Transport Act 2000 (c. 38)

(The document as of February, 2008)

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(b) the principal company of the new group (if that company differs from the company referred to in sub-paragraph (1)(a)).

(3) The condition is that--

(a) the degrouped company acquired an asset under a relevant transfer at a time falling before it ceases to be a member of the new group, and

(b) at the time of acquisition the degrouped company and the transferor were not members of the new group.

(4) On the degrouped company ceasing to be a member of the new group section 179 of the 1992 Act is to have effect as if the degrouped company and the transferor had been members of the new group at the time of acquisition.

(5) But sub-paragraph (4) does not apply if--

(a) at the time when the degrouped company ceases to be a member of the new group the transferor also ceases to be a member of the new group,

(b) the companies are associated companies immediately before and immediately after that time, and

(6) Expressions used in this paragraph and in section 179 of the 1992 Act have the same meanings in this paragraph as in that section.

Capital allowances

11 (1) This paragraph applies if--

(a) property which is plant or machinery is the subject of a relevant transfer,

(b) section 343 of the 1988 Act (company reconstructions without a change of ownership) does not apply in relation to the transfer, and

(c) the transfer scheme concerned contains provision for the disposal value of the property to be taken for the purposes of the Capital Allowances Acts to be of an amount specified in or determined in accordance with the scheme.

(2) For the purposes of the Capital Allowances Acts--

(a) the provision mentioned in sub-paragraph (1)(c) is to have effect (instead of section 26(1) or 59 of the 1990 Act) for determining an amount as the disposal value of the property or the price at which a fixture is to be treated as sold;

(b) the transferee is to be taken to have incurred expenditure of that amount on the provision of the property;

(c) in the case of a fixture, the expenditure which falls to be treated as incurred by the transferee is to be taken for the purposes of section 54 of the 1990 Act to be incurred by the giving of a consideration consisting in a capital sum of that amount.

(3) A provision mentioned in sub-paragraph (1)(c) for the determination of an amount may include provision--

(a) for a determination to be made by the Secretary of State in a manner described in the scheme;

(b) for a determination to be made by reference to factors so described or to the opinion of a person so described;

(c) for a determination to be capable of being modified (on one or more occasions) in a manner and in circumstances so described.

(4) The Treasury's consent is required for the making or modification of a determination under a provision mentioned in sub-paragraph (1)(c).

(5) The transferee's consent is also required for such a modification after the relevant transfer takes effect.

(6) If there is a determination or a modification of a determination under a provision mentioned in sub-paragraph (1)(c) all necessary adjustments--

(a) must be made by making assessments or by repayment or discharge of tax, and

(b) must be made notwithstanding any limitation on the time within which assessments may be made.

(7) In this paragraph "the Capital Allowances Acts" has the same meaning as in the Tax Acts and "fixture" has the same meaning as in Chapter VI of Part II of the 1990 Act.

Transfers of trading stock

12 (1) This paragraph applies if--

(a) under a relevant transfer trading stock of the transferor is transferred to the transferee, and

(b) the stock falls, immediately after the time when the transfer takes effect, to be treated as trading stock of the transferee.

(2) Sub-paragraphs (3) and (4) have effect in computing the profits or gains of the relevant trades for the purposes of the Corporation Tax Acts; and the relevant trades are--

(a) the trade in relation to which the stock is trading stock immediately before the time when the transfer takes effect, and

(b) the trade in relation to which it is trading stock after that time.

(3) The stock must be taken--

(a) to have been disposed of by the transferor in the course of the trade carried on by the transferor,

(b) to have been acquired by the transferee in the course of the trade carried on by the transferee, and

(4) The stock must be valued for the purposes of each of the relevant trades as if the disposal and acquisition had been for a consideration which in relation to the transferor would have resulted in neither a profit nor a loss being brought into account in respect of the disposal in the accounting period of the transferor which ends with, or is current at, the time when the transfer takes effect.

(5) In this paragraph "trading stock" has the same meaning as in section 100 of the 1988 Act.

Trading losses: transfer of trade

13 (1) This paragraph applies if a transfer scheme provides for a relevant transfer as a result of which the transferor ceases to carry on a trade and the transferee begins to carry it on.

(2) A transferor treated as ceasing to carry on a trade for the purposes of section 343 of the 1988 Act (company reconstructions without a change of ownership) is to be so treated for the purposes of this paragraph.

