Session 2010 - 12
Internet Publications
Other Bills before Parliament

Finance (No. 4) Bill


 

Finance (No. 4) Bill

 
 

The Bill is divided into three volumes. Volume I contains the Clauses to the Bill.

Volume II contains Schedules 1 to 19 to the Bill. Volume III contains Schedules 20

to 38 to the Bill.

EUROPEAN CONVENTION ON HUMAN RIGHTS

Mr Chancellor of the Exchequer has made the following statement under section

19(1)(a) of the Human Rights Act 1998:

In my view the provisions of the Finance (No. 4) Bill are compatible with the

Convention rights.

 

Bill 325                                                                                                

55/1

 

 


 

Finance (No. 4) Bill

 

 
 

The Bill is divided into three volumes. Volume I contains the Clauses to the Bill.

Volume II contains Schedules 1 to 19 to the Bill. Volume III contains Schedules 20

to 38 to the Bill.

Contents

Part 1

Income tax, corporation tax and capital gains tax

Chapter 1

Income tax and corporation tax charges and rate bands

Income tax

1   

Charge for 2012-13 and rates for 2012-13 and subsequent tax years

2   

Basic rate limit for 2012-13

3   

Personal allowance for 2012-13 for those aged under 65

4   

Personal allowances from 2013

Corporation tax

5   

Main rate of corporation tax for financial year 2012

6   

Charge and main rate for financial year 2013

7   

Small profits rate and fractions for financial year 2012

Chapter 2

Income tax: general

Child benefit

8   

High income child benefit charge

Anti-avoidance

9   

Post-cessation trade or property relief: tax-generated payments or events

10   

Property loss relief against general income: tax-generated agricultural

expenses

11   

Gains from contracts for life insurance etc

12   

Settlements: income originating from settlors other than individuals

 

Bill 325                                                                                                

55/1

 
 

Finance (No. 4) Bill

ii

 

Reliefs

13   

Champions League final 2013

14   

Cars: security features not to be regarded as accessories

15   

Termination payments to MPs ceasing to hold office

16   

Employment income exemptions: armed forces

Other provisions

17   

Taxable benefits: “the appropriate percentage” for cars for 2014-15

18   

Qualifying time deposits

Chapter 3

Corporation tax: general

Support for business

19   

Profits arising from the exploitation of patents etc

20   

Relief for expenditure on R&D

21   

Real estate investment trusts

Anti-avoidance

22   

Treatment of the receipt of manufactured overseas dividends

23   

Loan relationships: debts becoming held by connected company

24   

Companies carrying on businesses of leasing plant or machinery

Insurance

25   

Corporate members of Lloyd’s: stop-loss insurance and quota share contracts

26   

Abolition of relief for equalisation reserves: general insurers

27   

Election to accelerate receipts under s.26(4)

28   

Deemed receipts under s.26(4): double taxation relief

29   

Transfer of whole or part of the business

30   

Abolition of relief for equalisation reserves: Lloyd’s corporate members etc

Miscellaneous

31   

Tax treatment of financing costs and income

32   

Group relief: meaning of “normal commercial loan”

33   

Company distributions

Chapter 4

Capital gains

34   

Annual exempt amount

35   

Foreign currency bank accounts

36   

Collective investment schemes: chargeable gains

37   

Roll-over relief

 
 

Finance (No. 4) Bill

iii

 

Chapter 5

Miscellaneous

Enterprise incentives

38   

Seed enterprise investment scheme

39   

Enterprise investment scheme

40   

Venture capital trusts

Capital allowances

41   

Plant and machinery: restricting exception for manufacturers and suppliers

42   

Plant and machinery allowances: anti-avoidance

43   

Plant and machinery allowances: fixtures

44   

Expenditure on plant and machinery for use in designated assisted areas

45   

Allowances for energy-saving plant and machinery

46   

Plant and machinery: long funding leases

Foreign income and gains

47   

Foreign income and gains

Pensions

48   

Employer asset-backed pension contributions etc

Charitable giving etc

49   

Gifts to the nation

50   

Gift aid: giving through self-assessment return

51   

Relief for gift aid and other income of charities etc

52   

Meaning of “community amateur sports club”

