(1) Section 1217SB of CTA 2009 (use of losses in the completion period) has effect subject as follows.
(2) The reference in subsection (1) of that section to a loss made in the separate orchestral trade is, in relation to a loss made in a period in which the company is a Northern Ireland company, a reference to—
(a) any Northern Ireland losses of the trade of the period, or
(b) any mainstream losses of the trade of the period;
and references to losses in subsections (2) and (4) of that section are to be read accordingly.
(3) The references in subsection (3) of that section to a loss made in the separate orchestral trade in the completion period are, where the company is a Northern Ireland company in the period, references to—
(a) any Northern Ireland losses of the trade of the period, or
(b) any mainstream losses of the trade of the period;
and references to losses in subsection (4) of that section are to be read accordingly.
(4) Subsection (4) of that section has effect, in relation to Northern Ireland losses, as if the reference to an additional deduction under Chapter 3 of Part 15D of CTA 2009 included a reference to a Northern Ireland supplementary deduction under this Chapter.
(1) Section 1217SC of CTA 2009 (terminal losses) has effect subject as follows.
(2) Where—
(a) a company makes an election under subsection (3) of that section (election to treat terminal loss as loss brought forward of different trade) in relation to all or part of a terminal loss, and
(b) the terminal loss is a Northern Ireland loss,
that subsection has effect as if the reference in it to a loss brought forward were to a Northern Ireland loss brought forward.
(3) Where—
(a) a company makes a claim under subsection (6) of that section (claim to treat terminal loss as loss brought forward by different company) in relation to part or all of a terminal loss, and
(b) the terminal loss is a Northern Ireland loss,
that subsection has effect as if the reference in it to a loss brought forward were to a Northern Ireland loss brought forward.
(1) This Chapter makes provision about the operation of Part 15E of CTA 2009 (museums and galleries exhibition tax relief) in relation to expenditure incurred by a company in an accounting period in which it is a Northern Ireland company.
(2) In this Chapter—
(a) “Northern Ireland expenditure” means expenditure incurred in a trade to the extent that the expenditure forms part of the Northern Ireland profits or Northern Ireland losses of the trade;
(b) “the separate exhibition trade” has the same meaning as in Part 15E of CTA 2009 (see section 1218ZB(3) of that Act);
(c) “qualifying expenditure” has the same meaning as in Chapter 3 of that Part (see section 1218ZCG of that Act).
(3) References in Part 15E of CTA 2009 to “museums and galleries exhibition tax relief” include relief under this Chapter.
(1) In this Chapter “a Northern Ireland additional deduction” means so much of a deduction under section 1218ZCE of CTA 2009 (claim for additional deduction) as is calculated by reference to qualifying expenditure that is Northern Ireland expenditure.
(2) A Northern Ireland additional deduction forms part of the Northern Ireland profits or Northern Ireland losses of the separate exhibition trade.
(1) This section applies where—
(a) a company is entitled under section 1218ZCE of CTA 2009 to an additional deduction in calculating the profit or loss of the separate exhibition trade in an accounting period,
(b) the company is a Northern Ireland company in the period,
(c) the additional deduction is wholly or partly a Northern Ireland additional deduction, and
(d) any of the following conditions is met—
(i) the company does not have a surrenderable loss in the accounting period;
(ii) the company has a surrenderable loss in the accounting period, but does not make a claim under section 1218ZCH of CTA 2009 (museums and galleries exhibition tax credit claimable if company has surrenderable loss) for the period;
(iii) the company has a surrenderable loss in the accounting period and makes a claim under that section for the period, but the amount of Northern Ireland losses surrendered on the claim is less than the Northern Ireland additional deduction.
(2) The company is entitled to make another deduction (“a Northern Ireland supplementary deduction”) in respect of qualifying expenditure.
(3) See section 357UU for provision about the amount of the Northern Ireland supplementary deduction.
(4) The Northern Ireland supplementary deduction—
(a) is made in calculating the profit or loss of the separate exhibition trade, and
(b) forms part of the Northern Ireland profits or Northern Ireland losses of the separate exhibition trade.
(5) In this section “surrenderable loss” has the meaning given by section 1218ZCI of CTA 2009.
(1) This section contains provision for the purposes of section 357UT(2) about the amount of the Northern Ireland supplementary deduction.
