|
| |
|
(c) | a company’s “existing” equalisation or equivalent reserve means the |
| |
equalisation or equivalent reserve as it stood immediately before the |
| |
first accounting period of the company (“the relevant accounting |
| |
period”) in relation to which the amendments made by this section |
| |
have effect (but see subsection (8)), and |
| 5 |
(d) | references in this section to the company’s business are to the business |
| |
in respect of which the equalisation or equivalent reserve was |
| |
| |
| |
(a) | an insurance company has made an election under section 444BA(4) of |
| 10 |
ICTA in relation to an accounting period ending before the specified |
| |
| |
(b) | an amount would, but for this section, have been carried forward to the |
| |
relevant accounting period of the company as a deductible amount, |
| |
| that amount is not to be carried forward to that period as a deductible amount |
| 15 |
but is instead to be deducted from the amount of the equalisation or equivalent |
| |
reserve as it stood immediately before that period. |
| |
(9) | References in this section to section 444BA of ICTA include that section as |
| |
modified by regulations made under section 444BB or 444BC of that Act. |
| |
27 | Election to accelerate receipts under s.26(4) |
| 20 |
(1) | An insurance company may make an election in relation to a calendar year |
| |
(“the relevant year”) for all of the amounts that would, as a result of section |
| |
26(4), otherwise be treated as arising in later calendar years as receipts of a |
| |
business carried on by the company to be treated instead as receipts of the |
| |
business arising in the relevant year. |
| 25 |
(2) | An election under this section— |
| |
(a) | must be made by notice to an officer of Revenue and Customs within 2 |
| |
years from the end of the relevant year, and |
| |
| |
(3) | A company which makes an election under section 29 as the transferor or the |
| 30 |
transferee may make an election under this section but not in relation to the |
| |
calendar year in which the transfer takes place. |
| |
28 | Deemed receipts under s.26(4): double taxation relief |
| |
(1) | This section applies if— |
| |
(a) | a receipt is treated as arising to an insurance company’s business in an |
| 35 |
accounting period as a result of section 26(4), |
| |
(b) | the company carries on business through a permanent establishment |
| |
outside the United Kingdom by reference to which double taxation |
| |
relief is afforded in respect of any income or gains, and |
| |
(c) | the permanent establishment is one in relation to which regulation |
| 40 |
10(2) of the Insurance Companies (Reserves) (Tax) Regulations 1996 |
| |
| |
(2) | For the purpose of calculating the profits or losses by reference to which double |
| |
taxation relief is afforded for the accounting period, only the appropriate |
| |
proportion (if any) of the receipt is to be taken into account. |
| 45 |
|
| |
|
| |
|
(3) | The appropriate proportion of the receipt is— |
| |
(a) | equal to the mean of each proportion found for each relevant period (if |
| |
| |
(b) | equal to such other proportion as the company may determine on a just |
| |
| 5 |
(4) | For the purposes of subsection (3)(a) a proportion for a relevant period is the |
| |
proportion which the PE’s premium income for the period bears to the |
| |
company’s premium income for the period. |
| |
(5) | For the purposes of subsections (3)(a) and (4)— |
| |
“the company’s premium income”, in relation to a relevant period, means |
| 10 |
the amount of net premiums written by reference to which the |
| |
calculation under section 444BA(2)(a) or (b) of ICTA was made for the |
| |
| |
“the PE’s premium income”, in relation to a relevant period, means so |
| |
much of the company’s premium income for the period as is |
| 15 |
attributable to the permanent establishment, and |
| |
a “relevant period” means an accounting period of the company in |
| |
relation to which each of the following conditions is met— |
| |
(a) | section 444BA of ICTA has applied in relation to the accounting |
| |
| 20 |
(b) | the business mentioned in subsection (1)(a) has been carried on |
| |
through the permanent establishment in the accounting period, |
| |
| |
(c) | the accounting period is the company’s last accounting period |
| |
in relation to which section 444BA of ICTA applied or is one that |
| 25 |
falls wholly or partly in the period of six years ending with the |
| |
day on which that last accounting period ended. |
