617 Authorised unit trust treated as UK resident company
(1) In respect of income arising to the trustees of an authorised unit trust, and for the purposes of the provisions relating to relief for capital expenditure, the Tax Acts have effect as if—
(a) the trustees were a UK resident company, and
(b) the rights of the unit holders were shares in the company.
(2) References in the Corporation Tax Acts to a body corporate are to be read in accordance with subsection (1); and sections 1104 to 1107 (companies required to provide tax certificates) apply with any necessary modifications.
(3) Subsection (1)(b) does not affect the making of distributions which are interest distributions to unit holders.
(4) “Interest distributions” has the meaning given by regulations made under section 17(3) of F(No.2)A 2005.
The rate of corporation tax in relation to an authorised unit trust for any financial year is the rate at which income tax at the basic rate is charged for the tax year beginning on 6 April in that financial year ... (and sections 18A and 18B (relief for companies with small profits) do not apply).
(1) In this section “umbrella scheme” means a unit trust scheme—
(a) which provides arrangements for separate pooling of the contributions of the participants and the profits or income out of which payments are made to them (“pooling arrangements”),
(b) under which the participants are entitled to exchange rights in one pool for rights in another, and
(c) in respect of which an order under section 243 of FISMA 2000 is in force.
(2) References in this section to a part of an umbrella scheme are to such of the pooling arrangements as relate to a separate pool.
(3) For the purposes of this Chapter—
(a) each of the parts of an umbrella scheme is to be regarded as an authorised unit trust, and
(b) the umbrella scheme as a whole is not to be regarded as an authorised unit trust.
(4) In relation to a part of an umbrella scheme, references to investments subject to the trusts of an authorised unit trust are references to such of the investments as under the pooling arrangements form part of the separate pool to which the part relates.
(5) In relation to a part of an umbrella scheme, references to a unit holder are references to a person for the time being having rights in that separate pool.
(1) In this section “court investment fund” means a fund established under section 42 of the Administration of Justice Act 1982 (investment funds for money paid into court).
(2) The Tax Acts apply in relation to a court investment fund as if—
(a) the fund were an authorised unit trust,
(b) the person who is for the time being the investment manager of the fund were the trustee of the trust, and
(c) the persons with qualifying interests (see the table in subsection (3)) were the unit holders in the trust.
(3) This is the table referred to in subsection (2)(c)—
Description of shares in the fund | Persons with qualifying interests in relation to the shares
Shares held by the Accountant General | The persons whose interests entitle them, as against the Accountant General, to share in the fund's investments
Shares held by any other person authorised by the Lord Chancellor to hold such shares on behalf of others (an “authorised person”) | The persons whose interests entitle them, as against the authorised person, to share in the fund's investment (or, if there are no such persons, the authorised person)
Shares held by persons authorised by the Lord Chancellor to hold such shares on their own behalf | The persons so authorised
(4) In subsection (3) “the Accountant General” means—
(a) the Accountant General of the Senior Courts of England and Wales, or
(b) the Accountant General of the Court of Judicature of Northern Ireland.
(5) In the application of this section to Northern Ireland, any reference to the Lord Chancellor is to be read as a reference to the Department of Justice in Northern Ireland.
622A Power to make provision about treatment of transactions
(1) The Treasury may by regulations provide that a transaction of a specified kind entered into by an investment trust is to be treated for the purposes of the Corporation Tax Acts as entered into by it otherwise than in the course of a trade.
(2) Regulations under this section—
(a) may make different provision for different cases or purposes, and
(b) may make incidental, consequential, supplementary or transitional provision.
(3) A statutory instrument containing the first regulations under this section may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.
(4) Any other statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.
(5) In this section “ specified ” means specified in regulations under this section.
(1) In this Chapter “securitisation company” means a company to which subsection (2) or (6) applies.
(2) This subsection applies to a company if—
(a) conditions A, B and C are met in relation to it, and
(b) it meets such other conditions as the Treasury may specify by regulations.