(2) If the accounting period falls within only one financial year, the amount of the Northern Ireland supplementary deduction is—
( A ⿿ B ) ÿ ( ( MR ⿿ NIR ) NIR )
where—
A is the amount of the Northern Ireland additional deduction brought into account in the accounting period;
B is the amount of Northern Ireland losses surrendered in any claim under section 1218ZCH of CTA 2009 for the accounting period;
MR is the main rate for the financial year;
NIR is the Northern Ireland rate for the financial year.
(3) If the accounting period falls within more than one financial year, the amount of the Northern Ireland supplementary deduction is determined by taking the following steps.
Step 1 Calculate, for each financial year, the amount that would be the Northern Ireland supplementary deduction for the accounting period if it fell within only that financial year (see subsection (2)).
Step 2 Multiply each amount calculated under step 1 by the proportion of the accounting period that falls within the financial year for which it is calculated.
Step 3 Add together each amount found under step 2.
For the purpose of determining the available loss of a company under section 1218ZCI of CTA 2009 (amount of surrenderable loss) for any accounting period, any Northern Ireland supplementary deduction made by the company in the period (and any Northern Ireland supplementary deduction made in any previous accounting period) is to be ignored.
357UW Restriction on use of losses before completion period
(1) Section 1218ZDA of CTA 2009 (restriction on use of losses before completion period) has effect subject as follows.
(2) The reference in subsection (1) of that section to a loss made in the separate exhibition trade in an accounting period preceding the completion period is, if the company is a Northern Ireland company in that period, a reference to—
(a) any Northern Ireland losses of the trade of the period, or
(b) any mainstream losses of the trade of the period;
and references to losses in subsections (2) and (3) of that section are to be read accordingly.
(3) Subsection (4) applies if a Northern Ireland company has, in an accounting period preceding the completion period—
(a) both Northern Ireland losses of the trade and mainstream profits of the trade, or
(b) both mainstream losses of the trade and Northern Ireland profits of the trade.
(4) The company may make a claim under section 37 (relief for trade losses against total profits) for relief for the losses mentioned in subsection (3)(a) or (b).
(5) But relief on such a claim is available only—
(a) in the case of a claim for relief for Northern Ireland losses, against mainstream profits of the trade of the same period;
(b) in the case of a claim for relief for mainstream losses, against Northern Ireland profits of the trade of the same period.
(6) In this section “the completion period” has the same meaning as in section 1218ZDA of CTA 2009 (see section 1218ZD(2) of that Act).
(1) Section 1218ZDB of CTA 2009 (use of losses in the completion period) has effect subject as follows.
(2) The reference in subsection (1) of that section to a loss made in the separate exhibition trade is, in relation to a loss made in a period in which the company is a Northern Ireland company, a reference to—
(a) any Northern Ireland losses of the trade of the period, or
(b) any mainstream losses of the trade of the period;
and references to losses in subsections (2) and (4) of that section are to be read accordingly.
(3) The references in subsection (3) of that section to a loss made in the separate exhibition trade in the completion period are, where the company is a Northern Ireland company in the period, references to—
(a) any Northern Ireland losses of the trade of the period, or
(b) any mainstream losses of the trade of the period;
and references to losses in subsection (4) of that section are to be read accordingly.
(4) Subsection (4) of that section has effect, in relation to Northern Ireland losses, as if the reference to an additional deduction under Chapter 3 of Part 15E of CTA 2009 included a reference to a Northern Ireland supplementary deduction under this Chapter.
(1) Section 1218ZDC of CTA 2009 (terminal losses) has effect subject as follows.
(2) Where—
(a) a company makes an election under subsection (3) of that section (election to treat terminal loss as loss brought forward of different trade) in relation to all or part of a terminal loss, and
(b) the terminal loss is a Northern Ireland loss,
that subsection has effect as if the reference in it to a loss brought forward were to a Northern Ireland loss brought forward.
(3) Where—
(a) a company makes a claim under subsection (6) of that section (claim to treat terminal loss as loss brought forward by different company) in relation to part or all of a terminal loss, and
(b) the terminal loss is a Northern Ireland loss,
that subsection has effect as if the reference in it to a loss brought forward were to a Northern Ireland loss brought forward.
(1) This Chapter makes provision about the operation of Part 8A (profits arising from the exploitation of patents etc) in relation to an accounting period in which a company is a Northern Ireland company.