(3) A transferee treated as beginning to carry on a trade for the purposes of that section is to be so treated for the purposes of this paragraph.

(4) Sub-paragraph (5) applies if the transfer will result in the transferee being entitled to relief for an amount in respect of the trade under section 393(1) of the 1988 Act (trading losses) by virtue of section 343(3).

(5) In such a case the scheme may provide that the amount is to be treated as such amount (the replacement amount) as is specified in or determined in accordance with the scheme.

(6) Sub-paragraph (7) applies if the trade concerned is in fact part of a trade of the transferor and the transferor is entitled to relief for an amount under section 393(1) in respect of the part retained.

(7) In such a case the scheme may provide that the amount is to be treated as such amount (the replacement amount) as is specified in or determined in accordance with the scheme.

(8) A provision under sub-paragraph (5) or (7) must be such that the replacement amount is not greater than the amount it replaces; and the replacement amount may be nil.

(9) When the scheme comes into force a provision made under sub-paragraph (5) or (7) is to have effect for the purposes of arriving at the amount of relief concerned.

Trading losses: change in ownership

14 (1) This paragraph applies if under a relevant transfer all the issued share capital of a company (the transferred company) is transferred from the CAA to--

(a) the Secretary of State, or

(b) a company whose shares are all held by the Secretary of State when the transfer takes effect.

(2) For the purposes of section 768 of the 1988 Act (disallowance of trading losses on change in company's ownership) the transfer is not to be taken to result in a change in the ownership of--

(a) the transferred company, or

(b) a company which is a wholly owned subsidiary of the transferred company when the transfer takes effect.

Leased assets

15 (1) This paragraph applies for the purposes of section 781 of the 1988 Act (assets leased to traders and others) if the interest of the lessor or the lessee under a lease, or any other interest in an asset, is transferred to a person under a relevant transfer.

(2) The transfer is to be treated as made without any capital sum having been obtained in respect of the interest by the transferor or the transferee; and this is so notwithstanding section 783(4) of that Act.

Securities

16 (1) This paragraph applies if securities are issued by a company in pursuance of a direction of the Secretary of State under section 49 or 58 above.

(2) A share issued by the company is to be treated for the purposes of the Corporation Tax Acts as if it had been issued wholly in consideration of a subscription paid to the company of an amount equal to the nominal value of the share.

(3) A debenture issued by the company is to be treated for the purposes of the Corporation Tax Acts as if it had been issued--

(a) wholly in consideration of a loan made to the company of an amount equal to the principal sum payable under the debenture, and

(b) wholly and exclusively for the purposes of the trade carried on by the company.

(4) If a debenture issued by the company includes provision for the payment of a sum expressed as interest in respect of a period falling wholly or partly before the issue of the debenture, a payment made in pursuance of the provision in respect of the period is to be treated for the purposes of the Corporation Tax Acts as if the debenture had been issued at the commencement of the period and (accordingly) as interest on the principal sum payable under the debenture.

(5) This paragraph has effect subject to paragraphs 3, 4 and 17.

17 (1) This paragraph applies if--

(a) securities are issued to a company in pursuance of a direction of the Secretary of State under section 49 or 58 above, and

(b) by virtue of any such security the company has a loan relationship for the purposes of the Corporation Tax Acts.

(2) For the purposes of Chapter II of Part IV of the [1996 c. 8.] Finance Act 1996 (loan relationships) the company is to be taken to have acquired its rights under the security wholly in consideration of a loan made by it to the issuing company of an amount equal to the principal sum payable under the security.

(3) Expressions used in this paragraph and in Chapter II of Part IV of the [1996 c. 8.] Finance Act 1996 have the same meanings in this paragraph as in that Chapter.

Stamp duty

18 (1) A relevant transfer is not to give rise to liability to stamp duty.

(2) Stamp duty is not to be chargeable on a transfer scheme.

(3) Stamp duty is not to be chargeable on an instrument which is certified to the Commissioners of Inland Revenue by the Secretary of State as having been made for the purposes of (or for purposes connected with) a transfer scheme.

(4) But no instrument which is certified as mentioned in sub-paragraph (3) is to be taken to be duly stamped unless--

(a) it is stamped with the duty to which it would be liable but for that sub-paragraph, or

(b) it has, in accordance with section 12 of the [1891 c. 39.] Stamp Act 1891, been stamped with a particular stamp denoting that it is not chargeable with that duty or that it is duly stamped.

