|
| |
|
(b) | the Community Guidelines on State Aid for Rescuing and |
| |
Restructuring Firms in Difficulty (2004/C 244/02), |
| |
(c) | Council Regulation (EC) No 104/2000, |
| |
(d) | Directive 2006/12/EC of the European Parliament and of the |
| |
| 5 |
(e) | the Treaty on the Functioning of the European Union. |
| |
45N | Effect of plant or machinery subsequently being primarily for use |
| |
outside designated assisted areas |
| |
(1) | Expenditure on the provision of plant or machinery is to be treated |
| |
as never having been first-year qualifying expenditure under section |
| 10 |
45K if, at any relevant time— |
| |
(a) | the primary use to which the plant and machinery is put is |
| |
other than in an area which was a designated assisted area |
| |
within the meaning of section 45K at the time the expenditure |
| |
| 15 |
(b) | the plant or machinery is held for use otherwise than |
| |
primarily in an area which was such a designated assisted |
| |
| |
(2) | “Relevant time” means a time which— |
| |
(a) | falls within the relevant period, and |
| 20 |
(b) | is a time when the plant or machinery is owned by— |
| |
(i) | the person who incurred the expenditure, or |
| |
(ii) | a person who is, or at any time in that period has been, |
| |
connected with that person. |
| |
(3) | “The relevant period” means the period of 5 years beginning with— |
| 25 |
(a) | the day on which the plant or machinery in question is first |
| |
brought into use for the purposes of a qualifying activity |
| |
carried on by the company, or |
| |
(b) | if earlier, the day on which it is first held for such use. |
| |
(4) | All such assessments and adjustments of assessments are to be made |
| 30 |
as are necessary to give effect to subsection (1). |
| |
(5) | If a person who has made a return becomes aware that, after making |
| |
it, anything in it has become incorrect because of the operation of this |
| |
section, that person must give notice to an officer of Revenue and |
| |
Customs specifying how the return needs to be amended. |
| 35 |
(6) | The notice must be given within 3 months beginning with the day on |
| |
which the person first became aware that anything in the return had |
| |
become incorrect because of the operation of this section.” |
| |
4 | In section 46 (general exclusions applying to first-year qualifying |
| |
expenditure), in subsection (1), at the appropriate place in the list insert— |
| 40 |
| | (expenditure on plant and |
| | | | | machinery for use in designated |
| | | | | | | |
|
5 (1) | Section 52 (first-year allowances) is amended as follows. |
| |
|
| |
|
| |
|
(2) | In subsection (3), at the appropriate place in the Table insert— |
| |
|
| |
(a) | omit the “and” at the end of the entry for section 212T, and |
| |
(b) | after that entry insert— |
| |
“section 212U (cap on first-year allowances: expenditure |
| 15 |
on plant and machinery for use in designated assisted |
| |
| |
6 | In section 52A (prevention of double relief) for the words after “not” |
| |
| |
(a) | an annual investment allowance and a first-year allowance in |
| 20 |
respect of the same expenditure, or |
| |
(b) | first-year allowances under two or more of the provisions |
| |
listed in section 39 in respect of the same expenditure.” |
| |
7 (1) | In Chapter 16B (cap on first-year allowances: zero-emission goods vehicles), |
| |
after section 212T insert— |
| 25 |
“212U | Cap on first-year allowances: expenditure on plant and machinery for |
| |
use in designated assisted areas |
| |
(1) | A section 45K allowance is not available in respect of expenditure |
| |
(“the current expenditure”) incurred by a person (“the investor”) in |
| |
respect of a particular designated assisted area— |
| 30 |
(a) | if section 45K allowances have previously been made to any |
| |
person in respect of P&M expenditure of 125 million euros |
| |
incurred in respect of that area and on the same single |
| |
investment project as the current expenditure, or |
| |
(b) | (where paragraph (a) does not apply) if, and to the extent |
| 35 |
| |
(i) | the P&M expenditure incurred by any person in |
| |
respect of that area, and on the same single |
| |
investment project as the current expenditure, in |
| |
respect of which section 45K allowances have |
| 40 |
previously been made, and |
| |
(ii) | the current expenditure, |
| |
| exceeds 125 million euros. |
| |
(2) | For the purposes of subsection (1), any reference to P&M |
| |
expenditure incurred in respect of a designated assisted area is a |
| 45 |
|
| |
|
| |
|
reference to expenditure incurred on the provision of plant or |
| |
machinery for use primarily in that area. |
| |
(3) | For the purposes of subsection (1), expenditure incurred in a |
| |
currency other than the euro is to be converted into its equivalent in |
| |
euros using the spot rate of exchange for the day on which the |
| 5 |
| |
(4) | The Treasury may by regulations increase the amount specified in |
| |
subsection (1)(a) and (b). |
| |
| |
“designated assisted area” has the meaning given by section |
| 10 |
| |
“section 45K allowance” means a first-year allowance in respect |
| |
of expenditure that is first-year qualifying expenditure under |
| |
| |
“single investment project” has the same meaning as in |
| 15 |
Commission Regulation (EC) No 800/2008 (General block |
| |
| |
(2) | Accordingly, in the heading for that Chapter omit “: zero-emission goods |
| |
| |