(3) Condition A is that the company is party as debtor to a capital market investment.
(4) Condition B is that securities representing that capital market investment are issued.
(5) Condition C is that the capital market investment is part of a capital market arrangement.
(6) This subsection applies to a company if there is between it and a company to which subsection (2) applies a relationship (direct or indirect) of a description specified by the Treasury by regulations.
(7) In this section “capital market investment” and “capital market arrangement” have the same meaning as in section 72B(1) of the Insolvency Act 1986 (see paragraphs 1, 2 and 3 of Schedule 2A to that Act).
624 Power to make regulations about the taxation of securitisation companies
(1) The Treasury may by regulations make provision about the application of the Taxes Acts in relation to a securitisation company.
(2) The regulations may, in particular, provide for the application, modification or non-application of any of the provisions of the Taxes Acts .
(3) The regulations may, in particular, provide—
(a) that the amount of profits of any specified description (before any such adjustments as are mentioned in subsection (4)) is to be taken to be such amount, or is to be calculated on such basis, as may be specified, and
(b) that the amount determined in accordance with regulations under paragraph (a) is to be brought into account for corporation tax purposes instead of any specified amount that would otherwise fall to be brought into account.
(4) The regulations may, in particular, provide for specified adjustments to be made to the amount to be brought into account for corporation tax purposes.
(5) The regulations may, in particular, provide—
(a) that the regulations apply to a company only if an election that they are to apply is made, or
(b) that the regulations do not apply to a company if an election that they are not to apply is made.
(6) The regulations may, in particular, provide that once subject to the regulations a company is to continue to be subject to them for all subsequent periods of account.
(7) The regulations may, in particular, impose conditions that must be met if a company is to have, or continue to have, the benefit of the regulations.
(8) The regulations may, in particular, provide for the consequences of failing to meet any specified condition (which may include recalculating the company's profits for previous periods on the basis that the regulations did not apply).
(9) In this section "the Taxes Acts” has the meaning given by section 118(1) of TMA 1970, and “specified” means specified in the regulations.
(1) Regulations under this Chapter may—
(a) make different provision for different descriptions of company,
(b) contain incidental, supplemental, consequential and transitional provision and savings.
(2) The provision which may be made under subsection (1)(b) includes provision amending any provision of, or made under, the Taxes Acts (within the meaning of section 118(1) of TMA 1970).
(3) Regulations under this Chapter may, insofar as they concern the application of the Corporation Tax Acts in relation to a securitisation company, include provision which—
(a) in the case of provision relating to corporation tax, has effect from the beginning of periods of account current when the regulations are made, and
(b) in the case of provision relating to income tax or capital gains tax, has effect in relation to times before the regulations are made.
626 Meaning of “final year”, “penultimate year” etc
(1) This section applies for the purposes of this Chapter.
(2) In relation to a company that is being wound up—
“the final year” means the financial year in which the winding up of the company is completed, and
“the penultimate year” means the last financial year before the company's final year.
(3) In relation to a company in administration—
“the final year” means the financial year in which the dissolution event in respect of the company occurs, and
“the penultimate year” means the last financial year before the company's final year.
(4) A reference in this Chapter to the “dissolution event” in respect of a company in administration is a reference—
(a) to the administrator sending a notice in respect of the company under paragraph 84(1) of Schedule B1 to the Insolvency Act 1986 (company moving from administration to dissolution), or
(b) if the company enters administration otherwise than under that Act, to the doing of any other act for a similar purpose.
(5) “Profits” means income and chargeable gains, except so far as the context otherwise requires.
627 Meaning of “main rate of corporation tax” for companies with ring fence profits or small profits
(1) This section applies if corporation tax chargeable on any profits of a company for a financial year—
(a) is to be charged at the main ring fence profits rate,
(b) is to be charged at the standard small profits rate or the small ring profits rate, or
(c) is to be reduced by reference to the standard marginal relief fraction or the ring fence marginal relief fraction (within the meaning of Part 3A or Chapter 3A of Part 8).
