parliamentary undertaking may be broken. The effect of this intervention is that the utility developer’s deemed planning permission for such works is suspended or liable to revocation.
226.Paragraphs 4-6 provide a mechanism for notifying the concerned developer and responsible planning authority of the Secretary of State’s intervention and the reasons for it.
227.Schedule 9 essentially disapplies the normal heritage protections provided in respect of listed buildings, buildings in conservation areas, and ancient monuments, that might be affected by the Crossrail works. Notwithstanding these disapplications, detailed arrangements were agreed with English Heritage during the passage of the Bill in respect of the relatively small number of such buildings etc likely to be significantly affected.
228.Paragraph 1 lists in a table the buildings affected, and provides that in relation to the Crossrail works, if a listed building had been listed immediately before 15th December 2004 and is specified in the table:
section 7 of the Planning (Listed Buildings and Conservation Areas) Act 1990 should not apply;
to the extent that a notice issued in relation to the building under section 38(1) of that Act requires the taking of steps which would be rendered ineffective or substantially ineffective by works proposed to be carried out in exercise of the powers conferred by the Act , it should not have effect or cease to have effect;
no steps may be taken under section 42(1) of that Act which would be rendered ineffective or substantially ineffective by such works and;
no works may be executed for the preservation of the building under section 54 of that Act which will be rendered ineffective or substantially ineffective by such works.
229.The same disapplications apply to any building which was not a listed building before 15th December 2004 but is listed on or after that date.
230.The table also lists buildings which are situated in a conservation area but are not listed buildings. In relation to these buildings, section 74 of the Planning (Listed Buildings and Conservation Areas) Act 1990 is disapplied with respect to their demolition if the demolition is in exercise of the powers conferred by the Act. A similar disapplication applies in relation to a building within an area which becomes a conservation area on or after 15th December 2004.
231.Paragraph 2 deals with listed buildings which may be affected by settlement. In relation to these buildings similar disapplications as those above apply, save that the disapplication of section 7 of the Planning (Listed Buildings and Conservation Areas) Act 1990 would only apply to works for the alteration or extension of the building which are carried out in exercise of powers conferred by the Act for the purpose of maintaining or restoring its character as a building of special architectural or historical interest.
232.Paragraph 3 provides that section 59 of the Planning (Listed Buildings and Conservation Areas) Act 1990 does not apply to anything done in exercise of the powers conferred by the Act with respect to works.
233.Paragraph 4 modifies the application of the Ancient Monuments and Archaeological Areas Act 1979 (“the 1979 Act”) in respect of Crossrail works:
section 2 of the 1979 Act does not apply to any works authorised by the Act ;
the powers of entry conferred by sections 6(1), 6A(1) and 26 are not to be exercisable in relation to land used for or in connection with the carrying out of such works;
the provisions of the 1979 Act with respect to functions of a person as a guardian, and the provisions of any agreement under section 17, are to have effect subject to the powers conferred by the Act with respect to works;
section 19 is not to apply in relation to a monument which is closed by the nominated undertaker for the purposes of, in connection with, or in consequence of the carrying out of any of the Crossrail works;
regulations under subsection (3) or (4A) of that section are not to apply to the Crossrail works, and the power conferred by subsection (6) of that section is not to be exercisable so as to prevent or restrict the exercise of such powers;
in section 25 of the 1979 Act, subsection (2) is not to authorise the superintendence of the carrying out of any of the Crossrail works, and subsection (3) is not to apply in relation to advice given in connection with the carrying out of any of those works;
section 28 is not to apply to anything done in exercise of the powers conferred by the Act with respect of works.
section 35 is likewise not to apply to operations carried out in the exercise of those powers.
section 39(1) is to have effect as if operations carried out in exercise of those powers were exempt operations; and
subsection (1) of section 42 is not to apply to the use of a metal detector for the purposes of or in connection with the Crossrail works, and subsection (3) of that section is likewise not to apply to the removal of objects discovered by the use of a metal detector for those purposes.
