Finance Bill

Session 2012 - 13
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Finance Bill

Finance Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 1 — Stamp duty and stamp duty land tax
657

(c)
in section 130 (registered social landlords: treatment of certain leases
granted between 1 January 1990 and 27 March 2000), subsections (3)
to (6) and (9).
      (2)
In consequence of the provision made by sub-paragraph (1), in Schedule 4 to
CRCA 2005, omit paragraphs 125 to 127.
5
Application and transitional provision
10    (1)
The amendments made by paragraphs 1 to 5, 6(1), 7 and 9(1)(a) of this
Schedule have effect in relation to instruments executed on or after 6 April
2013.
      (2)
The amendments made by—
10
(a)
paragraphs 6(2) and 9(1)(b) of this Schedule, and
(b)
paragraph 9(1)(c) and (2) of this Schedule, so far as relating to the
repeal of section 129 of FA 2003,

have effect in relation to instruments stamped on or after 6 April 2013.
      (3)
The amendments made by paragraph 9(1)(c) and (2), so far as not relating to
15
that repeal, come into force on 6 April 2013.
      (4)
The amendments made by paragraph 8 of this Schedule have effect in
relation to transactions of which the effective date is on or after 6 April 2013.
      (5)
This paragraph is subject to paragraphs 11 and 12.
11
The amendments made by paragraph 7 do not have effect in relation to an
20
instrument giving effect to a contract entered into on or before 16 March
2005, unless—
(a)
the instrument is made in consequence of the exercise after that date
of any option, right of pre-emption or similar right, or
(b)
the instrument transfers the property in question to, or vests it in, a
25
person other than the purchaser under the contract, because of an
assignment (or assignation) or further contract made after that date.
12    (1)
The amendments made by paragraph 8 do not have effect in relation to—
(a)
any transaction that is effected in pursuance of a contract entered
into and substantially performed on or before 16 March 2005, or
30
(b)
(subject to sub-paragraph (2)) any other transaction that is effected in
pursuance of a contract entered into on or before that date.
      (2)
The exclusion by sub-paragraph (1)(b) of transactions effected in pursuance
of any contract entered into on or before 16 March 2005 does not apply if—
(a)
there is any variation of the contract or assignment of rights under
35
the contract after that date,
(b)
the transaction is effected in consequence of the exercise after that
date of any option, right of pre-emption or similar right, or
(c)
after that date there is an assignment, subsale or other transaction
relating to the whole or part of the subject-matter of the contract as a
40
result of which a person other than the purchaser under the contract
becomes entitled to call for a conveyance.
13    (1)
Any claim for relief under Schedule 6 to FA 2003 (disadvantaged areas relief)
which is made in respect of a transaction of which the effective date is on or
before 5 April 2013 must be made before 6 May 2014.
45

Finance Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 3 — Payments relating to reductions in pool betting duty
658

      (2)
Sub-paragraph (1) applies—
(a)
whether or not the claim is made in a land transaction return or an
amendment of such a return, and
(b)
whether the effective date of the transaction is before or after the day
on which this Act comes into force.
5
Part 2
Repeal of harbour reorganisation scheme reliefs
14
Section 45 of FA 1966 (harbour reorganisation schemes: stamp duty) is
repealed.
15
Section 221 of TCGA 1992 (harbour reorganisation schemes: transfer of
10
assets) is repealed.
16
Sections 991 to 995 of CTA 2010 (harbour reorganisation schemes) are
repealed.
17
In consequence of the provision made by paragraph 15—
(a)
in section 288(3A)(a) of TCGA 1992, for “221” substitute “220”, and
15
(b)
in Schedule 1 to CTA 2010, omit paragraph 251.
18    (1)
The amendment made by paragraph 14 has effect in relation to instruments
executed on or after 1 April 2013.
      (2)
The amendments made by paragraphs 15 to 17 have effect in relation to any
transfer occurring on or after 1 April 2013.
20
Part 3
Payments relating to reductions in pool betting duty
19    (1)
Section 126 of FA 1990 (capital allowances and IHT: pools payments for
football ground improvements) is repealed.
      (2)
Accordingly, the following are also repealed—
25
(a)
paragraph 72 of Schedule 2 to CAA 2001;
(b)
paragraph 416 of Schedule 1 to ITTOIA 2005.
      (3)
The repeals made by this paragraph—
(a)
for corporation tax purposes, have effect in relation to payments
made on or after 1 April 2013,
30
(b)
for income tax purposes, have effect in relation to payments made on
or after 6 April 2013, and
(c)
for inheritance tax purposes, come into force on 6 April 2013 (and
have effect in relation to payments whenever made).
20    (1)
Section 121 of FA 1991 (inheritance tax: pools payments to support games
35
etc) is repealed.
      (2)
The repeal made by this paragraph comes into force on 6 April 2013 (and has
effect in relation to payments whenever made).
21    (1)
In ITTOIA 2005, the following provisions are repealed—
(a)
section 162 (deductions in respect of payments by persons liable to
40
pool betting duty);

