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Finance (No. 4) Bill (HC Bill 325)

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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.

Contents

    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.

  1. Part 1

    Income tax, corporation tax and capital gains tax

    1. Chapter 1

      Income tax and corporation tax charges and rate bands

      1. Income tax

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

        2. 2. Basic rate limit for 2012-13

        3. 3. Personal allowance for 2012-13 for those aged under 65

        4. 4. Personal allowances from 2013

      2. Corporation tax

        1. 5. Main rate of corporation tax for financial year 2012

        2. 6. Charge and main rate for financial year 2013

        3. 7. Small profits rate and fractions for financial year 2012

    2. Chapter 2

      Income tax: general

      1. Child benefit

        1. 8. High income child benefit charge

      2. Anti-avoidance

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

        2. 10. Property loss relief against general income: tax-generated agricultural expenses

        3. 11. Gains from contracts for life insurance etc

        4. 12. Settlements: income originating from settlors other than individuals

      3. Reliefs

        1. 13. Champions League final 2013

        2. 14. Cars: security features not to be regarded as accessories

        3. 15. Termination payments to MPs ceasing to hold office

        4. 16. Employment income exemptions: armed forces

      4. Other provisions

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

        2. 18. Qualifying time deposits

    3. Chapter 3

      Corporation tax: general

      1. Support for business

        1. 19. Profits arising from the exploitation of patents etc

        2. 20. Relief for expenditure on R&D ;

        3. 21. Real estate investment trusts

      2. Anti-avoidance

        1. 22. Treatment of the receipt of manufactured overseas dividends

        2. 23. Loan relationships: debts becoming held by connected company

        3. 24. Companies carrying on businesses of leasing plant or machinery

      3. Insurance

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

        2. 26. Abolition of relief for equalisation reserves: general insurers

        3. 27. Election to accelerate receipts under s.26(4)

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

        5. 29. Transfer of whole or part of the business

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

      4. Miscellaneous

        1. 31. Tax treatment of financing costs and income

        2. 32. Group relief: meaning of “normal commercial loan”

        3. 33. Company distributions

    4. Chapter 4

      Capital gains

      1. 34. Annual exempt amount

      2. 35. Foreign currency bank accounts

      3. 36. Collective investment schemes: chargeable gains

      4. 37. Roll-over relief

    5. Chapter 5

      Miscellaneous

      1. Enterprise incentives

        1. 38. Seed enterprise investment scheme

        2. 39. Enterprise investment scheme

        3. 40. Venture capital trusts

      2. Capital allowances

        1. 41. Plant and machinery: restricting exception for manufacturers and suppliers

        2. 42. Plant and machinery allowances: anti-avoidance

        3. 43. Plant and machinery allowances: fixtures

        4. 44. Expenditure on plant and machinery for use in designated assisted areas

        5. 45. Allowances for energy-saving plant and machinery

        6. 46. Plant and machinery: long funding leases

      3. Foreign income and gains

        1. 47. Foreign income and gains

      4. Pensions

        1. 48. Employer asset-backed pension contributions etc

      5. Charitable giving etc

        1. 49. Gifts to the nation

        2. 50. Gift aid: giving through self-assessment return

        3. 51. Relief for gift aid and other income of charities etc

        4. 52. Meaning of “community amateur sports club”

      6. Other provisions

        1. 53. Site restoration payments

        2. 54. Changes of accounting policy

  2. Part 2

    Insurance companies carrying on long-term business

    1. Chapter 1

      Introductory

      1. Outline of provisions of Part

        1. 55. Overview

      2. Meaning of “life assurance business”

        1. 56. Meaning of “life assurance business”

      3. Meaning of “basic life assurance and general annuity business”

        1. 57. Meaning of “basic life assurance and general annuity business”

        2. 58. Section 57: meaning of “pension business”

        3. 59. Section 57: meaning of “child trust fund business”

        4. 60. Section 57: meaning of “individual savings account business”

        5. 61. Section 57: meaning of “overseas life assurance business”

        6. 62. Section 57: meaning of “protection business”

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

        1. 63. Meaning of “long-term business” and “PHI business”

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

        1. 64. Meaning of “contract of insurance” and “contract of long-term insurance”

        2. 65. Meaning of “insurance company”