(2) If a company—
(a) has made an election under section 357A (election for special treatment of profits from patents etc) with respect to a trade of the company in relation to an accounting period, and
(b) is a Northern Ireland company in that period,
Part 8A has effect subject to the provisions of this Chapter.
(3) In this Chapter “the relevant period” means the accounting period mentioned in subsection (2).
(1) Section 357A(2) has effect as if the reference to allowing a deduction to be made in calculating for corporation tax purposes the profits of the trade for the period were a reference to allowing a mainstream deduction and a Northern Ireland deduction to be made in accordance with this section.
(2) The mainstream deduction is to be calculated in accordance with section 357A(3), but as if in the formula in that provision “RP” referred to the relevant mainstream IP profits of the trade.
(3) The relevant mainstream IP profits of the trade are so much of the relevant IP profits of the trade of the company as are not by virtue of section 357VB or 357VC relevant Northern Ireland IP profits of the trade.
(4) The amount of the Northern Ireland deduction is—
RNIP×(NIR−IPRNIR)
where—
RNIP is the relevant Northern Ireland IP profits of the company, as determined under section 357VB or 357VC,
NIR is the Northern Ireland rate of corporation tax, and
IPR is the special IP rate of corporation tax specified in section 357A(4).
(5) The Northern Ireland deduction is allowed only if in the relevant period, or part of the relevant period, the Northern Ireland rate is higher than the special IP rate of corporation tax.
(6) The mainstream deduction—
(a) is made in calculating for corporation tax purposes the profits of the trade for the period, and
(b) is treated as forming part of the mainstream profits or mainstream losses of the trade.
(7) The Northern Ireland deduction—
(a) is made in calculating for corporation tax purposes the profits of the trade for the period, and
(b) is treated as forming part of the Northern Ireland profits or Northern Ireland losses of the trade.
357VB Relevant Northern Ireland IP profits: SMEs that are Northern Ireland employers
(1) This section applies if—
(a) the company is a Northern Ireland company in the relevant period by virtue of the SME (Northern Ireland employer) condition in section 357KA, and
(b) the trade is not an excluded trade.
(2) The company's “relevant Northern Ireland IP profits” are its relevant IP profits of the trade for the period but—
(a) calculated without taking into account any amounts which are—
(i) treated by section 747 of CTA 2009 as receipts or expenses of the trade for the period, but
(ii) do not under section 357OA form part of the Northern Ireland profits or Northern Ireland losses of the trade for the period, and
(b) excluding so much of its relevant IP profits as are attributable to a qualifying IP right or an exclusive licence in respect of a qualifying IP right which (in either case) is held by the company for the purposes of an excluded activity.
357VC Relevant Northern Ireland IP profits: SMEs that are not Northern Ireland employers and large companies
(1) This section applies if—
(a) the company is a Northern Ireland company in the relevant period by virtue of the SME (election) condition or the large company condition in section 357KA, and
(b) the trade is a qualifying trade by virtue of section 357KB(1) (trade other than excluded trade).
(2) The company has “relevant Northern Ireland IP profits” for the period only if IP-related profits that (in accordance with Chapters 6 to 8) form part of its Northern Ireland profits or Northern Ireland losses for the period amount to Northern Ireland profits (rather than losses).
(3) The company's “relevant Northern Ireland profits” for the period are the appropriate proportion of the relevant IP profits.
(4) The “appropriate proportion” is—
NIP
where—
NI is so much of the IP-related profits as (in accordance with Chapters 6 to 8) forms part of its Northern Ireland profits;
P is the IP-related profits.
(5) In this section the “IP-related profits” means the profits of the company's trade for the accounting period attributable to—
(a) qualifying IP rights held by the company, or
(b) exclusive licences held by the company in respect of qualifying IP rights.
(1) If any of the set-off provisions prevents section 357A from applying to an amount of relevant IP profits of the trade of the company for the relevant period, sections 357VA to 357VC have effect as if references to the relevant IP profits of the trade were references to the relevant IP profits reduced by that amount.
(2) The “set-off provisions” are—
(a) subsection (3) of section 357EA (effect of set-off amount on company with more than one trade),
(b) subsection (4) of section 357EB (allocation of set-off amount within a group), and
(c) subsection (3) of section 357EC (carry-forward of set-off amount).
