- Latest available (Revised)
- Point in Time (12/02/2019)
- Original (As enacted)
Point in time view as at 12/02/2019.
There are currently no known outstanding effects for the Finance Act 2019, Cross Heading: International matters.
Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.
Schedule 3 contains provision about offshore receipts in respect of intangible property.
Schedule 4 contains provision about profit fragmentation arrangements.
Schedule 5 contains provision for non-UK resident companies to be chargeable to corporation tax on—
(a)profits of UK property businesses,
(b)profits consisting of other UK property income, and
(c)profits arising from certain loan relationships and derivative contracts.
Schedule 6 contains provision about diverted profits tax.
(1)Part 6A of TIOPA 2010 (hybrid and other mismatches) is amended as follows.
(2)In section 259HA (circumstances in which Chapter 8 applies)—
(a)for subsection (5) substitute—
“(5)Condition C is that—
(a)the payer is within the charge to corporation tax for the payment period, or
(b)the multinational company—
(i)is UK resident for the payment period, and
(ii)under the law of the parent jurisdiction, is regarded as carrying on a business in the PE jurisdiction through a permanent establishment in that territory but, under the law of the PE jurisdiction, is not regarded as doing so.”, and
(b)in subsection (9)(a), for “company” substitute “ payee ”.
(3)For section 259HC (counteraction of the multinational payee deduction/non-inclusion mismatch) substitute—
For corporation tax purposes—
(a)if paragraph (b) of Condition C in subsection (5) of section 259HA is met, an amount equal to the multinational payee deduction/non-inclusion mismatch mentioned in subsection (6) of that section is to be treated as income arising to the multinational company in the United Kingdom (and nowhere else) for the payment period, and
(b)in any other case, the relevant deduction that may be deducted from the payer's income for that period is to be reduced by that amount.”
(4)In section 259N (meaning of “financial instrument”)—
(a)in subsection (3), for paragraph (b) substitute—
“(b)anything of a description specified in regulations made by the Treasury.”, and
(b)omit subsection (4).
(5)The amendments made by subsections (2)(a) and (3) have effect in relation to—
(a)payments made on or after 1 January 2020, and
(b)quasi-payments in relation to which the payment period begins on or after that date.
(6)For the purposes of subsection (5)(b), where a payment period begins before 1 January 2020 and ends after that date (“the straddling period”)—
(a)so much of the straddling period as falls before that date, and so much of it as falls on or after that date, are to be treated as separate taxable periods, and
(b)if it is necessary to apportion an amount for the straddling period to the two separate taxable periods, it is to be apportioned—
(i)on a time basis according to the respective length of the separate taxable periods, or
(ii)if that would produce a result that is unjust or unreasonable, on a just and reasonable basis.
(7)The amendment made by subsection (2)(b) is to be regarded as always having had effect.
(8)The first regulations under section 259N(3)(b) may have effect in relation to times before they come into force, but not times before 1 January 2019.
(9)Until those regulations come into force section 259N continues to have effect (other than for the purposes of making those regulations) as if—
(a)the amendments made by subsection (4) had not been made, and
(b)the Taxation of Regulatory Capital Securities Regulations 2013 (S.I. 2013/3209) had not been revoked by paragraph 1 of Schedule 20 to this Act.
(1)Part 9A of TIOPA 2010 (controlled foreign companies) is amended as follows.
(2)In section 371IA (exemptions for profits from qualifying loan relationships), in subsection (4), for the words from “the profits” to the end substitute
“so much of the profits of all its qualifying loan relationships taken together as are non-trading finance profits which—
(a)fall within section 371EC (capital investment from the UK), and
(b)do not fall within section 371EB (UK activities).”
(3)In section 371RA (overview of Chapter 18), in subsection (2), for “Section 371RC sets” substitute “ Sections 371RC and 371RG set ”.
(4)After section 371RF insert—
(1)If a UK resident company (whether alone or together with any associated enterprises) directly or indirectly has more than a 50% investment in a non-UK resident company, the non-UK resident company is to be taken to be a CFC (if it would not otherwise be).
(2)A person (“P”) is an “associated enterprise” in relation to a UK resident company if—
(a)P directly or indirectly has a 25% investment in the company (or vice versa), or
(b)another person directly or indirectly has a 25% investment in each of P and the company.
