Finance Act 2012
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SCHEDULE 1 Consequential Amendments to Principal Act on Expiration of the Scheme of Relief for Certain Manufacturing Companies | ||
1. In this Schedule “Principal Act” means the Taxes Consolidation Act 1997 . | ||
2. Section 21A of the Principal Act is amended— | ||
(a) in subsection (1) by substituting the following for paragraph (b) of the definition “excepted operations”: | ||
“(b) (i) working scheduled minerals, mineral compounds or mineral substances (within the meaning of section 2 of the Minerals Development Act 1940 ), or | ||
(ii) working minerals (other than those specified in subparagraph (i)) other than so much of working such minerals as is manufacturing, | ||
and”, | ||
(b) by substituting the following for subsection (4): | ||
“(4) This section shall not apply to the profits of a company for any accounting period to the extent that those profits consist of income which arises in the course of any of the following trades— | ||
(a) non-life insurance, | ||
(b) reinsurance, and | ||
(c) life business, in so far as the income is attributable to shareholders of the company.”, | ||
and | ||
(c) by deleting subsection (4A). | ||
3. Principal Act is amended by deleting section 22A. | ||
4. Section 82 of the Principal Act is amended by substituting the following for subsection (3): | ||
“(3) The amount of any expenditure to be treated under subsection (2) as incurred at the time that a trade or profession has been set up and commenced shall not be so treated for the purposes of section 381, 396(2) or 420.”. | ||
5. Section 133 of the Principal Act is amended— | ||
>(a) in subsection (1)(a) by substituting the following for the definitions “agricultural society”, “fishery society” and “specified trade”, respectively: | ||
“ ‘agricultural society’ means a society— | ||
(i) in relation to which both the following conditions are satisfied: | ||
(I) the number of the society’s members is not less than 50, and | ||
(II) all or a majority of the society’s members are persons who are mainly engaged in and derive the principal part of their income from husbandry, | ||
or | ||
(ii) to which a certificate to which this subparagraph applies has been issued; | ||
‘fishery society’ means a society— | ||
(i) in relation to which both the following conditions are satisfied: | ||
(I) the number of the society’s members is not less than 20, and | ||
(II) all or a majority of the society’s members are persons who are mainly engaged in and derive the principal part of their income from fishing, | ||
or | ||
(ii) to which a certificate to which this subparagraph applies has been issued; | ||
‘specified trade’ means, subject to paragraphs (b), (d) and (e), a trade which consists wholly or mainly of the manufacture of goods.”, | ||
(b) in subsection (1) by inserting the following after paragraph (d): | ||
“(da) A certificate to which subparagraph (ii) of the definition of ‘agricultural society’ or subparagraph (ii) of the definition of ‘fishery society’ in paragraph (a) applies is, as the case may be, a certificate given under— | ||
(i) paragraph (b) or (c) of section 433(16), | ||
(ii) paragraph (a) or (b) of section 70 (2) of the Finance Act 1963 , | ||
(iii) paragraph (a) or (b) of section 220 (2) of the Income Tax Act 1967 , or | ||
(iv) paragraph (a) or (b) of section 18 (2) of the Finance Act 1978 , | ||
and not revoked.”, | ||
and | ||
(c) in subsection (1) by deleting paragraph (e). | ||
6. Section 134 of the Principal Act is amended in subsection (1)(a) by substituting “section 133(1)(a)” for “section 443(16)”. | ||
7. Section 138 of the Principal Act is amended by inserting the following subsection after subsection (3): | ||
“(4) Where, but for the deletion of sections 445 and 446, shares issued by a company would not be preference shares for the purposes of this section then, notwithstanding the deletion of those sections, those shares shall be treated as not being preference shares for those purposes and this section shall apply with any modifications necessary to give effect to this subsection.”. | ||
8. Section 198 of the Principal Act is amended by substituting the following for subsection (2): | ||
“(2) Where a company would not be chargeable to income tax in respect of interest paid in respect of a ‘relevant security’ (within the meaning of section 246) in accordance with this section but for the fact that— | ||
(a) sections 445 and 446 have been deleted, and | ||
(b) those sections referred to time limits in respect of certificates to which each section related, | ||
then, notwithstanding those deletions and time limits, the company shall not be so chargeable and the other provisions of this section shall apply with any modifications necessary to give effect to this subsection.”. | ||
9. Section 243A of the Principal Act is amended— | ||
(a) in subsection (3) by substituting “Where” for “Subject to section 454, where”, | ||
(b) in subsection (3) by substituting the following for paragraph (a): | ||
“(a) income specified in section 21A(4),”. | ||
10. Section 243B of the Principal Act is amended— | ||
(a) in subsection (1) by deleting the definition “charges on income paid for the purpose of the sale of goods”, | ||
(b) by substituting the following for subsection (3): | ||