| |
| |
(a) | “net premiums written” means gross premiums written net of |
| |
reinsurance premiums payable under reinsurance ceded, and |
| 30 |
(b) | references to section 444BA of ICTA include that section as modified by |
| |
regulations made under that Act. |
| |
29 | Transfer of whole or part of the business |
| |
| |
(a) | an insurance company carries on a business, |
| 35 |
(b) | amounts fall to be treated as receipts of the business as a result of |
| |
section 26(4) (“deemed receipts”), and |
| |
(c) | under an insurance business transfer scheme there is a transfer of the |
| |
whole or part of the business to another insurance company within the |
| |
charge to corporation tax, |
| 40 |
| the transferor and the transferee may jointly make an election for those deemed |
| |
receipts to be allocated between them in accordance with the following |
| |
| |
(2) | If the transfer is a transfer of the whole of the business or substantially the |
| |
| 45 |
(a) | section 26(6) does not apply in relation to the transferor (if it would |
| |
| |
|
| |
|
| |
|
(b) | the deemed receipt which, on the assumption that there had been no |
| |
transfer, would have arisen in the transfer year is apportioned between |
| |
the transferor and the transferee in accordance with subsection (5), and |
| |
(c) | the remaining deemed receipts (if any) which, on that assumption, |
| |
would have arisen in subsequent calendar years are treated as receipts |
| 5 |
of the transferee (and not as receipts of the transferor). |
| |
(3) | If the transfer is a transfer of a part of the business and subsection (2) does not |
| |
| |
(a) | the appropriate portion of the deemed receipt arising in the transfer |
| |
year is apportioned between the transferor and the transferee in |
| 10 |
accordance with subsection (5), and |
| |
(b) | the appropriate portions of the remaining deemed receipts (if any) are |
| |
treated as receipts of the transferee (and the receipts of the transferor |
| |
are reduced accordingly). |
| |
(4) | The appropriate portion of a deemed receipt is to be determined on a just and |
| 15 |
| |
(5) | An apportionment under subsection (2)(b) or (3)(a) is to be made in proportion |
| |
to the number of days of the calendar year falling before the day of the transfer |
| |
and the number of days of the calendar year falling on or after the day of |
| |
| 20 |
(6) | A deemed receipt which is treated as a receipt of the transferee as a result of |
| |
this section is treated as a receipt of the business of the transferee which |
| |
consists of or includes the transferred business, and, accordingly, section 26(4) |
| |
and (6) have effect in relation to the transferee— |
| |
(a) | as if references to the company were references to the transferee, and |
| 25 |
(b) | as if references to the business were references to the business of the |
| |
transferee which consists of or includes the transferred business. |
| |
(7) | An election under this section— |
| |
(a) | must be made by notice to an officer of Revenue and Customs within |
| |
28 days from the end of the day on which the transfer takes place, |
| 30 |
(b) | must be accompanied by an explanation as to the way in which the |
| |
transferor and the transferee have determined any issue falling to be |
| |
determined for the purposes of this section, and |
| |
| |
| 35 |
“the transferred business” means so much of the business as is transferred |
| |
| |
“the transfer year” means the calendar year in which the transfer takes |
| |
| |
(9) | If a company makes an election under this section as the transferee, this section |
| 40 |
has effect for the purposes of any subsequent elections made by the company |
| |
under this section as the transferor as if references to the business were |
| |
references to the activities in respect of which deemed receipts are treated as |
| |
| |
30 | Abolition of relief for equalisation reserves: Lloyd’s corporate members etc |
| 45 |
(1) | Regulations made by the Treasury under section 47 of FA 2009 (equalisation |
| |
reserves for Lloyd’s corporate and partnership members) that revoke previous |
| |
|
| |
|
| |
|
regulations made under that section may include provision corresponding to |
| |
the provision made by sections 26(4) to (8) and 27, subject to such modifications |
| |
as may be made in the regulations. |
| |
(2) | Section 47 of FA 2009 is repealed. |
| |
(3) | That repeal has effect in relation to accounting periods ending on or after such |
