|
|
Amendment of section 22 (reduced rate of corporation tax for certain income) of Principal Act.
|
72.—(1) Section 22 of the Principal Act is hereby amended—
|
|
| |
(a) in subsection (1)—
|
|
| |
(i) in paragraph (a), by the substitution for clauses (I) to (III) of the following clauses:
|
|
| |
“(I) as respects accounting periods ending on or after the 1st day of April, 1997, and before the 1st day of January, 1998, 28 per cent, and
|
|
| |
(II) as respects accounting periods ending on or after the 1st day of January, 1998, and before the 1st day of January, 2000, 25 per cent.”, and
|
|
| |
(ii) by the deletion of paragraph (b),
|
|
| |
(b) by the substitution of the following subsection for subsection (2):
|
|
| |
“(2) For the purposes of subsection (1) and subject to subsections (3) and (4), the specified amount in relation to an accounting period of a company shall be an amount determined by the formula—
|
| |
|
|
| |
where—
|
|
| |
L is—
|
|
| |
(a) in the case of an accounting period ending before the 1st day of January, 1999, £50,000,
|
|
| |
(b) in the case of an accounting period ending on or after the 1st day of January, 1999, £100,000,
|
|
| |
N is the number of months in the accounting period, and
|
|
| |
A is one plus the number of associated companies which the company has in the accounting period.”, and
|
|
| |
(c) by the insertion of the following subsection after subsection (7):
|
|
| |
“(7A) For the purposes of this section—
|
|
| |
(a) where an accounting period of a company begins before the 1st day of January, 1998, and ends on or after that day, it shall be divided into 2 parts, one beginning on the day on which the accounting period begins and ending on the 31st day of December, 1997, and the other beginning on the 1st day of January, 1998, and ending on the day on which the accounting period ends, and both parts shall be treated as if they were separate accounting periods of the company,
|
|
| |
(b) where an accounting period of a company begins before the 1st day of January, 1999, and ends on or after that day, it shall be divided into 2 parts, one beginning on the day on which the accounting period begins and ending on the 31st day of December, 1998, and the other beginning on the 1st day of January, 1999, and ending on the day on which the accounting period ends, and both parts shall be treated as if they were separate accounting periods of the company, and
|
|
| |
(c) where an accounting period of a company begins before the 1st day of January, 2000, and ends on or after that day, it shall be divided into 2 parts, one beginning on the day on which the accounting period begins and ending on the 31st day of December, 1999, and the other beginning on the 1st day of January, 2000, and ending on the day on which the accounting period ends, and both parts shall be treated as if they were separate accounting periods of the company.”.
|
|
| |
(2) Section 22 of the Principal Act is hereby repealed with effect from the 1st day of January, 2000.
|
