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SCHEDULE 2 continued
61 In section 73(1) (death of life tenant: exclusion of chargeable gain), for “6th April 1965” substitute “31 March 1982”.
62 In section 175(2C) (replacement of business assets by member of group), for “enactments specified in section 35(3)(d)” substitute “no gain/no loss provisions”.
63 In section 288 (interpretation), after subsection (3) insert—
“(3A) For the purposes of this Act, the following are “the no gain/no loss provisions”—
(a) sections 58, 73, 139, 140A, 140E, 171, 211, 215, 216, 217A, 218 to 221, 257(3), 258(4), 264 and 267(2) of this Act;
(b) section 148 of the 1979 Act;
(c) section 148 of the Finance Act 1982;
(d) section 130(3) of the Transport Act 1985;
(e) section 486(8) of the Taxes Act;
(f) paragraph 2(1) of Schedule 7 to the Broadcasting Act 1996;
(g) paragraphs 3 and 9 of Schedule 26 to the Transport Act 2000;
(h) paragraphs 3, 18, 29 and 32 of Schedule 9 to the Energy Act 2004;
(i) paragraph 9 of Schedule 4 to the Consumers, Estate Agents and Redress Act 2007.”
64 (1) Schedule 2 (assets held on 6 April 1965) is amended as follows.
(2) Omit paragraph 1(3).
(3) In paragraph 4—
(a) omit sub-paragraph (6),
(b) in sub-paragraph (8), for “him” substitute “the person”,
(c) in sub-paragraph (9)—
(i) for “either section 58 or” (in both places) substitute “section”,
(ii) omit “the spouse or civil partner of the holder, or”, and
(iii) for “him” substitute “the holder”,
(d) in sub-paragraph (10)(a), for “he” (in both places) substitute “the person”, and
(e) in sub-paragraph (11), omit—
(i) paragraph (a),
(ii) in paragraph (b), “in the case of an election for the purposes of corporation tax,”, and
(iii) in paragraph (c), “in either case,”.
(4) In paragraph 17(3) omit—
(a) paragraph (a),
(b) in paragraph (b), “in the case of an election for the purposes of corporation tax,”, and
(c) in paragraph (c), “in either case,”.
(5) Omit paragraph 22.
65 (1) Schedule 3 (assets held on 31 March 1982) is amended as follows.
(2) In paragraph 1—
(a) in sub-paragraph (1)—
(i) for “Where—” substitute “For the purposes of corporation tax, where—”, and
(ii) for “he” (in each place) substitute “the person”, and
(b) in sub-paragraph (2), for “enactments specified in section 35(3)(d)” substitute “no gain/no loss provisions”.
(3) In paragraph 2(1) and (3), omit “58 or”.
66 In paragraph 7 of Schedule 4 (deferred charges on pre-31 March 1982 gains), for “enactments specified in section 35(3)(d)” substitute “no gain/no loss provisions”.
67 In paragraph 7 of Schedule 4ZA (sub-fund settlements), for “sections 104(1) and 109(2)(a)” substitute “section 104(1)”.
68 In paragraph 12(b) of Schedule 7A (restriction on set-off or pre-entry losses), for “enactment specified in section 35(3)(d)” substitute “of the no gain/no loss provisions”.
69 (1) FA 1997 is amended as follows.
(2) In section 89(8)(a) (earn-out rights), for “enactments specified in section 35(3)(d) of that Act” substitute “no gain/no loss provisions (within the meaning of that Act: see section 288(3A) of that Act)”.
(3) In paragraph 7(1)(b) of Schedule 12 (leasing arrangements: finance leases and loans), for “enactments specified in section 35(3)(d) of the Taxation of Chargeable Gains Act 1992” substitute “no gain/no loss provisions (within the meaning of the Taxation of Chargeable Gains Act 1992: see section 288(3A) of that Act)”.
