Session 2013 - 14
Internet Publications
Other Bills before Parliament

Finance Bill


Finance Bill
Part 1 — Income Tax, Corporation Tax and Capital Gains Tax
Chapter 4 — Pensions

26

 

“relevant requirement” means—

(a)   

a requirement imposed by regulations under subsection

(4), or

(b)   

a requirement imposed by virtue of Part 1 of Schedule 36

to FA 2008 (powers to obtain information and

5

documents).”

(8)   

In section 280(1) of that Act (abbreviations), insert at the appropriate place—

““FA 2008” means the Finance Act 2008,”.

53      

Overseas pension schemes: information and inspection powers

(1)   

Part 6 of Schedule 36 to FA 2008 (information and inspection powers: special

10

cases) is amended as follows.

(2)   

In paragraph 34B (registered pension schemes etc)—

(a)   

in sub-paragraph (2), omit the “or” at the end of paragraph (b) and, at

the end of paragraph (c) insert—

“(d)   

a QROPS or former QROPS, or

15

(e)   

an annuity purchased with sums or assets held for the

purposes of a QROPS or former QROPS.”;

(b)   

after sub-paragraph (4) insert—

   “(4A)  

In relation to a notice to which this paragraph applies that

refers only to information or documents relating to a matter

20

within sub-paragraph (2)(d) or (e), paragraph 20 (old

documents) has effect as if the reference to 6 years were to 10

years.”;

(c)   

after sub-paragraph (7) insert—

   “(7A)  

Where the notice relates to a matter within sub-paragraph

25

(2)(d) or (e), the officer of Revenue and Customs who gives

the notice must give a copy of the notice to the scheme

manager in relation to the pension scheme.”;

(d)   

in sub-paragraph (8), for “and (7)” substitute “to (7A)”.

(3)   

In paragraph 34C (registered pension schemes etc: interpretation), insert at the

30

appropriate places—

““QROPS” and “former QROPS” have the meanings given by

section 169(8) of FA 2004;”;

““scheme manager”, in relation to a pension scheme, has the

meaning given by section 169(3) of FA 2004.”

35

(4)   

In paragraphs 34B and 34C of Schedule 36 to FA 2008, references to a former

QROPS include a scheme that ceased to be a QROPS before this Act was

passed.

 
 

Finance Bill
Part 1 — Income Tax, Corporation Tax and Capital Gains Tax
Chapter 5 — Other provisions

27

 

Chapter 5

Other provisions

Employee shareholder shares

54      

Employee shareholder shares

Schedule 22 contains provision about employee shareholder shares.

5

Seed enterprise investment scheme

55      

SEIS: income tax relief

(1)   

ITA 2007 is amended as follows.

(2)   

In section 29 (tax reductions: supplementary), in subsection (4B), after the entry

for Chapter 1 of Part 5 insert—

10

“Chapter 1 of Part 5A (SEIS relief),”.

(3)   

In section 32 (liability not dealt with in the calculation), after the entry for

section 235 insert—

“under section 257G (withdrawal or reduction of SEIS relief),”.

(4)   

In section 257DG (the control and independence requirement), for subsection

15

(2) substitute—

“(2)   

The independence element of the requirement is that—

(a)   

the issuing company must not at any time in period A (ignoring

any on-the-shelf period) be within subsection (2A), and

(b)   

no arrangements must be in existence at any time in period A by

20

virtue of which the issuing company could be within that

subsection (whether during period A or otherwise).

(2A)   

The issuing company is within this subsection at any time if it is under

the control of any other company (or of another company and any other

person connected with that other company).

25

(2B)   

In subsection (2)(a) “on-the-shelf period” means a period during which

the issuing company—

(a)   

has not issued any shares other than subscriber shares, and

(b)   

has not begun to carry on, or make preparations for carrying on,

any trade or business.”

30

(5)   

The amendments made by subsections (2) and (3) have effect for the tax year

2013-14 and subsequent tax years.

(6)   

The amendment made by subsection (4) has effect in relation to shares issued

on or after 6 April 2013.

56      

SEIS: re-investment relief

35

(1)   

Schedule 5BB to TCGA 1992 (seed enterprise investment scheme: re-

investment) is amended as follows.

(2)   

In paragraph 1 (SEIS re-investment relief)—

 
 

Finance Bill
Part 1 — Income Tax, Corporation Tax and Capital Gains Tax
Chapter 5 — Other provisions

28

 

(a)   

in sub-paragraph (2)—

(i)   

in paragraph (a), after “the tax year 2012-13” insert “or the tax

year 2013-14 (the year in question being referred to in this

Schedule as “the relevant year”)”, and

(ii)   

in paragraph (b), for “that year” substitute “the relevant year”,

5

(b)   

in sub-paragraph (3)(a), for “tax year 2012-13” substitute “relevant

year”, and

(c)   

for sub-paragraph (5) substitute—

“(5)   

The relevant percentage of the available SEIS expenditure is to

be set against a corresponding amount of the original gain.

10

(5A)   

In sub-paragraph (5)—

“the available SEIS expenditure” means so much of the

SEIS expenditure as—

(a)   

is specified in the claim,

(b)   

is unused, and

15

(c)   

does not exceed so much of the original gain as

is unmatched;

“the relevant percentage” means—

(a)   

if the relevant year is the tax year 2012-13, 100%,

and

20

(b)   

if the relevant year is the tax year 2013-14, 50%.”

(3)   

In paragraph 2 (restrictions on relief under paragraph 1)—

(a)   

in sub-paragraph (1), for “tax year 2012-13” substitute “relevant year”,

and

(b)   

in sub-paragraph (2)—

25

(i)   

for “tax year 2012-13” substitute “relevant year”, and

(ii)   

for “that tax year” substitute “that year”.

(4)   

In paragraph 5 (removal or reduction of relief) in sub-paragraph (2) for “2012-

13” substitute “in which the shares were issued”.

(5)   

Accordingly, in section 150G of TCGA (which introduces Schedule 5BB), for

30

“tax year 2012-13” substitute “tax years 2012-13 and 2013-14”.

Disincorporation

57      

Disincorporation relief

(1)   

A claim for relief under this section (“disincorporation relief”) may be made

where—

35

(a)   

a company transfers its business to some or all of the shareholders of

the company,

(b)   

the transfer of the business is a qualifying business transfer (see section

58), and

(c)   

the business transfer date falls within the period of 5 years beginning

40

with 1 April 2013.

(2)   

As to the consequences of a claim for disincorporation relief being made, see—

sections 162B and 162C of TCGA 1992;

section 849A of CTA 2009.

 
 

Finance Bill
Part 1 — Income Tax, Corporation Tax and Capital Gains Tax
Chapter 5 — Other provisions

29

 

(3)   

In this section and sections 58 to 60 “the business transfer date”, in relation to

the transfer of a business, is the date on which the business is transferred.

   

For this purpose, where the business is transferred under a contract—

(a)   

the date on which the business is transferred is to be determined in

accordance with section 28 of TCGA 1992, and

5

(b)   

if the business in question is transferred by more than one contract,

then for the purposes of that section the contract under which the

business is transferred is to be taken to be the contract under which the

goodwill of the business is transferred.

(4)   

This section and sections 58 and 59 apply to a transfer of a business with a

10

business transfer date of 1 April 2013 or a later date.

58      

Qualifying business transfer

(1)   

The transfer of a business from a company to some or all of the shareholders of

the company is a qualifying business transfer for the purposes of section 57 if

conditions A to E are met.

15

(2)   

Condition A is that the business is transferred as a going concern.

(3)   

Condition B is that the business is transferred together with all of the assets of

the business, or together with all of those assets other than cash.

(4)   

Condition C is that the total market value of the qualifying assets of the

business included in the transfer does not exceed £100,000.

20

(5)   

Condition D is that all of the shareholders to whom the business is transferred

are individuals.

(6)   

Condition E is that each of those shareholders held shares in the company

throughout the period of 12 months ending with the business transfer date.

(7)   

For the purposes of condition D, the reference to individuals includes an

25

individual acting as a member of a partnership, but does not include an

individual acting as a member of a limited liability partnership.

(8)   

Section 60 of TCGA 1992 (nominees and bare trustees) applies for the purposes

of this section as it applies for the purposes of that Act.

(9)   

In this section “market value”, in relation to an asset, means the price which the

30

asset might reasonably be expected to fetch on a sale in the open market.

(10)   

In this section a “qualifying asset” means—

(a)   

goodwill, or

(b)   

an interest in land which is not held as trading stock.

59      

Making a claim

35

(1)   

A claim for disincorporation relief under section 57

(a)   

is to be made jointly by the company and all of the shareholders to

whom the business is transferred, and

(b)   

is irrevocable.

(2)   

Any claim for disincorporation relief must be made within the period of 2 years

40

beginning with the business transfer date.

 
 

 
previous section contents continue
 

© Parliamentary copyright
Revised 8 May 2013