|
| |
|
baseline amount as for the purpose of calculating the tax to be |
| |
charged on the value transferred by the chargeable transfer. |
| |
Election to merge parts of the estate |
| |
7 (1) | An election may be made under this paragraph if, for a component |
| |
of the estate, the donated amount is at least 10% of the baseline |
| 5 |
| |
(2) | That component is referred to as “the qualifying component”. |
| |
(3) | The effect of the election is that the qualifying component and one |
| |
or more eligible parts of the estate (as specified in the election) are |
| |
to be treated for the purposes of this Schedule as if they were a |
| 10 |
| |
(4) | Accordingly, if the donated amount for that deemed single |
| |
component is at least 10% of the baseline amount for it, the |
| |
property in that component is to be included in the part of TP that |
| |
qualifies for the lower rate of tax. |
| 15 |
(5) | In relation to the qualifying component— |
| |
(a) | each one of the other two components of the estate is an |
| |
“eligible part” of the estate, and |
| |
(b) | all the property that forms part of the estate by virtue of |
| |
section 102(3) of the Finance Act 1986 (gifts with |
| 20 |
reservation) is also an “eligible part” of the estate. |
| |
(6) | The election must be made by all those who are appropriate |
| |
persons with respect to the qualifying component and each of the |
| |
eligible parts to be treated as a single component. |
| |
(7) | “Appropriate persons” means— |
| 25 |
(a) | with respect to the survivorship component, all those to |
| |
whom the property in that component passes on D’s death |
| |
(or, if they have subsequently died, their personal |
| |
| |
(b) | with respect to the settled property component, the |
| 30 |
trustees of all the settled property in that component, |
| |
(c) | with respect to the general component, all the personal |
| |
representatives of D or, if there are none, all those who are |
| |
liable for the tax attributable to the property in that |
| |
| 35 |
(d) | with respect to property within paragraph (b) of sub- |
| |
paragraph (5), all those in whom the property within that |
| |
paragraph is vested when the election is to be made. |
| |
| |
8 (1) | If an election is made under this paragraph in relation to a |
| 40 |
component of the estate, this Schedule is to apply as if the donated |
| |
amount for that component were less than 10% of the baseline |
| |
amount for it (whether or not it actually is). |
| |
|
| |
|
| |
|
(2) | The election must be made by all those who are appropriate |
| |
persons (as defined in paragraph 7(7)) with respect to the |
| |
| |
| |
9 (1) | An election under this Schedule must be made by notice in writing |
| 5 |
to HMRC within two years after D’s death. |
| |
(2) | An election under this Schedule may be withdrawn by notice in |
| |
| |
(a) | by all those who would be entitled to make such an |
| |
| 10 |
(b) | no later than the end of the period of two years and one |
| |
| |
(3) | An officer of Revenue and Customs may agree in a particular case |
| |
to extend the time limit in sub-paragraph (1) or (2)(b) by such |
| |
period as the officer may allow. |
| 15 |
| |
10 | In this Schedule, in relation to D— |
| |
“the chargeable transfer” means the chargeable transfer |
| |
mentioned in paragraph 1(1); |
| |
“the estate” means D’s estate immediately before death; |
| 20 |
“the relevant transfer” means the transfer of value that D is |
| |
treated (under section 4) as having made immediately |
| |
| |
| |
2 | IHTA 1984 is amended as follows in consequence of paragraph 1. |
| 25 |
3 | In section 7 (rates), in subsection (1), after “(4) and (5) below” insert “and to |
| |
| |
4 | In section 33 (amount of charge under section 32), after subsection (2) |
| |
| |
“(2ZA) | In determining for the purposes of subsection (1)(b)(ii) the rate or |
| 30 |
rates that would have applied in accordance with subsection (1) of |
| |
section 7, the effect of Schedule 1A (if it would have applied) is to be |
| |
| |
5 | In section 78 (conditionally exempt occasion), in subsection (3), for “33(3)” |
| |
| 35 |
6 | In section 128 (rate of charge: woodlands)— |
| |
(a) | the existing provisions become subsection (1) of that section, and |
| |
(b) | after that subsection insert— |
| |
“(2) | In determining for the purposes of subsection (1) the rate or |
| |
rates at which tax would have been charged on the amount |
| 40 |
determined under section 127, the effect of Schedule 1A (if it |
| |
would have applied) is to be disregarded.” |
| |
|
| |
|
| |
|
7 | After section 141 insert— |
| |
“141A | Apportionment of relief under section 141 |
| |
(1) | This section applies if any part of the value transferred by the later |
| |
transfer qualifies for the lower rate of tax in accordance with |
| |
| 5 |
(2) | The amount of the reduction made under section 141(1) is to be |
| |
apportioned in accordance with this section. |
| |
(3) | For each qualifying component, the tax chargeable on so much of the |
| |
value transferred by the later transfer as is attributable to property in |
| |
that component (“the relevant part of the tax”) is to be reduced by the |
| 10 |
