Session 2010 - 12
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Finance (No. 4) Bill


Finance (No. 4) Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 1 — Stamp duty and stamp duty land tax

657

 

(c)   

in section 130 (registered social landlords: treatment of certain leases

granted between 1 January 1990 and 27 March 2000), subsections (3)

to (6) and (9).

      (2)  

In consequence of the provision made by sub-paragraph (1), in Schedule 4 to

CRCA 2005, omit paragraphs 125 to 127.

5

Application and transitional provision

10    (1)  

The amendments made by paragraphs 1 to 5, 6(1), 7 and 9(1)(a) of this

Schedule have effect in relation to instruments executed on or after 6 April

2013.

      (2)  

The amendments made by—

10

(a)   

paragraphs 6(2) and 9(1)(b) of this Schedule, and

(b)   

paragraph 9(1)(c) and (2) of this Schedule, so far as relating to the

repeal of section 129 of FA 2003,

           

have effect in relation to instruments stamped on or after 6 April 2013.

      (3)  

The amendments made by paragraph 9(1)(c) and (2), so far as not relating to

15

that repeal, come into force on 6 April 2013.

      (4)  

The amendments made by paragraph 8 of this Schedule have effect in

relation to transactions of which the effective date is on or after 6 April 2013.

      (5)  

This paragraph is subject to paragraphs 11 and 12.

11         

The amendments made by paragraph 7 do not have effect in relation to an

20

instrument giving effect to a contract entered into on or before 16 March

2005, unless—

(a)   

the instrument is made in consequence of the exercise after that date

of any option, right of pre-emption or similar right, or

(b)   

the instrument transfers the property in question to, or vests it in, a

25

person other than the purchaser under the contract, because of an

assignment (or assignation) or further contract made after that date.

12    (1)  

The amendments made by paragraph 8 do not have effect in relation to—

(a)   

any transaction that is effected in pursuance of a contract entered

into and substantially performed on or before 16 March 2005, or

30

(b)   

(subject to sub-paragraph (2)) any other transaction that is effected in

pursuance of a contract entered into on or before that date.

      (2)  

The exclusion by sub-paragraph (1)(b) of transactions effected in pursuance

of any contract entered into on or before 16 March 2005 does not apply if—

(a)   

there is any variation of the contract or assignment of rights under

35

the contract after that date,

(b)   

the transaction is effected in consequence of the exercise after that

date of any option, right of pre-emption or similar right, or

(c)   

after that date there is an assignment, subsale or other transaction

relating to the whole or part of the subject-matter of the contract as a

40

result of which a person other than the purchaser under the contract

becomes entitled to call for a conveyance.

13    (1)  

Any claim for relief under Schedule 6 to FA 2003 (disadvantaged areas relief)

which is made in respect of a transaction of which the effective date is on or

before 5 April 2013 must be made before 6 May 2014.

45

 
 

Finance (No. 4) Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 3 — Payments relating to reductions in pool betting duty

658

 

      (2)  

Sub-paragraph (1) applies—

(a)   

whether or not the claim is made in a land transaction return or an

amendment of such a return, and

(b)   

whether the effective date of the transaction is before or after the day

on which this Act comes into force.

5

Part 2

Repeal of harbour reorganisation scheme reliefs

14         

Section 45 of FA 1966 (harbour reorganisation schemes: stamp duty) is

repealed.

15         

Section 221 of TCGA 1992 (harbour reorganisation schemes: transfer of

10

assets) is repealed.

16         

Sections 991 to 995 of CTA 2010 (harbour reorganisation schemes) are

repealed.

17         

In consequence of the provision made by paragraph 15—

(a)   

in section 288(3A)(a) of TCGA 1992, for “221” substitute “220”, and

15

(b)   

in Schedule 1 to CTA 2010, omit paragraph 251.

18    (1)  

The amendment made by paragraph 14 has effect in relation to instruments

executed on or after 1 April 2013.

      (2)  

The amendments made by paragraphs 15 to 17 have effect in relation to any

transfer occurring on or after 1 April 2013.

20

Part 3

Payments relating to reductions in pool betting duty

19    (1)  

Section 126 of FA 1990 (capital allowances and IHT: pools payments for

football ground improvements) is repealed.

      (2)  

Accordingly, the following are also repealed—

25

(a)   

paragraph 72 of Schedule 2 to CAA 2001;

(b)   

paragraph 416 of Schedule 1 to ITTOIA 2005.