“(3) Where for any accounting period a company claims relief under this section in respect of the excess, the relevant corporation tax of the company for the accounting period shall be reduced, in so far as the excess consists of relevant trading charges, by an amount determined by the formula— | ||
C x R | ||
100 | ||
where— | ||
C is the amount of the relevant trading charges on income, and | ||
R is the rate per cent of corporation tax which, by virtue of section 21, applies in relation to the accounting period.”, | ||
and | ||
(c) by substituting the following for subsection (4): | ||
“(4) Where a company makes a claim for relief under this section in respect of any relevant trading charges on income paid in an accounting period, an amount (which shall not exceed the amount of the excess in respect of which a claim under this section may be made), determined by the formula— | ||
T x 100 | ||
R | ||
where— | ||
T is the amount by which the relevant corporation tax for the accounting period is reduced by virtue of subsection (3), and | ||
R is the rate per cent of corporation tax which, by virtue of section 21, applies in relation to the accounting period, | ||
shall be treated for the purposes of the Tax Acts as relieved under this section.”. | ||
11. Section 246 of the Principal Act is amended by substituting the following for subsection (4): | ||
“(4) Where subsection (2) would not apply to interest paid to a person whose usual place of abode is outside the State by virtue of subsection (3) but for the fact that— | ||
(a) sections 445 and 446 have been deleted, and | ||
(b) those sections referred to time limits in respect of certificates to which each section related, | ||
then, notwithstanding those deletions and time limits, subsection (2) shall not apply to such interest and the other provisions of this section shall apply with any modifications necessary to give effect to this subsection.”. | ||
12. Section 321 of the Principal Act is amended by inserting the following after subsection (9)— | ||
“(10) Where but for the deletion of sections 445 and 446, an allowance or charge would be made to or on a company for any chargeable period under this Part then, notwithstanding that those sections have been deleted, that allowance or charge shall be made to or on the company and, accordingly this Part shall apply with any modifications necessary to give effect to this subsection.”. | ||
13. Section 396 of the Principal Act is amended in subsection (1) by substituting “subsection (2), section 396A(3) or 396B(2)” for “subsection (2) or section 396A(3), 396B(2) or section 455(3)”. | ||
14. Section 396A of the Principal Act is amended in subsection (3)— | ||
(a) by substituting “Where” for “Subject to section 455, where”, and | ||
(b) by substituting “section 21A(4)” for “section 21A(4)(b)” in both places where it occurs. | ||
15. Section 396B of the Principal Act is amended— | ||
(a) in subsection (1) by deleting the definition “a loss from the sale of goods”, | ||
(b) by substituting the following for subsection (3): | ||
“(3) Where for any accounting period a company claims relief under this section in respect of the excess, the relevant corporation tax of the company for that accounting period and, if the company was then carrying on the trade and the claim so requires, for preceding accounting periods ending within the time specified in subsection (4), shall be reduced, in so far as the excess consists of a relevant trading loss, by an amount determined by the formula— | ||
L x R | ||
100 | ||
where— | ||
L is the amount of the excess, and | ||
R is the rate per cent of corporation tax which, by virtue of section 21, applies in relation to the accounting period.”, | ||
and | ||
(c) by substituting the following for subsection (5): | ||
“(5) Where a company makes a claim for relief for any accounting period under this section in respect of any relevant trading loss incurred in a trade in an accounting period, an amount (which shall not exceed the amount of the excess in respect of which a claim under this section may be made), determined by the formula— | ||
T x 100 | ||
R | ||
where — | ||
T is the amount by which the relevant corporation tax for the accounting period is reduced by virtue of subsection (3), and | ||
R is the rate per cent of corporation tax which, by virtue of section 21, applies in relation to the accounting period, | ||
shall be treated for the purposes of the Tax Acts as an amount of loss relieved against profits of that accounting period.”. | ||
16. Section 403 of the Principal Act is amended by inserting the following after subsection (8): | ||
“(8A) Where, but for the deletion of sections 445 and 446, any machinery or plant would, for the purposes of the definition of ‘the specified capital allowances’, be machinery or plant to which subsection (8) applies, then, notwithstanding the deletion of those sections, the machinery or plant shall be machinery or plant to which subsection (8) applies for those purposes and this section shall apply with any modifications necessary to give effect to this subsection.”. | ||
17. Section 420A of the Principal Act is amended in subsection (3)(a)— | ||
(a) by substituting “Where” for “Subject to section 456, where”, and | ||
(b) by substituting “section 21A(4)” for “section 21A(4)(b)”. | ||
18. Section 420B of the Principal Act is amended— | ||