234.Paragraph 5 modifies the application of the National Heritage Act 1983 to the Crossrail works. The power of entry conferred by section 36(1) of the 1983 Act is only to be exercisable in relation to land used, or intended for use, for or in connection with the Crossrail works with the consent of a nominated undertaker, such consent not to be unreasonably withheld. Such consent may be given subject to compliance with any reasonable requirements or conditions imposed for reasons of safety or for the purpose of preventing interference with or delay to the works. Any disputes about this are to be determined by the appropriate Ministers unless the parties agree to arbitration. For this purpose the appropriate Ministers means the Secretary of State for Transport and the Secretary of State for Culture, Media and Sport, acting jointly. And subsection (6) of section 36 of the 1983 Act, which regulates the right to enter land for the purposes of record keeping, is not to apply to land on which works authorised by the Act are being carried out.
235.Schedule 10 seeks to give certain targeted rights of entry to English Heritage, given that their traditional rights of entry are in effect disapplied or qualified by virtue of Schedule 9.
236.Paragraph 1 provides for anyone authorised by the Historic Buildings and Monuments Commission (“the Commission”) to enter land on which a scheduled monument is situated to inspect, advise and observe as appropriate. Anyone authorised by the Commission may also enter any land in Greater London for the purpose of inspecting or observing the works in respect of any building that would, but for Schedule 9, require listed building consent or conservation area consent. These rights are not to be exercised if the nominated undertaker considers that it not safe to do so, and any person exercising the rights will have to comply with directions from the nominated undertaker in respect of compliance with health and safety requirements.
237.Paragraph 2 requires the nominated undertaker to give notice to the Commission of any demolition of any building that they would, but for Schedule 9, require listed building consent. At least eight weeks notice is required, longer if agreed with the Commission, though in cases of emergency shorter notice can be given.
238.Paragraph 3 provides for anyone authorised by the Commission to enter the building concerned to record it in advance of any such demolition. Again, this right is not to be exercised if the nominated undertaker considers that it not safe to do so, and any person exercising the right will have to comply with directions from the nominated undertaker in respect of compliance with health and safety requirements.
239.Paragraph 1 disapplies the Highway (Railway Crossings) Act 1839, as it is not proposed to install level crossings of highways on Crossrail.
240.Paragraph 2 disapplies section 9 of the Railway Regulation Act 1842 for the same reason.
241.Paragraph 3 incorporates within the Act the provisions of the Railways Clauses Consolidation Act 1845, so far as applicable for its purposes and not inconsistent with its provisions, with exceptions and modifications.
242.Paragraph 4 incorporates within the Act the provisions of Part 1 of the Railways Clauses Act 1863, so far as applicable for its purposes and not inconsistent with its provisions. Sections 5 to 7 and 13 to 19 of the 1863 Act are to be excepted from incorporation.
243.Paragraph 5 disapplies the Railway Companies (Accounts and Returns) Act 1911.
244.Paragraph 6 applies section 55 and 56 of the British Transport Commission Act 1949 (provisions dealing with trespass on railways and stone throwing) to relevant railway works constructed under the Act .
245.Paragraph 7 modifies the application to Crossrail of various provisions of railway legislation that create a range of offences (such as failure to pay) so that they apply in a similar way to Crossrail as they do to the railways of Network Rail Infrastructure Limited and to the London Underground system.
246.Parts 1, 2 and 3 set out the powers of the Secretary of State to make schemes for the transfer of property, rights and liabilities (“transfer schemes”) from himself or certain other bodies to any person, including the Secretary of State.
247.Paragraph 1 allows for transfers from Cross London Rail Links Limited (“CLRL”) or any of its subsidiaries. The Secretary of State is required to consult CLRL before making any such scheme.