Finance Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 4 — Life assurance
659

(b)
section 748 (exemption for payments by persons liable to pool
betting duty).
      (2)
Accordingly, section 683(4)(g) of that Act is also repealed.
      (3)
The repeals made by this paragraph have effect in relation to payments
made on or after 6 April 2013.
5
22    (1)
In CTA 2009, the following provisions are repealed—
(a)
section 138 (deductions in respect of payments by companies liable
to pool betting duty);
(b)
section 978 (exemption for payments by persons liable to pool
betting duty).
10
      (2)
Accordingly, section 976(1)(b) of that Act (and the “and” before it) are also
repealed.
      (3)
The repeals made by this paragraph have effect in relation to payments
made on or after 1 April 2013.
Part 4
15
Life assurance
Abolition of income tax relief for life assurance premiums under section 266 of ICTA
23
Section 266 of ICTA (income tax relief for life assurance premiums paid by
eligible individuals) applies in relation to a premium or part of a premium
only if the premium or part of a premium—
20
(a)
becomes due and payable before 6 April 2015, and
(b)
is actually paid before 6 July 2015.
24
No claim for relief may be made under paragraph 6 of Schedule 14 to ICTA
(provisions ancillary to section 266) after 5 April 2016.
25    (1)
The Income Tax (Life Assurance Premium Relief) Regulations 1978 (S.I.
25
1978/1159) (“the 1978 Regulations”) have effect in accordance with this
paragraph.
      (2)
Subject to sub-paragraph (3), an annual claim for the financial year of a life
office must be made no later than—
(a)
the end of the six-year period allowed by regulation 9(1), or
30
(b)
if earlier, the end of the relevant 6-month period,

and regulation 9(8) has effect accordingly.
      (3)
An annual claim which a life office is required to make under regulation 9(2)
must be made no later than—
(a)
the end of the one-year period specified in regulation 9(2), or
35
(b)
if earlier, the end of the relevant 6-month period,

and regulation 9(6) has effect accordingly.
      (4)
In sub-paragraphs (2) and (3) “the relevant 6-month period” means the
period of 6 months after the end of the life office’s first financial year to end
after 5 April 2015.
40
      (5)
The Board must decide all claims made under the 1978 Regulations no later
than 5 April 2017.

Finance Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 4 — Life assurance
660