(2) References in this Chapter to the main rate of corporation tax are to be taken, so far as relating to profits charged at any of the rates mentioned in subsection (1)(a) or (b), as references to the rate or rates concerned.
(3) References in this Chapter to the main rate of corporation tax are, if corporation tax is reduced as mentioned in subsection (1)(c), to be taken as including references to the fraction or fractions concerned (and with references to a rate being “fixed” or “proposed” read accordingly as references to the fraction or fractions concerned being fixed or proposed).
(1) This section applies, in the case of a company that is being wound up, in relation to profits of the company arising in its final year (see subsections (2) to (5)) or its penultimate year (see subsections (6) and (7)).
(2) The rate of corporation tax to be applied in assessing, before the winding up of the company is completed, the corporation tax chargeable on the profits of the company arising in the winding up in its final year is to be determined in accordance with subsections (3) to (5).
(3) If the main rate of corporation tax has been fixed for the final year, that fixed rate is to be applied.
(4) If the main rate of corporation tax has been proposed (but not yet fixed) for the final year, that proposed rate is to be applied.
(5) If the main rate of corporation tax has been neither fixed nor proposed for the final year, the rate fixed or proposed for the penultimate year is to be applied.
(6) Subsection (7) applies if—
(a) the winding up of the company started before the company's final year, and
(b) an assessment to corporation tax is made at a time when the main rate of corporation tax for the company's penultimate year is proposed (but not yet fixed).
(7) The rate of corporation tax proposed for the penultimate year is to be applied in relation to the profits of the company arising in the winding up at any time in that year.
629 Company in liquidation: making of assessment to tax
(1) This section applies if—
(a) an assessment to corporation tax is made on the profits of a company that is being wound up, and
(b) the assessment is made before the date when the winding up is completed (“the actual winding up date”).
(2) An assessment for an accounting period falling after the start of the winding up is not invalid because it is made before the end of the period.
(3) In applying section 12 of CTA 2009 (accounting periods of companies being wound up) for the purpose of determining when an accounting period of the company ends, the liquidator may make an assumption as to what the actual winding up date will be (“the assumed winding up date”).
(4) The company's final and penultimate years are not changed if the assumption made under subsection (3) as to the actual winding up date is wrong.
(5) If the actual winding up date is later than the assumed winding up date—
(a) an accounting period of the company ends on the assumed winding up date (“period A”), and
(b) a new accounting period of the company (“period B”) begins immediately after the end of period A.
(6) Section 12 of CTA 2009 then applies as if the winding up of the company started at the time when period B begins.
630 Company in administration: corporation tax rates
(1) This section applies, in the case of a company in administration, in relation to profits of the company arising in its final year (see subsections (2) to (5)) or its penultimate year (see subsections (6) and (7)).
(2) The rate of corporation tax to be applied in assessing, before the dissolution event in respect of the company, the corporation tax chargeable on the profits of the company arising in the administration in its final year is to be determined in accordance with subsections (3) to (5).
(3) If the main rate of corporation tax has been fixed for the final year, that fixed rate is to be applied.
(4) If the main rate of corporation tax has been proposed (but not yet fixed) for the final year, that proposed rate is to be applied.
(5) If the rate of corporation has been neither fixed nor proposed for the final year, the rate fixed or proposed for the penultimate year is to be applied.
(6) Subsection (7) applies if—
(a) the company entered administration before its final year, and
(b) an assessment to corporation tax is made at a time when the main rate of corporation tax for the company's penultimate year is proposed (but not yet fixed).
(7) The rate of corporation tax proposed for the penultimate year is to be applied in relation to the profits of the company arising in the administration at any time in that year.
631 Company in administration: making of assessment to tax
(1) This section applies if—
(a) an assessment to corporation tax is made on the profits of a company in administration, and
(b) the assessment is made before the date of the dissolution event in respect of the company (“the actual dissolution date”).