In this Chapter—
“exclusive licence”, in relation to a right, has the same meaning as in Part 8A (see section 357BA);
“qualifying IP right” has the same meaning as in Part 8A (see section 357B(4));
“relevant IP profits”, in relation to the trade of a company, is to be read in accordance with Chapter 3 of Part 8A (but subject to section 357VD);
“relevant period” has the meaning given by section 357V.
(1) This Chapter makes provision under which profits or losses of a trade carried on by a company as a partner in a Northern Ireland firm are—
(a) Northern Ireland profits or losses of the trade,
(b) mainstream profits or losses of the trade, or
(c) a combination of—
(i) profits or losses within paragraph (a), and
(ii) profits or losses within paragraph (b).
(2) This Chapter has effect for the purposes of this Part.
(3) In this Chapter “firm” has the same meaning as in CTA 2009 (see section 1257(1) of that Act).
(1) A firm is a “Northern Ireland firm” in an accounting period of the firm (“the firm's accounting period”) if—
(a) the firm carries on a qualifying partnership trade in the period, and
(b) the SME (Northern Ireland employer) partnership condition, the SME (election) partnership condition or the large partnership condition is met.
(2) The “SME (Northern Ireland employer) partnership condition” is that the firm—
(a) is an SME in relation to the firm's accounting period, and
(b) is a Northern Ireland employer in relation to that period.
(2A) The “SME (election) partnership condition” is that—
(a) the firm is an SME in relation to the firm's accounting period,
(b) the firm is not a Northern Ireland employer in relation to that period,
(c) the firm has a NIRE in that period,
(d) the firm is not a disqualified firm in relation to the period, and
(e) an election by the firm for the purposes of this subsection has effect in relation to that period.
(3) The “large partnership condition” is that the firm—
(a) is not an SME in relation to the firm's accounting period, and
(b) has a NIRE in that period.
(3A) An election for the purposes of subsection (2A)—
(a) must be made by notice to an officer of Revenue and Customs,
(b) must specify the accounting period in relation to which it is to have effect (“the specified accounting period”),
(c) must be made before the end of the period of 12 months beginning with the end of the specified accounting period, and
(d) if made in accordance with paragraphs (a) to (c) has effect in relation to the specified accounting period.
(4) In their application in relation to a firm, the provisions mentioned in subsection (5) have effect as if—
(a) references to a company were to a firm, and
(b) references to the Northern Ireland workforce conditions were to the Northern Ireland workforce partnership conditions (see section 357WBA).
(5) The provisions are—
(a) section 357KC (meaning of “SME”);
(b) section 357KD (meaning of “Northern Ireland employer”);
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d) Chapter 5 (Northern Ireland regional establishments);
(e) section 1128 of CTA 2009 (meaning of “externally provided worker”).
(6) A reference in this Chapter, in relation to a Northern Ireland firm, to “the firm's trade” is to the trade mentioned in subsection (1).
(1) “Qualifying partnership trade” means a trade carried on by a firm where the trade is not an excluded trade.
(2) If an election by a firm for the purposes of this subsection has effect, “qualifying partnership trade” also includes a trade carried on by the firm where—
(a) the trade is an excluded trade within—
(i) section 357XB (lending and investment),
(ii) section 357XC (investment management), or
(iii) section 357XE (re-insurance trade), and
(b) the trade includes any back-office activities.
(3) An election for the purposes of subsection (2)—
(a) must be made by notice to an officer of Revenue and Customs,
(b) must specify the first accounting period of the firm (“the specified accounting period”) in relation to which it is to have effect,
(c) must be made before the end of the period of 12 months beginning with the end of the specified accounting period, and
(d) if made in accordance with paragraphs (a) to (c)—
(i) has effect in relation to the specified accounting period and subsequent accounting periods, and
(ii) is irrevocable.
(4) For the meaning of “excluded trade”, and for power to make provision about the meaning of “back-office activities”, see Chapter 17.
(1) The Northern Ireland workforce partnership conditions, in relation to a period, are—
(a) that 75% or more of the working time that is spent in the United Kingdom during the period by members of the firm's workforce is spent in Northern Ireland, and
(b) that 75% or more of the firm's workforce expenses that are attributable to working time spent in the United Kingdom during the period by members of the firm's workforce are attributable to time spent in Northern Ireland.
(2) References in this section to members of the firm's workforce are to—
(a) employees of the firm,
(b) externally provided workers in relation to the firm, and
(c) individuals who are partners in the firm.