Other provisions

53   

Site restoration payments

54   

Changes of accounting policy

Part 2

Insurance companies carrying on long-term business

Chapter 1

Introductory

Outline of provisions of Part

55   

Overview

Meaning of “life assurance business”

56   

Meaning of “life assurance business”

 
 

Finance (No. 4) Bill

iv

 

Meaning of “basic life assurance and general annuity business”

57   

Meaning of “basic life assurance and general annuity business”

58   

Section 57: meaning of “pension business”

59   

Section 57: meaning of “child trust fund business”

60   

Section 57: meaning of “individual savings account business”

61   

Section 57: meaning of “overseas life assurance business”

62   

Section 57: meaning of “protection business”

Meaning of “long-term business” and “PHI business”

63   

Meaning of “long-term business” and “PHI business”

Meaning of contract of “insurance” or “long-term insurance” and “insurance company”

64   

Meaning of “contract of insurance” and “contract of long-term insurance”

65   

Meaning of “insurance company”

Chapter 2

Charge to tax on I - E basis etc

Separate businesses etc

66   

Separate businesses for BLAGAB and other long-term business

67   

Exception where BLAGAB small part of long-term business

BLAGAB taxed on I - E basis

68   

Charge to tax on I - E profit

69   

Exclusion of charge under s.35 of CTA 2009 etc

70   

Rules for calculating I - E profit or excess BLAGAB expenses

Non-BLAGAB long-term business

71   

Charge to tax on profits of non-BLAGAB long-term business

PHI only business

72   

Companies carrying on only PHI business

Chapter 3

The I - E basis

Introduction

73   

The I - E basis

Definitions of expressions comprising “I”

74   

Meaning of “income”

75   

Meaning of “BLAGAB chargeable gains” etc

 
 

Finance (No. 4) Bill

v

 

Definitions of expressions comprising “E”

76   

Meaning of “adjusted BLAGAB management expenses”

77   

Section 76: meaning of “ordinary BLAGAB management expenses” etc

78   

Section 76: meaning of other expressions

79   

Spreading of acquisition expenses

80   

Section 79: meaning of “acquisition expenses”

81   

Amounts treated as ordinary BLAGAB management expenses

82   

Restrictions in relation to ordinary BLAGAB management expenses

83   

General annuity business

84   

General annuity business: meaning of “steep-reduction annuity” etc

85   

General annuity business: payments made in pre-1992 accounting periods

Special rules applying to I - E basis

86   

Separate property businesses for BLAGAB etc

87   

Losses from property businesses where land held for long-term business

88   

Loan relationships, derivative contracts and intangible fixed assets

89   

Miscellaneous income and losses

90   

Investment return where risk in respect of policy or contract re-insured

91   

Regulations under section 90(4): supplementary provision

Deemed I - E receipts

92   

Certain BLAGAB trading receipts to count as deemed I - E receipts

Minimum profits charge

93   

Minimum profits test

94   

Adjustment of I - E profit or excess BLAGAB expenses

Non-BLAGAB allowable losses

95   

Use of non-BLAGAB allowable losses to reduce I - E profit

Overseas life insurance companies

96   

Expenses referable to exempt FOTRA profits

Chapter 4

Apportionment rules for I - E charge

Introduction

97   

Application of Chapter

Allocation of income, losses and expenses

98   

Commercial allocation

Allocation of chargeable gains and allowable losses on disposals of assets

99   

Application of sections 100 and 101

100   

Assets wholly or partly matched to BLAGAB liabilities

 
 

 
contents continue
 

© Parliamentary copyright
Revised 28 March 2012