Session 2012 - 13
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Finance Bill


Finance Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 5 — Capital allowances

664

 

substitute “—

(a)   

which, in the tax year 2012-13 or an earlier tax year, satisfied

the conditions for relief under section 273 of ICTA or section

459 of ITA 2007 (obligatory contributions to secure an

annuity for the benefit of dependants), or

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(b)   

which fall within subsection (3)”.

      (5)  

After subsection (2) insert—

“(3)   

A sum falls within this subsection if—

(a)   

in the tax year 2013-14 or a later tax year, the sum is paid by

an individual, or is deducted from an individual’s earnings,

10

under an Act or the individual’s terms and conditions of

employment,

(b)   

the sum is for the purpose of—

(i)   

securing a deferred annuity after the individual’s

death for the individual’s surviving spouse or civil

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partner, or

(ii)   

making provision after the individual’s death for the

individual’s children, and

(c)   

the individual—

(i)   

is UK resident for the tax year in which the sum is

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paid or deducted, or

(ii)   

at any time in that tax year, falls within any of

paragraphs (a) to (f) of section 460(3) of ITA 2007

(matters relating to residence).

(4)   

Subsection (3)(a) does not cover contributions paid by a person

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under—

(a)   

Part 1 of the Social Security Contributions and Benefits Act

1992, or

(b)   

Part 1 of the Social Security Contributions and Benefits

(Northern Ireland) Act 1992.

30

(5)   

In subsection (3)(a) “earnings” has the meaning given by section 62.”

      (6)  

The amendments made by this paragraph have effect for the tax year 2013-

14 and subsequent tax years.

Part 5

Capital allowances

35

Safety at sports grounds

33         

The following provisions of Part 2 of CAA 2001 (plant and machinery

allowances) are repealed—

(a)   

section 30 (safety at designated sports grounds),

(b)   

section 31 (safety at regulated stands at sports grounds), and

40

(c)   

section 32 (safety at other sports grounds).

34    (1)  

In consequence of the provision made by paragraph 33, CAA 2001 is

amended as follows.

      (2)  

In section 23(2) (expenditure unaffected by sections 21 and 22), omit—

 
 

Finance Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 5 — Capital allowances

665

 

(a)   

the entry relating to section 30,

(b)   

the entry relating to section 31, and

(c)   

the entry relating to section 32.

      (3)  

In section 27 (application of Part 2 to thermal insulation, safety measures,

etc)—

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(a)   

in subsection (1)(a), for “any of sections 28 to 33” substitute “section

28 or 33”, and

(b)   

in the heading, for “, safety measures, etc” substitute “and personal

security”,

           

and, in the italic heading before that section, for “, safety measures, etc

10

substitute “and personal security”.

35         

The amendments made by paragraphs 33 and 34 have effect—

(a)   

for corporation tax purposes, in relation to expenditure incurred on

or after 1 April 2013, and

(b)   

for income tax purposes, in relation to expenditure incurred on or

15

after 6 April 2013.

Flat conversion allowances

36         

Part 4A of CAA 2001 (flat conversion allowances) does not apply—

(a)   

for corporation tax purposes, in relation to expenditure incurred on

or after 1 April 2013, and

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(b)   

for income tax purposes, in relation to expenditure incurred on or

after 6 April 2013.

37         

Part 4A of CAA 2001 is repealed.

38    (1)  

In consequence of the provision made by paragraph 37, CAA 2001 is

amended as follows.

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      (2)  

In section 1(2) (allowances for which Act provides), omit paragraph (ca).

      (3)  

In section 2(3) (giving effect to capital allowances), omit the entry relating to

section 393T.

      (4)  

In section 567(1) (sales treated as being for alternative amount:

introductory), omit “4A,”.

30

      (5)  

In section 570(1) (elections under section 569: supplementary), omit “or 4A”.

      (6)  

In section 570A(1) (avoidance affecting proceeds of balancing event), omit

“4A,”.

      (7)  

In section 573(1) (transfers treated as sales), omit “, 4A”.

      (8)  

In Part 2 of Schedule 1 (list of defined expressions), omit the entries for the

35

following defined expressions—

“balancing adjustment (in Part 4A)”,

“balancing event (in Part 4A)”,

“dwelling (in Part 4A)”,

“flat (in Part 4A)”,

40

“lease and related expressions (in Part 4A)”,

“proceeds from a balancing event (in Part 4A)”,

“qualifying building (in Part 4A)”,

 
 

Finance Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 5 — Capital allowances

666

 

“qualifying flat (in Part 4A)”,

“relevant interest (in Part 4A)”, and

“residue of qualifying expenditure (in Part 4A)”.