248.Paragraph 2 allows for transfers from the Greater London Authority, the London Development Agency or Transport for London or any of their subsidiaries. The Secretary of State may exercise this power only for the purposes connected with Crossrail and only with the consent of the transferor.
249.Paragraph 3 allows for transfers from the Secretary of State, or a company wholly owned by him, as defined, to anyone else. The transfer must be for purposes connected with Crossrail. By virtue of paragraph 4, transfer schemes can also be used to enable the simple grant of new land interests to happen by way of a transfer scheme where this occurs independently of any broader transfer.
250.Paragraph 5 specifies certain types of property, rights and liabilities that may be included in a transfer scheme.
251.Paragraph 6 provides that where property is transferred by transfer scheme new interests, or rights may be created in relation to that property in favour of the person from whom it has been transferred. Conversely, new interests and rights may be created in favour of the person to whom property has been transferred in relation to property that has been retained or transferred to another party. Transfer schemes may also create rights and liabilities between parties affected by a transfer scheme.
252.Paragraph 7 provides that what is transferred by, or retained following, a transfer scheme may be named specifically or simply described.
253.Paragraph 8 allows for a transfer scheme to make provision for contraventions of any terms applicable to the things transferred to be treated as not occurring. This will allow for the transfer of property, rights or liabilities that would otherwise not be transferable.
254.Paragraph 9 provides for the transfer of shares in a subsidiary of the transferor not to be subject to any terms in relation to the transfer of those shares.
255.Paragraphs 10 and 11 provide that a transfer scheme may modify the interests, rights and liabilities of third parties in relation to the things to be transferred.
256.Paragraph 12 provides that a transfer scheme may impose obligations on the person to whom or from whom things are transferred to enter into agreements with and to execute instruments in favour of any other person specified in the scheme.
257.Paragraph 13 provides for transfer schemes to contain supplementary provisions.
258.Paragraph 14 provides for a transfer scheme to have effect at the time or times set out in the scheme.
259.Paragraph 15 allows for a transfer scheme to be modified if the parties to it, or certain other parties, agree. Modifications can have effect from the date of the scheme, or later.
260.Paragraph 16 provides for continuity of employment for employees who transfer as a part of any transfer scheme.
261.Paragraphs 17and 18 allow the Secretary of State to issue a direction requiring information to be provided by the relevant parties to enable him to make a transfer scheme, require that a direction must set out the a timescale for responding of no more than 28 days and describe what happens if the parties to whom a direction is given do not respond.
262.Paragraph 19 would enable the Secretary of State to agree, in advance of making a transfer scheme, whether and in what circumstances she would make a transfer scheme under Schedule 12.
263.This Schedule makes provision relating to tax consequences that could otherwise arise in relation to the transfers of property, rights and liabilities under transfer schemes made under Schedule 12. Broadly, it ensures that inappropriate tax charges and reliefs are not triggered solely as a result of a transfer scheme and provides continuity of tax treatment, where appropriate. References below to “transferors” and “transferees” are with reference to transfer schemes made under Schedule 12.
264.Paragraph 1 defines the meaning of “public body” for the purposes of the Schedule and adopts the Stamp Duty Land Tax definition in section 66 of the Finance Act 2003.
265.Paragraph 2 defines the meaning of “taxable public body” and “exempt public body” for the purposes of the Schedule.
266.Paragraph 3 contains supplementary provision on interpretation.
267.Part 2 of the Schedule (Paragraphs 4 – 16) contains provisions about the corporation tax treatment of taxable public bodies relating to transfers between taxable public bodies of property, rights and liabilities which happen under transfer schemes.
268.Paragraph 4 defines the meaning of a “relevant transfer” for the purposes of Part 2.
269.Paragraph 5 provides for continuity in the treatment of the computation of profits and losses of a trade where the transferor ceases to carry on that trade and the transferee begins to carry on the trade, or part of it.
270.Paragraph 6 applies where trading stock of the transferor is transferred to the transferee but the transferee does not succeed to the transferor’s trade, or part of it. For corporation tax purposes the stock is treated as being disposed of for an amount that would result in no profit or loss being brought into account for the transferor.