(5) Stamp duty is not to be chargeable on an instrument which is made under Schedule 6.

Stamp duty reserve tax

19 An agreement is not to give rise to a charge to stamp duty reserve tax if--

(a) it is made for the purposes of (or for purposes connected with) a transfer scheme, or

(b) it is made under Schedule 6.

Agreements

20 (1) Sub-paragraph (2) applies if the effect of--

(a) an agreement made under paragraph 9 or 11 of Schedule 6,

(b) an instrument executed under paragraph 9 of Schedule 6, or

is to modify the effect of a transfer scheme.

(2) This Schedule, the 1988 Act, the 1990 Act and the 1992 Act are to have effect as if--

(a) the scheme had been made as modified, and

(b) anything done by or in relation to the preceding holder had (so far as relating to the property, rights or liabilities affected by the modification) been done by or in relation to the subsequent holder.

(3) Sub-paragraph (4) applies to a disposal of an asset if the disposal--

(a) is effected in pursuance of an agreement made or treated as made under paragraph 9 or 10 of Schedule 6 or is effected by an instrument executed under paragraph 9 of that Schedule, and

(b) is the grant of a lease of land or the creation of other rights and liabilities over land.

(4) For the purposes of the 1992 Act the disposal is to be taken (in relation to the person to whom it is made as well as the person making it) to be for a consideration such that no gain or loss accrues to the person making it.

(5) Section 171(1) of the 1992 Act (provision in relation to disposal of assets from one member of a group of companies to another member of the group) does not apply if sub-paragraph (4) applies to the disposal in question.

(6) References in this paragraph to an agreement or instrument include references to the agreement or instrument as varied in accordance with a direction under paragraph 19(4) of Schedule 6.

(7) For the purposes of sub-paragraph (2) the preceding holder is the person who without the modification--

(a) became (under the transfer scheme concerned) entitled or subject to the property, rights or liabilities affected by the modification, or

(b) remained (despite the transfer scheme concerned) entitled or subject to the property, rights or liabilities affected by the modification,

as the case may be.

(8) For the purposes of sub-paragraph (2) the subsequent holder is the person who (in consequence of the modification) becomes, or resumes being, entitled or subject to the property, rights or liabilities affected by the modification.

Section 97.

SCHEDULE 8 Amendments about air traffic

Part I Licences

House of Commons Disqualification Act 1975 (c. 24)

1 In the House of Commons Disqualification Act 1975, in Part III of Schedule 1, after the entry "Director of the Commonwealth Institute" there shall be inserted--

" Director of any of the following--
(a)
a company which for the time being holds a licence under Chapter I of Part I of the Transport Act 2000 (a licence company);
(b)
a company of which a licence company is a subsidiary (within the meaning given by section 736(1) of the Companies Act 1985 or Article 4(1) of the Companies (Northern Ireland) Order 1986);
(c)
a company which is a subsidiary (within the meaning so given) of a licence company. "

Northern Ireland Assembly Disqualification Act 1975 (c. 25)

2 In the Northern Ireland Assembly Disqualification Act 1975, in Part III of Schedule 1, after the entry "Director of Cable and Wireless Limited nominated by a Minister of the Crown or government department" there shall be inserted--

" Director of any of the following--
(a)
a company which for the time being holds a licence under Chapter I of Part I of the Transport Act 2000 (a licence company);
(b)
a company of which a licence company is a subsidiary (within the meaning given by section 736(1) of the Companies Act 1985 or Article 4(1) of the Companies (Northern Ireland) Order 1986);
(c)
a company which is a subsidiary (within the meaning so given) of a licence company. "

Part II Air navigation services

Civil Aviation Act 1982 (c. 16)

3 Section 72 of the Civil Aviation Act 1982 (CAA's duty to provide air navigation services) shall cease to have effect.

Part III Charges

Civil Aviation Act 1982 (c. 16)

4 Sections 73 and 74 of the Civil Aviation Act 1982 (charges for air navigation services etc) shall cease to have effect.

5 In section 86 of the Civil Aviation Act 1982 (mortgaging of aircraft) in subsection (2)(b) for "section 74(4) above" there shall be substituted "section 83 of the Transport Act 2000 (detention and sale of aircraft)".

6 (1) Section 88 of the Civil Aviation Act 1982 (detention and sale of aircraft for unpaid airport charges) shall be amended as follows.

