Finance (No. 4) Bill

Session 2010 - 12
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Finance (No. 4) Bill

Finance (No. 4) Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 5 — Capital allowances
664

substitute “—
(a)
which, in the tax year 2012-13 or an earlier tax year, satisfied
the conditions for relief under section 273 of ICTA or section
459 of ITA 2007 (obligatory contributions to secure an
annuity for the benefit of dependants), or
5
(b)
which fall within subsection (3)”.
      (5)
After subsection (2) insert—
“(3)
A sum falls within this subsection if—
(a)
in the tax year 2013-14 or a later tax year, the sum is paid by
an individual, or is deducted from an individual’s earnings,
10
under an Act or the individual’s terms and conditions of
employment,
(b)
the sum is for the purpose of—
(i)
securing a deferred annuity after the individual’s
death for the individual’s surviving spouse or civil
15
partner, or
(ii)
making provision after the individual’s death for the
individual’s children, and
(c)
the individual—
(i)
is UK resident for the tax year in which the sum is
20
paid or deducted, or
(ii)
at any time in that tax year, falls within any of
paragraphs (a) to (f) of section 460(3) of ITA 2007
(matters relating to residence).
(4)
Subsection (3)(a) does not cover contributions paid by a person
25
under—
(a)
Part 1 of the Social Security Contributions and Benefits Act
1992, or
(b)
Part 1 of the Social Security Contributions and Benefits
(Northern Ireland) Act 1992.
30
(5)
In subsection (3)(a) “earnings” has the meaning given by section 62.”
      (6)
The amendments made by this paragraph have effect for the tax year 2013-
14 and subsequent tax years.
Part 5
Capital allowances
35
Safety at sports grounds
33
The following provisions of Part 2 of CAA 2001 (plant and machinery
allowances) are repealed—
(a)
section 30 (safety at designated sports grounds),
(b)
section 31 (safety at regulated stands at sports grounds), and
40
(c)
section 32 (safety at other sports grounds).
34    (1)
In consequence of the provision made by paragraph 33, CAA 2001 is
amended as follows.
      (2)
In section 23(2) (expenditure unaffected by sections 21 and 22), omit—

Finance (No. 4) Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 5 — Capital allowances
665

(a)
the entry relating to section 30,
(b)
the entry relating to section 31, and
(c)
the entry relating to section 32.
      (3)
In section 27 (application of Part 2 to thermal insulation, safety measures,
etc)—
5
(a)
in subsection (1)(a), for “any of sections 28 to 33” substitute “section
28 or 33”, and
(b)
in the heading, for “, safety measures, etc” substitute “and personal
security”,

and, in the italic heading before that section, for “, safety measures, etc”
10
substitute “and personal security”.
35
The amendments made by paragraphs 33 and 34 have effect—
(a)
for corporation tax purposes, in relation to expenditure incurred on
or after 1 April 2013, and
(b)
for income tax purposes, in relation to expenditure incurred on or
15
after 6 April 2013.
Flat conversion allowances
36
Part 4A of CAA 2001 (flat conversion allowances) does not apply—
(a)
for corporation tax purposes, in relation to expenditure incurred on
or after 1 April 2013, and
20
(b)
for income tax purposes, in relation to expenditure incurred on or
after 6 April 2013.
37
Part 4A of CAA 2001 is repealed.
38    (1)
In consequence of the provision made by paragraph 37, CAA 2001 is
amended as follows.
25
      (2)
In section 1(2) (allowances for which Act provides), omit paragraph (ca).
      (3)
In section 2(3) (giving effect to capital allowances), omit the entry relating to
section 393T.
      (4)
In section 567(1) (sales treated as being for alternative amount:
introductory), omit “4A,”.
30
      (5)
In section 570(1) (elections under section 569: supplementary), omit “or 4A”.
      (6)
In section 570A(1) (avoidance affecting proceeds of balancing event), omit
“4A,”.
      (7)
In section 573(1) (transfers treated as sales), omit “, 4A”.
      (8)
In Part 2 of Schedule 1 (list of defined expressions), omit the entries for the
35
following defined expressions—
“balancing adjustment (in Part 4A)”,
“balancing event (in Part 4A)”,
“dwelling (in Part 4A)”,
“flat (in Part 4A)”,
40
“lease and related expressions (in Part 4A)”,
“proceeds from a balancing event (in Part 4A)”,
“qualifying building (in Part 4A)”,

Finance (No. 4) Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 5 — Capital allowances
666

