|
| |
|
51 | Relief for gift aid and other income of charities etc |
| |
Schedule 15 contains provision about relief in respect of gifts qualifying for gift |
| |
aid relief and other income of charities and other bodies. |
| |
52 | Meaning of “community amateur sports club” |
| |
(1) | In section 658 of CTA 2010 (meaning of “community amateur sports club”), for |
| 5 |
subsection (1) substitute— |
| |
“(1) | A club is entitled to be registered as a community amateur sports club |
| |
if conditions A and B are met. |
| |
(1A) | Condition A is that the club is, and is required by its constitution to be, |
| |
| 10 |
(a) | is open to the whole community (see section 659), |
| |
(b) | is organised on an amateur basis (see section 660), and |
| |
(c) | has as its main purpose the provision of facilities for, and the |
| |
promotion of participation in, one or more eligible sports (see |
| |
| 15 |
(1B) | Condition B is that the club meets— |
| |
(a) | the location condition (see section 661A), and |
| |
(b) | the management condition (see section 661B).” |
| |
(2) | In consequence of the amendment made by subsection (1), omit paragraph 31 |
| |
of Schedule 6 to FA 2010. |
| 20 |
(3) | The amendments made by this section are treated as having come into force on |
| |
| |
| |
53 | Site restoration payments |
| |
(1) | In section 168 of ITTOIA 2005 (site restoration payments), at the beginning of |
| 25 |
subsection (2) insert “Subject to subsection (3A),”. |
| |
(2) | For subsection (3) of that section substitute— |
| |
“(3) | The deduction is allowed— |
| |
(a) | (if the payment is made, whether directly or indirectly, to a |
| |
connected person) for the period of account in which that part |
| 30 |
of the restoration work to which the payment relates is |
| |
| |
(b) | (in any other case) for the period of account in which the |
| |
| |
(3A) | But no deduction is allowed if the payment arises from arrangements— |
| 35 |
(a) | to which the person carrying on the trade is a party, and |
| |
(b) | the main purpose, or one of the main purposes, of which is to |
| |
obtain a deduction under this section.” |
| |
|
| |
|
| |
|
(3) | At the end of that section insert— |
| |
“(7) | “Arrangements” includes any agreement, understanding, scheme, |
| |
transaction or series of transactions (whether or not legally |
| |
| |
(4) | In section 145 of CTA 2009 (site restoration payments), at the beginning of |
| 5 |
subsection (2) insert “Subject to subsection (3A),”. |
| |
(5) | For subsection (3) of that section substitute— |
| |
“(3) | The deduction is allowed— |
| |
(a) | (if the payment is made, whether directly or indirectly, to a |
| |
connected person) for the period of account in which that part |
| 10 |
of the restoration work to which the payment relates is |
| |
| |
(b) | (in any other case) for the period of account in which the |
| |
| |
(3A) | But no deduction is allowed if the payment arises from arrangements— |
| 15 |
(a) | to which the company carrying on the trade is a party, and |
| |
(b) | the main purpose, or one of the main purposes, of which is to |
| |
obtain a deduction under this section.” |
| |
(6) | At the end of that section insert— |
| |
“(7) | “Arrangements” includes any agreement, understanding, scheme, |
| 20 |
transaction or series of transactions (whether or not legally |
| |
| |
(7) | The amendments made by this section have effect in relation to any site |
| |
restoration payment made on or after 21 March 2012, other than a payment |
| |
made pursuant to an unconditional obligation in a contract made before 21 |
| 25 |
| |
(8) | An unconditional obligation is an obligation which may not be varied or |
| |
extinguished by the exercise of a right (whether or not under the contract). |
| |
54 | Changes of accounting policy |
| |
(1) | In section 227 of ITTOIA 2005 (adjustment on change of accounting basis: |
| 30 |
| |
(a) | in subsection (3)(a) for “relevant change of accounting approach” |
| |
substitute “change of accounting policy”, and |
| |
(b) | for subsection (4) substitute— |
| |
“(4) | A “change of accounting policy” includes, in particular— |
| 35 |
(a) | a change from using UK generally accepted accounting |
| |
practice to using generally accepted accounting practice |
| |
with respect to accounts prepared in accordance with |
| |
international accounting standards, and |
| |
(b) | a change from using generally accepted accounting |
