Source: http://www.legislation.gov.uk/ukpga/2009/10/schedule/16/part/2
Timestamp: 2013-06-19 16:05:59
Document Index: 241600085

Matched Legal Cases: ['art. 2', 'art. 3', 'art. 3', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 3', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art 2', 'art 2', 'art 2', 'art 17', 'art 17', 'art 2', 'art 17']

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 2009You are here:2009 c. 10SCHEDULE 16
Changes to legislation:There are outstanding changes not yet made by the legislation.gov.uk editorial team to Finance Act 2009. Any changes that have already been made by the team appear in the content and are referenced with annotations.Changes to LegislationRevised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.Changes and effects yet to be applied to :Changes and effectsThis section lists the changes and effects yet to be applied to the specific provision you are viewing.specified provision(s) Appointed Day(s) by S.I. 2010/574 art. 2 (Day appointed for purposes of s. 94)Changes and effects yet to be applied to the whole Act, associated Parts and Chapters:Changes and effectsThis section lists the changes and effects yet to be applied to the whole Act, associated Parts and Chapters where applicable. This includes any insertions of whole new Parts, Chapters or provisions yet to be inserted into this Act. These effects are included in this view as they may be (but won’t necessarily be) relevant to the specific provision that you are viewing.Blanket amendment words substituted by S.I. 2011/1043 art. 3 4Whole provisions yet to be inserted into this Act (including any effects on those provisions):s. 103A inserted by 2010 c. 33 Sch. 9 para. 4Sch. 54A inserted by 2010 c. 33 Sch. 9 para. 12Commencement Orders yet to be applied to the Finance Act 2009:Commencement OrdersThis section lists the commencement orders yet to be applied to the whole Act. These effects are included in this view as they may be (but won’t necessarily be) relevant to the specific provision that you are viewing. Where applicable the commencement orders are listed under two headings, firstly those that bring some part of the Act you are viewing into force and secondly, those that bring into force legislation that affects some part of the legislation you are viewing. If you are viewing a prospective version or there is a prospective version available there may be commencement orders listed here that are relevant to the provision you are viewing.Commencement Orders bringing provisions within this Act into force:S.I. 2010/466 art. 3 commences (2009 c. 10)S.I. 2010/670 art. 2 commences (2009 c. 10)S.I. 2010/815 art. 2 commences (2009 c. 10)S.I. 2010/867 art. 2 commences (2009 c. 10)S.I. 2010/1878 art. 2 commences (2009 c. 10)S.I. 2011/701 art. 3 commences (2009 c. 10)S.I. 2011/702 art. 2 3 commences (2009 c. 10)S.I. 2011/2391 art. 2(b)(c) commences (2009 c. 10)S.I. 2011/2401 art. 2(1) commences (2009 c. 10)Commencement Orders bringing legislation that affects this Act into force:S.I. 2011/132 art. 2 3 commences (2010 c. 33)S.I. 2011/703 art. 2 3 commences (2010 c. 33)S.I. 2011/975 art. 2 commences (2010 c. 13)S.I. 2011/2391 art. 2(a) commences (2010 c. 33)S.I. 2011/2401 art. 2(2) amendment to earlier commencing SI 2011/701 Part 2 E+W+S+N.I.Amendment of exempt activities exemptionAbolition of special rules for holding companies other than local holding companiesE+W+S+N.I.10(1)Part 2 of Schedule 25 to ICTA (exempt activities) is amended as follows.E+W+S+N.I.