      (6)
Terms used in this paragraph have the same meaning as they have in the
1978 Regulations.
26    (1)
In this paragraph—
(a)
“the 1980 Regulations” means the Friendly Societies (Life Assurance
Premium Relief) (Change of Rate) Regulations 1980 (S.I. 1980/1947),
5
and
(b)
terms have the same meaning as they have in the 1980 Regulations.
      (2)
This paragraph applies in relation to a friendly society which has adopted
the prescribed scheme or an approved scheme in accordance with the
provisions of the 1977 Regulations.
10
      (3)
The prescribed scheme or the approved scheme, and the 1977 Regulations
and the 1980 Regulations, have effect in relation to the friendly society on the
following basis.
      (4)
That basis is—
(a)
paragraph 23 above does not remove any person’s entitlement to
15
relief under section 266 of ICTA but does change the authorised
percentage to 0%,
(b)
the effective date in relation to that change is 6 April 2015,
(c)
as well as having effect in relation to gross contributions due and
payable on or after 6 April 2015, that change has effect in relation to
20
gross contributions due and payable before that date so far as they
are actually paid on or after 6 July 2015 (and, in particular,
regulations 3(1) and 4(1) of the 1980 Regulations are to be read
accordingly), and
(d)
a resolution under regulation 3(1) of the 1980 Regulations may be
25
passed in relation to that change at any time before 6 April 2015.
      (5)
For regulation 5 of the 1980 Regulations substitute—
“5    (1)
This regulation applies if a gross contribution is amended under
regulation 4.
      (2)
The friendly society may notify the Financial Services Authority of
30
a proposal to amend the sum assured or guaranteed by the
contract by an amount determined in accordance with rules which
have been certified by an actuary to be fair in relation to the gross
contribution payable.
      (3)
The proposed amendment may be made at any time after the
35
expiry of the period of 3 months beginning with the day on which
the proposal is notified to the Financial Services Authority.”
      (6)
For regulation 8 of the 1980 Regulations substitute—
“8    (1)
This regulation applies if a friendly society adopted an approved
scheme under regulation 7 of the 1977 Regulations.
40
      (2)
The friendly society may notify the Financial Services Authority of
a proposal to amend the approved scheme in consequence of any
prospective change in the authorised percentage.
      (3)
The proposed amendment—

Finance Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 4 — Life assurance
661

(a)
may be made at any time after the expiry of the period of 3
months beginning with the day on which the proposal is
notified to the Financial Services Authority, but
(b)
must be made before 6 April 2015.”
27    (1)
In this paragraph—
5
(a)
“the 1980 Regulations” means the Industrial Assurance (Life
Assurance Premium Relief) (Change of Rate) Regulations 1980 (S.I.
1980/1948), and
(b)
terms have the same meaning as they have in the 1980 Regulations.
      (2)
This paragraph applies in relation to an industrial assurance company or
10
collecting society which has adopted the prescribed scheme or an approved
scheme in accordance with the provisions of the 1977 Regulations.
      (3)
The prescribed scheme or the approved scheme, and the 1977 Regulations
and the 1980 Regulations, have effect in relation to the industrial assurance
company or collecting society on the following basis.
15
      (4)
That basis is—
(a)
paragraph 23 above does not remove any person’s entitlement to
relief under section 266 of ICTA but does change the authorised
percentage to 0%,
(b)
the effective date in relation to that change is 6 April 2015,
20
(c)
as well as having effect in relation to gross premiums due and
payable on or after 6 April 2015, that change has effect in relation to
gross premiums due and payable before that date so far as they are
actually paid on or after 6 July 2015 (and, in particular, regulations
3(1) and 4(1) of the 1980 Regulations are to be read accordingly), and
25
(d)
a resolution under regulation 3(1) of the 1980 Regulations may be
passed in relation to that change at any time before 6 April 2015.
      (5)
For regulation 5 of the 1980 Regulations substitute—
“5    (1)
This regulation applies if a gross premium is amended under
regulation 4.
30
      (2)
The industrial assurance company or collecting society may notify
the Financial Services Authority of a proposal to amend the sum
assured or guaranteed by the policy or contract by an amount
determined in accordance with rules which have been certified by
an actuary to be fair in relation to the gross premium payable.
35
      (3)
The proposed amendment may be made at any time after the
expiry of the period of 3 months beginning with the day on which
the proposal is notified to the Financial Services Authority.”
      (6)
For regulation 8 of the 1980 Regulations substitute—
“8    (1)
This regulation applies if an industrial assurance company or
40
collecting society adopted an approved scheme under regulation
7 of the 1977 Regulations.
      (2)
The industrial assurance company or collecting society may notify
the Financial Services Authority of a proposal to amend the
approved scheme in consequence of any prospective change in the
45
authorised percentage.

Finance Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 4 — Life assurance
662

      (3)
The proposed amendment—
(a)
may be made at any time after the expiry of the period of 3
months beginning with the day on which the proposal is
notified to the Financial Services Authority, but
(b)
must be made before 6 April 2015.”
5
28    (1)
The following repeals are made in consequence of the provision made by
paragraph 23 above.

Act
Provision repealed

ICTA
Sections 266, 266A and 274.

Section 824(2D)(b) and (3)(ad).

10

Schedule 14.

In paragraph 8 of Schedule 15, the words from

“but” (in the second place it occurs) to the end.