(3) In subsection (2) “externally provided worker”, in relation to a firm, has the same meaning as in Part 13 of CTA 2009 (see section 1128 of that Act).
In the application of section 1128 of that Act for the purposes of subsection (2), references to a company are to be read as references to a firm and references to a director are to be treated as omitted.
(4) References in this section to the working time spent by members of the firm's workforce in a place are to the total time spent by those persons in that place while providing services to the firm.
(5) References in this section to “the firm's workforce expenses” are, where the period is an accounting period of the firm, to the total of the deductions made by the firm in the period in respect of members of the firm's workforce in calculating the profits of the firm's trade.
(6) References in this section to “the firm's workforce expenses” are, where the period is not an accounting period of the firm, to the total of—
(a) the deductions made by the firm in any accounting period falling wholly within the period, and
(b) the appropriate proportion of the deductions made by the firm in any accounting period falling partly within the period,
in respect of members of the firm's workforce in calculating the profits of the firm's trade.
(7) For the purposes of subsection (6)(b), “the appropriate proportion” is to be determined by reference to the number of days in the periods concerned.
(8) The Commissioners for Her Majesty's Revenue and Customs may by regulations specify descriptions of deduction that are, or are not, to be regarded for the purposes of this section as made in respect of members of a firm's workforce.
(9) Regulations under this section—
(a) may make different provision for different purposes;
(b) may make incidental, supplemental, consequential and transitional provision and savings.
(10) Section 357WBB contains supplementary provision applying for the purposes of this section.
(1) References in section 357WBA or this section to a partner in the firm include any person entitled to a share of income of the firm.
(2) In determining for the purposes of section 357WBA the amount of working time that is spent in any place by a partner in the firm, time spent by the partner in that place is to be included where—
(a) the time is spent by the partner in providing services to a person other than the firm (“the third party”), and
(b) condition A or B is met.
(3) Condition A is that the provision of the services results in a payment being made (whether directly or indirectly) to the firm by—
(a) the third party, or
(b) a person connected with the third party.
(4) Condition B is that—
(a) the firm holds a right that it acquired (whether directly or indirectly) from the partner, and
(b) any payment in connection with that right is made (whether directly or indirectly) to the firm by—
(i) the third party, or
(ii) a person connected with the third party.
(5) Section 1122 (connected persons) applies for the purposes of this section.
(6) References in section 357WBA to deductions made in respect of the members of the firm's workforce in calculating profits of the firm's trade include, in relation to a partner in the firm, the appropriate notional consideration for services provided by the partner (see subsections (7) and (8)).
(7) For the purposes of subsection (6), “the appropriate notional consideration for services” provided by a partner is—
(a) the amount which the partner would receive in consideration for services provided to the firm by the partner during the period in question, were the consideration to be calculated on the basis mentioned in subsection (8), less
(b) any amount actually received in consideration for such services which is not included in the partner's profit share.
(8) The consideration mentioned in subsection (7)(a) is to be calculated on the basis that the partner is not a partner in the firm and is acting at arm's length from the firm.
(1) For the purposes of this Chapter, a firm is a “disqualified firm” in relation to a period if conditions A and B are met.
(2) Condition A is that the firm has a NIRE in the period as a result of tax-avoidance arrangements.
(3) Condition B is that—
(a) 50% or more of the working time that is spent in the United Kingdom during the period by members of the firm's workforce is working time spent by partners otherwise than in Northern Ireland, or
(b) 50% or more of the firm's workforce expenses that are attributable to working time spent in the United Kingdom during the period by members of the firm's workforce are attributable to working time spent by partners otherwise than in Northern Ireland.
(4) For the purposes of this section “tax avoidance arrangements” means arrangements the sole or main purpose of which is to secure that any profits or losses of the firm for the period are Northern Ireland profits or losses.
(5) In subsection (4) “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).
(6) The following provisions apply for the purposes of this section as they apply for the purposes of section 357WBA (Northern Ireland workforce partnership conditions)—
(a) subsections (2) to (5) of that section;
(b) regulations made under that section;
(c) section 357WBB.
357WC Northern Ireland profits etc of firm determined under Chapter 6
(1) This section applies where conditions A and B are met.