(2)In paragraph 6 (definition of exempt activities)—(a)in sub-paragraph (1)(c), for “(2), (3), (4) or (4A)” substitute “ (2) or (3) ”,(b)in sub-paragraph (3)(b), omit “or superior holding companies”,(c)omit sub-paragraphs (4) to (4BB),(d)in sub-paragraph (5)—(i)for “sub-paragraphs (3) to (4B)” substitute “ sub-paragraph (3) ”, and(ii)omit “or superior holding company”,(e)in sub-paragraph (5ZA), omit “or superior holding company”,(f)in sub-paragraph (5ZB), omit “or superior holding company”,(g)in sub-paragraph (5A), for “sub-paragraphs (3) to (4B)” substitute “ sub-paragraph (3) ”,(h)omit sub-paragraph (5B),(i)in sub-paragraph (5C), omit “or superior holding company”, and(j)in sub-paragraph (6), for “sub-paragraphs (1) to (4BB) above” substitute “ this paragraph ”.(3)In paragraph 8(3) (paragraph 6(1)(b) condition), omit “or superior holding company”.(4)In paragraph 12 (definition of “holding company” etc)—(a)in sub-paragraph (1), for “paragraph 12A below and in” substitute “ in ”,(b)in sub-paragraph (4), omit “or (4), as the case may be,”, and(c)in sub-paragraph (5)—(i)in the words before paragraph (a), for “sub-paragraphs (3) and (4)” substitute “ sub-paragraph (3) ”, and(ii)in paragraph (a), omit “or superior holding company”.(5)Omit paragraph 12A (definition of “superior holding company” etc).11In consequence of the amendments made by paragraph 10, omit—E+W+S+N.I.(a)in FA 1998, in Schedule 17, paragraphs 30(4)(a), (5), (6) and (8), 31, 32(2) and (3)(a) and 33,(b)in FA 2000, in Schedule 31, paragraph 7(2) to (7), (10) and (11), and(c)in FA 2003, in Schedule 42, paragraph 2(2).CommencementE+W+S+N.I.12(1)The amendments made by this Part have effect in relation to accounting periods of controlled foreign companies beginning on or after the commencement date.E+W+S+N.I.(2)For this purpose “the commencement date” means—(a)in relation to a controlled foreign company other than a qualifying holding company, 1 July 2009, and(b)in relation to a qualifying holding company, 1 July 2011.Meaning of “qualifying holding company” and “exempt holding company”E+W+S+N.I.13(1)In this Part “qualifying holding company” means a controlled foreign company that was an exempt holding company in relation to the last accounting period to end before 1 July 2009.E+W+S+N.I.(2)For the purposes of sub-paragraph (1) paragraphs 14 and 15 are to be disregarded.(3)For the purposes of this Part a company is an “exempt holding company” in relation to an accounting period if—(a)throughout the period the company is, within the meaning of Part 2 of Schedule 25 to ICTA, engaged in exempt activities, and(b)paragraph 6(4) or (4A) of that Schedule applies to the company in relation to the period.Periods straddling 1 July 2009E+W+S+N.I.14(1)Where a controlled foreign company has an accounting period (“the straddling accounting period”) that—E+W+S+N.I.(a)begins before 1 July 2009, and(b)ends on or after that date,the straddling accounting period is to be treated as split.
(2)Where this paragraph provides that the straddling accounting period is to be treated as “split”—(a)that part of the straddling accounting period that falls before 1 July 2009 and that part of the straddling accounting period that falls on or after that date are to be treated for the purposes of Chapter 4 of Part 17 of ICTA as separate accounting periods, and(b)the company's gross income for the straddling accounting period, and its chargeable profits and creditable tax (if any) for that period, are to be apportioned to the two separate accounting periods on a time basis according to the respective lengths of the periods.Qualifying holding companies: periods straddling 1 July 2011E+W+S+N.I.15(1)Where a qualifying holding company has an accounting period (“the straddling accounting period”) that—E+W+S+N.I.(a)begins before 1 July 2011, and(b)ends on or after that date,the straddling accounting period is to be treated as split.