(2) An assessment for an accounting period in which the company is in administration is not invalid because it is made before the end of the period.
(3) In applying section 10(1) of CTA 2009 (time when accounting periods come to an end) for the purpose of determining when an accounting period of the company ends, the administrator may make an assumption as to what the actual dissolution date will be (“the assumed dissolution date”).
(4) The company's final and penultimate years are not changed if the assumption made under subsection (3) as to the actual dissolution date is wrong.
(5) If the actual dissolution date is later than the assumed dissolution date—
(a) an accounting period of the company ends on the assumed dissolution date (“period A”), and
(b) a new accounting period of the company (“period B”) begins immediately after the end of period A.
(6) Section 10(1) of CTA 2009 then applies as if the company had entered administration at the beginning of period B.
(1) This section applies for the purposes of sections 628 and 630.
(2) A rate of corporation tax is “fixed”—
(a) in the case of a company that is being wound up, if the rate has been fixed by an Act passed before the completion of the winding up, and
(b) in the case of a company that is in administration, if the rate has been fixed by an Act passed before the dissolution event in respect of the company,
but this is subject to subsection (4).
(3) A rate of corporation tax is “proposed” if the rate is proposed by a Budget resolution (whether or not subsequently fixed by an Act).
(4) If a Budget resolution proposes to alter a rate of corporation tax that has been fixed, references in sections 628 and 630 to a fixed rate are references to that rate as proposed to be altered by the resolution.
(5) In this section “Budget resolution” means a resolution of the House of Commons for fixing a rate of corporation tax.
633 Exemption for interest on overpaid tax in final accounting period
(1) This section applies if, in the final accounting period of a company that is being wound up or is in administration, interest within subsection (2) arises to the company.
(2) Interest within this subsection arises to a company if—
(a) the interest is received or is receivable by the company under section 826 of ICTA (interest on tax overpaid), and
(b) the interest does not exceed £2000.
(3) The interest is excluded in calculating the company's income for corporation tax purposes.
(4) In subsection (1) the “final accounting period” means—
(a) in the case of a company being wound up, the accounting period which ends, in accordance with section 12 of CTA 2009 (accounting periods of companies being wound up), with the completion of the winding up, and
(b) in the case of a company in administration, the last accounting period of the company before the dissolution event in respect of the company.
(1) This Chapter provides for the receipts of certain types of company being wound up to be charged to corporation tax.
(2) For provision charging the receipts of such companies to income tax, see Chapter 3A of Part 14 of ITA 2007.
(1) This Chapter applies if—
(a) a company is being or has been wound up by the court in the United Kingdom, and
(b) conditions A, B and C are met.
(2) Condition A is that the company was, at any time within the period mentioned in subsection (5), lawfully carrying on a business of accepting deposits as—
(a) a person of the kind mentioned in paragraph (b) of the definition of “bank” in section 1120(2) (persons with permission under Part 4A of FISMA 2000 to accept deposits)...
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) Condition B is that the company has permanently ceased to carry on the trade that included the business of accepting deposits (the “deposit-taking trade”).
(4) Condition C is that the company is insolvent and—
(a) was so when the winding up proceedings started, or
(b) became so at any time in the period of 12 months following the day on which those proceedings started.
(5) The period referred to in subsection (2) is the period of 12 months ending with the earlier of—
(a) the day on which the winding up proceedings started, and
(b) the day on which the company permanently ceased to carry on the deposit-taking trade.
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
636 Charge to corporation tax on winding up receipts
(1) The charge to corporation tax on income applies to winding up receipts arising from the deposit-taking trade.
(2) Subsection (1) applies in relation to a winding up receipt only so far as its value was not brought into account in calculating the profits of the trade of any period before the permanent cessation of the trade.
(3) A “winding up receipt” means (subject to subsection (4)) a sum received by the company or its liquidator after—
(a) the start of the winding up proceedings, or
(b) if later, the permanent cessation of the deposit-taking trade.