271.Paragraph 7 provides for continuity of treatment for capital allowances where the transferor ceases to carry on a trade and the transferee begins to carry on that trade.
272.Paragraph 8 provides that where the trade transferred is carried on as part of the trade of the successor, or the successor carries on part of the trade, that part is to be treated as a separate trade for the purposes of paragraph 7.
273.Paragraph 9 applies to transfers of plant and machinery where these are not transferred with a trade. This paragraph ensures that the disposal value to be brought into account for the transferor, and the amount of capital expenditure regarded as incurred by the transferee, is the value of the plant and machinery, or fixture, specified in, or determined in accordance with, the transfer scheme.
274.Paragraph 10 provides that a transfer of an industrial building will not be treated as a sale in order that that there is continuity of treatment for industrial building allowance.
275.Paragraph 11 determines that for capital gains purposes, the disposal value and acquisition cost of an asset transferred is the amount that would result in no gain or loss accruing to the transferor.
276.Paragraph 12 ensures continuity of treatment where a depreciating asset is transferred and a held-over gain would otherwise crystallise.
277.Paragraph 13 ensures continuity of treatment for transfers of intangible assets by treating a relevant transfer of a chargeable intangible asset as a “tax-neutral transfer” and preserving the status of an intangible asset that was an “existing asset” in the hands of the transferor.
278.Paragraph 14 ensures continuity of treatment for loan relationships in relation to a relevant transfer by treating the transferor and transferee as members of the same group at the time of the transfer.
279.Paragraph 15 ensures continuity of treatment for derivative contracts in relation to a relevant transfer by treating the transferor and transferee as members of the same group at the time of the transfer.
280.Paragraph 16 ensures that no deemed charge arises for the transfer of certain leased assets and provides continuity of treatment for certain leased assets.
281.Part 3 of the Schedule (paragraphs 17- 25) contains provisions about the corporation tax treatment of taxable public bodies relating to transfers from taxable public bodies to exempt public bodies of property, rights and liabilities under transfer schemes.
282.Paragraph 17 defines the meaning of a “relevant transfer” for the purposes of Part 3.
283.Paragraph 18 ensures that, for the purpose of computing the profits of the transferor’s trade, the disposal value of any trading stock transferred is the actual consideration, if any, given to the transferor, or a person connected with the transferor.
284.Paragraph 19 determines the disposal value of plant and machinery for capital allowance purposes. The disposal value is the capital sum, if any, received by the transferor, or a person connected with the transferor.
285.Paragraph 20 determines the disposal value of a fixture for capital allowance purposes. The disposal value is that portion of the capital sum, if any, received by the transferor or a person connected with the transferor, that would be treated as expenditure incurred by the transferee on the fixture if the transferee was entitled to an allowance.
286.Paragraph 21 determines that the transfer of an industrial building is to be treated as a sale for industrial building allowance purposes and that the sale proceeds are the capital sum, if any, received by the transferor, or a person connected with the transferor. This paragraph is subject to section 36 of the Finance Act 2007. In practice this means that a balancing adjustment would only be computed where qualifying enterprise zone expenditure had been allowed in respect of the building transferred.
287.Paragraph 22 determines that the disposal value, for capital gains purposes, of an asset transferred is the amount that would result in no gain or loss accruing to the transferor.
288.Paragraph 23 provides that the transfer of a chargeable intangible asset should not be treated as involving any realisation of the asset by the transferor with the effect that no gain or loss would arise for corporation tax purposes.
289.Paragraph 24 provides that no credit or debit shall be brought into account for a relevant transfer for the purposes of the loan relationships and derivative contracts rules with the effect that no profit or loss would arise for corporation tax purposes.
290.Paragraph 25 ensures that no deemed charge arises for the transfer of certain leased assets.
Crossrail Act 2008