“qualifying flat (in Part 4A)”,
“relevant interest (in Part 4A)”, and
“residue of qualifying expenditure (in Part 4A)”.
      (9)
In Part 2 of that Schedule, in the entry for “sale, transfers under Parts 3A, 4A
and 10 treated as”, omit “, 4A”.
5
39
In consequence of the provision made by paragraphs 37 and 38, the
following provisions are repealed—
(a)
in FA 2001, section 67 and Schedule 19,
(b)
in ITTOIA 2005, paragraphs 559 and 560 of Schedule 1, and
(c)
in CTA 2009, paragraphs 505 to 507 of Schedule 1.
10
40    (1)
The amendments made by paragraphs 37 to 39 have effect—
(a)
for corporation tax purposes, in relation to chargeable periods
beginning on or after 1 April 2013, and
(b)
for income tax purposes, in relation to chargeable periods beginning
on or after 6 April 2013.
15
      (2)
But see also—
(a)
paragraph 41 (which deals with the case of a company’s chargeable
period for corporation tax purposes straddling 1 April 2013), and
(b)
paragraph 42 (which saves the continued operation of certain
provisions).
20
41    (1)
This paragraph applies if, for corporation tax purposes, the chargeable
period of a company begins before, and ends on or after, 1 April 2013.
      (2)
The company is entitled only to the relevant proportion of any writing-
down allowance for that chargeable period to which it would, but for this
paragraph, have been entitled under section 393J of CAA 2001.
25
      (3)
The relevant proportion is—

where—
A is the number of days in the chargeable period falling before 1 April
2013, and
B is the number of days in the chargeable period.
30
42    (1)
Nothing in paragraph 37 or 40(1) is to affect the operation of—
(a)
section 393I of CAA 2001 (withdrawal of allowance if flat not
qualifying flat or if relevant interest sold before flat first let), or
(b)
sections 393M to 393P of CAA 2001 (balancing adjustments),

for chargeable periods beginning on or after the relevant date in relation to
35
expenditure incurred before that date.
      (2)
The relevant date is—
(a)
for corporation tax purposes, 1 April 2013, and
(b)
for income tax purposes, 6 April 2013.

Finance (No. 4) Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 6 — Mineral leases or agreements
667

Part 6
Mineral leases or agreements
Income tax
43    (1)
The following provisions of ITTOIA 2005 (which provide for income tax
relief in relation to mineral royalties) are repealed—
5
(a)
section 157 (mineral royalties included as receipts of a trade),
(b)
section 319 (mineral royalties included as receipts of a UK property
business), and
(c)
sections 340 to 343 (mineral royalties receivable in connection with
mines, quarries and other concerns).
10
      (2)
In consequence of the provision made by sub-paragraph (1)—
(a)
in ITTOIA 2005—
(i)
in section 337, omit the entry relating to section 340 (and the
“and” before that entry), and
(ii)
in section 339, omit subsection (3), and
15
(b)
in CRCA 2005, in Schedule 4, omit paragraph 132(3)(a).
      (3)
The amendments made by this paragraph have effect in relation to mineral
royalties which a person is entitled to receive on or after 6 April 2013.
Corporation tax on income
44    (1)
The following provisions of CTA 2009 (which provide for corporation tax
20
relief on income in relation to mineral royalties) are repealed—
(a)
section 135 (mineral royalties included as receipts of a trade),
(b)
section 258 (mineral royalties included as receipts of a UK property
business), and
(c)
sections 273 to 276 (mineral royalties receivable in connection with
25
mines, quarries and other concerns).
      (2)
In consequence of the provision made by sub-paragraph (1)(c), in section 272
of CTA 2009, omit subsection (3).
      (3)
The amendments made by this paragraph have effect in relation to mineral
royalties which a company is entitled to receive on or after 1 April 2013.
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Chargeable gains
45    (1)
Section 201 of TCGA 1992 (mineral leases: royalties) is repealed.
      (2)
In consequence of the provision made by sub-paragraph (1), in section 203
of TCGA 1992—
(a)
in subsection (1), for “sections 201 and 202” substitute “section 202”,
35
and
(b)
in the heading, for “sections 201 and 202” substitute “section 202”.
      (3)
The amendments made by this paragraph have effect—
(a)
for the purposes of capital gains tax, in relation to mineral royalties
which a person is entitled to receive on or after 6 April 2013, and
40

Finance (No. 4) Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 7 — Miscellaneous
668