appropriate proportion of the amount calculated in accordance with |
| |
| |
(4) | “The appropriate proportion” is a proportion equal to the proportion |
| |
| |
(a) | the relevant part of the tax, bears to |
| 15 |
(b) | the tax chargeable on the value transferred by the later |
| |
| |
(5) | If parts of an estate are treated under Schedule 1A as a single |
| |
component, subsection (3) applies to the single component (and not |
| |
to individual components forming part of the deemed single |
| 20 |
| |
(6) | If, after making the reductions required by subsection (3), there |
| |
remains any part of the tax chargeable on the value transferred by the |
| |
later transfer that has not been reduced, the remaining part of the tax |
| |
is to be reduced by so much of the amount calculated in accordance |
| 25 |
with section 141(3) as has not been used up for the purposes of |
| |
making the reductions required by subsection (3). |
| |
| |
“component” means a component of the estate, as defined in |
| |
paragraph 3 of Schedule 1A; |
| 30 |
“the later transfer” has the meaning given in section 141(1); |
| |
“qualifying component” means a component (or deemed single |
| |
component) for which the donated amount is at least 10% of |
| |
the baseline amount, as determined in accordance with |
| |
| 35 |
8 | In Schedule 4 (maintenance funds for historic buildings etc), in paragraph |
| |
14, after sub-paragraph (2) insert— |
| |
“(2A) | In determining for the purposes of sub-paragraph (2) the effective |
| |
rate or rates at which tax would have been charged on the amount |
| |
in accordance with section 7(1), the effect of Schedule 1A (if it |
| 40 |
would have applied) is to be disregarded.” |
| |
Instruments of variation to be notified to charities etc |
| |
9 | In section 142 of IHTA 1984 (alteration of dispositions taking effect on |
| |
|
| |
|
| |
|
death), after subsection (3) insert— |
| |
“(3A) | Subsection (1) does not apply to a variation by virtue of which any |
| |
property comprised in the estate immediately before the person’s |
| |
death becomes property in relation to which section 23(1) applies |
| |
unless it is shown that the appropriate person has been notified of |
| 5 |
the existence of the instrument of variation. |
| |
(3B) | For the purposes of subsection (3A) “the appropriate person” is— |
| |
(a) | the charity or registered club to which the property is given, |
| |
| |
(b) | if the property is to be held on trust for charitable purposes or |
| 10 |
for the purposes of registered clubs, the trustees in question.” |
| |
| |
10 (1) | The Schedule inserted by paragraph 1 has effect in cases where D’s death |
| |
occurs on or after 6 April 2012 (and the amendments made by paragraphs 3 |
| |
to 8 are to be read accordingly). |
| 15 |
(2) | The amendment made by paragraph 9 has effect in cases where the person’s |
| |
death occurs on or after 6 April 2012. |
| |
| |
| |
| |
| 20 |
1 | Schedule 19 to FA 2011 (bank levy) is amended as follows. |
| |
| |
2 | In paragraph 6 (steps for determining the amount of the bank levy), in sub- |
| |
| |
(a) | for “0.039%” substitute “0.044%”, and |
| 25 |
(b) | for “0.078%” substitute “0.088%”. |
| |
3 | In paragraph 7 (special provision for chargeable periods falling wholly or |
| |
partly before 1 January 2012), in sub-paragraph (2)— |
| |
(a) | for “0.039%” substitute “0.044%”, and |
| |
(b) | for “0.078%” substitute “0.088%”. |
| 30 |
4 | The amendments made by paragraphs 2 and 3 are treated as having come |
| |
into force on 1 January 2012. |
| |
| |
5 | In paragraph 6 (steps for determining the amount of the bank levy), in sub- |
| |
| 35 |
(a) | for “0.044%” substitute “0.0525%”, and |
| |
(b) | for “0.088%” substitute “0.105%”. |
| |
6 (1) | In paragraph 7 (special provision for chargeable periods falling wholly or |
| |
|
| |
|
| |
|
partly before 1 January 2012) for sub-paragraphs (1) and (2) substitute— |
| |
“(1) | Paragraph 6(2) applies subject to this paragraph if some or all of |
| |
the chargeable period falls before 1 January 2013. |
| |
(2) | For Step 7 there is substituted— |
| |
| 5 |
| Determine the proportion (“P%”) (if any) of the chargeable period |
| |
which falls within each of the periods (“rate periods”) specified in |
| |
column 1 of the following table. |
| |
| In relation to each rate period— |
| |
(a) | charge P% of the amount of the long term chargeable |
| 10 |
equity and liabilities at the rate specified, in relation to the |
| |
rate period concerned, in the second column of the table, |
| |
| |
(b) | charge P% of the amount of the short term chargeable |
| |
liabilities at the rate specified, in relation to the rate period |
| 15 |
concerned, in the third column of the table. |
| |
| Add together the results for each rate period in which some or all |
| |
of the chargeable period falls to give the amount of the bank levy. |
| |
|
(2) | Accordingly, in the italic heading immediately before that paragraph for |
| |
“2012” substitute “2013”. |
| 40 |
7 | The amendments made by paragraphs 5 and 6 come into force on 1 January |
| |
| |
|
| |
|
| |
|
| |
8 (1) | Paragraph 43 (calculation of chargeable equity and liabilities where relevant |
| |