(2) Condition A is that a firm is a Northern Ireland firm in an accounting period (“the firm's accounting period”) by virtue of the SME (Northern Ireland employer) partnership condition in section 357WA.
(3) Condition B is that a partner in the firm is a company (“the corporate partner”) that is—
(a) within the charge to corporation tax in relation to the firm's trade, and
(b) an SME in relation to an accounting period of the corporate partner which—
(i) is the same as the firm's accounting period, or
(ii) overlaps (to any extent) the firm's accounting period.
(4) Section 357MA (profits or losses of trade that are Northern Ireland profits or losses etc: SMEs)—
(a) applies in relation to the profits or losses of the firm's trade for the firm's accounting period that are determined under section 1259(3) or (4) of CTA 2009 in relation to the corporate partner, but
(b) so applies only for the purpose of allocating (under Part 17 of that Act) a share of those profits or losses to an accounting period within subsection (3)(b).
(5) Further provision under which profits or losses of the firm's trade may in relation to the corporate partner be Northern Ireland profits or losses of the trade or mainstream profits or losses of the trade is contained in—
(a) Chapters 8 and 15, and
(b) CAA 2001 (see section 6E of that Act).
(6) Section 357WH makes further provision about the operation of Part 17 of CTA 2009 in cases in which the profits or losses of the firm's trade determined in relation to the corporate partner are Northern Ireland profits, Northern Ireland losses, mainstream profits or mainstream losses.
357WD Northern Ireland profits etc of firm determined under Chapter 7
(1) This section applies where—
(a) a company (“the corporate partner”) is a partner in a firm at any time during an accounting period of the firm (“the firm's accounting period”) and is within the charge to corporation tax in relation to the firm's trade, and
(b) condition A or B is met.
(2) Condition A is that the firm is a Northern Ireland firm in the firm's accounting period by virtue of the SME (election) partnership condition or the large partnership condition in section 357WA.
(3) Condition B is that—
(a) the firm is a Northern Ireland firm in the firm's accounting period by virtue of the SME (Northern Ireland employer) partnership condition in section 357WA, and
(b) the corporate partner is not an SME in relation to an accounting period of the corporate partner which is the same as, or overlaps (to any extent), the firm's accounting period.
(4) Section 357NA (profits or losses of trade that are Northern Ireland profits or losses etc: SMEs that are not Northern Ireland employers and large companies)—
(a) applies in relation to the profits or losses of the firm's trade for the firm's accounting period that are determined under section 1259(3) or (4) of CTA 2009 in relation to the corporate partner, but
(b) in a case in which condition B is met, so applies only for the purpose of allocating under Part 17 of that Act a share of those profits or losses to an accounting period within subsection (3)(b).
(5) Further provision under which profits or losses of the firm's trade may in relation to the corporate partner be Northern Ireland profits or losses of the trade or mainstream profits or losses of the trade is contained in—
(a) Chapters 8 and 15, and
(b) CAA 2001 (see section 6E of that Act).
(6) Section 357WH makes further provision about the operation of Part 17 of CTA 2009 in cases in which the profits or losses of the firm's trade determined in relation to the corporate partner are Northern Ireland profits, Northern Ireland losses, mainstream profits or mainstream losses.
(1) Section 357MA (profits or losses of trade that are Northern Ireland profits or losses etc: SMEs) as applied by section 357WC(4), and the other provisions of Chapter 6 so far as they apply for the purposes of section 357MA as so applied, have effect as if—
(a) references to the qualifying trade were to the firm's trade;
(b) references to the company were to the firm;
(c) references to the accounting period were to the firm's accounting period;
(d) the reference in section 357MA(1) to a qualifying trade by virtue of section 357KB(1) were to a qualifying partnership trade by virtue of section 357WB(1);
(e) the reference in section 357MA(3) to a qualifying trade by virtue of section 357KB(2) were to a qualifying partnership trade by virtue of section 357WB(2).
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) Section 357NA (profits or losses of trade that are Northern Ireland profits or losses etc: large companies) as applied by section 357WD(4), and the other provisions of Chapter 7 so far as they apply for the purposes of section 357NA as so applied, have effect as if—
(a) references to the qualifying trade were to the firm's trade;
(b) references to the company were to the firm;
(c) references to the accounting period were to the firm's accounting period;
(d) in section 357NA(1) the reference to a qualifying trade by virtue of section 357KB(1) were to a qualifying partnership trade by virtue of section 357WB(1),
(e) in section 357NA(3) the reference to a qualifying trade by virtue of section 357KB(2) were to a qualifying partnership trade by virtue of section 357WB(2);
(f) in section 357NF(5), the reference to a UK resident company were to a UK resident firm.
