What is the purpose of section 1180 of the Corporation Tax Act 2010?

Section 1180 gives legal effect to Schedule 2 of the Corporation Tax Act 2010, which contains transitional provisions and savings. It ensures that the changeover from earlier tax legislation to the new Act does not inadvertently alter anyone's tax position, preserving the effect of things done under the old law.

Can the Treasury make retrospective transitional orders under section 1180?

Yes, the Treasury may make additional transitional or saving orders by statutory instrument that have retrospective effect. This means orders can apply to periods before they were made, allowing the Treasury to correct gaps or anomalies identified after commencement back to the date the Act took effect.

Do normal negative resolution procedures apply to orders made under section 1180?

No. Section 1180 disapplies the negative resolution procedures that would normally govern Treasury orders made under ICTA 1988, TCGA 1992, and ITA 2007. This gives the Treasury greater procedural flexibility when making transitional orders in connection with the commencement of the Corporation Tax Act 2010.

What safeguards exist on the Treasury's power to make transitional orders under section 1180?

Although normal parliamentary procedures are disapplied, the Treasury's power will not be exercised without the agreement of the Tax Law Rewrite Project's Consultative and Steering Committees. This provides an important practical check on the use of the broad order-making power granted by section 1180.

Corporation Tax Act 2010 section 1180

Transitional provisions and savings

Section 1180 introduces the transitional provisions and savings in Schedule 2, and gives the Treasury power to make additional transitional or saving orders — including retrospective ones — in connection with the commencement of the Act.

Schedule 2 to the Act, which contains transitional provisions and savings, is given legal effect by this section.
The Treasury may make additional transitional or saving orders related to the coming into force of the Act, and these orders may have retrospective effect.
The normal negative resolution procedures that apply to Treasury orders under certain earlier tax enactments (ICTA, TCGA 1992 and ITA 2007) do not apply to orders made under this power.
The power to make additional orders will not be exercised without the agreement of the Tax Law Rewrite Project's Consultative and Steering Committees.

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