Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
After Part 8A of CTA 2010 insert—
In Schedule 2—
Part 1 contains further amendments in connection with Part 8B of CTA 2010 (as inserted by section 1), and
Part 2 contains consequential amendments.
The Commissioners may by regulations made by statutory instrument make further provision consequential on any provision of this Act.
Regulations under this section—
may make provision amending or modifying any provision of the Taxes Acts (including any provision inserted by this Act),
may make incidental, supplemental, transitional, transitory or saving provision, and
may make different provision for different purposes.
A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.
In this section “the Taxes Acts” has the same meaning as in the Taxes Management Act 1970 (see section 118(1) of that Act).
Any power of the Treasury or the Commissioners under Part 8B of CTA 2010, or under the amendments made by Schedules 1 and 2, to make regulations or an order may be exercised on or after the day on which this Act is passed.
The power of the Northern Ireland Assembly under section 357IA of CTA 2010 (power to set Northern Ireland rate) is exercisable in relation to—
such financial year as the Treasury may by regulations made by statutory instrument appoint (“the appointed financial year”), and
subsequent financial years.
The other provisions of Part 8B of CTA 2010 and the amendments made by Schedules 1 and 2 have effect in relation to accounting periods beginning on or after the first day of the appointed financial year (“the commencement day”).
Subsection (6) applies where a company or partnership has an accounting period beginning before the commencement day and ending on or after that day (“the straddling period”).
For the purposes of Part 8B of CTA 2010 and the amendments made by Schedules 1 and 2—
so much of the straddling period as falls before the commencement day, and so much of that period as falls on or after that day, are treated as separate accounting periods, and
any amounts brought into account for the purposes of calculating for corporation tax purposes the profits of any trade of the company or partnership for the straddling period are apportioned to the two separate accounting periods on such basis as is just and reasonable.
Section 1171 of CTA 2010 (orders and regulations) does not apply to the power of the Treasury under subsection (3)(a).
In this Act—“CAA 2001” means the Capital Allowances Act 2001;“CTA 2009” means the Corporation Tax Act 2009;“CTA 2010” means the Corporation Tax Act 2010;“TIOPA 2010” means the Taxation (International and Other Provisions) Act 2010;“the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs.
This Act may be cited as the Corporation Tax (Northern Ireland) Act 2015.
Capital allowances
Introductory
CAA 2001 is amended as follows.
Amendments of Part 1 of CAA 2001
After section 6 insert—
Amendments of Part 2 of CAA 2001: plant and machinery allowances
Section 12 (expenditure incurred before qualifying activity carried on) is amended as follows.
The existing provision becomes subsection (1) of the section.
After that subsection insert—
In section 15 (qualifying activities), after subsection (2) insert—
After section 51J insert—
Section 61 (disposal events and disposal values) is amended as follows.
In the Table in subsection (2)—
in item 1, in the first column, after “item 2” insert “ or 2A ”, and
after item 2 insert—
After subsection (4) insert—
After section 66A insert—
After section 212 insert—
In section 247 (giving effect to allowances and charges: trades), after subsection (1) insert—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendments of CAA 2001 relating to other allowances
Business premises renovation allowances
Section 360Z (giving effect to allowances and charges: trades) is amended as follows.
In subsection (3), for the words from “subject to” onwards substitute
After that subsection insert—
Mineral extraction allowances
In section 394 (mineral extraction allowances), after subsection (2) insert—
Section 432 (giving effect to allowances and charges) is amended as follows.
The existing provision becomes subsection (1) of the section.
After that subsection insert—
Research and development
After section 439 insert—
Section 450 (giving effect to allowances and charges) is amended as follows.
The existing provision becomes subsection (1) of the section.
After that subsection insert—
Dredging allowances
In section 484 (dredging allowances), after subsection (2) insert—
Section 489 (giving effect to allowances) is amended as follows.
The existing provision becomes subsection (1) of the section.
After that subsection insert—
Consequential amendments
In Schedule 1 (index of defined expressions) insert at the appropriate places—.
Transitional provisions
Interpretation
In this Part of this Schedule “the transition period”, in relation to a company or partnership, means the accounting period of the company or partnership that begins, or is treated by section 5(6) as beginning, on the commencement day.