70 In consequence of paragraphs 57 to 69, omit—
(a) in F(No.2)A 1992—
(i) section 46(2),
(ii) paragraph 21(2) of Schedule 9, and
(iii) paragraph 5(9) of Schedule 17,
(b) in FA 1994—
(i) paragraph 2(2) of Schedule 24, and
(ii) paragraph 4(3) of Schedule 25,
(c) paragraph 2(3) of Schedule 4 to the Coal Industry Act 1994 (c. 21),
(d) paragraph 3 of Schedule 7 to the Broadcasting Act 1996 (c. 55),
(e) in the Transport Act 2000 (c. 38)—
(i) paragraph 2(3) of Schedule 7, and
(ii) paragraph 37 of Schedule 26,
(f) paragraph 36 of Schedule 9 to the Energy Act 2004 (c. 20),
(g) paragraph 33 of Schedule 10 to the Railways Act 2005 (c. 14),
(h) section 59(2) of F(No.2)A 2005,
(i) paragraph 14(3) of Schedule 9 to FA 2007, and
(j) paragraph 11 of Schedule 7 to the Consumers, Estate Agents and Redress Act 2007 (c. 17).
71 The amendments made by paragraphs 57 to 70 have effect in relation to disposals on or after 6 April 2008.
72 TCGA 1992 is amended as follows.
73 In section 36 (reduction of deferred charges where wholly or partly attributable to pre-31 March 1982 increase in value), for “tax” substitute “corporation tax in respect of chargeable gains”.
74 (1) Schedule 4 (deferred charges on pre-31 March 1982 gains) is amended as follows.
(2) Before paragraph 1 insert—
A1 This Schedule applies only for the purposes of corporation tax.”
(3) In paragraph 2(5), omit—
(a) “, 162, 165”, and
(b) “of this Act and section 79 of the Finance Act 1980”.
(4) In paragraph 4(2), omit “168 (as modified by section 67(6)),”.
(5) In paragraph 9(1), omit—
(a) in paragraph (b), “in the case of a disposal made by, or a gain treated as accruing to, a person chargeable to corporation tax,”,
(b) paragraph (c), and
(c) “or (as the case may be) on or before such later date”.
75 In consequence of paragraph 74, omit paragraph 43 of Schedule 21 to FA 1996.
76 The amendments made by paragraphs 72 to 75 have effect in relation to disposals which occur on or after 6 April 2008 and to which Schedule 4 to TCGA 1992 would otherwise apply.
77 TCGA 1992 is amended as follows.
78 At the beginning of Chapter 4 of Part 2 (indexation allowance), insert—
This Chapter applies only for the purposes of corporation tax.”
79 In section 53 (indexation allowance), omit—
(a) subsection (1A), and
(b) in subsection (4), “, 110A”.
80 (1) Section 54 (calculation of indexation allowance) is amended as follows.
(2) In subsection (1), for “the relevant month” substitute “the month in which the disposal occurs”.
(3) Omit subsection (1A).
81 (1) Section 145 (call options: indexation allowance) is amended as follows.
(2) In subsection (1), omit “(subject to subsection (1A) below)”.
(3) Omit subsection (1A).
82 In consequence of the amendments made by paragraphs 77 to 81, omit section 122(1) to (3) and (5) of FA 1998.
83 The amendments made by paragraphs 77 to 82 have effect in computing gains on disposals made on or after 6 April 2008.
84 TCGA 1992 is amended as follows.
85 (1) Section 104 (share pooling: general interpretative provisions) is amended as follows.
(2) For subsections (2) and (2A) substitute—
“(2) For the purposes of corporation tax, subsection (1) does not apply to any securities acquired by a company before 1 April 1982.
(2A) See also sections 105 to 105B and—
(a) section 106A in the case of capital gains tax, or
(b) sections 107 to 114 in the case of corporation tax.”
(3) In subsection (3), omit “, 110A”.
(4) After that subsection insert—
“(3A) For the purposes of capital gains tax section 35(2) applies in relation to a section 104 holding as if the reference to an asset were to any of the securities constituting or forming part of the section 104 holding which were held by the person making the disposal on 31 March 1982.”
(5) In subsection (5), omit “, 110A”.
86 In section 105 (disposal on or before day of acquisition), after subsection (2) insert—
“(3) None of the securities which, by virtue of this section, are identified with other securities shall be regarded as forming part of an existing section 104 holding or as constituting a section 104 holding.”
87 (1) Section 106A (identification of securities: general rules for capital gains tax) is amended as follows.
