Citation and commencement

1. These Regulations may be cited as the Taxation (International and Other Provisions) Act 2010 (Part 7) (Amendment) Regulations 2012 and come into force on 1st January 2013.

Amendment of Part 7 of the Taxation (International and Other Provisions) Act 2010

2.The Taxation (International and Other Provisions) Act 2010 is amended as follows.

3. —(1) Amend section 292 (statement of allocated exemptions: requirements) as follows.

(2) In subsection (5) after “financing income amount” insert “(other than an amount determined in accordance with section 314A)”.

(3) In subsection (5A) after “amount” insert “(other than an amount determined in accordance with section 314A)”.

(4) After subsection (5A) insert—

“ (5B) “The relevant details” in relation to a financing income amount determined in accordance with section 314A are—

(a) the fact that the amount is an amount determined in accordance with section 314A, and

(b) the relevant accounting period of the company mentioned in section 314A(1)(b).

(5C) For the purposes of subsection (4)(b) a proportion of a financing income amount determined in accordance with section 314A may be specified (instead of the full amount). ” .

4. For section 293 substitute—

“ 293 Statement of allocated exemptions: effect

(1) This section applies to a financing income amount of a company to which this Chapter applies that is specified in a statement of allocated exemptions under section 292(4)(b).

(2) If the amount is determined otherwise than in accordance with section 314A, the amount is not to be brought into account by the company for the purposes of corporation tax.

(3) If the amount is determined in accordance with section 314A, the sum charged on the company as mentioned in section 314A(1)(a) is to be re-determined at step 5 in section 371BC(1) on the basis set out in section 298A(2) (subject to section 298A(3)). ” .

5. —(1) Amend section 296 (failure of reporting body to submit statement of allocated exemptions) as follows.

(2) In subsection (2A) after “amount” insert “(other than an amount determined in accordance with section 314A)”.

(3) After subsection (5) insert—

“ (6) In relation to a financing income amount determined in accordance with section 314A which is reduced under this section, section 293(3) applies as if the proportion of the financing income amount represented by the amount of the reduction were specified in a statement of allocated exemptions under section 292(4)(b). ” .

6. In section 298 (balancing payments between group companies: no tax charge or relief)—

(a) in subsection (1) for paragraph (a) substitute—

“ (a) a company (“company A”) has for the relevant period of account one or more financing income amounts falling within a sub-paragraph below—

(i) a financing income amount determined otherwise than in accordance with section 314A which, because of section 293(2), is not brought into account or, because of section 296, is reduced, or

(ii) a financing income amount determined in accordance with section 314A in relation to which section 293(3) applies (whether by virtue of section 293(1) or section 296(6)), ” ,

(b) after subsection (3) insert—

“ (4) Where only a proportion of a financing income amount falling within subsection (1)(a)(ii) is taken into account for the purposes of section 293(3), only that proportion is to be taken into account for the purposes of subsection (3)(a). ” .

7. In section 314A (the financing income amounts of a chargeable company under Part 9A) after subsection (3) insert—

“ (3A) In subsection (1)(a) the reference to a sum charged is to that sum before any re-determination under section 293(3). ” .