(a) in subsection (1) by deleting the definitions “charges on income paid for the purpose of the sale of goods” and “a loss from the sale of goods”, | ||
(b) by substituting the following for subsection (3): | ||
“(3) Where for any accounting period a company claims relief under this section in respect of a relievable loss, the relevant corporation tax of the company for the accounting period shall be reduced in so far as the relievable loss consists of a loss or charges on income by an amount determined by the formula— | ||
L x R | ||
100 | ||
where— | ||
L is an amount equal to the amount of the relievable loss, and | ||
R is the rate per cent specified in section 21 in relation to the accounting period.”, | ||
and | ||
(c) by substituting the following for subsection (4): | ||
“(4) Where for any accounting period a company claims relief under this section in respect of any relevant trading loss or excess of relevant trading charges on income, the surrendering company shall be treated as having surrendered, and the claimant company shall be treated as having claimed relief for, trading losses and charges on income of an amount determined by the formula— | ||
T x 100 | ||
R | ||
where— | ||
T is the amount by which the relevant corporation tax payable for the accounting period is reduced by virtue of subsection (3), and | ||
R is the rate per cent of corporation tax which, by virtue of section 21, applies in relation to the accounting period.”. | ||
19. Section 434 of the Principal Act is amended in subsection (5A) by substituting the following for the definition “distributable trading income”: | ||
“ ‘distributable trading income’ of a company for an accounting period means the trading income of the company for the accounting period after deducting the amount of corporation tax which would be payable by the company for the accounting period if the tax were computed on the basis of that income;”. | ||
20. Part 14 of the Principal Act is amended by deleting sections 442 to 451 and section 453. | ||
21. Section 452 of the Principal Act is amended: | ||
(a) in subsection (1) by deleting the definitions “qualified company” and “relevant trading operations”, | ||
(b) by deleting subsection (3), and | ||
(c) in subsection (4) by deleting “, (3)(b)”. | ||
22. Section 487 of the Principal Act is amended— | ||
(a) in the definition of “accounting profit” in subsection (1)(a)— | ||
(i) by deleting paragraph (ii)(III), and | ||
(ii) by substituting “subparagraphs (IV) and (V)” for “subparagraphs (III), (IV) and (V)” and “Part 35” for “Parts 14 and 35” in paragraph (iii), | ||
and | ||
(b) in the definition “group base tax” by substituting “subparagraph (IV)” for “subparagraph (III), (IV)”. | ||
23. Section 701 of the Principal Act is amended in the definition of “society” in subsection (1) by substituting “section 133(1)(a)” for “section 443(16)”. | ||
24. Section 710 of the Principal Act is amended by substituting the following for subsection (2)(b): | ||
“(b) Where a company would be chargeable to corporation tax in respect of the profits of a life business in accordance with subsection (2)(a) but for the fact that— | ||
(i) section 446 has been deleted, and | ||
(ii) that section referred to time limits in respect of certificates to which the section related, | ||
then, notwithstanding that deletion and those time limits, those profits shall be chargeable to corporation tax in accordance with subsection (2)(a), and the other provisions of this section shall apply with any modifications necessary to give effect to this subsection.”. | ||
25. Section 734 of the Principal Act is amended by substituting the following for subsection (1)(c): | ||
“(c) Where, a collective investment undertaking would not be chargeable to tax in respect of relevant profits, but the relevant profits would be chargeable to tax in the hands of the unit holder, including the undertaking, to whom a relevant payment of, or out of the relevant profits is made in accordance with subsection (3) but for the fact that— | ||
(i) sections 445 and 446 have been deleted, and | ||
(ii) those sections referred to time limits in respect of certificates to which each section related, | ||
then, notwithstanding those deletions and time limits, the collective investment undertaking shall not be so chargeable to tax in respect of relevant profits, but the relevant profits shall be so chargeable to tax in the hands of the unit holder, including the undertaking, to whom a relevant payment of, or out of the relevant profits is made and the other provisions of this section shall apply with any modifications necessary to give effect to this subsection.”. | ||
26. Schedule 24 to the Principal Act is amended— | ||
(a) in paragraph 4(2) by substituting “subject to subparagraphs (4) and (5)” for “subject to subparagraphs (3) to (5)”, | ||
(b) in paragraph 4(2A) by deleting “but subject to subparagraph (3)”, | ||
(c) in paragraph 4 by deleting subparagraph (3), | ||
(d) in paragraph 4(4) by deleting clause (b), | ||
(e) in paragraph 4(5)(a) by deleting “and sections 449 and 450”, | ||
(f) in paragraph 4(5)(b) by deleting subclauses (ii) and (iii), | ||
(g) in paragraph 9A(5)(b) by deleting “section 449 or”, | ||
(h) in paragraph 9D by deleting subparagraph (3), | ||
(i) in paragraph 9DA(5)(b) by deleting “section 449 or”, and | ||
(j) in paragraph 9DB by deleting subparagraph (3). |