| 40 |
practice with respect to accounts prepared in |
| |
accordance with international accounting standards to |
| |
using UK generally accepted accounting practice.” |
| |
|
| |
|
| |
|
(2) | In section 180 of CTA 2009 (adjustment on change of accounting basis: |
| |
| |
(a) | in subsection (3)(a) for “relevant change of accounting approach” |
| |
substitute “change of accounting policy”, and |
| |
(b) | for subsection (4) substitute— |
| 5 |
“(4) | A “change of accounting policy” includes, in particular— |
| |
(a) | a change from using UK generally accepted accounting |
| |
practice to using generally accepted accounting practice |
| |
with respect to accounts prepared in accordance with |
| |
international accounting standards, and |
| 10 |
(b) | a change from using generally accepted accounting |
| |
practice with respect to accounts prepared in |
| |
accordance with international accounting standards to |
| |
using UK generally accepted accounting practice.” |
| |
(3) | Corresponding amendments are to be treated as having been made in section |
| 15 |
| |
(4) | In consequence of the amendment made by subsection (1)(b), omit paragraph |
| |
2 of Schedule 6 to F(No.2)A 2005. |
| |
(5) | The amendments made by this section have effect in relation to a change of |
| |
| 20 |
(a) | is adopted for a period of account which begins on or after 1 January |
| |
| |
(b) | is adopted for a period of account which begins before 1 January 2012 |
| |
and the adoption is in consequence of the issue, revocation, |
| |
amendment or recognition of, or withdrawal of recognition from, an |
| 25 |
accounting standard by an accounting body on or after 1 January 2012. |
| |
| |
“accounting body” means the International Accounting Standards Board, |
| |
the Accounting Standards Board, or a successor body to either of those |
| |
| 30 |
“accounting standard” includes any statement of practice, guidance or |
| |
| |
| |
Insurance companies carrying on long-term business |
| |
| 35 |
| |
Outline of provisions of Part |
| |
| |
(1) | This Part makes special provision for corporation tax purposes in relation to |
| |
life assurance business and other long-term business carried on by insurance |
| 40 |
| |
|
| |
|
| |
|
(2) | Chapter 1 explains some of the key concepts for the purposes of this Part, |
| |
including the concept of basic life assurance and general annuity business |
| |
(abbreviated to “BLAGAB”). |
| |
| |
(a) | provides for the profits of BLAGAB to be subject to a charge to |
| 5 |
corporation tax on the I - E basis as the profits of a separate business, |
| |
| |
(b) | provides for the profits of other long-term business to be charged to |
| |
corporation tax under section 35 of CTA 2009 as the profits of a single |
| |
| 10 |
(4) | Chapter 3 sets out the rules applicable to the I - E charge (which operate in part |
| |
by reference to the calculation of an insurance company’s BLAGAB trade profit |
| |
| |
(5) | Chapter 4 sets out rules for determining for the purposes of the I - E charge how |
| |
to apportion items to an insurance company’s basic life assurance and general |
| 15 |
| |
| |
(a) | provides for the policyholders’ share of the I - E profit to be charged at |
| |
the policyholders’ rate (the basic rate of income tax), and |
| |
(b) | provides for policyholder tax to be taken into account in calculating an |
| 20 |
insurance company’s BLAGAB trade profit or loss. |
| |
(7) | Chapter 6 contains special rules that are to apply for the purpose of calculating |
| |
an insurance company’s BLAGAB trade profit or loss or the profits of an |
| |
insurance company’s other long-term business. |
| |
(8) | Chapter 7 sets out rules for determining for the purposes of that calculation |
| 25 |
how to allocate items between BLAGAB and other long-term business. |
| |
(9) | The remainder of the Part contains— |
| |
(a) | provision in relation to assets held for the purposes of an insurance |
| |
company’s long-term business (see Chapter 8), |
| |
(b) | provision for relieving BLAGAB trade losses and restrictions in relation |
| 30 |
to the policyholders’ share of an I - E profit (see Chapter 9), |
| |
(c) | provision in relation to the transfer of BLAGAB or other long-term |
| |
business (see Chapter 10), and |
| |
(d) | definitions and other supplementary material (see Chapters 11 and 12). |
| |
Meaning of “life assurance business” |
| 35 |