357WF Application of section 747 of CTA 2009 to Northern Ireland firm
Chapter 8 (intangible fixed assets) has effect in relation to a Northern Ireland firm as if—
(a) references to a qualifying trade were to a qualifying partnership trade;
(b) references to a company were to a firm;
(c) references to an accounting period of a company were to an accounting period of a firm;
(d) references to a Northern Ireland company were to a Northern Ireland firm;
(e) references to the SME (Northern Ireland employer) condition in section 357KA were to the SME (Northern Ireland employer) partnership condition in section 357WA;
(ea) references to the SME (election) condition in section 357KA were to the SME (election) partnership condition in section 357WA;
(f) references to the large company condition in section 357KA were to the large partnership condition in section 357WA;
(g) the reference in section 357OB(1)(b) to a qualifying trade by virtue of section 357KB(1) were to a qualifying partnership trade by virtue of section 357WB(1).
357WG Application of Part 8A to Northern Ireland firm
Chapter 15 (profits arising from the exploitation of patents etc) has effect in relation to a Northern Ireland firm as if—
(a) except in relation to the making of elections under section 357A, references to a company were to the firm,
(b) references to a Northern Ireland company were to a Northern Ireland firm,
(c) references to the trade were to the firm's trade,
(d) the reference in section 357V(2) to an election made by the company were to an election made by a corporate partner as defined by section 357GB(1),
(e) the reference in 357V(2) to Part 8A were to Part 8A so far as relating to the corporate partner which made the election,
(f) references to an accounting period of a company were to an accounting period of the firm,
(g) the reference in section 357VB to the SME (Northern Ireland employer) condition in section 357KA were to the SME (Northern Ireland employer) partnership condition in section 357WA, and
(h) references in section 357VC to—
(i) the SME (election) condition in section 357KA were to the SME (election) partnership condition in section 357WA;
(ii) the large company condition in section 357KA were to the large partnership condition in section 357WA;
(iii) a qualifying trade by virtue of section 357KB(1) were to a qualifying partnership trade by virtue of section 357WB(1).
357WH Allocation of Northern Ireland profits etc of firm to company
(1) This section applies where the profits or losses of a firm's trade that are determined under section 1259(3) or (4) of CTA 2009 in relation to a company (“company A”) are—
(a) Northern Ireland profits or losses of the trade,
(b) mainstream profits or losses of the trade, or
(c) a combination of—
(i) profits or losses within paragraph (a), and
(ii) profits or losses within paragraph (b).
(2) Section 1262(1) of CTA 2009 (allocation of firm's profits or losses between partners) applies so as to allocate to company A a share of the profits or losses mentioned in subsection (1)(a) to (c).
For this purpose, in a case within subsection (1)(c), the firm's profit-sharing arrangements are treated as applying separately in relation to each of those profits or losses.
(3) In section 1263 of CTA 2009 (profit-making period in which some partners have losses)—
(a) where subsection (1) of that section applies so that company A's share of the profit of the trade is neither a profit nor a loss, that subsection applies so that company A is treated as having no Northern Ireland profit, no Northern Ireland loss, no mainstream profit and no mainstream loss;
(b) where subsection (2) of that section applies so that company A's share of the profit of the trade is reduced, that subsection applies so that any Northern Ireland profit, Northern Ireland loss, mainstream profit or mainstream loss of company A is reduced by the same proportion.
(4) In section 1264 of CTA 2009 (loss-making period in which some partners have profits)—
(a) where subsection (1) of that section applies so that company A's share of the loss of the trade is neither a profit nor a loss, that subsection applies so that company A is treated as having no Northern Ireland profit, no Northern Ireland loss, no mainstream profit and no mainstream loss;
(b) where subsection (2) of that section applies so that company A's share of the loss of the trade is reduced, that subsection applies so that any Northern Ireland profit, Northern Ireland loss, mainstream profit or mainstream loss of company A is reduced by the same proportion.
(1) This Chapter makes provision—
(a) specifying trades that are “excluded trades” for the purposes of this Part (see sections 357XA to 357XE), and
(b) specifying activities that are “excluded activities” for the purposes of this Part (see sections 357XF and 357XG).
