Finance Act, 1980
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Chapter V Corporation Tax | ||
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Amendment of Chapter IV (manufacturing companies) of Part I of Finance Act, 1977. |
37.—(1) Chapter IV of Part I of the Finance Act, 1977 , is hereby amended— | |
(a) in section 20— | ||
(i) by the substitution of “1980” for “1979” in the definition of “relevant period”, and | ||
(ii) by the substitution of “, 1979 or 1980” for “or 1979” in both places where it occurs in the definition of “1977 period”, | ||
and the said definitions, as so amended, are set out in the Table to this paragraph. | ||
TABLE | ||
“relevant period” means an accounting period or part of an accounting period of a company falling within the period from the 1st day of January, 1977, to the 31st day of December, 1980; | ||
“1977 period” means an accounting period or part of an accounting period of a company falling within the financial year 1977 and any corresponding expression in which a reference to 1978, 1979 or 1980 is followed by the word “period” means an accounting period or part of an accounting period of a company falling within the financial year 1978, 1979 or 1980, as the case may be; | ||
(b) by the substitution of the following section for section 23 (inserted by the Finance Act, 1978 ): | ||
“Corresponding part of standard year. | ||
23.—Where a 1977 period, a 1978 period, a 1979 period or a 1980 period is less than twelve months, the corresponding part of the standard year in relation to a specified trade shall be the part which begins twelve months, twenty-four months, thirty-six months or forty-eight months, as the case may be, before the date on which that period begins and which ends twelve months, twenty-four months, thirty-six months or forty-eight months, as the case may be, before the date on which that period ends.”, | ||
(c) in section 24 (inserted by the Finance Act, 1978 )— | ||
(i) by the substitution of the following subsection for subsection (3): | ||
“(3) The provisions of subsection (2), except paragraph (c) thereof, shall apply, subject to the provisions of subsections (4), (5), (6) and (7), in relation to a 1978 period, a 1979 period and a 1980 period as they apply in relation to a 1977 period.”, | ||
(ii) by the insertion in subsection (4) after paragraph (b) of the following paragraph: | ||
“(c) In relation to a 1980 period— | ||
(i) each reference in subsection (2) to 1977 shall be construed as a reference to 1980, and | ||
(ii) the reference in subsection (2) (d) to 103 per cent. shall be construed as a reference to 112 per cent.”, and | ||
(iii) by the insertion after subsection (6) of the following subsection: | ||
“(7) In relation to a 1980 period, a company may elect, in relation to the specified trade carried on by it— | ||
(a) to have the financial year 1977 treated as the standard year in relation to that trade for the purposes of subsection (2) (d), or | ||
(b) to have the financial year 1978 so treated, or | ||
(c) to have the financial year 1979 so treated. | ||
and | ||
(i) where the election referred to in paragraph (a) is made, the provisions of subsection (4) (c) (ii) shall apply to the company as if the reference to 112 per cent. were a reference to 109 per cent., | ||
(ii) where the election referred to in paragraph (b) is made, the provisions of subsection (4) (c) (ii) shall apply to the company as if the reference to 112 per cent. were a reference to 106 per cent., | ||
(iii) where the election referred to in paragraph (c) is made, the provisions of subsection (4) (c) (ii) shall not apply to the company.”, | ||
(d) in section 24A (inserted by the Finance Act, 1978 ), by the insertion after subsection (3) of the following subsection: | ||
“(4) In relation to a 1980 period of a company to which this section applies— | ||
(a) the provisions of section 24 (2), except paragraph (c) thereof, shall apply as they apply in relation to a 1977 period of a company to which section 24 applies with the modifications that— | ||
(i) each reference in section 24 (2) to 1977 shall be construed as a reference to 1980, and | ||
(ii) the reference in section 24 (2) (d) to 103 per cent. shall, if the standard year in relation to the specified trade carried on by the company is the financial year 1976, be construed as a reference to 112 per cent., if such standard year in relation to such trade is the financial year 1977, be construed as a reference to 109 per cent. and, if such standard year in relation to such trade is the financial year 1978, be construed as a reference to 106 per cent., | ||
(b) if, but for this paragraph, the standard year in relation to the specified trade carried on by the company would be the financial year 1976, the company may elect to have the financial year 1977, the financial year 1978 or the financial year 1979 treated as the standard year for the purposes of the said section 24 (2) (d) in relation to such trade, | ||
(c) if, but for this paragraph, the standard year in relation to the specified trade carried on by the company would be the financial year 1977, the company may elect to have the financial year 1978 or the financial year 1979 treated as the standard year for the purposes of the said section 24 (2) (d) in relation to such trade, and | ||
(d) if, but for this paragraph, the standard year in relation to the specified trade carried on by the company would be the financial year 1978, the company may elect to have the financial year 1979 treated as the standard year for the purposes of the said section 24 (2) (d) in relation to such trade.”, | ||
(e) in section 24B (inserted by the Finance Act, 1978 ), by the insertion after subsection (2) of the following subsection: | ||
“(3) In relation to a 1980 period of a company to which this section applies— | ||
(a) the provisions of section 24 (2), except paragraph (c) thereof, shall apply as they apply in relation to a 1977 period of a company to which the provisions of section 24 apply with the modifications specified in section 24A (4) (a), and | ||
(b) paragraphs (b), (c) and (d) of section 24A (4) shall apply for the purposes of this section as they apply for the purposes of that section.”, | ||
(f) by the insertion after section 24B of the following section: | ||
“Rate of corporation tax for certain manufacturing companies commencing to trade in 1979. | ||
24C.—(1) This section applies to a company which— | ||
(a) begins to carry on a trade in the financial year 1979, and | ||
(b) is not a company to which the provisions of section 24, 24A or 24B apply. | ||
(2) (a) The provisions of section 24 (2), except paragraph (c) thereof, shall apply in relation to a 1980 period of a company to which the provisions of this section apply, as they apply in relation to a 1977 period of a company to which the provisions of section 24 apply with the modifications specified in section 24A (4) (a). | ||
(b) Paragraphs (b), (c) and (d) of section 24A (4) shall apply for the purposes of this section as they apply for the purposes of that section.”, | ||
and | ||
(g) in subsection (3) (inserted by the Finance Act, 1978 ) of section 29— | ||
(i) by the substitution of “, the 1979 period or the 1980 period” for “or the 1979 period” in paragraphs (a) and (b), and | ||
(ii) by the substitution of “1980-81” for “1979-80” in paragraph (b), | ||
and the said subsection (3), as so amended, is set out in the Table to this paragraph. | ||
TABLE | ||
(3) Where for an accounting period corporation tax is charged at the rate of 25 per cent. on all or part of a company's income— | ||
(a) the provisions of section 28 of the Corporation Tax Act, 1976 , shall not have effect for the 1977 period, the 1978 period, the 1979 period or the 1980 period which coincides with, or is included in, that accounting period, and | ||
(b) sections 182 (3) and 184 (3) of the said Act shall have effect for the 1977 period, the 1978 period, the 1979 period or the 1980 period which coincides with, or is included in, that accounting period as if the standard rate for each of the years 1976-77 to 1980-81 were 25 per cent. | ||
(2) The reference in section 30 of the Finance Act, 1977 , to section 24 of that Act— | ||
(a) includes a reference to section 24C of that Act, and | ||
(b) for the purposes of any claim made on or after the 6th day of May, 1980, under section 24A or 24B of that Act includes, and shall be deemed always to have included, references to the said sections 24A and 24B. |