56 | Meaning of “life assurance business” |
| |
(1) | This section defines for the purposes of this Part what is meant by “life |
| |
| |
(2) | Business is “life assurance business” if— |
| |
(a) | it consists of the effecting or carrying out of contracts of insurance |
| 40 |
which fall within paragraph I, II, III or VII(b) of Part 2 of Schedule 1 to |
| |
the FISMA (Regulated Activities) Order 2001, or |
| |
(b) | it is capital redemption business (see subsection (3)). |
| |
|
| |
|
| |
|
(3) | Business is “capital redemption business” if it consists of the effecting on the |
| |
basis of actuarial calculations, and the carrying out, of contracts under which, |
| |
in return for one or more fixed payments, a sum of a specified amount (or a |
| |
series of sums of a specified amount) become payable at a future time or over |
| |
| 5 |
Meaning of “basic life assurance and general annuity business” |
| |
57 | Meaning of “basic life assurance and general annuity business” |
| |
(1) | This section defines for the purposes of this Part what is meant by “basic life |
| |
assurance and general annuity business”. |
| |
(2) | “Basic life assurance and general annuity business” means life assurance |
| 10 |
| |
(a) | pension business (which is defined for the purposes of this section by |
| |
| |
(b) | child trust fund business (which is defined for the purposes of this |
| |
| 15 |
(c) | individual savings account business (which is defined for the purposes |
| |
of this section by section 60), |
| |
(d) | business which consists of the effecting or carrying out of immediate |
| |
needs annuities (within the meaning of section 725 of ITTOIA 2005), |
| |
(e) | re-insurance of life assurance business other than excluded business, |
| 20 |
(f) | overseas life assurance business (which is defined for the purposes of |
| |
this section by section 61), or |
| |
(g) | protection business (which is defined for the purposes of this section by |
| |
| |
(3) | In subsection (2)(e) “excluded business” means business of any description |
| 25 |
excluded for the purposes of this section by regulations made by HMRC |
| |
| |
58 | Section 57: meaning of “pension business” |
| |
(1) | This section defines for the purposes of the definition of “basic life assurance |
| |
and general annuity business” given by section 57 what is meant by “pension |
| 30 |
| |
(2) | Life assurance business is “pension business” if— |
| |
(a) | it consists of the effecting or carrying out of contracts entered into for |
| |
the purposes of a registered pension scheme, or |
| |
(b) | it is the re-insurance of business within paragraph (a). |
| 35 |
(3) | Subsection (4) applies if the pension scheme ceases to be a registered pension |
| |
scheme as a result of the withdrawal of its registration under section 157 of FA |
| |
| |
(4) | The company’s life assurance business that was pension business when the |
| |
scheme was a registered pension scheme is treated as ceasing to be pension |
| 40 |
business at the beginning of the company’s period of account in which the |
| |
scheme so ceases to be a registered pension scheme. |
| |
| |
|
| |
|
| |
|
(a) | immediately before 6 April 2006 an annuity contract fell within any of |
| |
the descriptions of contracts specified in section 431B(2) of ICTA as it |
| |
had effect immediately before that date, but |
| |
(b) | the contract does not fall to be regarded for the purposes of this section |
| |
as having been entered into for the purposes of a registered pension |
| 5 |
| |
| the contract is treated for the purposes of this section as having been entered |
| |
| |
59 | Section 57: meaning of “child trust fund business” |
| |
(1) | This section defines for the purposes of the definition of “basic life assurance |
| 10 |
and general annuity business” given by section 57 what is meant by “child trust |
| |
| |
(2) | Life assurance business is “child trust fund business” if it consists of the |
| |
effecting or carrying out of child trust fund policies. |
| |
(3) | But the re-insurance of business consisting of the effecting or carrying out of |
| 15 |
child trust fund policies is not “child trust fund business”. |
| |
(4) | In this section “child trust fund policy” means a policy of life insurance which |
| |
is an investment under a child trust fund (within the meaning of the Child |
| |
| |
60 | Section 57: meaning of “individual savings account business” |
| 20 |