      (3)  

The repeals made by this paragraph—

(a)   

for corporation tax purposes, have effect in relation to payments

made on or after 1 April 2013,

30

(b)   

for income tax purposes, have effect in relation to payments made on

or after 6 April 2013, and

(c)   

for inheritance tax purposes, come into force on 6 April 2013 (and

have effect in relation to payments whenever made).

20    (1)  

Section 121 of FA 1991 (inheritance tax: pools payments to support games

35

etc) is repealed.

      (2)  

The repeal made by this paragraph comes into force on 6 April 2013 (and has

effect in relation to payments whenever made).

21    (1)  

In ITTOIA 2005, the following provisions are repealed—

(a)   

section 162 (deductions in respect of payments by persons liable to

40

pool betting duty);

 
 

Finance (No. 4) Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 4 — Life assurance

659

 

(b)   

section 748 (exemption for payments by persons liable to pool

betting duty).

      (2)  

Accordingly, section 683(4)(g) of that Act is also repealed.

      (3)  

The repeals made by this paragraph have effect in relation to payments

made on or after 6 April 2013.

5

22    (1)  

In CTA 2009, the following provisions are repealed—

(a)   

section 138 (deductions in respect of payments by companies liable

to pool betting duty);

(b)   

section 978 (exemption for payments by persons liable to pool

betting duty).

10

      (2)  

Accordingly, section 976(1)(b) of that Act (and the “and” before it) are also

repealed.

      (3)  

The repeals made by this paragraph have effect in relation to payments

made on or after 1 April 2013.

Part 4

15

Life assurance

Abolition of income tax relief for life assurance premiums under section 266 of ICTA

23         

Section 266 of ICTA (income tax relief for life assurance premiums paid by

eligible individuals) applies in relation to a premium or part of a premium

only if the premium or part of a premium—

20

(a)   

becomes due and payable before 6 April 2015, and

(b)   

is actually paid before 6 July 2015.

24         

No claim for relief may be made under paragraph 6 of Schedule 14 to ICTA

(provisions ancillary to section 266) after 5 April 2016.

25    (1)  

The Income Tax (Life Assurance Premium Relief) Regulations 1978 (S.I.

25

1978/1159) (“the 1978 Regulations”) have effect in accordance with this

paragraph.

      (2)  

Subject to sub-paragraph (3), an annual claim for the financial year of a life

office must be made no later than—

(a)   

the end of the six-year period allowed by regulation 9(1), or

30

(b)   

if earlier, the end of the relevant 6-month period,

           

and regulation 9(8) has effect accordingly.

      (3)  

An annual claim which a life office is required to make under regulation 9(2)

must be made no later than—

(a)   

the end of the one-year period specified in regulation 9(2), or

35

(b)   

if earlier, the end of the relevant 6-month period,

           

and regulation 9(6) has effect accordingly.

      (4)  

In sub-paragraphs (2) and (3) “the relevant 6-month period” means the

period of 6 months after the end of the life office’s first financial year to end

after 5 April 2015.

40

      (5)  

The Board must decide all claims made under the 1978 Regulations no later

than 5 April 2017.

 
 

Finance (No. 4) Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 4 — Life assurance

660

 

      (6)  

Terms used in this paragraph have the same meaning as they have in the

1978 Regulations.

26    (1)  

In this paragraph—

(a)   

“the 1980 Regulations” means the Friendly Societies (Life Assurance

Premium Relief) (Change of Rate) Regulations 1980 (S.I. 1980/1947),

5

and

(b)   

terms have the same meaning as they have in the 1980 Regulations.

      (2)  

This paragraph applies in relation to a friendly society which has adopted

the prescribed scheme or an approved scheme in accordance with the

provisions of the 1977 Regulations.

10

      (3)  

The prescribed scheme or the approved scheme, and the 1977 Regulations

and the 1980 Regulations, have effect in relation to the friendly society on the

following basis.

      (4)  

That basis is—

(a)   

paragraph 23 above does not remove any person’s entitlement to

15

relief under section 266 of ICTA but does change the authorised

percentage to 0%,

(b)   

the effective date in relation to that change is 6 April 2015,

(c)   

as well as having effect in relation to gross contributions due and

payable on or after 6 April 2015, that change has effect in relation to

20

gross contributions due and payable before that date so far as they

are actually paid on or after 6 July 2015 (and, in particular,

regulations 3(1) and 4(1) of the 1980 Regulations are to be read

accordingly), and

(d)   

a resolution under regulation 3(1) of the 1980 Regulations may be

25

passed in relation to that change at any time before 6 April 2015.