(2) In subsection (6)(d) for "regulations under section 73 above" substitute "section 73 of the Transport Act 2000 (or, if more than one such charge is due, in payment of them in such order as the Secretary of State may specify by order)".

(3) In subsection (10) in the definition of "airport charges" for "regulations under section 73 above" substitute "section 73 of the Transport Act 2000".

7 In section 90 of the Civil Aviation Act 1982 (Convention rights) in subsection (2)(b) for "section 74(4) above" there shall be substituted "section 83 of the Transport Act 2000 (detention and sale of aircraft)".

8 (1) In Schedule 4 to the Civil Aviation Act 1982 (Eurocontrol) paragraph 1 shall be amended as follows.

(2) In sub-paragraph (5) omit the definition of "record".

(3) After sub-paragraph (5) insert--

" (6) For the purposes of this paragraph a record includes (in addition to a record in writing)--

(a) a disc, tape, sound-track or other device in which sounds or signals are embodied so as to be capable of being reproduced from it (with or without the aid of some other instrument);

(b) a film, tape or other device in which visual images are embodied so as to be capable of being reproduced from it (with or without the aid of some other instrument);

9 In Schedule 13 to the Civil Aviation Act 1982 (subordinate instruments) in Part II after the entry relating to section 87 there shall be inserted--

" Section 88(6)(d)

Priority of charges

Subject to the negative resolution procedure

-- " .

Airports Act 1986 (c. 31)

10 In section 36 of the Airports Act 1986 (interpretation) in subsection (1) in the definition of "airport charges" for "regulations under section 73 of the 1982 Act (air navigation services etc))" there shall be substituted "section 73 of the Transport Act 2000 (charges for services))".

Part IV Competition

Fair Trading Act 1973 (c. 41)

11 In section 133 of the Fair Trading Act 1973 (general restrictions on disclosure of information) at the end of subsection (2)(a) there shall be inserted "Part I of the Transport Act 2000 or".

Competition Act 1980 (c. 21)

12 In section 19 of the Competition Act 1980 (restriction on disclosure of information) in subsection (3) after paragraph (r) there shall be inserted--

" (s) Part I of the Transport Act 2000. "

Civil Aviation Act 1982 (c. 16)

13 In section 4 of the Civil Aviation Act 1982 (CAA's general objectives) after subsection (2) there shall be inserted--

" (3) The duty mentioned in subsection (1) above does not apply in relation to anything done by the CAA in the performance of functions mentioned in subsection (3) of section 86 of the Transport Act 2000 which, by virtue of that section, are concurrent functions of the CAA and the Director General of Fair Trading.

(4) However, when performing such a function the CAA may have regard to any matter in respect of which a duty is imposed by subsection (1) above if it is a matter to which the Director General of Fair Trading could have regard when performing that function. "

Competition Act 1998 (c. 41)

14 (1) Section 54 of the Competition Act 1998 (regulators) shall be amended as follows.

(2) In subsection (1) after "Schedule 10" insert "and the Civil Aviation Authority".

(3) In subsection (4) after "Schedule 10" insert "or by Chapter V of Part I of the Transport Act 2000".

15 In Schedule 11 to the Competition Act 1998 (interpretation of provisions about disclosure of information) in paragraph 1 after sub-paragraph (p) there shall be inserted--

" (q) Part I of the Transport Act 2000. "

16 (1) Schedule 13 to the Competition Act 1998 (transitionals and savings) shall be amended as follows.

(2) In paragraph 1(1) in the definition of "regulator" after "Schedule 10" insert "and the Civil Aviation Authority".

(3) In paragraph 35(2) after paragraph (g) insert--

" (h) in the case of the Civil Aviation Authority, the supply of air traffic services within the meaning given by section 98 of the Transport Act 2000. "

Part V Hostilities etc

Civil Aviation Act 1982 (c. 16)

17 (1) Section 6 of the Civil Aviation Act 1982 (directions in national interest etc) shall be amended as follows.

(2) In each of subsections (1) and (2) omit the words from "and in so far" to the end.

(3) After subsection (2) insert--

" (3) In so far as any directions given under this section conflict with the requirements of section 93 of the Transport Act 2000 or of an order under section 94 of that Act, the directions shall be disregarded.