(1) | This section defines for the purposes of the definition of “basic life assurance |
| |
and general annuity business” given by section 57 what is meant by |
| |
“individual savings account business”. |
| |
(2) | Life assurance business is “individual savings account business” if it consists |
| |
of the effecting or carrying out of individual savings account policies. |
| 25 |
(3) | But the re-insurance of business consisting of the effecting or carrying out of |
| |
individual savings account policies is not “individual savings account |
| |
| |
(4) | In this section “individual savings account policy” means a policy of life |
| |
insurance which is an investment of a kind specified in regulations made as a |
| 30 |
result of section 695(1) of ITTOIA 2005. |
| |
61 | Section 57: meaning of “overseas life assurance business” |
| |
(1) | This section defines for the purposes of the definition of “basic life assurance |
| |
and general annuity business” given by section 57 what is meant by “overseas |
| |
life assurance business”. |
| 35 |
(2) | Life assurance business is “overseas life assurance business” if— |
| |
(a) | it consists of the effecting or carrying out of contracts with |
| |
policyholders or annuitants who are not resident in the United |
| |
| |
(b) | it does not consist of excluded business, |
| 40 |
| but the re-insurance of business that meets the conditions in paragraphs (a) |
| |
and (b) is not “overseas life assurance business”. |
| |
|
| |
|
| |
|
(3) | For this purpose “excluded business” means— |
| |
(a) | business which is pension business within the meaning of section 58, |
| |
(b) | business which is child trust fund business within the meaning of |
| |
| |
(c) | business which is individual savings account business within the |
| 5 |
meaning of section 60, or |
| |
(d) | business of any description excluded by regulations made by HMRC |
| |
| |
(4) | HMRC Commissioners may by regulations— |
| |
(a) | make provision as to the circumstances in which a trustee who is a |
| 10 |
policyholder or annuitant residing in the United Kingdom is to be |
| |
treated for the purposes of this section as not residing there, and |
| |
(b) | provide that nothing in Chapter 9 of Part 4 of ITTOIA 2005 is to apply |
| |
to a policy or contract which constitutes overseas life assurance |
| |
business as a result of provision made under paragraph (a). |
| 15 |
(5) | HMRC Commissioners may by regulations make provision for giving effect to |
| |
| |
(6) | Regulations under subsection (5) may— |
| |
(a) | provide that, in prescribed circumstances, any prescribed issue as to |
| |
whether business is, or is not, overseas life assurance business (or |
| 20 |
overseas life assurance business of a particular kind) is to be |
| |
determined by reference to prescribed matters, |
| |
(b) | require companies to obtain certificates, undertakings, information or |
| |
declarations from any person for the purposes of the regulations, |
| |
(c) | make provision for dealing with cases where any issue within |
| 25 |
paragraph (a) is (for any reason) wrongly determined, including |
| |
provision allowing for charges to tax to be imposed (with or without |
| |
limits on time) on the insurance company concerned or on the |
| |
policyholders or annuitants concerned, |
| |
(d) | require companies to supply information and make available books, |
| 30 |
documents and other records for inspection by officers of Revenue and |
| |
| |
(e) | make provision (including provision imposing penalties) for |
| |
contravention of, or non-compliance with, the regulations. |
| |
(7) | The matters that may be prescribed under subsection (6)(a) include— |
| 35 |
(a) | the giving of certificates or undertakings, |
| |
(b) | the giving or possession of information, and |
| |
(c) | the making of declarations. |
| |
(8) | Regulations under this section may— |
| |
(a) | make different provision for different cases or circumstances, and |
| 40 |
(b) | contain incidental, supplementary, consequential, transitional, |
| |
transitory or saving provision (including provision amending any |
| |
enactment or instrument made under any enactment). |
| |
62 | Section 57: meaning of “protection business” |
| |
(1) | This section defines for the purposes of the definition of “basic life assurance |
| 45 |
and general annuity business” given by section 57 what is meant by “protection |
| |
| |
|
| |
|