(3)Section 259ND (meaning of “50% investment” and “25% investment”) applies for the purposes of determining for the purposes of this section—
(a)whether a person has “more than a 50% investment” in another person, and
(b)whether a person has a “25% investment” in another person,
and, accordingly, references in section 259ND to “X%” are to be read as references to more than 50% or to 25% (as appropriate) and references in that section to “X% or more” are to be read as references to more than 50% or to 25% or more (as appropriate).”
(5)The amendments made by this section have effect in relation to accounting periods of CFCs beginning on or after 1 January 2019.
(6)For the purposes of subsection (5), if a CFC has an accounting period beginning before, and ending on or after, that date (“the straddling period”)—
(a)so much of the straddling period as falls before that date, and so much of it as falls on or after that date, are treated as separate accounting periods, and
(b)if it is necessary to apportion an amount for the straddling period to the two separate periods, it is to be apportioned—
(i)on a time basis according to the respective length of the separate periods, or
(ii)if that would produce a result that is unjust or unreasonable, on a just and reasonable basis.
(7)In this section “CFC” has the same meaning as in Part 9A of TIOPA 2010.
(1)Section 1143 of CTA 2010 (permanent establishments: preparatory or auxiliary activities) is amended as follows.
(2)In subsection (2), at the end insert “ and are not part of a fragmented business operation ”.
(3)After subsection (2) insert—
“(2A)Activities are “part of a fragmented business operation” if—
(a)they are carried on (whether at the same place or at different places in the same territory) by the company or a person closely related to the company,
(b)they constitute complementary functions that are part of a cohesive business operation, and
(c)subsection (2B) applies.
(2B)This subsection applies if—
(a)the overall activity resulting from the combination of the functions mentioned in subsection (2A)(b) is not activity that is only of a preparatory or auxiliary character, or
(b)the company or a person closely related to the company has a permanent establishment in the territory by reason of carrying on any of those functions.
(2C)A person who is not a company is to be treated for the purposes of subsection (2B)(b) as having a permanent establishment in a territory if, were the person a company, the person would have a permanent establishment in the territory.
(2D)For the purposes of this section, one person (“A”) is closely related to another person (“B”) if—
(a)A is able to secure that B acts in accordance with A's wishes (or vice versa),
(b)B can reasonably be expected to act, or typically acts, in accordance with A's wishes (or vice versa),
(c)a third person is able to secure that A and B act in accordance with the third person's wishes,
(d)A and B can reasonably be expected to act, or typically act, in accordance with a third person's wishes, or
(e)the 50% investment condition is met in relation to A and B.
(2E)The 50% investment condition is met in relation to A and B if—
(a)A has a 50% investment in B (or vice versa), or
(b)a third person has a 50% investment in each of A and B,
and section 259ND of TIOPA 2010 (meaning of “50% investment”) applies for the purposes of determining whether a person has a “50% investment”.
(4)In subsection (3), for “For this purpose” substitute “ In this section ”.
(5)The amendments made by this section have effect in relation to accounting periods beginning on or after 1 January 2019.
(6)For the purposes of subsection (5), if a company has an accounting period beginning before, and ending on or after, that date (“the straddling period”)—
(a)so much of the straddling period as falls before that date, and so much of it as falls on or after that date, are treated as separate accounting periods, and
(b)if it is necessary to apportion an amount for the straddling period to the two separate periods, it is to be apportioned—
(i)on a time basis according to the respective length of the separate periods, or
(ii)if that would produce a result that is unjust or unreasonable, on a just and reasonable basis.
Schedule 7 contains provision about CGT exit charge payment plans.
Schedule 8—
(a)amends provisions concerning CT exit charge payment plans,
(b)repeals certain provisions that enable the postponement of exit charges, and
(c)contains amendments concerning the treatment of assets that are the subject of EU exit charges.
(1)In section 134 of CTA 2010 (group relief: meaning of “UK related” company) in paragraph (b) for the words from “carrying on” to the end substitute “ within the charge to corporation tax ”.
(2)In section 188CJ of CTA 2010 (group relief for carried-forward losses: meaning of “UK related” company) in paragraph (b) for the words from “carrying on” to the end substitute “ within the charge to corporation tax ”.
(3)The amendments made by this section have effect for the purpose of determining whether a company is a UK related company at any time on or after 5 July 2016.
(4)In its application in relation to a claim for group relief or group relief for carried-forward losses made in reliance on this section, paragraph 74 of Schedule 18 to FA 1998 (time limit for claims) has effect as if the list of dates in sub-paragraph (1) of that paragraph included 31 December 2019.
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: