|
| |
|
(1B) | This paragraph also does not apply to a claim by a company for |
| |
repayment of income tax deducted at source from income which |
| |
is exempt from tax by virtue of— |
| |
(a) | section 486 of the Corporation Tax Act 2010 (investment |
| |
income and non-trading profits from loan relationships), |
| 5 |
(b) | section 487 of that Act (public revenue dividends), |
| |
(c) | section 488 of that Act (certain miscellaneous income), |
| |
(d) | section 489 of that Act (income from estates in |
| |
| |
(e) | section 664 of that Act (interest and gift aid income: |
| 10 |
community amateur sports clubs). |
| |
(1C) | This paragraph also does not apply to a claim by a company for an |
| |
amount to be exempt from tax by virtue of— |
| |
(a) | section 472 of the Corporation Tax Act 2010 (gifts |
| |
qualifying for gift aid relief: charitable companies), |
| 15 |
(b) | section 475 of that Act (gifts qualifying for gift aid relief: |
| |
| |
(c) | any of the provisions mentioned in sub-paragraph (1B).” |
| |
16 | In consequence of the amendments made by paragraphs 14 and 15, in |
| |
Schedule 8 to FA 2010 omit paragraph 6. |
| 20 |
| |
17 (1) | The amendments made by paragraphs 1 to 4 and 7 are treated as having |
| |
come into force on 8 April 2010. |
| |
(2) | The amendments made by paragraphs 6, 8 and 10 are treated as having |
| |
| 25 |
(a) | for corporation tax purposes, for accounting periods ending on or |
| |
| |
(b) | for income tax purposes, for the tax year 2010-11 and subsequent tax |
| |
| |
(3) | The amendment made by paragraph 9 has effect in relation to income tax |
| 30 |
repaid on gifts made or income received on or after 6 April 2006. |
| |
| Accordingly, any reference in that amendment to a provision of ITA 2007 is |
| |
to be read as including a reference to any corresponding earlier enactment |
| |
which was rewritten in that provision. |
| |
(4) | An amendment corresponding to that made by paragraph 10(2) is to be |
| 35 |
treated as having been made in ICTA and having had effect in relation to— |
| |
(a) | gifts made by individuals to charitable companies and eligible |
| |
bodies on or after 6 April 2000 which were not covenanted payments, |
| |
(b) | covenanted payments falling to be made by individuals to charitable |
| |
companies and eligible bodies on or after that date, and |
| 40 |
(c) | payments made to community amateur sports clubs on or after 6 |
| |
| |
(5) | An amendment corresponding to that made by paragraph 10(3) is to be |
| |
treated as having been made in ICTA and having had effect in relation to |
| |
payments of income made on or after 1 April 2006. |
| 45 |
|
| |
|
| |
|
(6) | The amendments made by paragraphs 11 to 16 have effect in relation to |
| |
| |
| |
| |
Part 2: minor and consequential amendments |
| |
| 5 |
| |
1 | ICTA is amended as follows. |
| |
2 | Omit section 76 (expenses of insurance companies). |
| |
3 | Omit section 76ZA (payments for restrictive undertakings). |
| |
4 | Omit section 76ZB (seconded employees). |
| 10 |
5 | Omit sections 76ZC to 76ZE (counselling and retraining expenses). |
| |
6 | Omit sections 76ZF to 76ZJ (redundancy payments etc). |
| |
7 | Omit section 76ZK (contributions to local enterprise organisations or urban |
| |
| |
8 | Omit sections 76ZL and 76ZM (unpaid remuneration). |
| 15 |
9 | Omit section 76ZN (car hire). |
| |
10 | In section 95ZA(3) (taxation of UK distributions received by insurance |
| |
companies), for “life assurance business” substitute “business in relation to |
| |
which section 111 of the Finance Act 2012 applies”. |
| |
11 | Omit section 431 (interpretative provisions relating to insurance |
| 20 |
| |
12 | Omit section 431ZA (election for assets not be foreign business assets). |
| |
13 | Omit section 431A (amendment of Chapter etc). |
| |
14 | Omit section 431B (meaning of “pension business”). |
| |
15 | Omit section 431BA (meaning of “child trust fund business”). |