(b)
for the purposes of corporation tax in respect of chargeable gains, in
relation to mineral royalties which a company is entitled to receive
on or after 1 April 2013.
46    (1)
Section 202 of TCGA 1992 (mineral leases: capital losses) is amended as
follows.
5
      (2)
In subsection (1)—
(a)
after “currency of a mineral lease or agreement” insert “entered into
before the relevant date”, and
(b)
after “in relation to a mineral lease or agreement” insert “entered into
before that date”.
10
      (3)
After that subsection insert—
“(1A)
For the purposes of this section “the relevant date” means—
(a)
for the purposes of capital gains tax, 6 April 2013; and
(b)
for the purposes of corporation tax in respect of chargeable
gains, 1 April 2013.”
15
      (4)
In subsection (3), after “termination of a mineral lease or agreement” insert
“entered into before the relevant date”.
47
In section 203 of TCGA 1992 (provisions supplementary to sections 201 and
202), in subsection (1), for “as they apply for the interpretation of Chapter 7
of Part 4 of CTA 2009” substitute “(despite their repeal by paragraph 44(1)(c)
20
of Schedule 38 to the Finance Act 2012)”.
Part 7
Miscellaneous
Deeply discounted securities: incidental expenses
48    (1)
In section 455 of ITTOIA 2005 (listed securities held since 26 March 2003:
25
calculating the profit or loss on disposals)—
(a)
in subsection (1), after “incurred” insert “before 6 April 2015”, and
(b)
in subsection (3)(b), after “incurred” insert “before 6 April 2015”.
      (2)
The amendments made by this paragraph have effect for the tax year 2015-
16 and subsequent tax years.
30
Grants for giving up agricultural land
49    (1)
Section 249 of TCGA 1992 (grants for giving up agricultural land) is
repealed.
      (2)
Accordingly, the italic heading before that section becomes “Woodlands”.
      (3)
The amendments made by this paragraph have effect in relation to disposals
35
made on or after 6 April 2013.
Reduction for meal vouchers
50    (1)
Section 89 of ITEPA 2003 (reduction for meal vouchers) is repealed.
      (2)
Accordingly, in that Act—

Finance (No. 4) Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 7 — Miscellaneous
669

(a)
in section 87 (benefit of non-cash voucher treated as earnings), omit
subsection (6), and
(b)
in Schedule 7 (transitionals and savings), omit paragraph 18.
      (3)
The amendments made by this paragraph have effect for the tax year 2013-
14 and subsequent tax years.
5
Black beer
51    (1)
ALDA 1979 is amended as follows.
      (2)
In section 1 (alcoholic liquors dutiable under ALDA 1979)—
(a)
in subsection (3), omit from “, but” to the end of the subsection, and
(b)
in subsection (5), omit “black beer,”.
10
      (3)
In section 4(1) (interpretation), omit the definition of “black beer”.
      (4)
In section 55(5)(b) (made-wine: exception to requirement for excise licence),
omit “or black beer”.
      (5)
The amendments made by sub-paragraphs (2) and (3) come into force on 1
April 2013.
15
      (6)
The amendment made by sub-paragraph (4) has effect in relation to the use
on or after 1 April 2013 of ingredients that include black beer.
Angostura bitters
52    (1)
In ALDA 1979, omit—
(a)
section 1(7) (angostura bitters deemed not to be spirits), and
20
(b)
section 6 (power to exempt angostura bitters from duty).
      (2)
In Schedule 5 to FA 1994 (decisions subject to review and appeal), omit
paragraph 3(1)(a).
      (3)
The amendments made by this paragraph come into force on 1 April 2013.
Tax reserve certificates
25
53    (1)
The following provisions are repealed—
(a)
section 750 of ITTOIA 2005 (interest from tax reserve certificates);
(b)
section 1283 of CTA 2009 (interest from tax reserve certificates).
      (2)
In consequence of the provision made by sub-paragraph (1), in section 369
of ITTOIA 2005 (charge to tax on interest), in subsection (3)(e), omit “tax
30
reserve certificates,”.
      (3)
The repeals made by sub-paragraphs (1)(a) and (2) have effect in relation to
tax reserve certificates redeemed on or after 6 April 2013.
      (4)
The repeal made by sub-paragraph (1)(b) has effect in relation to tax reserve
certificates redeemed on or after 1 April 2013.
35
Tax assessors
54    (1)
Section 62(2) and (3) of FA 1946 (compensation for former land tax assessors
and income tax assessors, etc) is repealed.

Finance (No. 4) Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 7 — Miscellaneous
670

      (2)
In consequence of the provision made by sub-paragraph (1), in Schedule 2 to
the Pensions (Increase) Act 1971 (official pensions), in paragraph 34, omit “or
section 62 of the Finance Act 1946”.
      (3)
The amendments made by this paragraph come into force on 6 April 2013.