Finance Act, 1982

SECOND SCHEDULE

Amendments Consequential on Changes in Rates of Corporation Tax

Section 26 .

Part I

Application of sections 182 and 184 (relief in respect of certain losses and capital allowances) of Corporation Tax Act, 1976

1. Section 19 (3) of the Finance Act, 1977 , shall not have effect for any accounting period falling wholly after the 31st day of December, 1981.

2. Where part of an accounting period falls in the financial year 1981 and the other part falls in the financial year 1982, the two parts of the accounting period shall be treated, for the purposes of sections 182 and 184 of the Corporation Tax Act, 1976 , section 19 (3) of the Finance Act, 1977 , and paragraph 1 as if they were separate accounting periods.

3. Where, under paragraph 2, a part of an accounting period is treated as a separate accounting period, the corporation tax charged for the part which is so treated shall, for the purposes of the said section 184, be taken to be the corporation tax that would be charged if that part were a separate accounting period.

Part II

Amendment of Chapter VI (Corporation Tax: Relief in Relation to Certain Income of Manufacturing Companies) of Finance Act, 1980

1. Section 41 (2) of the Finance Act, 1980 , is hereby amended as respects any accounting period falling wholly after the 31st day of December, 1981, by the substitution of “four-fifths” for “seven-ninths”.

2. As respects any accounting period which falls partly in the financial year 1981 and partly in the financial year 1982, section 41 (2) of the Finance Act, 1980 , shall have effect as if for the words from “shall be reduced by seven-ninths” to the end of the subsection there were substituted the following:

“shall be reduced—

(a) by seven-ninths in so far as it is corporation tax charged on profits which, under section 6 (3) of the Corporation Tax Act, 1976 , are apportioned to the financial year 1981, and

(b) by four-fifths in so far as it is corporation tax charged on profits which, under the said section 6 (3), are apportioned to the financial year 1982,

and the corporation tax referable to the income from the sale of those goods—

(i) shall, for the purposes of paragraph (a), be such an amount as bears to the part of the relevant corporation tax charged on profits which, under the said section 6 (3), are apportioned to the financial year 1981 the same proportion as the income from the sale of those goods bears to the total income brought into charge to corporation tax for the relevant accounting period, and

(ii) shall, for the purposes of paragraph (b), be such an amount as bears to the part of the relevant corporation tax charged on profits which, under the said section 6 (3), are apportioned to the financial year 1982 the same proportion as the income from the sale of those goods bears to the total income brought into charge to corporation tax for the relevant accounting period.”.

3. Sections 47 (2) and 48 (2) of the Finance Act, 1980 , are hereby amended as respects any accounting period falling wholly after the 31st day of December, 1981—

(a) in paragraph (i) of section 47 (2), by the substitution of “5”/4 for “9”/7,

(b) in paragraph (ii) of the said section 47 (2), by the substitution of “1”/4 for “2”/7, and

(c) in paragraph (ii) of section 48 (2), by the substitution of “1”/4 for “2”/7

4. Where by virtue of paragraph 2 of Part I a part of an accounting period is treated as a separate accounting period for the purposes of sections 182 and 184 of the Corporation Tax Act, 1976 , that part shall also be treated as a separate accounting period for the purposes of paragraph 3 of this Part and for the purposes of sections 47 (2) and 48 (2) of the Finance Act, 1980 , and the corporation tax charged for a part of an accounting period which is so treated shall, for the purposes of the said sections 47 (2) and 48 (2), be taken to be the corporation tax that would be charged if that part were a separate accounting period.