| 25 |
16 | Omit section 431BB (meaning of “individual savings account business”). |
| |
17 | Omit section 431C (meaning of “life reinsurance business”). |
| |
18 | Omit sections 431D and 431E (meaning of “overseas life assurance business” |
| |
| |
19 | Omit section 431EA (meaning of “gross roll-up business”). |
| 30 |
20 | Omit section 431F (meaning of “basic life assurance and general annuity |
| |
| |
21 | Omit section 431G (company carrying on life assurance business). |
| |
|
| |
|
| |
|
22 | Omit section 431H (company carrying on life assurance business and other |
| |
| |
23 | Omit section 432YA (PHI business — adjustment consequent of change in |
| |
Insurance Prudential Sourcebook). |
| |
24 | Omit section 432ZA (linked assets). |
| 5 |
25 | Omit section 432A (apportionment of income and gains). |
| |
26 | Omit section 432AA (property businesses). |
| |
27 | Omit section 432AB (losses from property businesses). |
| |
28 | Omit sections 432B to 432G (apportionment of receipts brought into |
| |
| 10 |
29 | Omit section 434 (franked investment income etc). |
| |
30 | Omit section 434A (computation of losses and limitation on relief). |
| |
31 | Omit sections 434AZA to 434AZC (reduced loss relief for additions to non- |
| |
| |
32 | Omit section 436A (gross roll-up business: separate charge on profits). |
| 15 |
33 | Omit section 436B (gains referable to gross-roll up business not to be |
| |
| |
34 | Omit sections 437 and 437A (general annuity business). |
| |
35 | Omit section 438 (pension business: exemption from tax). |
| |
36 | Omit section 440 (transfers of assets etc). |
| 20 |
37 | Omit section 440A (securities). |
| |
38 | Omit section 440B (modifications where tax charged under s.35 of CTA |
| |
| |
39 | Omit section 440C (modifications for change of tax basis). |
| |
40 | Omit section 440D (modifications in relation to BLAGAB group reinsurers). |
| 25 |
41 | Omit section 442 (overseas business of UK companies). |
| |
42 | Omit section 442A (taxation of investment return where risk reinsured). |
| |
43 | Omit sections 444A to 444AED (transfers of business). |
| |
44 | Omit sections 444AF to 444AL (surpluses of mutual and former mutual |
| |
| 30 |
45 | In Schedule 15 (qualifying policies), in paragraph 24(3)(a), for “section |
| |
431(2)” substitute “section 56 of the Finance Act 2012”. |
| |
46 | Omit Schedule 19ABA (modifications in relation to BLAGAB group |
| |
| |
|
| |
|
| |
|
| |
| |
47 | FA 1989 is amended as follows. |
| |
48 | In section 67(2) (employee share ownership trusts), for paragraph (b) (and |
| |
the “or” before that paragraph) substitute— |
| 5 |
“(b) | if the company is an investment company, shall be treated as |
| |
expenses of management, or |
| |
(c) | if the company is a company in relation to which the I - E |
| |
rules apply and the sum is referable, in accordance with |
| |
Chapter 4 of Part 2 of the Finance Act 2012, to the company’s |
| 10 |
basic life assurance and general annuity business, shall be |
| |
treated for the purposes of section 76 of that Act as ordinary |
| |
BLAGAB management expenses of the company.” |
| |
49 | Omit section 82 (calculation of profits: bonuses etc). |
| |
50 | Omit section 82A (calculation of profits: policy holders’ tax). |
| 15 |
51 | Omit section 82B (unappropriated surplus on valuation). |
| |
52 | Omit sections 82D to 82F (treatment of profits: life assurance — adjustment |
| |
consequent on change in Insurance Prudential Sourcebook). |
| |
53 | Omit section 83 (receipts to be taken into account). |
| |
54 | Omit section 83XA (structural assets). |
| 20 |
55 | Omit sections 83YA and 83YB (changes in value of assets brought into |
| |
account: non-profit companies). |
| |
56 | Omit sections 83YC to 83YF (FAFTS). |
| |
57 | Omit section 83A (meaning of “brought into account”). |
| |
58 | Omit section 83B (changes in recognised accounts: attribution of amounts |
| 25 |
carried forward under s.432F of ICTA). |
