|
|
Amendment of Chapter 5 (group relief) of Part 12 of Principal Act.
|
78.— (1) Chapter 5 of Part 12 of the Principal Act is hereby amended—
|
|
| |
(a) in section 410—
|
|
| |
(i) in subsection (1)(a) by the insertion before the definition of “trading or holding company” of the following definition:
|
|
| |
“‘tax’, in relation to a Member State of the European Communities other than the State, means any tax imposed in the Member State which corresponds to corporation tax in the State;”,
|
|
| |
(ii) by the substitution for paragraph (b) of subsection (1) of the following paragraph:
|
|
| |
“(b) For the purposes of this section—
|
|
| |
(i) a company shall be owned by a consortium if 75 per cent or more of the ordinary share capital of the company is beneficially owned between them by 5 or fewer companies resident in one or more than one Member State of the European Communities of which none of these companies beneficially owns less than 5 per cent of that capital, and those companies shall be called the members of the consortium, and
|
|
| |
(ii) references to a company resident in a Member State of the European Communities shall be construed as references to a company which, by virtue of the law of a Member State of the European Communities, is resident for the purposes of tax in such a Member State.”,
|
|
| |
(iii) in paragraph (a) of subsection (3) by the substitution for “in the State” of “in a Member State of the European Communities”, and
|
|
| |
(iv) in paragraph (a)(i) of subsection (4) by the substitution for “so resident” of “resident in a Member State of the European Communities”,
|
|
| |
(b) in section 411(1)—
|
|
| |
(i) in paragraph (a) by the insertion before the definition of “trading company” of the following definition:
|
|
| |
“‘tax’, in relation to a Member State of the European Communities other than the State, means any tax imposed in the Member State which corresponds to corporation tax in the State;”,
|
|
| |
(ii) in paragraph (c)—
|
|
| |
(I) by the substitution for “companies resident in the State” of “a company which, by virtue of the law of a Member State of the European Communities, is resident for the purposes of tax in such a Member State”, and
|
|
| |
(II) by the substitution for “company not resident in the State” of “company, not being a company which, by virtue of the law of a Member State of the European Communities, is resident for the purposes of tax in such a Member State”,
|
|
| |
and
|
|
| |
(c) in section 420 by the insertion in subsection (1) after “trade” of “in respect of which the company is within the charge to corporation tax”.
|
|
| |
(2) This section shall apply as respects accounting periods ending on or after the 1st day of July, 1998.
|
