Source: http://www.legislation.gov.uk/ukpga/2011/11/schedule/6
Timestamp: 2013-05-25 15:36:41
Document Index: 640885877

Matched Legal Cases: ['art 9', 'art 2', 'art 9', 'art 9', 'art 9', 'art 9', 'art 9']

Skip to main contentSkip to navigationlegislation.gov.ukThe National ArchivesHelpSite MapAccessibilityContact UsHomeAbout UsBrowse LegislationNew LegislationChanges to LegislationSearch LegislationSearch LegislationTitle: (or keywords in the title)Year:Number:Type:All Legislation (excluding draft)All Primary Legislation UK Public General Acts UK Local Acts Acts of the Scottish Parliament Acts of the National Assembly for Wales Measures of the National Assembly for Wales Church Measures Acts of the Northern Ireland Assembly Acts of the Old Scottish Parliament Acts of the English Parliament Acts of the Old Irish Parliament Acts of the Parliament of Great Britain Northern Ireland Orders in Council Measures of the Northern Ireland Assembly Acts of the Northern Ireland ParliamentAll Secondary Legislation UK Statutory Instruments Wales Statutory Instruments Scottish Statutory Instruments Northern Ireland Statutory Rules Church Instruments UK Ministerial Orders UK Statutory Rules and OrdersAll Draft Legislation UK Draft Statutory Instruments Scottish Draft Statutory Instruments Northern Ireland Draft Statutory RulesAll Impact Assessments UK Impact AssessmentsSearchAdvanced SearchFinance Act 2011You are here:2011 c. 11SCHEDULE 6Table of ContentsContentMore ResourcesPrevious: ScheduleNext: SchedulePlain ViewPrint Options
Changes to legislation:There are currently no known outstanding effects for the Finance Act 2011, SCHEDULE 6.Changes to LegislationRevised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site. Section 32SCHEDULE 6E+W+S+N.I.Leasing businessesBusinesses carried on by companies aloneE+W+S+N.I.1Chapter 3 of Part 9 of CTA 2010 (sale of lessors: leasing business carried on by a company alone) is amended as follows.E+W+S+N.I.2(1)Section 387 (“business of leasing plant or machinery”) is amended as follows.E+W+S+N.I.(2)In subsection (3), for “qualifying leased plant or machinery” substitute “ plant or machinery falling within subsection (7) ”.(3)For subsection (5) substitute—“(5)Condition B is that at least half of the relevant company's income in the past 12 months derives from plant or machinery falling within subsection (7).”
(4)For subsections (7) and (8) substitute—“(7)Plant or machinery falls within this subsection if—
(a)it is or at any time in the past 12 months has been leased out by the relevant company or a qualifying associate,
(c)if the plant or machinery satisfies paragraph (a) only because it is or has been leased out by a qualifying associate, the lessee under the lease is or was someone other than the relevant company.
(b)“associate” means a person connected with the relevant company (see also subsection (9)), and
(9)If the relevant company is owned by a consortium or is a qualifying 75% subsidiary of a company owned by a consortium, the reference in subsection (8)(b) to a person connected with the relevant company also includes—
(10)A reference in this section to the past 12 months is to the period of 12 months ending with the relevant day.”
3In section 389 (provision supplementing section 388), in subsection (5)(b), for “market value” substitute “ ascribed value ”.E+W+S+N.I.4In section 390 (relevant plant or machinery value where relevant company lessee under long funding lease etc), in subsection (2), for “market value” substitute “ ascribed value ”.E+W+S+N.I.5In section 391 (relevant company's income for condition B in section 387), in subsection (5), for “qualifying leased plant or machinery” substitute “ plant or machinery falling within section 387(7) ”.E+W+S+N.I.6(1)Section 398G (transfers into and out of A) is amended as follows.E+W+S+N.I.(2)Omit subsection (2).(3)For subsection (3) substitute—“(3)If any event occurs that requires A to bring the disposal value of plant or machinery into account under Part 2 of CAA 2001, that Part has effect as if the disposal value that A is required to bring into account were the higher of—
(a)the disposal value determined in accordance with that Part, and
(b)the ascribed value of the plant or machinery.
(4)Section 265 of CAA 2001 (successions) is subject to this section.”
