(4) For subsection (3) substitute—

“(3) A club is not prevented from being “open to the whole community”
for the purposes of section 658 merely because it charges different
fees for different descriptions of person.”

5Meaning of “organised on an amateur basis”

3 (1) Section 660 (meaning of “organised on an amateur basis”) is amended as
follows.

(2) In subsection (1), omit the “and” after paragraph (b) and after that paragraph
insert—

“(ba) 10it does not exceed the limit on paid players (see subsection
(5A)), and”.

(3) In subsection (4)(g)—

(a) after “travel” insert “or subsistence”, and

(b) for “travelling to away matches” substitute “in connection with away
15matches”.

(4) After subsection (4) insert—

“(4A) In subsection (4)(g) “subsistence expenses” means expenses on food,
drink and temporary living accommodation.”

(5) After subsection (5) insert—

“(5A) 20A club does not exceed the limit on paid players for the purposes of
subsection (1) if—

(a) the number of persons paid to play for the club does not at
any time exceed the specified maximum,

(b) the number of such persons in any year does not exceed the
25specified maximum for that year,

(c) the amount paid to any such person in any year in respect of
activities undertaken for the club does not exceed the
specified maximum for that year, and

(d) the total amount paid to such persons in any year in respect
30of activities undertaken for the club does not exceed the
specified maximum for that year.

“Specified” means specified in regulations made by the Treasury.

(5B) The Treasury may by regulations make provision supplementing
subsection (5A), including—

(a) 35provision as when a person is, or is not, to be regarded as a
person paid to play for a club, and

(b) provision about calculating for the purposes of subsection
(5A) the amount paid to such a person.”

(6) After subsection (7) insert—

“(8) 40The Treasury may by regulations make further provision as to when
a club is “organised on an amateur basis” for the purposes of section
658.

(9) The provision that may be made by regulations under subsection (8)
includes—

(a) provision as to the conditions which a club must meet in
order to be “organised on an amateur basis” for the purposes
of section 658;

(b) provision as to what are, or are not, to be regarded as
5“ordinary benefits of an amateur sports club” for the
purposes of subsection (1);

(c) provision about persons who are, or are not, to be regarded
as guests of a member of a club for the purposes of subsection
(1).

(10) 10Regulations made under subsection (8) may amend this section or
make other amendments to this Chapter.

(11) A statutory instrument that contains (whether alone or with other
provisions) regulations under subsection (8) that amend this section
or make other amendments to this Chapter may not be made unless
15a draft of the instrument has been laid before, and approved by a
resolution of, the House of Commons.”

(7) After subsection (11) insert—

“(12) The provision that may be made by regulations under this section
includes—

(a) 20different provision for different purposes, and

(b) provision having effect in relation to times before the
regulations are made.

(13) Section 1171(4) (orders and regulations subject to negative resolution
procedure) does not apply to any regulations made under this
25section if a draft of the statutory instrument containing them has
been laid before, and approved by a resolution of, the House of
Commons.”

Clubs consisting mainly of social members

4 In section 658 (meaning of “community amateur sports club”), in subsection
30(1A)(c), for “section 661” substitute “sections 660A and 661”.

5 After section 660 insert—

“660A Clubs consisting mainly of social members

(1) A club is not to be regarded as a club that has as its main purpose the
provision of facilities for, and the promotion of participation in, one
35or more eligible sports if the percentage of its members who are
social members exceeds the percentage specified for the purposes of
this section in regulations made by the Treasury.

(2) A member is a “social member” for the purposes of this section if the
member does not participate, or participates only occasionally, in the
40sporting activities of the club.

(3) The Treasury may by regulations make provision—

(a) as to activities that are, or are not, to be regarded as “sporting
activities” of a club;

(b) as to the circumstances in which a member of a club is, or is
not, to be regarded as participating in the sporting activities
of the club;

(c) as to the circumstances in which a member of a club is, or is
5not, to be regarded as participating only occasionally in those
activities.

(4) The provision that may be made by regulations under this section
includes—

(a) different provision for different purposes, and

(b) 10provision having effect in relation to times before the
regulations are made.

(5) Section 1171(4) (orders and regulations subject to negative resolution
procedure) does not apply to any regulations made under this
section if a draft of the statutory instrument containing them has
15been laid before, and approved by a resolution of, the House of
Commons.”

Exemptions

6 In section 662 (exemption from corporation tax for UK trading income), after
subsection (5) insert—

“(5A) 20The Treasury may by order amend the figure for the time being
specified as the relevant threshold in subsection (5)(a).

(5B) A statutory instrument containing an order under subsection (5A)
that amends that figure so as to substitute a lower figure may not be
made unless a draft of the instrument has been laid before, and
25approved by a resolution of, the House of Commons.”

7 In section 663 (exemption from corporation tax for UK property income),
after subsection (5) insert—

“(5A) The Treasury may by order amend the figure for the time being
specified as the relevant threshold in subsection (5)(a).

(5B) 30A statutory instrument containing an order under subsection (5A)
that amends that figure so as to substitute a lower figure may not be
made unless a draft of the instrument has been laid before, and
approved by a resolution of, the House of Commons.”

Power to specify income condition

8 (1) 35The Treasury may by regulations provide that a club is not entitled to be
registered as a community amateur sports club under section 658 of CTA
2010 unless it meets one or more conditions relating to income received by
the club.

(2) The provision that may be made by regulations under this paragraph
40includes, in particular—

(a) provision restricting the amount of income, or income of a specified
description, that a community amateur sports club may receive for a
period, and

(b) provision prohibiting such a club from receiving income of a
45specified description.

“Specified” means specified in the regulations.

(3) Regulations made under this paragraph may—

(a) amend Chapter 9 of Part 13 of CTA 2010,

(b) make different provision for different purposes, and

(c) 5contain provision having effect in relation to times before the
regulations are made or this Act is passed.

(4) A statutory instrument that contains (whether alone or with other
provisions) regulations under this paragraph may not be made unless a
draft of the instrument has been laid before, and approved by a resolution
10of, the House of Commons.

Commencement

9 (1) Any power conferred on the Treasury under or by virtue of this Schedule to
make regulations or an order comes into force on the day on which this Act
is passed (and may be exercised to make provision having effect in relation
15to times before this Act is passed).

(2) So far as not already brought into force by virtue of sub-paragraph (1), the
amendments made by this Schedule come into force in accordance with
provision contained in an order made by the Treasury.

(3) An order made under sub-paragraph (2) may—

(a) 20provide for such amendments to be treated as having come into force
on a date not earlier than 1 April 2010;

(b) make transitional provision or savings.

10 (1) In a case where a club that was registered as a community amateur sports
club before the day on which this Act is passed ceases to be entitled to be
25registered as such by virtue of this Schedule, an officer of Revenue and
Customs may not cancel the club’s registration with effect from a date earlier
than that day.

(2) But sub-paragraph (1) does not prevent the cancellation of the club’s
registration if the officer is satisfied that—

(a) 30any information provided by a person (“P”) at the time of
registration was inaccurate, and

(b) the inaccuracy was careless (within the meaning of paragraph 3 of
Schedule 24 to FA 2007) or deliberate on P’s part.

Section 47

SCHEDULE 21 35Transitional provision relating to reduction in standard lifetime allowance
etc

Part 1 “Fixed protection 2014”

1 (1) This paragraph applies on or after 6 April 2014 in the case of an individual—

(a) 40who, on that date, has one or more arrangements under—

(i) a registered pension scheme, or

(ii) a relieved non-UK pension scheme of which the individual is
a relieved member,

(b) in relation to whom paragraph 7 of Schedule 36 to FA 2004 (primary
protection) does not make provision for a lifetime allowance
5enhancement factor,

(c) in relation to whom paragraph 12 of that Schedule (enhanced
protection) does not apply on that date, and

(d) in whose case paragraph 14 of Schedule 18 to FA 2011 (transitional
provision relating to new standard lifetime allowance for the tax year
102012-13) does not apply on that date,

if notice of intention to rely on it is given to an officer of Revenue and
Customs.

(2) Part 4 of FA 2004 has effect in relation to the individual as if the standard
lifetime allowance were the greater of the standard lifetime allowance and
15£1,500,000.

(3) But this paragraph ceases to apply if on or after 6 April 2014—

(a) there is benefit accrual in relation to the individual under an
arrangement under a registered pension scheme,

(b) there is an impermissible transfer into any arrangement under a
20registered pension scheme relating to the individual,

(c) a transfer of sums or assets held for the purposes of, or representing
accrued rights under, any such arrangement is made that is not a
permitted transfer, or

(d) an arrangement relating to the individual is made under a registered
25pension scheme otherwise than in permitted circumstances.

(4) For the purposes of sub-paragraph (3)(a) there is benefit accrual in relation
to the individual under an arrangement—

(a) in the case of a money purchase arrangement that is not a cash
balance arrangement, if a relevant contribution is paid under the
30arrangement on or after 6 April 2014,

(b) in the case of a cash balance arrangement or a defined benefits
arrangement, if there is an increase in the value of the individual’s
rights under the arrangement at any time on or after that date (but
subject to sub-paragraph (11)), and

(c) 35in the case of a hybrid arrangement—

(i) where the benefits that may be provided to or in respect of
the individual under the arrangement include money
purchase benefits other than cash balance benefits, if a
relevant contribution is paid under the arrangement on or
40after 6 April 2014, and

(ii) in any case, if there is an increase in the value of the
individual’s rights under the arrangement at any time on or
after that date (but subject to sub-paragraph (11)).

(5) For the purposes of sub-paragraphs (4)(b) and (c)(ii) and (11) whether there
45is an increase in the value of the individual’s rights under the arrangement
(and its amount if there is) is to be determined—

(a) in the case of a cash balance arrangement (or a hybrid arrangement
under which cash balance benefits may be provided to or in respect
of the individual under the arrangement), by reference to whether
50there is an increase in the amount that would, on the valuation

assumptions, be available for the provision of benefits to or in respect
of the member (and, if there is, the amount of the increase), and

(b) in the case of a defined benefits arrangement (or a hybrid
arrangement under which defined benefits may be provided to or in
5respect of the individual under the arrangement), by reference to
whether there is an increase in the benefits amount.

(6) For the purposes of sub-paragraph (5)(b) “the benefits amount” is—

(7) Paragraph 17A of Schedule 36 to FA 2004 (impermissible transfers) applies
for the purposes of sub-paragraph (3)(b) but as if the references to a relevant
existing arrangement were to the arrangement and the reference in sub-
paragraph (2) to 5 April 2006 were to 5 April 2014.

(8) 20Sub-paragraphs (7) to (8B) of paragraph 12 of Schedule 36 to FA 2004 (when
there is a permitted transfer) apply for the purposes of sub-paragraph (3)(c);
and where there is a permitted transfer—

(a) if it is a permitted transfer by virtue of sub-paragraph (8)(a) of
paragraph 12, this paragraph applies in relation to the arrangement
25to which the transfer is made,

(b) if it is a permitted transfer by virtue of sub-paragraph (8)(b) of that
paragraph, this paragraph applies in relation to the arrangement to
which the transfer is made as if it were the same as that from which
it is made, and

(c) 30if it is a permitted transfer by virtue of sub-paragraph (8)(c) of that
paragraph, this paragraph applies in relation to the arrangement to
which the transfer is made as if it were the same as that from which
it is made and (if the employment is transferred) as if the
employment with the transferee were the employment with the
35transferor.

(9) Sub-paragraphs (2A) to (2C) of paragraph 12 of Schedule 36 to FA 2004
(“permitted circumstances”) apply for the purposes of sub-paragraph (3)(d).

(10) Paragraph 14 of Schedule 36 to FA 2004 (when a relevant contribution is paid
under an arrangement) applies for the purposes of sub-paragraph (4)(a) and
40(c)(i).

(11) Increases in the value of the individual’s rights under an arrangement are to
be ignored for the purposes of sub-paragraph (4)(b) or (c)(ii) if in no tax year
do they exceed the relevant percentage.

(12) The relevant percentage, in relation to a tax year, means—

(a) 45where the arrangement (or a predecessor arrangement) includes
provision for the value of the rights of the individual to increase
during the tax year at an annual rate specified in the rules of the
pension scheme (or a predecessor registered pension scheme) on 11
December 2012—

(i) that percentage (or, where more than one arrangement
includes such provision, the higher or highest of the
percentages specified), plus

(ii) the relevant statutory increase percentage;

(b) 5otherwise—

(i) the percentage by which the consumer prices index for the
month of September in the previous tax year is higher than it
was for the September before that (or nil per cent if it is not
higher), or

(ii) 10if higher, the relevant statutory increase percentage.

