Introduction Details of the Schedule
2.Paragraph 2 makes changes to paragraph 7 of Schedule 10 by introducing in sub-paragraph (9) conditions to be satisfied before sub-paragraph (8)(b) applies. The conditions ensure that sub-paragraph (8)(b) only applies to plant or machinery acquired on or after 5 December 2005 or acquired at any time from a person connected to the company on 5 December.
3.Paragraph 3 inserts new paragraph 13A which sets out the circumstances where there is deemed to be no qualifying change in ownership. There is no qualifying change in ownership if the interest remains the same or the percentage of share capital held by the principal company remains unchanged.
4.Paragraph 4 amends paragraph 17 of Schedule 10 to FA 2006 by amending the condition in sub-paragraph (8) to be satisfied before sub-paragraph (7)(b) of paragraph 17 applies.
5.Paragraph 6 inserts new paragraph 23A so that in circumstances where all of the companies that carried on the business in partnership cease to have a share in the profits or losses of the business and as a consequence the plant or machinery is treated as disposed of for a value equal to its open market value then no amount of income will be treated as received for the purposes of paragraph 23.
6.Paragraph 7 changes the application of paragraph 32 so that it applies only when there is a percentage increase over the whole day and sets the calculation for determining the amount of the expense allocated to the other company as a consequence of a percentage increase.
7.Paragraph 8 makes changes to paragraph 39 of Schedule 10. The changes extend the period over which a loss derived from the expense can be utilised and provide for an increase in the amount of any loss not utilised.
8.Paragraph 9 sets out when the legislation will have effect. Changes made by paragraph 8 allowing extended access to losses derived from the expense will have effect for accounting periods ending on or after 22 April 2009. The other amendments will have effect where the relevant day is on or after 22 April 2009.