(2) This Chapter also contains—
(a) a power to alter the meaning of “excluded trade” or “excluded activity” for the purposes of this Part (see section 357XH), and
(b) a power to make provision about the meaning of “back-office activities” for the purposes of this Part (see section 357XI).
(1) A trade is an “excluded trade” if it is a ring fence trade.
(2) In this section “ring fence trade” has the same meaning as in Part 8 (oil activities) (see section 277).
(1) A trade is an “excluded trade” if it consists of or includes—
(a) a lending activity, or
(b) a relevant regulated activity.
(2) But a trade is not an “excluded trade” by virtue of subsection (1) where it is carried on by an insurance company (within the meaning given by section 65 of FA 2012).
(3) In this section “lending activity” means—
(a) lending of money, including consumer credit, mortgage credit, factoring (with or without recourse), and financing of commercial transactions (including forfeiting),
(b) finance leasing (as lessor),
(c) issuing and administering means of payment,
(d) provision of guarantees or commitments to provide money,
(e) money transmission services,
(f) provision of alternative finance arrangements, or
(g) other activities carried on in connection with activities falling within any of paragraphs (a) to (f).
(4) In this section “relevant regulated activity” means an activity which is a regulated activity for the purposes of FISMA 2000 by virtue of any of the following provisions of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544)—
(a) article 5 (accepting deposits),
(b) article 14 (dealing in investments as principal),
(c) article 21 (dealing in investments as agent),
(d) article 25 (arranging deals in investments),
(e) article 40 (safeguarding and administering investments), and
(f) article 61 (entering into regulated mortgage contracts).
(1) A trade is an “excluded trade” if it consists of or includes portfolio management, or risk management, in relation to—
(a) a UCITS, or
(b) an AIF.
(2) In subsection (1)—
(a) “UCITS” means—
(i) a UCITS within the meaning given by section 236A of the Financial Services and Markets Act 2000; or
(ii) an undertaking established in Gibraltar which is a UCITS under the law of Gibraltar which implemented Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities;
(b) “AIF” has the meaning given in regulation 3 of the Alternative Investment Fund Managers Regulations 2013 (S.I. 2013/1773).
357XG Exploration and exploitation of UK sector of continental shelf
(1) An activity is an “excluded activity” if it is—
(a) an exploration or exploitation activity, or
(b) an activity carried on in connection with exploration or exploitation rights.
(2) In this section—
“exploration or exploitation activity” means an activity carried on in connection with the exploration or exploitation of so much of the sea-bed and subsoil and their natural resources as is situated in the UK sector of the continental shelf;
“exploration or exploitation rights” means rights to assets to be produced by exploration or exploitation activities or to interests in or to the benefit of such assets;
“the UK sector of the continental shelf” means the areas designated by Order in Council under section 1(7) of the Continental Shelf Act 1964.
357XH Power to amend definition of “excluded trade” or “excluded activity”
(1) The Treasury may by regulations amend this Chapter so as to alter the meaning of “excluded trade” or “excluded activity” for the purposes of this Part.
(2) Regulations under this section may only be made if a draft of the statutory instrument containing them has been laid before, and approved by a resolution of, the House of Commons.
(3) Regulations under this section—
(a) may make different provision for different purposes;
(b) may make incidental, supplemental, consequential and transitional provision and savings.
357XI Power to make provision about meaning of “back-office activities”
(1) The Treasury may by regulations make provision about the meaning of “back-office activities” for the purposes of this Part.
(2) Regulations under this section may, in particular—
(a) specify activities that are, or are not, back-office activities, or
(b) specify circumstances in which activities are, or are not, to be regarded as back-office activities.
(3) Regulations under this section—
(a) may make different provision for different purposes;
(b) may make incidental, supplemental, consequential and transitional provision and savings.
357YA Charge to corporation tax on restitution interest
(1) The charge to corporation tax on income applies to restitution interest arising to a company.
(2) In subsection (1) the reference to a company does not include a charitable company.
(1) Profits arising to a company which consist of restitution interest are chargeable to tax as income under this Part (regardless of whether the profits are of an income or capital nature).
(1A) In subsection (1) the reference to a company does not include a charitable company.
(2) In this Part references to “profits” are to be interpreted in accordance with section 2(2) of CTA 2009.