(13) In sub-paragraph (12)(a)—

• “predecessor arrangement”, in relation to an arrangement, means
  another arrangement (under the same or another registered pension
  scheme) from which some or all of the sums or assets held for the
  15purposes of the arrangement directly or indirectly derive;

• “predecessor registered pension scheme”, in relation to a pension
  scheme, means another registered pension scheme from which some
  or all of the sums or assets held for the purposes of the arrangement
  under the pension scheme directly or indirectly derive.

(14) 20In sub-paragraph (12) “the relevant statutory increase percentage”, in
relation to a tax year, means the percentage increase in the value of the
individual’s rights under the arrangement during the tax year so far as it is
attributable solely to one or more of the following—

(a) an increase in accordance with section 15 of the Pension Schemes Act
251993 or section 11 of the Pension Schemes (Northern Ireland) Act
1993 (increase of guaranteed minimum where commencement of
guaranteed minimum pension postponed);

(b) a revaluation in accordance with section 16 of the Pension Schemes
Act 1993 or section 12 of the Pension Schemes (Northern Ireland) Act
301993 (early leavers: revaluation of earnings factors);

(c) a revaluation in accordance with Chapter 2 of Part 4 of the Pension
Schemes Act 1993 or the Pension Schemes (Northern Ireland) Act
1993 (early leavers: revaluation of accrued benefits);

(d) a revaluation in accordance with Chapter 3 of Part 4 of the Pension
35Schemes Act 1993 or the Pension Schemes (Northern Ireland) Act
1993 (early leavers: protection of increases in guaranteed minimum
pensions);

(e) the application of section 67 of the Equality Act 2010 (sex equality
rule for occupational pension schemes).

(15) 40Sub-paragraph (16) applies in relation to a tax year if—

(a) the arrangement is a defined benefits arrangement which is under an
annuity contract treated as a registered pension scheme under
section 153(8) of FA 2004,

(b) the contract provides for the value of the rights of the individual to
45be increased during the tax year at an annual rate specified in the
contract, and

(c) the contract limits the annual rate to the percentage increase in the
retail prices index over a 12 month period specified in the contract.

(16) Sub-paragraph (12)(b)(i) applies as if it referred instead to the annual rate of
50the increase in the value of the rights during the tax year.

(17) For the purposes of sub-paragraph (15)(c) the 12 month period must end
during the 12 month period preceding the month in which the increase in the
value of the rights occurs.

(18) Subject to sub-paragraphs (19) to (21), sub-paragraph (3) applies in relation
5to an individual who is a relieved member of a relieved non-UK pension
scheme as if the relieved non-UK pension scheme were a registered pension
scheme; and the other sub-paragraphs of this paragraph apply accordingly.

(19) Sub-paragraphs (20) and (21) apply for the purposes of sub-paragraph (3)(a)
(instead of sub-paragraph (4)) in determining if there is benefit accrual in
10relation to an individual under an arrangement under a relieved non-UK
pension scheme of which the individual is a relieved member.

(20) There is benefit accrual in relation to the individual under the arrangement
if there is a pension input amount under sections 230 to 237 of FA 2004 (as
applied by Schedule 34 to that Act) greater than nil in respect of the
15arrangement for a tax year; and, in such a case, the benefit accrual is treated
as occurring at the end of the tax year.

(21) There is also benefit accrual in relation to the individual under the
arrangement if—

(a) in a tax year there occurs a benefit crystallisation event in relation to
20the individual (whether in relation to the arrangement or to any
other arrangement under any pension scheme or otherwise), and

(b) had the tax year ended immediately before the benefit crystallisation
event, there would have been a pension input amount under sections
230 to 237 of FA 2004 greater than nil in respect of the arrangement
25for the tax year,

and, in such a case, the benefit accrual is treated as occurring immediately
before the benefit crystallisation event.

(22) Expressions used in this paragraph and Part 4 of FA 2004 (pension schemes)
have the same meaning in this paragraph as in that Part.

(23) 30In particular, references to a relieved non-UK pension scheme or a relieved
member of such a scheme are to be read in accordance with paragraphs 13(3)
and (4) and 18 of Schedule 34 to FA 2004 (application of lifetime allowance
charge provisions to members of overseas pension schemes).

2 (1) The Commissioners for Her Majesty’s Revenue and Customs may by
35regulations amend paragraph 1.

(2) Regulations under this paragraph may (for example) add to the cases in
which paragraph 1 is to apply or is to cease to apply.

