business of F (tax-exempt) shall be treated for the purposes of corporation tax as being sold by F (tax-exempt) immediately before cessation and reacquired immediately after cessation by F (post-cessation).
3
For the purposes of corporation tax, on cessation one accounting period of F (residual) shall end and an accounting period of F (post-cessation) shall begin.
4
The sale and reacquisition deemed under paragraph (2) shall not have effect for the purposes of tax in respect of chargeable gains.
5
For the purposes of CAA 2001, the sale and re-acquisition deemed under paragraph (2) -
a
shall not give rise to allowances or charges, and
b
shall not make it possible to make an election under section 198 or 199 of that Act (apportionment).
6
For the purposes of CAA 2001, anything done by or to F (tax-exempt) before cessation in relation to an asset which is deemed under paragraph (2) to be sold and re-acquired shall be treated after cessation as having been done by or to F (post-cessation).
.
Amendment of Part 1 of the Schedule
6
In Part 1 of the Schedule (abbreviations of Acts) insert at the appropriate place -
FA 1993 The Finance Act 1993 (c. 34) FA 1994 The Finance Act 1994 (c. 9) FA 2006 The Finance Act 2006 (c. 25) ITA 2007 The Income Tax Act 2007 (c. 3)
Amendment of Part 2 of the Schedule
7
In Part 2 of the Schedule (index of defined expressions) insert at the appropriate place -
Applicant (in Part 4A) Regulation 69O(6) Balance of business conditions (in Part 4A) Regulation 69N Body corporate (in Part 4A) Regulation 69L(6) Cessation (in Part 4A) Regulation 69C(2) Corporate ownership condition (in Part 4A) Regulation 69K Entry (in Part 4A) Regulation 69C(1) Excessive holding (in Part 4A) Regulation 69Z13(3) Existing company notice (in Part 4A) Regulation 69O(6) Future company notice (in Part 4A) Regulation 69O(6) F (post-cessation) (in Part 4A) Regulation 69C(3)(d) F (pre-entry) (in Part 4A) Regulation 69C(3)(a) F (residual) (in Part 4A) Regulation 69C(3)(c) F (tax-exempt) (in Part 4A) Regulation 69C(3)(b) Genuine diversity of ownership condition (in Part 4A) Regulation 69J Holder of excessive rights (in Part 4A) Regulation 69Z13 Loan creditor condition (in Part 4A) Regulation 69M Net income (in Part 4A) Regulation 69Z Net income of F (residual) (in Part 4A) Regulation 69Z2 Net income of F (tax-exempt) (in Part 4A) Regulation 69Z1 Newly qualified company (in Part 4A) Regulation 69N(5) PAIF distribution (dividends) (in Part 4A) Regulation 69Z17(3) PAIF distribution (interest) (in Part 4A) Regulation 69Z16(3) Pre-distribution amount (in Part 4A) Regulation 69Z3 Property AIF Regulation 69A(2) Property income distribution Regulation 69Z15(4) Property investment business (in Part 4A) Regulation 69F(1) Property rental business (in Part 4A) Regulation 69H(1) Prospectus (in Part 4A) Regulation 69E(4) Relevant distribution (in Chapter 6 of Part 4A) Regulation 69Z29(1)(b) Specified accounting period (in Part 4A) Regulation 69Q(2) Termination notice (in Part 4A) Regulation 69Z37(1) UK-REIT Regulation 69F(2).
Alan Campbell
Dave Watts
Two of the Lords Commissioners of Her Majesty's