| 5 |
day (“the specified day”) as is specified in an order made by the Treasury (and |
| |
different days may be specified for different cases). |
| |
(4) | Subsections (2) and (3) are not to affect the operation of any transitional or |
| |
saving provision included (whether as a result of this section or otherwise) in |
| |
regulations made under section 47 of FA 2009 that revoke previous regulations |
| 10 |
made under that section so far as the provision remains capable of having |
| |
effect in relation to times falling on or after the specified day. |
| |
| |
31 | Tax treatment of financing costs and income |
| |
Schedule 5 contains provision about the tax treatment of financing costs and |
| 15 |
| |
32 | Group relief: meaning of “normal commercial loan” |
| |
(1) | CTA 2010 is amended as follows. |
| |
(2) | In section 162(2)(c) (meaning of “normal commercial loan”), after “securities |
| |
in” insert “a quoted unconnected company (see section 164(2A)) or in”. |
| 20 |
(3) | In section 164 (sections 160 and 162: supplementary), in subsection (2)(c), after |
| |
“securities in” insert “a quoted unconnected company (see subsection (2A)) or |
| |
| |
(4) | After subsection (2) of that section insert— |
| |
“(2A) | For the purposes of this section and section 162 a company is a quoted |
| 25 |
unconnected company if (and only if)— |
| |
(a) | its ordinary shares are listed on a recognised stock exchange, |
| |
| |
(b) | it is not connected with the relevant company.” |
| |
(5) | In subsection (4) of that section— |
| 30 |
(a) | for “If the candidate company’s” substitute “In the case of a company |
| |
| |
(b) | for “subsection (3)(c) is” substitute “subsections (2A)(a) and (3)(c) are”. |
| |
(6) | In subsection (5) of that section, for “subsections (3) and (4)” substitute “this |
| |
| 35 |
(7) | The amendments made by this section have effect in relation to loans made on |
| |
| |
| |
(1) | Part 23 of CTA 2010 (company distributions) is amended as follows. |
| |
|
| |
|
| |
|
(2) | Section 1002 (exceptions for certain transfers of assets or liabilities between a |
| |
company and its members) is repealed. |
| |
(3) | In section 1020 (transfers of assets or liabilities treated as distributions)— |
| |
(a) | in subsection (2), omit from “But” to the end, and |
| |
(b) | after that subsection insert— |
| 5 |
“(2A) | But the company is not treated as making a distribution under |
| |
subsection (2) if the transfer of assets or liabilities— |
| |
(a) | is a distribution by virtue of paragraph B in section |
| |
| |
(b) | would be such a distribution in the absence of sub- |
| 10 |
paragraph (a) of that paragraph (distribution |
| |
representing repayment of capital on the shares).” |
| |
(4) | Section 1021 (transfers of assets or liabilities treated as distributions: |
| |
| |
(5) | In consequence of the repeal made by subsection (2)— |
| 15 |
(a) | omit section 194(2) of CTA 2010, |
| |
(b) | in section 998(3) of that Act, for “1002” substitute “1003”, |
| |
(c) | in section 1001 of that Act, in the third column of the table, omit |
| |
“Section 1002 (exception for certain transfers of assets and liabilities)”, |
| |
| 20 |
(d) | omit paragraph 1(2) of Schedule 3 to F(No.3)A 2010. |
| |
(6) | The amendments made by this section have effect in relation to distributions |
| |
made on or after the day on which this Act is passed. |
| |
| |
| 25 |
| |
(1) | TCGA 1992 is amended as follows. |
| |
(2) | In section 3 (annual exempt amount), for the figure specified in subsection (2) |
| |
| |
| 30 |
(a) | in each of subsections (3), (3A), (3B) and (4), for “RPI” substitute “CPI”, |
| |
| |
(b) | in subsection (3A), for “retail prices index” substitute “consumer prices |
| |
| |
(4) | In section 288 (interpretation), after subsection (2) insert— |
| 35 |
“(2A) | In this Act “consumer prices index” means the all items consumer |
| |
prices index published by the Statistics Board.” |
| |
(5) | The amendment made by subsection (2) has effect for the tax year 2012-13 and |
| |
| |
(6) | Section 3(3) of TCGA 1992 (indexation) does not apply in relation to the tax |
| 40 |
| |
|
| |
|
| |
|
(7) | The amendments made by subsections (3) and (4) have effect for the tax year |
| |
2013-14 and subsequent tax years. |
| |
35 | Foreign currency bank accounts |
| |
(1) | TCGA 1992 is amended as follows. |
| |
(2) | In section 13 (attribution of gains to members of non-resident companies), in |
| 5 |
subsection (5), omit paragraph (c). |