group has an interest in a joint venture) is amended as follows. |
| |
(2) | In sub-paragraph (1), for paragraphs (d) and (e) substitute “, and |
| |
(d) | in the absence of this paragraph, none of the liabilities |
| 5 |
taken into account in determining the amount of the |
| |
chargeable equity and liabilities of the relevant group |
| |
would include the JV liabilities.” |
| |
(3) | For sub-paragraph (2) substitute— |
| |
“(2) | For the purposes of determining the chargeable equity and |
| 10 |
liabilities of the relevant group under paragraph 17 or 19 (as the |
| |
case may be) the joint venture is to be treated as if— |
| |
(a) | it were a member of the group in relation to— |
| |
(i) | the liabilities of the joint venture which consist of |
| |
| 15 |
(ii) | the assets of the joint venture so far as determined |
| |
by the relevant interest, and |
| |
(b) | it were not a member of the group in relation to the |
| |
remaining liabilities and assets of the joint venture.” |
| |
9 | In paragraph 44 (chargeable equity and liabilities of joint venture: |
| 20 |
prevention of double charge), in sub-paragraph (7)(b), for the words from |
| |
“liabilities for” to “27(2)(a)” substitute “taken into account in calculating the |
| |
chargeable equity and liabilities of V (or where sub-paragraph (6) applies, |
| |
| |
10 | The amendments made by paragraphs 8 and 9 have effect in relation to |
| 25 |
chargeable periods ending on or after 1 January 2012. |
| |
| |
11 (1) | In paragraph 66 (double taxation arrangements), after sub-paragraph (9) |
| |
| |
“(9A) | If arrangements specified in an order under this paragraph |
| 30 |
provide for relief from the bank levy for periods before the order |
| |
is made, regulations under this paragraph which are made on the |
| |
same day as the order, and come into force on the same day as the |
| |
order, may make provision in relation to those periods.” |
| |
(2) | After paragraph 67 insert— |
| 35 |
“Disclosure of information to foreign tax authorities etc |
| |
67A (1) | If the Treasury by order declares that— |
| |
(a) | international tax enforcement arrangements which are |
| |
specified in the order have been made in relation to any |
| |
territory or territories outside the United Kingdom in |
| 40 |
association with double taxation arrangements specified |
| |
under paragraph 66 in the same or a previous order, and |
| |
(b) | it is expedient that those international tax enforcement |
| |
arrangements have effect, |
| |
|
| |
|
| |
|
| those arrangements have effect, and do so in spite of anything in |
| |
any enactment or instrument. |
| |
(2) | “International tax enforcement arrangements” means |
| |
arrangements which relate to one or both of the following— |
| |
(a) | the exchange of information foreseeably relevant to the |
| 5 |
administration, enforcement or recovery of the bank levy |
| |
or any equivalent foreign levy to which the double |
| |
taxation arrangements relate; |
| |
(b) | the service of documents relating to the bank levy or any |
| |
such equivalent foreign levy. |
| 10 |
(3) | An order under this paragraph revoking an earlier order may |
| |
contain transitional provisions that appear to the Treasury to be |
| |
| |
(4) | Subsections (4) and (5) of section 173 of FA 2006 (international tax |
| |
enforcement arrangements: disclosure of information) apply to |
| 15 |
arrangements which have effect under this paragraph as they |
| |
apply to arrangements which have effect under that section. |
| |
(5) | Orders under this paragraph are to be made by statutory |
| |
| |
(6) | A statutory instrument containing an order under this paragraph |
| 20 |
is subject to annulment in pursuance of a resolution of the House |
| |
| |
(3) | Accordingly, the italic heading before paragraph 68 is omitted. |
| |
| |
12 (1) | This paragraph applies where— |
| 25 |
(a) | an amount of the bank levy is treated as if it were an amount of |
| |
corporation tax chargeable on an entity (“E”) for an accounting |
| |
| |
(b) | the chargeable period in respect of which the amount of the bank |
| |
levy is charged falls (or partly falls) on or after 1 January 2012, and |
| 30 |
(c) | under the Instalment Payment Regulations, one or more instalment |
| |
payments, in respect of the total liability of E for the accounting |
| |
period, were treated as becoming due and payable before the |
| |
commencement date (“pre-commencement instalment payments”). |
| |
(2) | Paragraphs 2 to 10 are to be ignored for the purpose of determining the |
| 35 |
amount of any pre-commencement instalment payment. |
| |
(3) | If there is at least one instalment payment, in respect of the total liability of |
| |
E for the accounting period, which under the Instalment Payment |
| |
Regulations is treated as becoming due and payable on or after the |
| |
commencement date (“post-commencement instalment payments”), the |
| 40 |
amount of that instalment payment, or the first of them, is to be increased by |
| |
| |
(4) | If there are no post-commencement instalment payments, a further |
| |
instalment payment, in respect of the total liability of E for the accounting |
| |
period, of an amount equal to the adjustment amount is to be treated as |
| 45 |
|
| |
|