7In section 401 (provisions supplementing section 400), in subsection (5)(b), for “market value” substitute “ ascribed value ”.E+W+S+N.I.8In section 402 (“PM” where relevant company lessee under long funding lease etc), in subsection (2), for “market value” substitute “ ascribed value ”.E+W+S+N.I.9(1)Section 403 (“TWDV” in section 399) is amended as follows.E+W+S+N.I.(2)In subsection (2), for paragraph (b) substitute—“(b)in calculating the amounts of unrelieved qualifying expenditure mentioned in subsection (1)(a) to (c), any part of those amounts that is relevant new expenditure is to be left out of account.”
(3)After that subsection insert—“(3)Relevant new expenditure” means—
(a)expenditure attributable to plant or machinery acquired by the relevant company on the relevant day except for plant or machinery acquired on that day from an associated company, and
(b)expenditure incurred on the relevant day but attributable to plant or machinery acquired by the relevant company before that day.
Businesses carried on by companies in partnershipE+W+S+N.I.10Chapter 4 of Part 9 of CTA 2010 (sale of lessors: leasing business carried on by a company in partnership) is amended as follows.E+W+S+N.I.11(1)Section 410 (“business of leasing plant or machinery”) is amended as follows.E+W+S+N.I.(2)In subsection (2), for “qualifying leased plant or machinery” substitute “ plant or machinery falling within subsection (6) ”.(3)For subsection (4) substitute—“(4)Condition B is that at least half of the partnership's income in the past 12 months derives from plant or machinery falling within subsection (6).”
(4)For subsections (6) and (7) substitute—“(6)Plant or machinery falls within this subsection if—
(b)“associate” means a person who is a partner in the partnership or connected with a partner in the partnership (see also subsection (8)), and
(9)A reference in this section to the past 12 months is to the period of 12 months ending with the relevant day.”
12In section 412 (provision supplementing section 411), in subsection (5)(b), for “market value” substitute “ ascribed value ”.E+W+S+N.I.13In section 413 (relevant plant or machinery value where partnership lessee under long funding lease etc), in subsection (2), for “market value” substitute “ ascribed value ”.E+W+S+N.I.14In section 414 (partnership's income for condition B in section 410), in subsection (5), for “qualifying leased plant or machinery” substitute “ plant or machinery falling within section 410(6) ”.E+W+S+N.I.15(1)Section 421 (the amount of the income: the basic amount) is amended as follows.E+W+S+N.I.(2)In subsection (6), for paragraph (b) substitute—“(b)in calculating the amounts of unrelieved qualifying expenditure mentioned in subsection (5)(a) to (c), any part of those amounts that is relevant new expenditure is to be left out of account.”
(3)After that subsection insert—“(6A)Relevant new expenditure” means—
Anti-avoidance provisionsE+W+S+N.I.16Chapter 5 of Part 9 of CTA 2010 (sales of lessors: anti-avoidance provisions) is amended as follows.E+W+S+N.I.17(1)Section 434 (introduction to sections 435 and 436) is amended as follows.E+W+S+N.I.(2)In subsection (2), for “question A or B” substitute “ question A, B or C ”.(3)After subsection (4) insert—“(5)Question C is the question of the amount of any disposal value to be substituted by section 398G(3).”
18(1)Section 435 (disregard of increases or decreases in balance sheet amounts) is amended as follows.E+W+S+N.I.(2)In subsection (1), for paragraph (a) substitute—“(a)an amount mentioned in subsection (1A) is to be ascertained for the purpose of determining a question as to the application of Chapter 3 or 4,”.
(3)After that subsection insert—“(1A)The amounts are—
(a)the relevant plant or machinery value,
(b)the value of plant or machinery falling within section 387(7) or 410(6),
(c)the relevant company's or partnership's income in the period of 12 months ending with the relevant day,
(d)the amount of PM,
(e)the amount of TWDV,
(f)the amount of any disposal value to be substituted by section 398G(3), and
(g)any underlying amount required to calculate or verify an amount mentioned in any of the preceding paragraphs.”
(4)In subsection (2)—(a)omit “or” at the end of paragraph (b), and(b)at the end of paragraph (c) insert “, or (d)the amount of any disposal value to be substituted by section 398G(3) would be reduced.”
(5)In subsection (3), for “which falls (or would fall) to be shown in the balance sheet in respect of plant or machinery” substitute “ to be ascertained ”.(6)Accordingly, in the heading of that section, for “in balance sheet amounts” substitute “ in certain amounts ”.19In section 436 (balance sheet amounts determined on assumption company has no liabilities), after subsection (6) insert—E+W+S+N.I.“(7)Except for subsection (6), this section applies to a partnership as it applies to a company, and references to “company” are to be read accordingly.”