| |
59 | Omit section 85 (charge of certain receipts of basic life assurance business). |
| |
60 | Omit section 85A (excess adjusted life assurance trade profits). |
| |
61 | Omit section 86 (spreading of relief for acquisition expenses). |
| |
62 | Omit section 88 (corporation tax: policy holders’ share of profits). |
| 30 |
63 | Omit section 89 (policy holders’ share of profits). |
| |
| |
| |
| |
64 | FA 1950 is amended as follows. |
| 35 |
65 | In section 39(3)(b)(ii) (treatment for taxation purposes of enemy debts etc |
| |
written off during the war), for “an expenses deduction for the purposes of |
| |
|
| |
|
| |
|
Step 1 of section 76(7) of the Income and Corporation Taxes Act 1988” |
| |
substitute “ordinary BLAGAB management expenses for the purposes of |
| |
section 76 of the Finance Act 2012”. |
| |
Taxes Management Act 1970 |
| |
66 | TMA 1970 is amended as follows. |
| 5 |
67 (1) | Section 98 (special returns) is amended as follows. |
| |
(2) | In the first column of the Table— |
| |
(a) | omit the entry relating to regulations under section 431E(1) of ICTA, |
| |
| |
| 10 |
“regulations under section 61(5) of the Finance Act |
| |
| |
(3) | In the second column of the Table— |
| |
(a) | omit the entry relating to section 76ZE(4) of ICTA, |
| |
(b) | omit the entry relating to regulations under section 431E(1) of ICTA, |
| 15 |
| |
| |
“regulations under section 61(5) of the Finance Act |
| |
| |
| 20 |
68 | IHTA 1984 is amended as follows. |
| |
69 | In section 59(3)(b) (qualifying interest in possession), for “Chapter I of Part |
| |
XII of the Taxes Act 1988” substitute “Part 2 of the Finance Act 2012”. |
| |
| |
70 | FA 1991 is amended as follows. |
| 25 |
71 | In paragraph 16(1) of Schedule 7 (transitional relief for old general annuity |
| |
contracts), for the words from “computation” to “1988” substitute |
| |
“application of the I - E rules in relation to an accounting period of an |
| |
insurance company, an amount equal to the lesser of the following amounts |
| |
is to be treated (if it is not nil) for the purposes of section 76 of the Finance |
| 30 |
Act 2012 as a deemed BLAGAB management expense for the accounting |
| |
| |
Taxation of Chargeable Gains Act 1992 |
| |
72 | TCGA 1992 is amended as follows. |
| |
73 | In section 10B (non-resident company with United Kingdom permanent |
| 35 |
establishment), after subsection (3) insert— |
| |
“(3A) | This section applies to an overseas life insurance company in the case |
| |
of its long-term business with the omission from subsection (1)(b) of |
| |
the words “situated in the United Kingdom and”.” |
| |
74 | In section 100(2B)(a) (exemption for authorised unit trusts etc), for “section |
| 40 |
431 of the Taxes Act” substitute “section 65 of the Finance Act 2012”. |
| |
|
| |
|
| |
|
75 | In section 140C (transfer or division of non-UK business), omit subsection |
| |
| |
76 | In section 151I(1) (meaning of “financial institution”)— |
| |
(a) | in paragraph (g), for “section 431(2) of ICTA” substitute “section 65 |
| |
of the Finance Act 2012”, and |
| 5 |
(b) | in paragraph (h), for “section 431(2) of ICTA” substitute “section |
| |
139(1) of the Finance Act 2012”. |
| |
77 (1) | Section 171C (elections under s.171A: insurance companies) is amended as |
| |
| |
(2) | In subsection (2), for “section 440(3) of the Taxes Act” substitute “section 118 |
| 10 |
of the Finance Act 2012”. |
| |
(3) | In subsection (3)(b), for “part of that company’s long-term insurance fund” |
| |
substitute “held for the purposes of the company’s long-term business”. |
| |
(4) | In subsection (4), for the words from “as arising” to the end substitute “for |
| |
the purposes of section 210A (ring-fencing of losses) as a non-BLAGAB |
| 15 |
chargeable gain or (as the case may be) a non-BLAGAB allowable loss”. |
| |
| |
78 | In section 185 (deemed disposal of assets on company ceasing to be UK |
| |