      (5)  

For regulation 5 of the 1980 Regulations substitute—

“5    (1)  

This regulation applies if a gross contribution is amended under

regulation 4.

      (2)  

The friendly society may notify the Financial Services Authority of

30

a proposal to amend the sum assured or guaranteed by the

contract by an amount determined in accordance with rules which

have been certified by an actuary to be fair in relation to the gross

contribution payable.

      (3)  

The proposed amendment may be made at any time after the

35

expiry of the period of 3 months beginning with the day on which

the proposal is notified to the Financial Services Authority.”

      (6)  

For regulation 8 of the 1980 Regulations substitute—

“8    (1)  

This regulation applies if a friendly society adopted an approved

scheme under regulation 7 of the 1977 Regulations.

40

      (2)  

The friendly society may notify the Financial Services Authority of

a proposal to amend the approved scheme in consequence of any

prospective change in the authorised percentage.

      (3)  

The proposed amendment—

 
 

Finance (No. 4) Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 4 — Life assurance

661

 

(a)   

may be made at any time after the expiry of the period of 3

months beginning with the day on which the proposal is

notified to the Financial Services Authority, but

(b)   

must be made before 6 April 2015.”

27    (1)  

In this paragraph—

5

(a)   

“the 1980 Regulations” means the Industrial Assurance (Life

Assurance Premium Relief) (Change of Rate) Regulations 1980 (S.I.

1980/1948), and

(b)   

terms have the same meaning as they have in the 1980 Regulations.

      (2)  

This paragraph applies in relation to an industrial assurance company or

10

collecting society which has adopted the prescribed scheme or an approved

scheme in accordance with the provisions of the 1977 Regulations.

      (3)  

The prescribed scheme or the approved scheme, and the 1977 Regulations

and the 1980 Regulations, have effect in relation to the industrial assurance

company or collecting society on the following basis.

15

      (4)  

That basis is—

(a)   

paragraph 23 above does not remove any person’s entitlement to

relief under section 266 of ICTA but does change the authorised

percentage to 0%,

(b)   

the effective date in relation to that change is 6 April 2015,

20

(c)   

as well as having effect in relation to gross premiums due and

payable on or after 6 April 2015, that change has effect in relation to

gross premiums due and payable before that date so far as they are

actually paid on or after 6 July 2015 (and, in particular, regulations

3(1) and 4(1) of the 1980 Regulations are to be read accordingly), and

25

(d)   

a resolution under regulation 3(1) of the 1980 Regulations may be

passed in relation to that change at any time before 6 April 2015.

      (5)  

For regulation 5 of the 1980 Regulations substitute—

“5    (1)  

This regulation applies if a gross premium is amended under

regulation 4.

30

      (2)  

The industrial assurance company or collecting society may notify

the Financial Services Authority of a proposal to amend the sum

assured or guaranteed by the policy or contract by an amount

determined in accordance with rules which have been certified by

an actuary to be fair in relation to the gross premium payable.

35

      (3)  

The proposed amendment may be made at any time after the

expiry of the period of 3 months beginning with the day on which

the proposal is notified to the Financial Services Authority.”

      (6)  

For regulation 8 of the 1980 Regulations substitute—

“8    (1)  

This regulation applies if an industrial assurance company or

40

collecting society adopted an approved scheme under regulation

7 of the 1977 Regulations.

      (2)  

The industrial assurance company or collecting society may notify

the Financial Services Authority of a proposal to amend the

approved scheme in consequence of any prospective change in the

45

authorised percentage.

 
 

Finance (No. 4) Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 4 — Life assurance

662

 

      (3)  

The proposed amendment—

(a)   

may be made at any time after the expiry of the period of 3

months beginning with the day on which the proposal is

notified to the Financial Services Authority, but

(b)   

must be made before 6 April 2015.”

5

28    (1)  

The following repeals are made in consequence of the provision made by

paragraph 23 above.

 

Act

Provision repealed

 
 

ICTA

Sections 266, 266A and 274.

 
  

Section 824(2D)(b) and (3)(ad).

 

10

  

Schedule 14.

 
  

In paragraph 8 of Schedule 15, the words from

 
  

“but” (in the second place it occurs) to the end.

 
 

FA 1988

Section 29.

 
  

Paragraph 9 of Schedule 3.

