Finance Act, 1982
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Corporation tax on chargeable gains of companies. |
31.—(1) Section 13 of the Corporation Tax Act, 1976 , is hereby amended, as respects accounting periods ending after the 31st day of December, 1981, by the substitution for subsection (1) of the following subsections: | |
“(1) Subject to the provisions of this section, the amount to be included in respect of chargeable gains in a company's total profits for any accounting period shall be determined in accordance with subsection (1B) after taking into account the provisions of subsection (1A). | ||
(1A) Where, for an accounting period, chargeable gains accrue to a company, an amount of capital gains tax shall be calculated as if, notwithstanding any provision to the contrary in the Corporation Tax Acts, capital gains tax fell to be charged on the company in respect of those gains in accordance with the provisions of the Capital Gains Tax Acts, and as if accounting periods were years of assessment: | ||
Provided that, in calculating the said amount of capital gains tax, section 5 (1) of the Capital Gains Tax Act, 1975 , shall have effect as if the reference therein to deducting allowable losses were a reference to deducting relevant allowable losses and section 132 (2) shall have effect for the purpose of determining the period of ownership of an asset in relation to a disposal by the company for the purposes of section 3 (3) of the Capital Gains Tax Act, 1975 , if it would have effect in relation to that disposal for the purposes of section 3 of the Capital Gains Tax (Amendment) Act, 1978 . | ||
(1B) The amount referred to in subsection (1) shall be an amount which, if it (before making any deduction therefrom) were charged to corporation tax as profits of the company arising in the accounting period at the rate specified in section 1 (1), would produce an amount of corporation tax equal to the amount of capital gains tax calculated for that accounting period in accordance with subsection (1A): | ||
Provided that, where part of the accounting period falls in one financial year and the other part in the succeeding financial year and different rates of corporation tax are in force under section 1 (1) for each of those years, the amount of capital gains tax calculated for that accounting period in accordance with subsection (1A) shall be apportioned between those parts and this subsection shall have effect accordingly in relation to the portion referable to each part. | ||
(1C) In subsection (1A)— | ||
‘chargeable gains’ does not include chargeable gains accruing on relevant disposals within the meaning of section 36 of the Finance Act, 1982; | ||
‘relevant allowable losses’ means any allowable losses accruing to the company in the accounting period and any allowable losses previously accruing to the company while it has been within the charge to corporation tax so far as they have not been allowed as a deduction from chargeable gains accruing in any previous accounting period.”. | ||
(2) Section 16 (3) of the Finance Act, 1977 , shall not have effect as respects accounting periods to which subsection (1) applies. |