(2)Where this paragraph provides that a straddling accounting period of a company is to be treated as “split”—(a)that part of the straddling accounting period that falls before 1 July 2011 and that part of the straddling accounting period that falls on or after that date are to be treated for the purposes of Chapter 4 of Part 17 of ICTA as separate accounting periods, and(b)the company's gross income for the straddling accounting period, and its chargeable profits and creditable tax (if any) for that period, are to be apportioned to the two separate accounting periods on a time basis according to the respective lengths of the periods.Qualifying holding companies: definition of “relevant accounting period”E+W+S+N.I.16For the purposes of paragraph 17 an accounting period of a qualifying holding company is a “relevant accounting period” if it—E+W+S+N.I.(a)begins on or after 1 July 2009, and(b)ends on or before the 1 July 2011.Qualifying holding companies: treatment during two years before 1 July 2011E+W+S+N.I.17(1)In its application in relation to a relevant accounting period of a qualifying holding company, Part 2 of Schedule 25 to ICTA has effect subject to the modifications in this paragraph.E+W+S+N.I.(2)Sub-paragraph (4) or (4A) of paragraph 6 applies to a company only if—(a)the condition specified in that sub-paragraph is met, and(b)conditions A and B are met.(3)Condition A is that at all material times the company was a member of a group with the same ultimate corporate parent.(4)For this purpose the following times are “material”—(a)the beginning of 9 December 2008, and(b)all times during the accounting period in question.(5)Condition B is that amount X does not exceed amount Y.(6)Amount X is the amount of the company's gross income in the accounting period in question that is non-qualifying gross income.(7)Amount Y is (subject to sub-paragraph (8))—(a)where there are three reference periods in relation to the company, the greatest of the amounts of the company's non-qualifying gross income in each of those periods,(b)where there are two reference periods in relation to the company, the greater of the amounts of the company's non-qualifying gross income in each of those periods,(c)where there is one reference period in relation to the company, the amount of the company's non-qualifying gross income in that period, or(d)where there is no reference period in relation to the company, the amount of the company's non-qualifying gross income in the period of 12 months ending with 9 December 2008.(8)Where the number of days in the period by reference to which amount X is determined is not the same as the number of days in the period by reference to which amount Y is determined, amount Y is to be multiplied by—where—
DX is the number of days in the period by reference to which amount X is determined, and
DY is the number of days in the period by reference to which amount Y is determined.
(9)In this paragraph—“non-qualifying gross income” means gross income that does not satisfy the test in paragraph 6(3), (4) or (4A) of Schedule 25 to ICTA;
“a reference period”, in relation to a company, means an accounting period of the company that—
(a)is one of the last three accounting periods of the company to end before 9 December 2008, and
(b)is an accounting period in relation to which the company is an exempt holding company.
Meaning of “ultimate corporate parent” and “group” for the purposes of paragraph 17(3)E+W+S+N.I.18(1)In paragraph 17(3) the “ultimate corporate parent”, in relation to a group, means a member of the group that—E+W+S+N.I.(a)is a body corporate, and(b)is not a subsidiary (whether direct or indirect) of another body corporate.(2)A reference in this paragraph to a body corporate does not include—(a)the Crown,(b)a Minister of the Crown,(c)a government department,(d)a Northern Ireland department, or(e)a foreign sovereign power.(3)In paragraph 17(3) and this paragraph “group” has the meaning for the time being given by international accounting standards.(4)In this paragraph “subsidiary” has the meaning for the time being given by international accounting standards.Reference periods: anti-avoidanceE+W+S+N.I.19(1)This paragraph applies where, on or after 9 December 2008, a company alters its accounting date so that any period (“period A”) that would otherwise have fallen in an accounting period ending on or after 9 December 2008 falls instead in an accounting period ending before that date.E+W+S+N.I.(2)The reference in paragraph (a) of the definition of “a reference period” in paragraph 17(9) to 9 December 2008 is to be treated as a reference to the beginning of period A.InterpretationE+W+S+N.I.20The following expressions have the same meaning for the purposes of this Part as they have for the purposes of Chapter 4 of Part 17 of ICTA—E+W+S+N.I.“accounting period”;
“chargeable profits”;
“control”;
“controlled foreign company”;
“creditable tax”;
“gross income”.
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