 

15

 

FA 1996

Section 167(5) and (6).

 
  

Paragraph 11 of Schedule 18.

 
  

Paragraph 20 of Schedule 20.

 
 

ITEPA 2003

Paragraphs 36 and 119 of Schedule 6.

 
 

FA 2004

Paragraphs 9 and 10 of Schedule 35.

 

20

 

ITA 2007

Section 811(6)(e) and the “and” before it.

 
  

Paragraph 232 of Schedule 1.

 
 

FA 2009

Paragraphs 3 to 5 of Schedule 1.

 
  

Paragraph 9D of Schedule 54.

 

      (2)  

In section 989 of ITA 2007 (definitions for the purposes of the Income Tax

25

Acts) for the definition of “qualifying policy” substitute—

““qualifying policy” is to be read in accordance with Schedule

15 to ICTA,”.

      (3)  

The amendments made by sub-paragraphs (1) and (2) come into force on the

day appointed by the Treasury by order made by statutory instrument.

30

      (4)  

An order under sub-paragraph (3) may make transitional provision and

savings.

      (5)  

A statutory instrument containing an order under sub-paragraph (3) is

subject to annulment in pursuance of a resolution of the House of Commons.

29    (1)  

This paragraph applies if—

35

(a)   

a policy which is a qualifying policy (within the meaning of the

Income Tax Acts) is varied or another policy is substituted for such a

policy, and

(b)   

the variation or substitution is made for the sole purpose of dealing

with the consequences of the restrictions placed on relief under

40

section 266 of ICTA by virtue of paragraph 23 above.

      (2)  

In the case of a variation, the variation does not itself affect the policy’s

status as a qualifying policy.

      (3)  

In the case of a substitution, the new policy is to be a qualifying policy.

 
 

Finance (No. 4) Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 4 — Life assurance

663

 

30    (1)  

In this paragraph “relevant variation” means a variation made for the sole

purpose of dealing with the consequences of the restrictions placed on relief

under section 266 of ICTA by virtue of paragraph 23 above.

      (2)  

A relevant variation of a policy is not to be treated as a variation for the

purposes of—

5

(a)   

paragraph 8(1) or (4) of Schedule 14 to ICTA, or

(b)   

section 485(6) of ITTOIA 2005 (disregard of certain events in relation

to qualifying policies).

      (3)  

A relevant variation of a policy or contract does not itself cause the

breaching of a limit set out in—

10

(a)   

section 460(2)(c)(iii) or 464 of ICTA, or

(b)   

section 155(3) (so far as relating to contracts made before 14 March

1984) or 160 of this Act.

Removal of claw-backs on relief given under section 266 of ICTA

31    (1)  

In ICTA omit sections 268 to 272 (which provide for the “claw-back” of

15

income tax relief given under section 266 of ICTA).

      (2)  

In consequence of the provision made by sub-paragraph (1), omit—

(a)   

section 824(2D)(a) of ICTA,

(b)   

paragraph 11 of Schedule 35 to FA 2004,

(c)   

paragraph 123 of Schedule 1 to ITTOIA 2005, and

20

(d)   

paragraph 21 of Schedule 39 to FA 2008.

      (3)  

The amendments made by this paragraph have effect in relation to events

occurring in relation to policies on or after 6 April 2015.

Abolition of income tax relief relating to certain payments made for benefit of family members

etc

25

32    (1)  

In Chapter 6 of Part 8 of ITA 2007 omit section 459 (which provides income

tax relief in relation to certain payments made by individuals for the benefit

of family members).

      (2)  

In ITA 2007—

(a)   

in sections 26(1)(a) and 27(5) omit “section 459 of this Act or section

30

273 of ICTA (payments for benefit of family members),”,

(b)   

in section 423(5)—

(i)   

after paragraph (b) insert “and”, and

(ii)   

omit paragraph (d) (and the “and” before it),

(c)   

in section 460—

35

(i)   

omit subsection (1)(b) (and the “or” before it), and

(ii)   

in subsection (4) for “, 458 or 459” substitute “or 458”,

(d)   

in section 809G(2)(c) for “, 458 or 459” substitute “or 458”, and

(e)   

omit section 811(6)(d) (but not the “and” after it).

      (3)  

Section 609 of ITEPA 2003 (annuities for the benefit of dependants) is

40

amended as follows.

      (4)  

In subsection (1), for the words from the second “which” to the end

 
 

 
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