    2. Chapter 2

      Charge to tax on I - E basis etc

      1. Separate businesses etc

        1. 66. Separate businesses for BLAGAB and other long-term business

        2. 67. Exception where BLAGAB small part of long-term business

      2. BLAGAB taxed on I - E basis

        1. 68. Charge to tax on I - E profit

        2. 69. Exclusion of charge under s.35 of CTA 2009 etc

        3. 70. Rules for calculating I - E profit or excess BLAGAB expenses

      3. Non-BLAGAB long-term business

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

      4. PHI only business

        1. 72. Companies carrying on only PHI business

    3. Chapter 3

      The I - E basis

      1. Introduction

        1. 73. The I - E basis

      2. Definitions of expressions comprising “I”

        1. 74. Meaning of “income”

        2. 75. Meaning of “BLAGAB chargeable gains” etc

      3. Definitions of expressions comprising “E”

        1. 76. Meaning of “adjusted BLAGAB management expenses”

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

        3. 78. Section 76: meaning of other expressions

        4. 79. Spreading of acquisition expenses

        5. 80. Section 79: meaning of “acquisition expenses”

        6. 81. Amounts treated as ordinary BLAGAB management expenses

        7. 82. Restrictions in relation to ordinary BLAGAB management expenses

        8. 83. General annuity business

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

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

      4. Special rules applying to I - E basis

        1. 86. Separate property businesses for BLAGAB etc

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

        3. 88. Loan relationships, derivative contracts and intangible fixed assets

        4. 89. Miscellaneous income and losses

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

        6. 91. Regulations under section 90(4): supplementary provision

      5. Deemed I - E receipts

        1. 92. Certain BLAGAB trading receipts to count as deemed I - E receipts

      6. Minimum profits charge

        1. 93. Minimum profits test

        2. 94. Adjustment of I - E profit or excess BLAGAB expenses

      7. Non-BLAGAB allowable losses

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

      8. Overseas life insurance companies

        1. 96. Expenses referable to exempt FOTRA profits

    4. Chapter 4

      Apportionment rules for I - E charge

      1. Introduction

        1. 97. Application of Chapter

      2. Allocation of income, losses and expenses

        1. 98. Commercial allocation

      3. Allocation of chargeable gains and allowable losses on disposals of assets

        1. 99. Application of sections 100 and 101

        2. 100. Assets wholly or partly matched to BLAGAB liabilities

        3. 101. Commercial allocation for disposals not wholly dealt with by section 100

    5. Chapter 5

      I - E profit: policyholders’ rate of tax

      1. Tax rate on policyholders’ share of I - E profit

        1. 102. Policyholders’ rate of tax on policyholders’ share of I - E profit

        2. 103. Rules for determining policyholders’ share of I - E profit

        3. 104. Meaning of “the adjusted amount”

        4. 105. Meaning of “BLAGAB non-taxable distributions” and “shareholders’ share”

      2. Policyholder tax and calculation of BLAGAB trade profit or loss

        1. 106. Deduction for current policyholder tax

        2. 107. Expenses or receipts for deferred policyholder tax

        3. 108. Meaning of “the closing deferred policyholder tax balance” etc

    6. Chapter 6

      Trade calculation rules applying to long-term business

      1. 109. Application of Chapter

      2. 110. Allocations to policyholders

      3. 111. Dividends and other distributions

      4. 112. Index-linked gilt-edged securities

      5. 113. Receipts or expenses relating to long-term business fixed capital

    7. Chapter 7

      Trading apportionment rules

      1. 114. Application of Chapter

      2. 115. Commercial allocation of accounting profit or loss and tax adjustments

    8. Chapter 8

      Assets held for purposes of long-term business

      1. Transfers of assets from different categories

        1. 116. UK life insurance companies

        2. 117. Overseas life insurance companies: rule corresponding to s.116

        3. 118. Transfers of business and transfers within a group

      2. Share pooling rules

        1. 119. UK life insurance companies

        2. 120. Overseas life insurance companies: rule corresponding to s.119

        3. 121. Sections 119 and 120: supplementary

      3. Long-term business fixed capital

        1. 122. Assets forming part of long-term business fixed capital

    9. Chapter 9

      Relief for BLAGAB trade losses etc

      1. The reliefs

        1. 123. Relief for BLAGAB trade losses against total profits

        2. 124. Carry forward of BLAGAB trade losses against subsequent profits

        3. 125. Group relief

      2. Restrictions

        1. 126. Restrictions in respect of non-trading deficit

        2. 127. No relief against policyholders’ share of I - E profit

    10. Chapter 10

      Transfers of long-term business

      1. Transfers of BLAGAB

        1. 128. Relief for transferee in respect of transferor’s BLAGAB expenses

        2. 129. Intra-group transfers and demutualisation

        3. 130. Transfers between non-group companies: present value of in-force business

