Introduction Details of the Schedule
2.Paragraph 1 amends Part 7 Income Tax Act 2007 (ITA 2007) (dealing with CITR for investors that are not companies) as set out in the paragraphs following.
3.Paragraph 2 amends section 335 ITA 2007 as a consequence of the introduction of the new section 335A.
4.Paragraph 3 introduces a new section 335A. This section allows the carried forward of any unused relief to a later year in which the investor is entitled to relief in respect of the investment.
5.Paragraph 4 amends the attribution rules in s357 ITA 2007 in relation to any loans, securities or shares.
6.Paragraph 5 amends the rules for the withdrawal of relief to include the new carry forward provisions where a reduction is withdrawn under section 335 (5) ITA. It amends s361 substituting new subsections (3) and (3A) to (3H) for existing subsections (3) to (7).
7.Paragraph 6 provides that the commencement date applicable to the changes in Paragraphs 1 to 5 is 6 April 2013 and provides that those changes are only to take effect from that date for investments made on or after 6 April 2013.
8.Paragraph 7 amends Part 7 of Corporation Tax Act 2010 (CTA 2010) (CITR for company investors) as set out in the paragraphs following.
9.Paragraph 8 amends s220 CTA 2010 as a consequence of the new section 220A carry forward provision.
10.Paragraph 9 introduces a new section 220A. This section allows the carry forward of any unused relief to a later year in which the investor is entitled to relief in respect of the investment.
11.Paragraph 10 amends the attribution rules in s240 CTA 2010 in relation to any loans, securities or shares.
12.Paragraph 11 amends the rules for the withdrawal of relief to include the new carry forward provisions where a reduction is withdrawn under s220 (5) CTA 2010. It amends section 244 CTA 2010 substituting new subsections (3) and (3A) to (3H) for existing subsections (3) to (7).
13.Paragraph 12 provides that the commencement date for these changes will be 1 April 2013 and provides that the changes to CTA 2010 will only take effect in relation to investments made in accounting periods beginning on or after 1 April 2013.
14.Paragraph 13 introduces a new section 220B in Part 7 CTA 2010. This section places limits on the amounts of CITR tax relief an investor company can obtain in any 3 year period. That limit is the difference between the total aid in that period from CITR and any carry forward relief (s220B (2)(a) plus de minimis aid from other sources (s220 (2)(b), and €200,000. Aid from CITR is only relevant if it results from investments made on or after 1 April 2013, although de minimis aid received by the company in the period prior to April 2013 will be included under subsection (2) (b). HM Revenue & Customs will issue separate guidance on how companies should calculate aid received by way of CITR.