In sub-paragraph (1) “the commencement day” has the meaning given by section 5(4).
Plant and machinery allowances: allocation of unrelieved expenditure to pools
This paragraph applies to a company or partnership if—
in the case of a company, the company is a NIRE company or an SME(Northern Ireland employer) company in the transition period, or
in the case of a partnership, the partnership is a Northern Ireland Chapter 6 firm or a Northern Ireland Chapter 7 firm in the transition period.
If at the beginning of the transition period—the fact that the NI rate activity begins to be so treated does not give rise to a disposal event within section 61(1)(e) or (f) of that Act.
an NI rate activity carried on by the company begins to be treated by section 15(2ZA) of CAA 2001 as a separate qualifying activity for the purposes of Part 2 of that Act (plant and machinery allowances), or
an NI rate activity carried on by the partnership begins to be treated by section 15(2ZB) of CAA 2001 as a separate qualifying activity for the purposes of Part 2 of that Act so far as relating to the corporate partner calculation,
The amount of any unrelieved qualifying expenditure in any main pool falling to be carried forward under section 59 of CAA 2001 to the transition period is to be apportioned on a just and reasonable basis to become—
a main pool that is to be treated as relating to plant and machinery used for the purposes of the NI rate activity, and
a main pool that is to be treated as relating to plant and machinery used for the purposes of the main rate activity.
The amount of any unrelieved qualifying expenditure in any special rate pool falling to be carried forward under section 59 of CAA 2001 to the transition period is to be apportioned on a just and reasonable basis to become—
a special rate pool that is to be treated as relating to plant and machinery used for the purposes of the NI rate activity, and
a special rate pool that is to be treated as relating to plant and machinery used for the purposes of the main rate activity.
Sub-paragraph (6) applies where—
unrelieved qualifying expenditure in a single asset pool falls to be carried forward under section 59 of CAA 2001 to the transition period, and
immediately before the transition period the plant or machinery is used—
partly for the purposes of activities that become the NI rate activity, and
partly for the purposes of activities that become the main rate activity.
The unrelieved qualifying expenditure is to be treated for the purposes of Chapter 16ZA of Part 2 of CAA 2001 as if the allocation to the single asset pool were under section 212ZB of that Act.
“Main rate activity” means the qualifying activity to which the qualifying expenditure relates, except so far as it is an NI rate activity.
Other expressions used in this paragraph and in Part 2 of CAA 2001 as amended by this Schedule have the same meaning as in that Part.
Know-how allowances: allocation of unrelieved expenditure to pools
This paragraph applies if—
in the case of a company, the company is a NIRE company or an SME(Northern Ireland employer) company in the transition period, or
in the case of a partnership, the company is a Northern Ireland firm in the transition period.
Subsection (3) applies if at the beginning of the transition period—
an NI rate activity carried on by the company begins to be treated by section 6D of CAA 2001 as a separate qualifying trade for the purposes of Part 7 of that Act (know-how allowances), or
an NI rate activity carried on by the partnership begins to be treated by section 6D of CAA 2001 as a separate qualifying trade for the purposes of Part 7 of that Act so far as relating to the corporate partner calculation.
The amount of any unrelieved qualifying expenditure in any pool falling to be carried forward under section 461 of CAA 2001 from the previous chargeable period is to be apportioned on a just and reasonable basis to become—
a pool that is to be treated as relating to the NI rate activity, and
a pool that is to be treated as relating to the main rate activity.
“Main rate activity” means the trade to which the qualifying expenditure relates, except so far as it is an NI rate activity.
Other expressions used in this paragraph and in Part 7 of CAA 2001 as amended by this Schedule have the same meaning as in that Part.
Other amendments
Further amendments connected with Northern Ireland rate
Realisation of intangible fixed assets
After section 738 of CTA 2009 insert—
Controlled foreign companies
Section 371BC of TIOPA 2010 (charging the CFC charge) is amended as follows.
In subsection (3), in the definition of “the appropriate rate”, after “subject to” insert “ subsection (4) and ”.
After subsection (3) insert—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consequential amendments
CTA 2010 is amended as follows.
In section 1(3) (overview), before paragraph (b) insert—.
In Schedule 4 (index of defined expressions), insert at the appropriate places—