(2) After subsection (5) insert—
“(5ZA) None of the securities which, by virtue of subsection (5) above, are identified with other securities shall be regarded as forming part of an existing section 104 holding or as constituting a section 104 holding.”
(3) In subsection (6), before “securities” (in each place) insert “relevant”.
(4) Omit subsection (7).
(5) Omit subsection (8).
(6) For subsection (10) substitute—
“(10) In this section—
“securities” means any securities within the meaning of section 104 or any relevant securities, and
“relevant securities” means—
securities within the meaning of Chapter 2 of Part 12 of ITA 2007 (accrued income profits),
qualifying corporate bonds, and
securities which are, or have at any time been, material interests in a non-qualifying offshore fund, within the meaning of Chapter 5 of Part 17 of the Taxes Act.”
(7) In the heading, omit “general rules for”.
88 In the heading of section 107 (identification of securities etc: general rules), insert at the end “for corporation tax”.
89 In the heading of section 108 (identification of relevant securities), insert at the end “for corporation tax”.
90 (1) Section 109 (pre-April 1982 share pools) is amended as follows.
(2) In subsection (1), for “This” substitute “For the purposes of corporation tax, this”.
(3) In the heading, for “Pre-April” substitute “Corporation tax: pre-April”.
91 For the heading of section 110 substitute “Indexation for section 104 holdings for corporation tax”.
92 Omit section 110A (indexation for section 104 holdings: CGT).
93 In the heading of section 112 (parallel pooling regulations), insert at the end “: corporation tax”.
94 (1) Section 113 (calls on shares) is amended as follows.
(2) Before subsection (1) insert—
“(A1) This section has effect for the purposes of corporation tax.”
(3) In the heading, insert at the end “: corporation tax”.
95 (1) Section 114 (consideration for options) is amended as follows.
(2) Before subsection (1) insert—
“(A1) This section has effect for the purposes of corporation tax.”
(3) In the heading, insert at the end “: corporation tax”.
96 In FA 1998, omit—
(a) section 123(1) and (2), and
(b) section 125(2) and (3).
97 Chapter 6 of Part 4 of ITA 2007 (losses on disposals of shares) is amended as follows.
98 (1) Section 147 (limits on share loss relief) is amended as follows.
(2) In subsection (1)(b)—
(a) in sub-paragraph (i), omit “or a 1982 holding” and “or” at the end, and
(b) for sub-paragraph (ii) substitute—
“(ii) at a time earlier than the time of the disposal but after 5 April 2008 formed part of a section 104 holding, or
(iii) at a time earlier than that time and than 6 April 2008 formed part of an old section 104 holding or a 1982 holding, and”.
(3) In subsection (7)—
(a) in the definition of “section 104 holding”, after “1992” insert “and “old section 104 holding” is a holding that was a section 104 holding within the meaning of that provision as it applied in relation to disposals before 6 April 2008”, and
(b) in the definition of “1982 holding”, insert at the end “as it applied in relation to disposals before 6 April 2008”.
99 (1) Section 148 (disposal of shares forming part of mixed holding) is amended as follows.
(2) In subsection (3)(a)(ii), omit “or a 1982 holding”.
(3) In subsection (5), omit “or 1982”.
(4) In subsection (9), for “and “1982 holding” have” substitute “has”.
100 The amendments made by paragraphs 84 to 99 have effect in relation to disposals on or after 6 April 2008.
101 (1) Section 288 of TCGA 1992 (interpretation) is amended as follows.
(2) In subsection (1), for the definition of “year of assessment” substitute—
““year of assessment” means tax year;”.
(3) After that subsection insert—
“(1ZA) In this Act and other enactments relating to capital gains tax “tax year” means a year beginning on 6 April and ending on the following 5 April; and “the tax year 2008-09” means the tax year beginning on 6 April 2008 (and any corresponding expression in which two years are similarly mentioned is to be read in the same way).”
102 In consequence of the amendments made by paragraph 101, omit—
(a) the definition of “tax year” in section 41(1) of FA 2005, and
(b) paragraph 342(2)(i) of Schedule 1 to ITA 2007.
Finance Act 2008