(4) The following are not winding up receipts—
(a) a sum received on behalf of a person entitled to the sum to the exclusion of the company and its liquidator, and
(b) a sum realised by the transfer of an asset required to be valued under section 162 of CTA 2009 (valuation of trading stock on cessation).
(1) This section applies if—
(a) the company or its liquidator transfers for value to another person the right to receive a sum arising from the deposit-taking trade, and
(b) the sum is one which, if received by the company or its liquidator, would be a winding up receipt.
(2) If the transfer is at arm's length, this Chapter has effect as if the amount or value of the consideration for the transfer were a winding up receipt arising from the deposit-taking trade.
(3) If the transfer is not at arm's length, this Chapter has effect as if the value of the right transferred as between parties at arm's length were a winding up receipt arising from the deposit-taking trade.
(1) In calculating the amount on which corporation tax is charged under this Chapter for an accounting period, deductions are allowed in accordance with this section from the amount which would otherwise be chargeable to corporation tax under this Chapter.
(2) A deduction is allowed for the total sum of all losses, expenses and debits within subsection (3) that are incurred during or before the accounting period (but subject to subsections (4) and (5)).
(3) The losses, expenses and debits within this subsection are those which, if the company carrying on the deposit-taking trade had not permanently ceased to do so—
(a) would have been deducted in calculating the profits of the trade for corporation tax purposes, or
(b) would have been deducted from or set off against the profits of the trade for corporation tax purposes.
(4) No deduction is allowed if the loss, expense or debit arises directly or indirectly from the cessation itself.
(5) A loss, expense or debit is only within subsection (3) if incurred—
(a) after the start of the winding up proceedings or, if later, the permanent cessation of the deposit-taking trade, or
(b) in the case of a loss, at or before the permanent cessation of the deposit-taking trade.
(6) No deduction for an amount is allowed under this section if the amount has already been allowed (whether under this section or under any other provision of the Tax Acts).
(1) This section applies if a winding up receipt arising from the deposit-taking trade is received in an accounting period beginning no later than 6 years after the company permanently ceased to carry on the trade.
(2) The company or its liquidator may elect that the corporation tax chargeable under this Chapter in respect of the receipt is to be charged as if the receipt has been received on the date of the cessation.
(3) The election must be made before the end of the period of two years beginning immediately after the end of the accounting period in which the receipt is received.
(4) If an election is made under this section an assessment to corporation tax must be made accordingly (regardless of anything in the Corporation Tax Acts).
640 Relationship of Chapter with other corporation tax provisions
(1) If a winding up receipt arising from the deposit-taking trade is chargeable to corporation tax under this Chapter it is not chargeable to corporation tax under any other provision.
(2) This Chapter has effect regardless of section 464(1) of CTA 2009 (priority of loan relationship provisions).
(1) This section applies for the purposes of this Chapter.
(2) Winding up proceedings start against a company at the time when the petition for its winding up by the court is presented.
(3) There is the permanent cessation of a company's trade if—
(a) the company ceases to carry on the trade, or
(b) the company ceases to be within the charge to corporation tax in respect of the trade,
whether or not the trade is in fact ceased.
(4) A company is insolvent at any time if at that time—
(a) it is unable to pay its debts as they fall due, or
(b) the value of its assets is less than the amount of its liabilities (including its contingent and prospective liabilities).
(5) “Company” means—
(a) a company as defined in section 1(1) of the Companies Act 2006, or
(b) an unregistered company as defined in section 220 of the Insolvency Act 1986 or Article 184 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I.19)).
(6) For the meaning of “deposit-taking trade” and “winding up receipt”, see sections 635(3) and 636(3) respectively.
642 Disregard of rent from members and of interest payable
(1) Subsections (2) and (3) apply if a housing association makes a claim under this section for an accounting period or part of an accounting period during which the association was approved for the purposes of this Chapter.