      (9)  

In Part 2 of that Schedule, in the entry for “sale, transfers under Parts 3A, 4A

and 10 treated as”, omit “, 4A”.

5

39         

In consequence of the provision made by paragraphs 37 and 38, the

following provisions are repealed—

(a)   

in FA 2001, section 67 and Schedule 19,

(b)   

in ITTOIA 2005, paragraphs 559 and 560 of Schedule 1, and

(c)   

in CTA 2009, paragraphs 505 to 507 of Schedule 1.

10

40    (1)  

The amendments made by paragraphs 37 to 39 have effect—

(a)   

for corporation tax purposes, in relation to chargeable periods

beginning on or after 1 April 2013, and

(b)   

for income tax purposes, in relation to chargeable periods beginning

on or after 6 April 2013.

15

      (2)  

But see also—

(a)   

paragraph 41 (which deals with the case of a company’s chargeable

period for corporation tax purposes straddling 1 April 2013), and

(b)   

paragraph 42 (which saves the continued operation of certain

provisions).

20

41    (1)  

This paragraph applies if, for corporation tax purposes, the chargeable

period of a company begins before, and ends on or after, 1 April 2013.

      (2)  

The company is entitled only to the relevant proportion of any writing-

down allowance for that chargeable period to which it would, but for this

paragraph, have been entitled under section 393J of CAA 2001.

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      (3)  

The relevant proportion is—

A

B

           

where—

A is the number of days in the chargeable period falling before 1 April

2013, and

B is the number of days in the chargeable period.

30

42    (1)  

Nothing in paragraph 37 or 40(1) is to affect the operation of—

(a)   

section 393I of CAA 2001 (withdrawal of allowance if flat not

qualifying flat or if relevant interest sold before flat first let), or

(b)   

sections 393M to 393P of CAA 2001 (balancing adjustments),

           

for chargeable periods beginning on or after the relevant date in relation to

35

expenditure incurred before that date.

      (2)  

The relevant date is—

(a)   

for corporation tax purposes, 1 April 2013, and

(b)   

for income tax purposes, 6 April 2013.

 
 

Finance Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 6 — Mineral leases or agreements

667

 

Part 6

Mineral leases or agreements

Income tax

43    (1)  

The following provisions of ITTOIA 2005 (which provide for income tax

relief in relation to mineral royalties) are repealed—

5

(a)   

section 157 (mineral royalties included as receipts of a trade),

(b)   

section 319 (mineral royalties included as receipts of a UK property

business), and

(c)   

sections 340 to 343 (mineral royalties receivable in connection with

mines, quarries and other concerns).

10

      (2)  

In consequence of the provision made by sub-paragraph (1)—

(a)   

in ITTOIA 2005—

(i)   

in section 337, omit the entry relating to section 340 (and the

“and” before that entry), and

(ii)   

in section 339, omit subsection (3), and

15

(b)   

in CRCA 2005, in Schedule 4, omit paragraph 132(3)(a).

      (3)  

The amendments made by this paragraph have effect in relation to mineral

royalties which a person is entitled to receive on or after 6 April 2013.

Corporation tax on income

44    (1)  

The following provisions of CTA 2009 (which provide for corporation tax

20

relief on income in relation to mineral royalties) are repealed—

(a)   

section 135 (mineral royalties included as receipts of a trade),

(b)   

section 258 (mineral royalties included as receipts of a UK property

business), and

(c)   

sections 273 to 276 (mineral royalties receivable in connection with

25

mines, quarries and other concerns).

      (2)  

In consequence of the provision made by sub-paragraph (1)(c), in section 272

of CTA 2009, omit subsection (3).

      (3)  

The amendments made by this paragraph have effect in relation to mineral

royalties which a company is entitled to receive on or after 1 April 2013.

30

Chargeable gains

45    (1)  

Section 201 of TCGA 1992 (mineral leases: royalties) is repealed.

      (2)  

In consequence of the provision made by sub-paragraph (1), in section 203

of TCGA 1992—

(a)   

in subsection (1), for “sections 201 and 202” substitute “section 202”,

35

and

(b)   

in the heading, for “sections 201 and 202” substitute “section 202”.

      (3)  

The amendments made by this paragraph have effect—

(a)   

for the purposes of capital gains tax, in relation to mineral royalties

which a person is entitled to receive on or after 6 April 2013, and

40

 
 

Finance Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 7 — Miscellaneous

668

 

(b)   

for the purposes of corporation tax in respect of chargeable gains, in

relation to mineral royalties which a company is entitled to receive

on or after 1 April 2013.

46    (1)  

Section 202 of TCGA 1992 (mineral leases: capital losses) is amended as

follows.

