Introduction Details of the Schedule Part 2
7.Paragraph 21 inserts section 298A into Corporation Tax Act 2010 (CTA 2010).
8.Subsection (1) of section 298A provides that the section applies if:
9.Subsection (2) of section 298A provides that the amounts within this subsection are:
10.Subsection (3) of section 298A provides that the difference between the sum of the amounts within subsection (2) and the relevant contribution (“the relevant difference”) is to be treated as a receipt of the contributing company’s ring fence trade for the relevant accounting period.
11.Subsections (4) to (6) of section 298A define “the certification date” and “the relevant accounting period”.
12.Subsection (7) of section 298A provides the basis on which the “relevant difference” is to be determined.
13.Subsection (8) of section 298A provides that where subsections (5) or (6) apply corporation tax is due and payable as if it were corporation tax for an accounting period beginning with the certification date.
14.Subsection (9) of section 298A provides that any additional assessment required to take account of a receipt under this section may be made at any time not later than 4 years after the end of the calendar year in which the certification date falls.
15.Subsection (10) of section 298A provides the meaning of certain terms used in this section.
16.Paragraph 22 inserts section 225V into Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005).
17.Section 225V replicates, for the purposes of ITTOIA 2005, the effect of new section 298A CTA 2010.