(2) Rent to which the association was entitled from its members for the accounting period or part of an accounting period is ignored for tax purposes.
(3) The association is treated for corporation tax purposes as if any interest payable by it for the accounting period or part of an accounting period were not payable.
(4) But subsection (3) does not apply so far as the interest is attributable to property that is not subject to a tenancy.
(1) This section applies if—
(a) chargeable gains accrue to a housing association on a disposal by way of sale of any property which has been occupied, or is occupied, by a tenant of the housing association,
(b) the gains accrue in an accounting period or part of an accounting period during which the association was approved for the purposes of this Chapter, and
(c) the association makes a claim under this section for that period or part of a period.
(2) No liability to corporation tax arises in respect of the gains.
(1) In the case of a housing association in Great Britain, the power to approve housing associations for the purposes of this Chapter—
(a) is exercisable by the Scottish Ministers if the association has its registered office in Scotland,
(b) is exercisable by the Welsh Ministers in relation to Wales, and
(c) is otherwise exercisable by the Secretary of State.
(2) In the case of a housing association in Northern Ireland, the power to approve housing associations for the purposes of this Chapter is exercisable by the Department for Social Development.
(3) An approval given for the purposes of this Chapter—
(a) has effect from the date specified by the approving authority (which may be earlier or later than the date on which the approval is given), and
(b) may be revoked by the approving authority.
(4) See also paragraph 80 of Schedule 2 (concurrent exercise by the Secretary of State of certain functions exercisable by the Welsh Ministers).
(1) The authority mentioned in section 644(1) or (2) must not approve a housing association unless it is satisfied that the association satisfies each of tests A to E.
(2) Test A is that the association is—
(a) a housing association within the meaning of the Housing Associations Act 1985 (see section 1(1) of that Act), or
(b) a housing association within the meaning of Part 2 of the Housing (Northern Ireland) Order 1992 (S.I. 1725 (N.I. 15)) (see Article 3 of that Order).
(3) Test B is that the association is —
(a) a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014, or
(b) a society registered or treated as registered under the Industrial and Provident Societies Act (Northern Ireland) 1969.
(4) Test C is that the rules of the association—
(a) restrict membership to persons who are tenants or prospective tenants of the association, and
(b) preclude the granting or assignment of tenancies to persons other than members.
(5) Test D is that the association satisfies any other requirements prescribed by—
(a) the Secretary of State as regards England and Scotland,
(b) the Welsh Ministers as regards Wales, or
(c) the Department for Social Development as regards Northern Ireland.
(6) Test E is that the association will comply with any conditions that may be prescribed by—
(a) the Secretary of State as regards England and Scotland,
(b) the Welsh Ministers as regards Wales, or
(c) the Department for Social Development as regards Northern Ireland.
646 Delegation of powers to the Regulator of Social Housing
(1) In relation to a housing association which is a registered provider of social housing (see section 80(2) of the Housing and Regeneration Act 2008) the Secretary of State may delegate to the Regulator of Social Housing any of the Secretary of State's functions under section 644 or 645.
(2) The functions may be delegated—
(a) to any extent that the Secretary of State specifies, and
(b) subject to any conditions that the Secretary of State specifies.
(1) A claim under section 642 or 643 must be made—
(a) within two years after the end of the accounting period to which it relates, or
(b) if it relates to part of an accounting period, within two years after the end of that accounting period.
(2) A housing association must not make a claim under section 642 or 643 for an accounting period or part of an accounting period unless—
(a) the requirements in subsection (3) were complied with during that period or part, or
(b) the association reasonably considers that those requirements were substantially complied with during that period or part.
(3) The requirements are that—
(a) no property belonging to the association was let otherwise than to a member of the association,
(b) only persons who were then members of the association occupied (whether solely or jointly with another person) any property, or any part of any property, let by the association,
(c) the association satisfied each of tests A to C in section 645 and complied with any conditions that were in force by virtue of section 645(6), and
(d) any covenants required to be included in grants of tenancies by those conditions were observed.