| |
(3) | In section 251 (debts: general provisions), after subsection (5) insert— |
| |
“(5A) | References in this section to the disposal of a debt include the disposal |
| |
of an interest in a debt (and, in the case of an interest in a debt, the |
| |
reference in subsection (3) to the amount of the debt is to the amount of |
| 10 |
the person’s interest in the debt).” |
| |
(4) | For section 252 substitute— |
| |
“252 | Foreign currency bank accounts |
| |
(1) | Section 251(1) does not apply in relation to a gain accruing to a person |
| |
on a disposal of a foreign currency debt (or an interest in such a debt) |
| 15 |
| |
| |
(b) | the trustees of a settlement, or |
| |
(c) | the personal representatives of a deceased person. |
| |
(2) | A “foreign currency debt” is a debt— |
| 20 |
(a) | owed by a bank in a currency other than sterling, and |
| |
(b) | represented by a sum standing to the credit of an account- |
| |
holder in an account in that bank.” |
| |
(5) | Omit section 252A and Schedule 8A (foreign currency bank accounts). |
| |
(6) | The amendments made by this section have effect in relation to disposals |
| 25 |
occurring on or after 6 April 2012. |
| |
36 | Collective investment schemes: chargeable gains |
| |
(1) | TCGA 1992 is amended as follows. |
| |
(2) | In section 99A(2) (treatment of umbrella schemes), after “subsection (1)” insert |
| |
| 30 |
(3) | After section 103B insert— |
| |
“103C | Power to make regulations about collective investment schemes |
| |
(1) | The Treasury may by regulations make provision about the treatment |
| |
of participants in collective investment schemes for the purposes of this |
| |
| 35 |
(2) | The regulations may, in particular, specify descriptions of collective |
| |
investment scheme in relation to which they are to apply. |
| |
(3) | Regulations under this section may make different provision for |
| |
different cases or different purposes. |
| |
|
| |
|
| |
|
(4) | Regulations under this section— |
| |
(a) | may modify this Act or any other enactment or instrument |
| |
(whenever passed or made), and |
| |
(b) | may include incidental, consequential, supplementary or |
| |
| 5 |
(5) | A statutory instrument containing regulations under this section must |
| |
be laid before the House of Commons after being made. |
| |
(6) | The regulations cease to have effect at the end of the period of 40 days |
| |
beginning with the day on which the instrument is made unless before |
| |
the end of that period the instrument is approved by a resolution of the |
| 10 |
| |
(7) | After an instrument containing regulations under this section has been |
| |
approved under subsection (6), subsections (5) and (6) do not apply to |
| |
any subsequent such instrument (and accordingly section 287(3) |
| |
applies to any such instrument). |
| 15 |
(8) | If regulations cease to have effect as a result of subsection (6), that does |
| |
| |
(a) | affect anything previously done under the regulations, or |
| |
(b) | prevent the making of new regulations to the same or similar |
| |
| 20 |
(9) | In calculating the period of 40 days for the purposes of subsection (6), |
| |
no account is to be taken of any time during which Parliament is |
| |
dissolved or prorogued or during which the House of Commons is |
| |
adjourned for more than 4 days. |
| |
| 25 |
“modify” includes amend, repeal or revoke, and |
| |
“participant”, in relation to a collective investment scheme, is to be |
| |
read in accordance with section 235 of the Financial Services |
| |
| |
| 30 |
(1) | In section 155 of TCGA 1992 (roll-over relief: relevant classes of assets), in the |
| |
entry for Class 7A, for “Council Regulation (EC) No. 1782/2003” substitute |
| |
“Council Regulation (EC) No 73/2009”. |
| |
(2) | In section 86 of FA 1993, for subsection (2) (power to add to classes specified in |
| |
section 155 of TCGA 1992) substitute— |
| 35 |
“(2) | The Treasury may by order made by statutory instrument amend |
| |
section 155 of the Taxation of Chargeable Gains Act 1992 (roll-over |
| |
relief: relevant classes of assets) so as to add to or amend the classes of |
| |
assets specified in that section. |
| |
(2A) | But an order under subsection (2) may not restrict the assets which fall |
| 40 |
within a class listed in that section (whether by virtue of subsection (2) |
| |
| |
(2B) | An order under subsection (2) may make such consequential |
| |
amendments of section 156ZB of, or Schedule 7AB to, the Taxation of |
| |
|
| |
|