resident), after subsection (4) insert— |
| |
“(4A) | Subsection (4) applies to an overseas life insurance company in the |
| 20 |
case of its long-term business with— |
| |
(a) | the omission from paragraph (a) of the words “are situated in |
| |
the United Kingdom and”; and |
| |
(b) | the omission from paragraph (b) of the words “are so situated |
| |
| 25 |
79 | In section 204(10)(a) (policies of insurance and non-deferred annuities), for |
| |
“Chapter 1 of Part 12 of the Taxes Act” substitute “section 56(3) of the |
| |
| |
80 (1) | Section 210A (ring-fencing of losses) is amended as follows. |
| |
(2) | For subsection (2) substitute— |
| 30 |
“(2) | Non-BLAGAB allowable losses accruing to an insurance company |
| |
are allowable as a deduction from the shareholders’ share (if any) of |
| |
the BLAGAB chargeable gains accruing to the company (but are not |
| |
otherwise allowable as a deduction from the BLAGAB chargeable |
| |
gains accruing to the company).” |
| 35 |
(3) | For subsections (10) and (10A) substitute— |
| |
“(10) | For the purposes of this section the “shareholders’ share” of |
| |
BLAGAB chargeable gains or BLAGAB allowable losses accruing to |
| |
an insurance company in an accounting period is determined as |
| |
| 40 |
(10A) | If the company has an I - E profit for the accounting period— |
| |
(a) | find the percentage (including, if applicable, nil) of the I - E |
| |
profit that is not represented by the policyholders’ share of |
| |
|
| |
|
| |
|
that profit as determined in accordance with section 103 of |
| |
the Finance Act 2012, and |
| |
(b) | then multiply that percentage by the amount of the BLAGAB |
| |
chargeable gains or BLAGAB allowable losses. |
| |
| The result is the shareholder’s share of the BLAGAB chargeable |
| 5 |
gains or BLAGAB allowable losses. |
| |
(10B) | If the company does not have an I - E profit for the accounting period, |
| |
the shareholders’ share of the BLAGAB chargeable gains or |
| |
BLAGAB allowable losses is nil. |
| |
(10C) | In determining for the purposes of subsections (10A) and (10B) |
| 10 |
whether or not the company has an I - E profit for an accounting |
| |
period, assume that non-BLAGAB allowable losses cannot be |
| |
deducted to any extent from BLAGAB chargeable gains (and, |
| |
accordingly, assume that section 95 is not included in the Finance Act |
| |
| 15 |
| |
(a) | for “the policy holders’ share” substitute “the shareholders’ share”, |
| |
| |
(b) | for “subsection (10)” substitute “subsections (10) to (10C)”. |
| |
(5) | Omit subsection (12). |
| 20 |
| |
(a) | in the definitions of “BLAGAB allowable losses” and “BLAGAB |
| |
chargeable gains”, for “(in accordance with section 432A of the Taxes |
| |
Act)” substitute “, in accordance with Chapter 4 of Part 2 of the |
| |
| 25 |
(b) | omit the definitions of “the relevant profits” and “the policy holders’ |
| |
share of the relevant profits” (together with the “and” before the |
| |
definition of “the relevant profits”). |
| |
81 (1) | Section 210B (disposal and acquisition of section 440A securities) is |
| |
| 30 |
| |
(a) | in the opening words, for “section 440A securities” (in both places) |
| |
substitute “section 119 or 120 securities”, and |
| |
(b) | in paragraphs (a) and (b), for “chargeable section 440A holding” |
| |
substitute “chargeable section 119 or 120 holding”. |
| 35 |
(3) | In subsection (7)(a), for “linked assets” substitute “assets wholly matched to |
| |
BLAGAB liabilities and the assets are”. |
| |
(4) | For subsection (8) substitute— |
| |
| |
“BLAGAB internal linked fund” means an internal linked fund |
| 40 |
all the assets appropriated to which are matched wholly to |
| |
| |
“chargeable section 119 or 120 holding” means a holding which |
| |
is a separate holding as a result of section 119(1)(a), (c) or (d) |
| |
or section 120(1)(a), (c) or (d) of the Finance Act 2012 (and |
| 45 |
section 121(1) and (2) of that Act), |
| |
|
| |
|