(4) If a member of a housing association dies and another person occupies a property, or part of a property, in accordance with the member's will or the provisions applicable on the member's intestacy, that person's occupation during the first 6 months after the death does not infringe the requirement in subsection (3)(b).
(1) If an adjustment of a housing association's liability to corporation tax is necessary as a result of a claim under section 642, the adjustment may be made by an assessment, by repayment of tax or otherwise.
(2) A housing association's liability to corporation tax may be adjusted by means of assessments or otherwise if—
(a) a claim by the housing association under section 642 or 643 is included in a company tax return,
(b) an enquiry is made into the tax return, and
(c) an amendment is made to the tax return as a result of the enquiry.
(3) A housing association's liability to corporation tax may be adjusted by means of assessments or otherwise if—
(a) an enquiry is made under paragraph 5 of Schedule 1A to TMA 1970 into a claim made by the association under section 642 or 643, or into an amendment of such a claim, and
(b) an amendment is made to the claim as a result of the enquiry.
(4) Adjustments under subsection (2) or (3) may be made for all relevant accounting periods.
(1) The Secretary of State may by statutory instrument make regulations with respect to England and Scotland for the purpose of carrying out the provisions of this Chapter.
(2) The Welsh Ministers may by statutory instrument make regulations with respect to Wales for the purpose of carrying out the provisions of this Chapter.
(3) The Department for Social Development may make regulations with respect to Northern Ireland for the purpose of carrying out the provisions of this Chapter.
(4) Regulations made under subsection (3) are a statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)).
(5) If any regulations under this section prescribe requirements for the purposes of section 645(5) or conditions for the purposes of section 645(6)—
(a) any requirements or conditions previously prescribed under section 645(5) or (6) are to cease to have effect when the regulations come into force, and
(b) no further exercise may be made of the power under section 645(5) or (6) to prescribe requirements or conditions otherwise than by regulations.
(6) The reference in section 647(3)(c) to conditions that were in force by virtue of section 645(6) includes conditions prescribed for the purposes of section 645(6) under subsection (5) above.
(1) Subsections (2) and (3) give the meaning of “self-build society” in this Chapter.
(2) In England, Scotland and Wales “self-build society” has the same meaning as in the Housing Associations Act 1985 (see section 1(3) of that Act).
(3) In Northern Ireland “self-build society” has the same meaning as in Part 2 of the Housing (Northern Ireland) Order 1992 (S.I. 1725 (N.I. 15)) (see Article 3 of that Order).
(1) If a self-build society makes a claim under this section for an accounting period or part of an accounting period during which the society was approved for the purposes of this Chapter, rent to which the society was entitled from its members for the accounting period or part of an accounting period is ignored for tax purposes.
(2) In this section “rent” includes any amounts to which a self-build society is entitled in respect of the occupation of any of its land.
(3) The reference in subsection (2) to occupation includes occupation under a licence.
652 Exemption for gains on disposals of land to members
(1) This section applies if—
(a) chargeable gains accrue to a self-build society on a disposal of land to a member of the society,
(b) the gains accrue in an accounting period or part of an accounting period during which the society was approved for the purposes of this Chapter, and
(c) the society makes a claim under this section for that period or part of a period.
(2) No liability to corporation tax arises in respect of the gains.
(1) The power to approve self-build societies for the purposes of this Chapter is exercisable—
(a) in relation to England and Scotland, by the Secretary of State,
(b) in relation to Wales, by the Welsh Ministers, and
(c) in relation to Northern Ireland, by the Department for Social Development.
(2) The authority mentioned in subsection (1) must not approve a self-build society unless it is satisfied that the society—
(a) is registered, or treated as being registered, as mentioned in subsection (3),
(b) satisfies any other requirements prescribed by or under regulations under section 657, and
(c) will comply with any conditions that may be prescribed by or under regulations under that section.