General interpretation of sales of lessors ChaptersE+W+S+N.I.20Chapter 6 of Part 9 of CTA 2010 (sales of lessors: general interpretation) is amended as follows.E+W+S+N.I.21In section 437, omit subsection (9) (definition of “market value”).E+W+S+N.I.22After that section insert—E+W+S+N.I.“437ADetermining the ascribed value of plant or machinery(1)For the purposes of the sales of lessors Chapters, the ascribed value of plant or machinery at any given time (“the relevant time”) is the value determined in accordance with this section.
Consequential amendmentsE+W+S+N.I.23In section 267A of CAA 2001 (restriction on effect of election), in subsection (2), for “is qualifying leased plant or machinery” substitute “ falls within section 387(7) of CTA 2010 (if the business is carried on otherwise than in partnership) or within section 410(6) of that Act (if the business is carried on in partnership) ”.E+W+S+N.I.24In section 948 of CTA 2010 (modified application of CAA 2001), in subsection (6), before paragraph (a) insert—E+W+S+N.I.“(za)section 398G of this Act (sale of lessors: transfers into and out of A after election under section 398A),”.
25(1)Section 950 of CTA 2010 (transfers of trades involving business of leasing plant or machinery) is amended as follows.E+W+S+N.I.(2)In subsection (5), for the words from “its market value” to the end substitute “the higher of— (a)its ascribed value immediately before the transfer of the trade, and
(3)In subsection (6)—(a)before the definition of “business of leasing plant or machinery” insert—““ascribed value”, in relation to plant or machinery, is to be read in accordance with section 437A (but reading the reference to the relevant company or partnership as a reference to the predecessor);”, and
(b)omit the definition of “market value”.26(1)In Schedule 4 to CTA 2010 (index of defined expressions), omit the entry for “market value (in relation to plant or machinery) (in Chapters 3 to 6 of Part 9)”.E+W+S+N.I.(2)In that Schedule, insert the following entry at the appropriate place—“ascribed value (in relation to plant or machinery) (in Chapters 3 to 6 of Part 9)section 437A”.Application of new provisionsE+W+S+N.I.27(1)The amendments made by paragraphs 2 to 5 and 7 to 15, and the general paragraphs so far as relevant to those amendments, have effect where the relevant day (as defined for the purposes of the amended provision) falls on or after 23 March 2011.E+W+S+N.I.(2)The amendment made by paragraph 6(3), and the general paragraphs so far as relevant to that amendment, have effect in relation to disposal events taking place on or after 23 March 2011 (including in cases where the election was made before that date).(3)The amendments made by paragraphs 6(2) and 23 to 25, and the general paragraphs so far as relevant to those amendments, have effect in relation to transfers or successions taking place on or after 23 March 2011 (including, in the case of the amendment made by paragraph 6(2), where the election was made before that date).(4)The general paragraphs are—(a)paragraph 1,(b)paragraphs 16 to 22, and(c)paragraph 26.Previous: ScheduleNext: ScheduleBack to topOptions/HelpPrint OptionsPrint The Whole ActPDF The Whole ActWeb page The Whole ActPrint This Schedule onlyPDF This Schedule onlyWeb page This Schedule onlyYou have chosen to open The Whole ActThe Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.Would you like to continue?Continue to openYou have chosen to open The Whole Act as a PDFThe Whole Act you have selected contains over 200 provisions and might take some time to download.Would you like to continue?Continue to openYou have chosen to open the Whole ActThe Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.Would you like to continue?Continue to openYou have chosen to open Schedules only The Schedules only you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.Would you like to continue?Continue to openLegislation is available in different versions:Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.Original (As Enacted or Made):The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.See additional information alongside the contentGeographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.Opening OptionsDifferent options to open legislation in order to view more content on screen at onceMore ResourcesAccess essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:the original print PDF of the as enacted version that was used for the print copylists of changes made by and/or affecting this legislation itemconfers power and blanket amendment detailsall formats of all associated documentscorrection slipslinks to related legislation and further information resourcesMore ResourcesUse this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:the original print PDF of the as enacted version that was used for the print copycorrection slipsClick 'View More' or select 'More Resources' tab for additional information including:lists of changes made by and/or affecting this legislation itemconfers power and blanket amendment detailsall formats of all associated documentslinks to related legislation and further information resources© Crown copyrightYou may use and re-use the information featured on this website (not including logos) free of charge in any format or medium, under the terms of the Open Government Licence