5

      (2)  

In subsection (1)—

(a)   

after “currency of a mineral lease or agreement” insert “entered into

before the relevant date”, and

(b)   

after “in relation to a mineral lease or agreement” insert “entered into

before that date”.

10

      (3)  

After that subsection insert—

“(1A)   

For the purposes of this section “the relevant date” means—

(a)   

for the purposes of capital gains tax, 6 April 2013; and

(b)   

for the purposes of corporation tax in respect of chargeable

gains, 1 April 2013.”

15

      (4)  

In subsection (3), after “termination of a mineral lease or agreement” insert

“entered into before the relevant date”.

47         

In section 203 of TCGA 1992 (provisions supplementary to sections 201 and

202), in subsection (1), for “as they apply for the interpretation of Chapter 7

of Part 4 of CTA 2009” substitute “(despite their repeal by paragraph 44(1)(c)

20

of Schedule 38 to the Finance Act 2012)”.

Part 7

Miscellaneous

Deeply discounted securities: incidental expenses

48    (1)  

In section 455 of ITTOIA 2005 (listed securities held since 26 March 2003:

25

calculating the profit or loss on disposals)—

(a)   

in subsection (1), after “incurred” insert “before 6 April 2015”, and

(b)   

in subsection (3)(b), after “incurred” insert “before 6 April 2015”.

      (2)  

The amendments made by this paragraph have effect for the tax year 2015-

16 and subsequent tax years.

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Grants for giving up agricultural land

49    (1)  

Section 249 of TCGA 1992 (grants for giving up agricultural land) is

repealed.

      (2)  

Accordingly, the italic heading before that section becomes “Woodlands”.

      (3)  

The amendments made by this paragraph have effect in relation to disposals

35

made on or after 6 April 2013.

Reduction for meal vouchers

50    (1)  

Section 89 of ITEPA 2003 (reduction for meal vouchers) is repealed.

      (2)  

Accordingly, in that Act—

 
 

Finance Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 7 — Miscellaneous

669

 

(a)   

in section 87 (benefit of non-cash voucher treated as earnings), omit

subsection (6), and

(b)   

in Schedule 7 (transitionals and savings), omit paragraph 18.

      (3)  

The amendments made by this paragraph have effect for the tax year 2013-

14 and subsequent tax years.

5

Black beer

51    (1)  

ALDA 1979 is amended as follows.

      (2)  

In section 1 (alcoholic liquors dutiable under ALDA 1979)—

(a)   

in subsection (3), omit from “, but” to the end of the subsection, and

(b)   

in subsection (5), omit “black beer,”.

10

      (3)  

In section 4(1) (interpretation), omit the definition of “black beer”.

      (4)  

In section 55(5)(b) (made-wine: exception to requirement for excise licence),

omit “or black beer”.

      (5)  

The amendments made by sub-paragraphs (2) and (3) come into force on 1

April 2013.

15

      (6)  

The amendment made by sub-paragraph (4) has effect in relation to the use

on or after 1 April 2013 of ingredients that include black beer.

Angostura bitters

52    (1)  

In ALDA 1979, omit—

(a)   

section 1(7) (angostura bitters deemed not to be spirits), and

20

(b)   

section 6 (power to exempt angostura bitters from duty).

      (2)  

In Schedule 5 to FA 1994 (decisions subject to review and appeal), omit

paragraph 3(1)(a).

      (3)  

The amendments made by this paragraph come into force on 1 April 2013.

Tax reserve certificates

25

53    (1)  

The following provisions are repealed—

(a)   

section 750 of ITTOIA 2005 (interest from tax reserve certificates);

(b)   

section 1283 of CTA 2009 (interest from tax reserve certificates).

      (2)  

In consequence of the provision made by sub-paragraph (1), in section 369

of ITTOIA 2005 (charge to tax on interest), in subsection (3)(e), omit “tax

30

reserve certificates,”.

      (3)  

The repeals made by sub-paragraphs (1)(a) and (2) have effect in relation to

tax reserve certificates redeemed on or after 6 April 2013.

      (4)  

The repeal made by sub-paragraph (1)(b) has effect in relation to tax reserve

certificates redeemed on or after 1 April 2013.

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Tax assessors

54    (1)  

Section 62(2) and (3) of FA 1946 (compensation for former land tax assessors

and income tax assessors, etc) is repealed.

 
 

Finance Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 7 — Miscellaneous

670

 

      (2)  

In consequence of the provision made by sub-paragraph (1), in Schedule 2 to

the Pensions (Increase) Act 1971 (official pensions), in paragraph 34, omit “or

section 62 of the Finance Act 1946”.

      (3)  

The amendments made by this paragraph come into force on 6 April 2013.

 
 

 
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Revised 9 May 2012