      2. Transfers of non-BLAGAB long-term business

        1. 131. Application of ss. 129 and 130 to transfers of non-BLAGAB long-term business

      3. Transfers of long-term business: anti-avoidance

        1. 132. Anti-avoidance

        2. 133. Clearance procedure

        3. 134. Section 133: supplementary

      4. Interpretation

        1. 135. Meaning of “group” of companies

    11. Chapter 11

      Definitions

      1. 136. Meaning of “BLAGAB trade profit” and “BLAGAB trade loss”

      2. 137. Meaning of “the long-term business fixed capital”

      3. 138. Meaning of assets that are “matched to” liabilities

      4. 139. Minor definitions

      5. 140. Abbreviations

      6. 141. Index of defined terms, etc

    12. Chapter 12

      Supplementary

      1. Powers conferred on Treasury or HMRC Commissioners

        1. 142. Power to amend Part 2 etc

        2. 143. Power to amend definition of “insurance business transfer scheme” etc

        3. 144. Power to modify provisions applying to overseas life insurance companies

        4. 145. Orders and regulations

      2. Minor and consequential amendments and transitional provision

        1. 146. Minor and consequential amendments

        2. 147. Transitional provision

      3. Commencement etc

        1. 148. Commencement

        2. 149. Accounting periods straddling 1 January 2013

  3. Part 3

    Friendly societies carrying on long-term business

    1. Outline of provisions of Part

      1. 150. Overview

    2. Long-term business rules to apply to friendly societies

      1. 151. Friendly societies subject to same basic rules as mutual insurers

      2. 152. Friendly societies subject to transfer of business rules

    3. Exempt BLAGAB or eligible PHI business

      1. 153. Exemption for certain BLAGAB or eligible PHI business

      2. 154. Meaning of “BLAGAB or eligible PHI business”

      3. 155. Meaning of “exempt” BLAGAB or eligible PHI business

      4. 156. Societies with no provision for assuring gross sums exceeding £2,000 etc

      5. 157. Transfers to friendly societies

      6. 158. Transfers from friendly societies to insurance companies etc

      7. 159. Exception in case of breach of maximum benefits payable to members

    4. Exempt BLAGAB or eligible PHI business: benefits payable by friendly societies etc

      1. 160. Maximum benefits payable to members

      2. 161. Section 160: supplementary

      3. 162. Section 160: statutory declarations

    5. Exempt BLAGAB or eligible PHI business: directions to old societies

      1. 163. Directions given to old societies

    6. Exemption for other business

      1. 164. Societies registered before 1 June 1973, etc

      2. 165. Incorporated friendly societies

      3. 166. Transfers from friendly societies to insurance companies etc

      4. 167. Transfers between friendly societies

      5. 168. Withdrawal of qualifying status

      6. 169. Payments by non-qualifying societies treated as qualifying distributions

    7. Miscellaneous

      1. 170. Transfer schemes under s.6(5) of FSA 1992

      2. 171. Exemption for unregistered friendly societies

    8. Interpretation

      1. 172. Minor definitions

      2. 173. Abbreviations

      3. 174. Index of defined terms

    9. Regulations

      1. 175. Regulations

    10. Consequential amendments and transitional provision

      1. 176. Consequential amendments

      2. 177. Transitional provision

    11. Commencement etc

      1. 178. Commencement

      2. 179. Accounting periods straddling 1 January 2013

  4. Part 4

    Controlled foreign companies and foreign permanent establishments

    1. 180. Controlled foreign companies and foreign permanent establishments

  5. Part 5

    Oil

    1. 181. Transfers within a group by companies carrying on ring fence trade

    2. 182. Supplementary charge

    3. 183. Relief in respect of decommissioning expenditure

    4. 184. Reduction of supplementary charge for certain oil fields

  6. Part 6

    Excise duties

    1. Tobacco products duty

      1. 185. Rates of tobacco products duty

    2. Alcoholic liquor duties

      1. 186. Rates of alcoholic liquor duties

      2. 187. Repeal of drawback on British compounds and spirits of wine

    3. Hydrocarbon oil etc duties

      1. 188. Rebated fuel: private pleasure craft

    4. Air passenger duty

      1. 189. Air passenger duty

    5. Gambling duties

      1. 190. Machine games duty

      2. 191. Amusement machine licence duty

      3. 192. Rates of gaming duty

      4. 193. Remote gambling: double taxation relief

    6. Vehicle excise duty

      1. 194. VED rates for light passenger vehicles, light goods vehicles, motorcycles etc