8 | The amendments made by this Schedule have effect for chargeable periods |
| 20 |
ending on or after 1 April 2012. |
| |
| |
| |
| |
| |
Increased remittance basis charge |
| 25 |
| |
1 | Chapter A1 of Part 14 of ITA 2007 (remittance basis) is amended as follows. |
| |
2 (1) | Section 809C (claim for remittance basis by long-term UK resident: |
| |
nomination of foreign income and gains to which section 809H(2) is to |
| |
apply) is amended as follows. |
| 30 |
(2) | In subsection (1), for paragraph (b) substitute— |
| |
“(b) | meets the 12-year residence test or the 7-year residence test |
| |
| |
(3) | After that subsection insert— |
| |
“(1A) | An individual meets the 12-year residence test for a tax year if the |
| 35 |
individual has been UK resident in at least 12 of the 14 tax years |
| |
immediately preceding that year. |
| |
(1B) | An individual meets the 7-year residence test for a tax year if the |
| |
| |
(a) | does not meet the 12-year residence test for that year, but |
| 40 |
|
| |
|
| |
|
(b) | has been UK resident in at least 7 of the 9 tax years |
| |
immediately preceding that year.” |
| |
(4) | In subsection (4), for “£30,000” substitute “— |
| |
(a) | for an individual who meets the 12-year residence test for |
| |
| 5 |
(b) | for an individual who meets the 7-year residence test for that |
| |
| |
3 (1) | Section 809H (claim for remittance basis by long-term UK resident: charge) |
| |
| |
(2) | In subsection (1), for paragraph (c) substitute— |
| 10 |
“(c) | the individual meets the 12-year residence test or the 7-year |
| |
residence test for the relevant tax year.” |
| |
(3) | After that subsection insert— |
| |
“(1A) | See section 809C(1A) and (1B) for when an individual meets the 12- |
| |
year residence test or the 7-year residence test for a tax year.” |
| 15 |
(4) | In subsection (4), for “£30,000”, in each place it occurs, substitute “the |
| |
| |
(5) | After subsection (5A) insert— |
| |
“(5B) | “The applicable amount” is— |
| |
(a) | if the individual meets the 12-year residence test for the |
| 20 |
relevant tax year, £50,000; |
| |
(b) | if the individual meets the 7-year residence test for the |
| |
relevant tax year, £30,000.” |
| |
4 | For section 809V substitute— |
| |
“809V | Money paid to the Commissioners |
| 25 |
“(1) | Subsection (2) applies to income or chargeable gains of an individual |
| |
| |
(a) | the income or gains would (but for subsection (2)) be |
| |
regarded as remitted to the United Kingdom by virtue of the |
| |
bringing of money to the United Kingdom, |
| 30 |
(b) | the money is brought to the United Kingdom by way of one |
| |
or more direct payments to the Commissioners, and |
| |
(c) | the payments are made in relation to a tax year to which |
| |
section 809H applies as regards the individual. |
| |
(2) | The income or chargeable gains are to be treated as not remitted to |
| 35 |
the United Kingdom to the extent that the payments do not exceed |
| |
the applicable amount (as defined in section 809H). |
| |
(3) | Subsection (2) does not apply to payments if or to the extent that they |
| |
are repaid by the Commissioners.” |
| |
| 40 |
5 | The amendments made by this Part of this Schedule have effect for the tax |
| |
year 2012-13 and subsequent tax years. |
| |
|
| |
|
| |
|
| |
Remittance for investment purposes |
| |
| |
6 | For the italic heading preceding section 809V substitute “Relief for money used |
| |
| 5 |
7 | After section 809V insert— |
| |
“Business investment relief |
| |
809VA | Money or other property used to make investments |
| |
(1) | Subsection (2) applies if— |
| |
(a) | a relevant event occurs, |
| 10 |
(b) | but for subsection (2), income or chargeable gains of an |
| |
individual would be regarded as remitted to the United |
| |
Kingdom by virtue of that event, and |
| |
(c) | the individual makes a claim for relief under this section. |
| |
(2) | The income or gains are to be treated as not remitted to the United |
| 15 |
| |
(3) | A “relevant event” occurs if money or other property— |
| |
(a) | is used by a relevant person to make a qualifying investment, |
| |
| |
(b) | is brought to or received in the United Kingdom in order to |
| 20 |
be used by a relevant person to make a qualifying |
| |
| |
(4) | Subsection (1)(b) includes a case where income or gains would be |
| |
treated under section 809Y as remitted to the United Kingdom by |
| |
virtue of the relevant event. |
| 25 |
(5) | Subsection (2) applies by virtue of subsection (3)(b) to the extent only |
| |
that the investment is made within the period of 45 days beginning |
| |
with the day on which the money or other property is brought to or |
| |
received in the United Kingdom. |
| |
(6) | Where some but not all of the money or other property is used to |
| 30 |
make the investment within that 45-day period, the part of the |
| |
income or gains to which subsection (2) applies is to be determined |
| |
on a just and reasonable basis. |
| |
(7) | Subsection (2) does not apply if the relevant event occurs, or the |
| |
investment is made, as part of or as a result of a scheme or |
| 35 |
arrangement the main purpose or one of the main purposes of which |
| |
| |
(8) | A claim for relief under this section must be made on or before the |
| |
first anniversary of the 31 January following the tax year in which the |
| |
income or gains would, but for subsection (2), be regarded as |
| 40 |
remitted to the United Kingdom by virtue of the relevant event. |
| |
|
| |
|