(4) In so far as any directions given under this section conflict with the requirements of any enactment or instrument relating to the CAA (other than section 93 of the Transport Act 2000 or an order under section 94 of that Act) the requirements shall be disregarded. "

18 Sections 62 and 63 of the Civil Aviation Act 1982 (control in time of war or emergency) shall cease to have effect.

Airports Act 1986 (c. 31)

19 (1) Section 30 of the Airports Act 1986 (directions in interests of national security etc) shall be amended as follows.

(2) After subsection (4) insert--

" (4A) In so far as any direction applying to an airport operator by virtue of subsection (1), (2) or (3) conflicts with the requirements of section 93 of the Transport Act 2000 or of an order under section 94 of that Act, the direction shall be disregarded. "

(3) In subsection (5) after "to him as an airport operator" insert "(other than section 93 of the Transport Act 2000 or an order under section 94 of that Act)".

Section 102.

SCHEDULE 9 Air traffic: information

Prohibition on disclosure

1 (1) This Schedule applies to information if--

(a) it was obtained under or by virtue of this Part, and

(b) it relates to the affairs of an individual or to a particular business.

(2) The information must not be disclosed during the lifetime of the individual or so long as the business is carried on, except as provided below.

Disclosure with consent

2 Paragraph 1(2) does not apply to a disclosure made with the consent of the individual or the person for the time being carrying on the business.

Other permitted disclosures

3 (1) Paragraph 1(2) does not apply to a disclosure made--

(a) for the purpose of facilitating the carrying out by the Secretary of State, the CAA or the Competition Commission of any of his or their functions under this Part;

(b) for the purpose of facilitating the carrying out by a person or body mentioned in sub-paragraph (2) of any of his or its functions under an enactment or instrument specified in sub-paragraph (3);

(c) for the purpose of enabling or assisting the Secretary of State or the Treasury to exercise any powers conferred by the [1986 c. 60.] Financial Services Act 1986 or by the enactments relating to companies, insurance companies or insolvency;

(d) for the purpose of enabling or assisting an inspector appointed under the enactments relating to companies to carry out his functions;

(e) for the purpose of enabling or assisting an official receiver to carry out his functions under the enactments relating to insolvency or for the purpose of enabling or assisting a recognised professional body for the purposes of section 391 of the [1986 c. 45.] Insolvency Act 1986 or Article 350 of the [S.I. 1989/2405 (N.I. 19).] Insolvency (Northern Ireland) Order 1989 to carry out its functions;

(f) for the purpose of facilitating the carrying out by the Health and Safety Commission or the Health and Safety Executive of any of its functions under any enactment or of facilitating the carrying out by any enforcing authority (within the meaning of Part I of the [1974 c. 37.] Health and Safety at Work etc. Act 1974) of any functions under a relevant statutory provision (within the meaning of that Act);

(g) for the purpose of facilitating the carrying out by the Comptroller and Auditor General of any of his functions under any enactment;

(h) in connection with the investigation of any criminal offence or for the purposes of any criminal proceedings;

(i) for the purposes of any civil proceedings brought under or by virtue of this Part or any enactment or instrument specified in sub-paragraph (3);

(j) in pursuance of a Community obligation;

(k) for the purpose of facilitating the performance of any function of the European Commission in respect of Community law about competition;

(l) by the Secretary of State, or with his consent, to an international organisation of which the United Kingdom is a member;

(m) in connection with negotiations conducted by officers of the Secretary of State with representatives of the government of a country or territory outside the United Kingdom;

(n) in connection with the discharge of an obligation of the United Kingdom under international arrangements;

(o) to a person to whom the information in question is required to be disclosed by regulations made in pursuance of section 7(2) of the [1982 c. 16.] Civil Aviation Act 1982 (special provisions as respects certain functions);

(p) for the purposes of an investigation undertaken in pursuance of regulations made under section 75 of the [1982 c. 16.] Civil Aviation Act 1982 (investigation of accidents).

(2) The persons and bodies are--

(a) any Minister of the Crown;

(b) the Director General of Fair Trading;

(d) the Director General of Telecommunications;

(e) the Independent Television Commission;

(f) the Director General of Gas Supply;

(g) the Director General of Water Services;

(h) the Director General of Electricity Supply;

(i) the Coal Authority;

(j) the CAA;

(k) the Rail Regulator;

(l) the Insolvency Practitioners Tribunal;

(m) a local weights and measures authority in Great Britain.

(3) The enactments and instruments are--

(a) the [1968 c. 29.] Trade Descriptions Act 1968;

(b) the [1973 c. 41.] Fair Trading Act 1973;

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