  7. Part 7

    Value added tax

    1. 195. Anti-forestalling charge to value added tax

    2. 196. Exempt supplies

    3. 197. Supply of goods or services by public bodies

    4. 198. Relief from VAT on low value goods: restriction relating to Channel Islands

    5. 199. Group supplies using an overseas member

    6. 200. Power to require notification of arrival of means of transport in UK

    7. 201. Non-established taxable persons

    8. 202. Administration of VAT

  8. Part 8

    Other taxes

    1. Landfill tax

      1. 203. Standard rate of landfill tax

      2. 204. Landfill sites in Scotland

    2. Climate change levy

      1. 205. Climate change levy

    3. Inheritance tax

      1. 206. Indexation of rate bands

      2. 207. Gifts to charities etc

      3. 208. Settled excluded property: effect of certain arrangements

    4. Bank levy

      1. 209. The bank levy

    5. Stamp duty land tax, stamp duty reserve tax and stamp duty

      1. 210. Prevention of avoidance: subsales etc

      2. 211. Rate in respect of residential property where consideration over £2m

      3. 212. Higher rate for certain transactions

      4. 213. Disclosure of stamp duty land tax avoidance schemes

      5. 214. Health service bodies

      6. 215. Collective investment schemes: stamp duty and stamp duty reserve tax

  9. Part 9

    Miscellaneous matters

    1. International matters

      1. 216. Agreement between UK and Switzerland

      2. 217. Penalties: offshore income etc

      3. 218. International military headquarters, EU forces, etc

    2. Financial sector regulation

      1. 219. Tax consequences of financial sector regulation

    3. Incapacitated persons and minors

      1. 220. Removal of special provision for incapacitated persons and minors

    4. Administration

      1. 221. Tax agents: dishonest conduct

      2. 222. Information powers

      3. 223. PAYE regulations: information

    5. High value residential property or dwellings

      1. 224. New tax on ownership of high-value residential properties or dwellings

    6. Miscellaneous reliefs etc

      1. 225. Repeals of miscellaneous reliefs etc

  10. Part 10

    Final provisions

    1. 226. Interpretation

    2. 227. Short title

    1. Schedule 1

      High income child benefit charge

    2. Schedule 2

      Profits arising from the exploitation of patents etc

      1. Part 1

        Amendments of CTA 2010

      2. Part 2

        Amendments of TIOPA 2010

      3. Part 3

        Commencement and transitional provision

    3. Schedule 3

      Relief for expenditure on R&D ;

    4. Schedule 4

      Real estate investment trusts

    5. Schedule 5

      Tax treatment of financing costs and income

    6. Schedule 6

      Seed enterprise investment scheme

      1. Part 1

        The scheme

      2. Part 2

        Relief for capital gains

      3. Part 3

        Consequential amendments

      4. Part 4

        Commencement

    7. Schedule 7

      Enterprise investment scheme

      1. Part 1

        Enterprise investment scheme

      2. Part 2

        Enterprise investment scheme: chargeable gains

    8. Schedule 8

      Venture capital schemes

    9. Schedule 9

      Capital allowances for plant and machinery: anti-avoidance

    10. Schedule 10

      Plant and machinery allowances: fixtures

    11. Schedule 11

      Expenditure on plant and machinery for use in designated assisted areas

    12. Schedule 12

      Foreign income and gains

      1. Part 1

        Increased remittance basis charge

      2. Part 2

        Remittance for investment purposes

      3. Part 3

        Sales of exempt property

      4. Part 4

        Nominated income

    13. Schedule 13

      Employer asset-backed pension contributions etc

      1. Part 1

        Denial of relief for contributions paid during period 29 November 2011 to 21 February 2012