FA 1988
Section 29.

Paragraph 9 of Schedule 3.

15

FA 1996
Section 167(5) and (6).

Paragraph 11 of Schedule 18.

Paragraph 20 of Schedule 20.

ITEPA 2003
Paragraphs 36 and 119 of Schedule 6.

FA 2004
Paragraphs 9 and 10 of Schedule 35.

20

ITA 2007
Section 811(6)(e) and the “and” before it.

Paragraph 232 of Schedule 1.

FA 2009
Paragraphs 3 to 5 of Schedule 1.

Paragraph 9D of Schedule 54.

      (2)
In section 989 of ITA 2007 (definitions for the purposes of the Income Tax
25
Acts) for the definition of “qualifying policy” substitute—
““qualifying policy” is to be read in accordance with Schedule
15 to ICTA,”.
      (3)
The amendments made by sub-paragraphs (1) and (2) come into force on the
day appointed by the Treasury by order made by statutory instrument.
30
      (4)
An order under sub-paragraph (3) may make transitional provision and
savings.
      (5)
A statutory instrument containing an order under sub-paragraph (3) is
subject to annulment in pursuance of a resolution of the House of Commons.
29    (1)
This paragraph applies if—
35
(a)
a policy which is a qualifying policy (within the meaning of the
Income Tax Acts) is varied or another policy is substituted for such a
policy, and
(b)
the variation or substitution is made for the sole purpose of dealing
with the consequences of the restrictions placed on relief under
40
section 266 of ICTA by virtue of paragraph 23 above.
      (2)
In the case of a variation, the variation does not itself affect the policy’s
status as a qualifying policy.
      (3)
In the case of a substitution, the new policy is to be a qualifying policy.

Finance Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 4 — Life assurance
663

30    (1)
In this paragraph “relevant variation” means a variation made for the sole
purpose of dealing with the consequences of the restrictions placed on relief
under section 266 of ICTA by virtue of paragraph 23 above.
      (2)
A relevant variation of a policy is not to be treated as a variation for the
purposes of—
5
(a)
paragraph 8(1) or (4) of Schedule 14 to ICTA, or
(b)
section 485(6) of ITTOIA 2005 (disregard of certain events in relation
to qualifying policies).
      (3)
A relevant variation of a policy or contract does not itself cause the
breaching of a limit set out in—
10
(a)
section 460(2)(c)(iii) or 464 of ICTA, or
(b)
section 155(3) (so far as relating to contracts made before 14 March
1984) or 160 of this Act.
Removal of claw-backs on relief given under section 266 of ICTA
31    (1)
In ICTA omit sections 268 to 272 (which provide for the “claw-back” of
15
income tax relief given under section 266 of ICTA).
      (2)
In consequence of the provision made by sub-paragraph (1), omit—
(a)
section 824(2D)(a) of ICTA,
(b)
paragraph 11 of Schedule 35 to FA 2004,
(c)
paragraph 123 of Schedule 1 to ITTOIA 2005, and
20
(d)
paragraph 21 of Schedule 39 to FA 2008.
      (3)
The amendments made by this paragraph have effect in relation to events
occurring in relation to policies on or after 6 April 2015.
Abolition of income tax relief relating to certain payments made for benefit of family members
etc
25
32    (1)
In Chapter 6 of Part 8 of ITA 2007 omit section 459 (which provides income
tax relief in relation to certain payments made by individuals for the benefit
of family members).
      (2)
In ITA 2007—
(a)
in sections 26(1)(a) and 27(5) omit “section 459 of this Act or section
30
273 of ICTA (payments for benefit of family members),”,
(b)
in section 423(5)—
(i)
after paragraph (b) insert “and”, and
(ii)
omit paragraph (d) (and the “and” before it),
(c)
in section 460—
35
(i)
omit subsection (1)(b) (and the “or” before it), and
(ii)
in subsection (4) for “, 458 or 459” substitute “or 458”,
(d)
in section 809G(2)(c) for “, 458 or 459” substitute “or 458”, and
(e)
omit section 811(6)(d) (but not the “and” after it).
      (3)
Section 609 of ITEPA 2003 (annuities for the benefit of dependants) is
40
amended as follows.
      (4)
In subsection (1), for the words from the second “which” to the end