Finance Act, 2002

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Amendment of Chapter 5 (group relief) of Part 12 of Principal Act.

37.—Chapter 5 of Part 12 of the Principal Act is amended—

(a) in section 410—

(i) in subsection (1)(a)—

(I) by inserting the following before the definition of “tax” (inserted by the Finance Act, 1999 )—

“‘EEA Agreement’ means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by the Protocol signed at Brussels on 17 March 1993;

‘EEA State’ means a state which is a contracting party to the EEA Agreement;

‘relevant Member State’ means—

(i) a Member State of the European Communities, or

(ii) not being such a Member State, an EEA State which is a territory with the government of which arrangements having the force of law by virtue of section 826 have been made;”,

(II) in the definition of “tax” (inserted by the Finance Act, 1999 ) by substituting “relevant Member State” for “Member State of the European Communities”,

(ii) in subsection (1)(b)—

(I) in subparagraph (i) (inserted by the Finance Act, 1999 ) by substituting “relevant Member State” for “Member State of the European Communities”, and

(II) by substituting the following for subparagraph (ii) (inserted by the Finance Act, 1999 ):

“(ii) references to a company resident in a relevant Member State shall be construed as references to a company which, by virtue of the law of a relevant Member State, is resident for the purposes of tax in such a relevant Member State.”,

(iii) in subsection (3)(a) by substituting “relevant Member State” for “Member State of the European Communities”, and

(iv) in subsection (4)(a)(i) by substituting “relevant Member State” for “Member State of the European Communities”,

and

(b) in section 411(1)—

(i) in paragraph (a)—

(I) by inserting before the definition of “holding company” the following:

“‘EEA Agreement’ means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by the Protocol signed at Brussels on 17 March 1993;

‘EEA State’ means a state which is a contracting party to the EEA Agreement;”,

(II) by inserting after the definition of “holding company” the following:

“‘relevant Member State’ means—

(i) a Member State of the European Communities, or

(ii) not being such a Member State, an EEA State which is a territory with the government of which arrangements having the force of law by virtue of section 826 have been made.”,

and

(III) in the definition of “tax” (inserted by the Finance Act, 1999 ) by substituting “relevant Member State” for “Member State of the European Communities”,

and

(ii) in paragraph (c) by substituting “relevant Member State” for “Member State of the European Communities” in both places where it occurs.