(3) The reference in subsection (2)(a) is to registration—
(a) under the Co-operative and Community Benefit Societies Act 2014 (if the power is exercisable by the Secretary of State or the Welsh Ministers), or
(b) under the Industrial and Provident Societies Act (Northern Ireland) 1969 (c. 24 (N.I.)) (if the power is exercisable by the Department for Social Development).
(4) An approval given for the purposes of this Chapter—
(a) has effect from the date specified by the approving authority (which may be earlier or later than the date on which the approval is given), and
(b) may be revoked by the approving authority.
(5) See also paragraph 81 of Schedule 2 (concurrent exercise by the Secretary of State of certain functions exercisable by the Welsh Ministers).
654 Delegation of powers to the Regulator of Social Housing
(1) The Secretary of State may delegate to the Regulator of Social Housing any function of the Secretary of State under section 653 in a case where the function is exercisable in relation to a society whose registered office for the purposes of the Co-operative and Community Benefit Societies Act 2014 is in England.
(2) The function may be delegated—
(a) to any extent that the Secretary of State specifies, and
(b) subject to any conditions that the Secretary of State specifies.
(1) A claim under section 651 or 652 must be made—
(a) within two years after the end of the accounting period to which it relates, or
(b) if it relates to part of an accounting period, within two years after the end of that accounting period.
(2) A self-build society must not make a claim under section 651 or 652 for an accounting period or part of an accounting period unless—
(a) the requirements in subsection (3) were complied with during that period or part, or
(b) the society reasonably considers that those requirements were substantially complied with during that period or part.
(3) The requirements are that—
(a) only persons who were then members of the society occupied (whether solely or jointly with another person) any land, or any part of any land, owned by the society,
(b) the society complied with the requirement in section 653(2)(a), and
(c) the society complied with any conditions that were in force by virtue of section 653(2)(c).
(4) If a member of a self-build society dies and another person occupies a property, or part of a property, in accordance with the member's will or the provisions applicable on the member's intestacy, that person's occupation during the first 6 months after the death does not infringe the requirement in subsection (3)(a).
(5) A claim under section 651 or 652 must be in the form (if any) prescribed by the Commissioners for Her Majesty's Revenue and Customs and contain any details which they prescribe.
(1) If an adjustment of a self-build society's liability to corporation tax is necessary as a result of a claim under section 651, the adjustment may be made by an assessment, by repayment of tax or otherwise.
(2) A self-build society's liability to corporation tax may be adjusted by means of assessments or otherwise if—
(a) a claim by the society under section 651 or 652 is included in a company tax return,
(b) an enquiry is made into the tax return, and
(c) an amendment is made to the tax return as a result of the enquiry.
(3) A self-build society's liability to corporation tax may be adjusted by means of assessments or otherwise if—
(a) an enquiry is made under paragraph 5 of Schedule 1A to TMA 1970 into a claim made by the society under section 651 or 652, or into an amendment of such a claim, and
(b) an amendment is made to the claim as a result of the enquiry.
(4) Adjustments under subsection (2) or (3) may be made for all relevant accounting periods.
(1) The Secretary of State may by statutory instrument make regulations with respect to England and Scotland for the purpose of carrying out the provisions of this Chapter.
(2) A statutory instrument containing regulations made under subsection (1) is subject to annulment in pursuance of a resolution of the House of Commons.
(3) The Welsh Ministers may by statutory instrument make regulations with respect to Wales for the purpose of carrying out the provisions of this Chapter.
(4) A statutory instrument containing regulations made under subsection (3) is subject to annulment in pursuance of a resolution of the National Assembly for Wales.
(5) The Department for Social Development may make regulations with respect to Northern Ireland for the purpose of carrying out the provisions of this Chapter.
(6) Regulations made under subsection (5) are a statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)).
(7) A statutory rule containing regulations made under subsection (5) is subject to negative resolution within the meaning of section 41(6) of the Interpretation Act (Northern Ireland) 1954 (c. 33 (N.I.)).