(3) Regulations under this paragraph may include provision having effect in
relation to a time before the regulations are made; but—

(a) 40the time must be no earlier than 6 April 2014, and

(b) the provision must not increase any person’s liability to tax.

3 (1) The Commissioners for Her Majesty’s Revenue and Customs may by
regulations make provision specifying how any notice required to be given
to an officer of Revenue and Customs under paragraph 1 is to be given.

(2) 45In sub-paragraph (1) the reference to paragraph 1 is to that paragraph as
amended from time to time by regulations under paragraph 2.

4 (1) Regulations under paragraph 2 or 3 may include supplementary or
incidental provision.

(2) The powers to make regulations under paragraphs 2 and 3 are exercisable by
statutory instrument.

(3) 5A statutory instrument containing regulations under paragraph 2 or 3 is
subject to annulment in pursuance of a resolution of the House of Commons.

Part 2 Other provision

5 Part 4 of FA 2004 (pension schemes) is amended as follows.

6 (1) 10Section 218 (standard lifetime allowance etc) is amended as follows.

(2) After subsection (5B) insert—

“(5BA) Where the operation of a lifetime allowance enhancement factor is
provided for by any of sections 220, 222, 223 and 224 and the time
mentioned in the definition of SLA in the section concerned fell
15within the period consisting of the tax year 2012-13 and the tax year
2013-14, subsection (4) has effect as if the amount to be multiplied by
LAEF were £1,500,000 if that is greater than SLA.

(5BB) Where more than one lifetime allowance enhancement factor
operates, subsection (5BA) does not apply if subsection (5A) or (5B)
20applies.”

(3) After subsection (5C) insert—

“(5D) Where benefit crystallisation event 7 occurs on or after 6 April 2014
by reason of the payment of a relevant lump sum death benefit in
respect of the death of the individual during the period consisting of
25the tax year 2012-13 and the tax year 2013-14, the standard lifetime
allowance at the time of the benefit crystallisation event is
£1,500,000.”

(4) The amendments made by this paragraph have effect for the tax year 2014-
15 and subsequent tax years.

7 (1) 30In section 219 (availability of individual’s lifetime allowance) after
subsection (5) insert—

“(5A) If paragraph 7 of Schedule 36 (primary protection) makes provision
for a lifetime allowance enhancement factor in relation to the
individual, subsection (5) has effect as if CSLA were £1,500,000 if that
35is greater than CSLA.”

(2) The amendment made by this paragraph has effect for cases in which the
time of the current benefit crystallisation event falls on or after 6 April 2014.

8 (1) Part 1 of Schedule 29 (authorised lump sums: lump sum rule) is amended as
follows.

(2) 40In paragraph 2 (which applies for the purpose of determining pension

commencement lump sums) after sub-paragraph (8) insert—

“(9) Sub-paragraph (10) applies if the member is a protected individual
(but not if this paragraph applies with the modifications set out in
paragraph 27 or 28 of Schedule 36).

(10) 5Sub-paragraphs (6) and (7) have effect as if CSLA were £1,500,000
if that is greater than CSLA.

(11) The member is a “protected individual” if—

(a) paragraph 7 of Schedule 36 (primary protection) makes
provision for a lifetime allowance enhancement factor in
10relation to the member, or

(b) at the time the member becomes entitled to the lump sum,
paragraph 12 of that Schedule (enhanced protection)
applies in relation to the member.”

(3) The amendment made by sub-paragraph (2) has effect for cases in which the
15member becomes entitled to the lump sum on or after 6 April 2014.

(4) In paragraph 8 (which applies for the purpose of determining trivial
commutation lump sums) for sub-paragraphs (2) and (3) substitute—

“(2) The adjustment referred to in sub-paragraph (1)(a) is the
multiplication of the value of the member’s relevant crystallised
20pension rights on 5 April 2006 by—

(3) The adjustment referred to in sub-paragraph (1)(b) is the
multiplication of the amount crystallised by a previous benefit
25crystallisation event by—

(5) The amendment made by sub-paragraph (4) has effect for cases in which the
nominated date falls on or after 6 April 2014.

Section 54

SCHEDULE 22 Employee shareholder shares

35Part 1 Income tax treatment of employee shareholder shares

1 ITEPA 2003 is amended in accordance with paragraphs 2 to 15.

2 In section 19(2) (time of receipt of non-money earnings), at the appropriate