      2. Part 2

        Transitional provision relating to Part 1

      3. Part 3

        Denial of relief for contributions paid on or after 22 February 2012

      4. Part 4

        Transitional provision relating to Part 3

      5. Part 5

        Other provision relating to finance arrangements

    14. Schedule 14

      Gifts to the nation

      1. Part 1

        Introduction

      2. Part 2

        Income tax and capital gains tax

      3. Part 3

        Corporation tax

      4. Part 4

        General provision

      5. Part 5

        Related changes

      6. Part 6

        Commencement

    15. Schedule 15

      Relief in respect of gift aid and other income

    16. Schedule 16

      Part 2: minor and consequential amendments

      1. Part 1

        Amendments of ICTA

      2. Part 2

        Amendments of FA 1989

      3. Part 3

        Amendments of other Acts

      4. Part 4

        Consequential repeals

    17. Schedule 17

      Part 2: transitional provision

      1. Part 1

        Deemed receipts or expenses

      2. Part 2

        Specific transitional provisions

      3. Part 3

        Supplementary

    18. Schedule 18

      Part 3: consequential amendments

    19. Schedule 19

      Part 3: transitional provision

    20. Schedule 20

      Controlled foreign companies and foreign permanent establishments

      1. Part 1

        Controlled foreign companies

      2. Part 2

        Foreign permanent establishments

      3. Part 3

        Other amendments

      4. Part 4

        Commencement provision

      5. Part 5

        Transitional provision

    21. Schedule 21

      Relief in respect of decommissioning expenditure

    22. Schedule 22

      Reduction of supplementary charge for certain oil fields

    23. Schedule 23

      Air passenger duty

      1. Part 1

        Northern Ireland long haul rates of duty from 1 November 2011 to 31 March 2012

      2. Part 2

        Rates of duty from 1 April 2012

      3. Part 3

        Devolution of Northern Ireland long haul rates of duty

      4. Part 4

        Other provision

    24. Schedule 24

      Machine games duty

      1. Part 1

        Imposition of duty

      2. Part 2

        Removal of amusement machine licence duty

      3. Part 3

        VAT exemption

      4. Part 4

        Miscellaneous

    25. Schedule 25

      Remote gambling: double taxation relief

    26. Schedule 26

      Anti-forestalling charge to VAT

      1. Part 1

        Anti-forestalling charge to VAT

      2. Part 2

        Liability and amount

      3. Part 3

        Administration and interpretation

    27. Schedule 27

      Non-established taxable persons

    28. Schedule 28

      Administration of VAT

    29. Schedule 29

      Climate change levy

      1. Part 1

        Reduced-rate supplies on or after 1 April 2011: deemed supply

      2. Part 2

        Taxable supplies on or after 1 April 2012 for use in recycling processes

      3. Part 3

        Rates of climate change levy for supplies on or after 1 April 2013

    30. Schedule 30

      Climate change levy: climate change agreements

    31. Schedule 31

      Climate change levy: supplies subject to the carbon price support rates and combined heat and power stations

      1. Part 1

        Main provision

      2. Part 2

        Carbon price support rates from 1 April 2014

      3. Part 3

        Electricity produced in combined heat and power stations

    32. Schedule 32

      Inheritance tax: gifts to charities etc

    33. Schedule 33

      Bank levy

    34. Schedule 34

      Stamp duty land tax: higher rate for certain transactions

    35. Schedule 35

      Agreement between UK and Switzerland

      1. Part 1

        Introduction

      2. Part 2

        The past

      3. Part 3

        The future: income tax and capital gains tax

      4. Part 4

        The future: inheritance tax

      5. Part 5

        General provisions

    36. Schedule 36

      International military headquarters, EU forces, etc

    37. Schedule 37

      Tax agents: dishonest conduct

      1. Part 1

        Introduction

      2. Part 2

        Establishing dishonest conduct

      3. Part 3

        Power to obtain tax agent’s files etc

      4. Part 4

        Sanctions for dishonest conduct

      5. Part 5

        Penalties: assessment etc

      6. Part 6

        Miscellaneous provision and interpretation

      7. Part 7

        Consequential provisions

    38. Schedule 38

      Repeal of miscellaneous reliefs etc

      1. Part 1

        Stamp duty and stamp duty land tax

      2. Part 2

        Repeal of harbour reorganisation scheme reliefs

      3. Part 3

        Payments relating to reductions in pool betting duty

      4. Part 4

        Life assurance

      5. Part 5

        Capital allowances

      6. Part 6

        Mineral leases or agreements

      7. Part 7

        Miscellaneous

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