Finance Bill

Session 2013 - 14
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Finance Bill

Finance Bill
Schedule 19 — Tax mismatch schemes
314

938V
  Priority

For the purposes of this Part the following provisions are to be
treated as of no effect—
(a)
section 441 of CTA 2009 (loan relationships for unallowable
purposes);
5
(b)
section 690 of that Act (derivative contracts for unallowable
purposes);
(c)
Part 6 of TIOPA 2010 (tax arbitrage);
(d)
Part 7 of that Act (tax treatment of financing costs and
income).”
10
4
In Schedule 4 (index of defined expressions), at the appropriate places
insert—

“economic loss (in Part 21BA)
section 938S”

“economic profit (in Part 21BA)
section 938S”

“relevant tax advantage (in Part 21BA)
section 938R”

15

“relevant tax disadvantage (in Part 21BA)
section 938R”

“scheme (in Part 21BA)
section 938U”

“scheme loss (in Part 21BA)
section 938Q”

“the scheme period (in Part 21BA)
section 938R”

“scheme profit (in Part 21BA)
section 938Q”.

20

“a tax mismatch scheme (in Part 21BA)
section 938P”.

5
In section 231(8) of TIOPA 2010 (tax arbitrage: overview), for the words from
“section” to the end substitute “sections 938N and 938V of CTA 2010 (this
Part treated as of no effect for the purposes of Parts 21B and 21BA of CTA
2010 (group mismatch and tax mismatch schemes)).”
25
6     (1)
The amendments made by this Schedule have effect in relation to schemes
entered into at any time (including any time before the commencement
date).
      (2)
But section 938O in Part 21BA of CTA 2010 (as inserted by paragraph 3 of
this Schedule) does not apply to—
30
(a)
scheme losses or profits that relate to a time before the
commencement date, or
(b)
scheme profits that relate to a time on or after that date but are made
in relation to a scheme entered into before that date.
      (3)
In this paragraph “the commencement date” means 5 December 2012.
35

Finance Bill
Schedule 20 — Community amateur sports clubs
315

Schedule 20
Section 45

Community amateur sports clubs
Introductory
1
Chapter 9 of Part 13 of CTA 2010 (community amateur sports clubs) is
amended as follows.
5
Meaning of “open to the whole community”
2     (1)
Section 659 (meaning of “open to the whole community”) is amended as
follows.
      (2)
In subsection (1), for paragraph (c) substitute—
“(c)
the costs associated with membership of the club for any year
10
do not represent a significant obstacle to membership of the
club, use of its facilities or full participation in its activities
(see subsection (2A)).”
      (3)
After subsection (2) insert—
“(2A)
For the purposes of subsection (1)(c) the costs associated with
15
membership of a club for any year represent a significant obstacle to
membership of the club, use of its facilities or full participation in its
activities if—
(a)
those costs exceed the amount specified for the year for the
purposes of this subsection in regulations made by the
20
Treasury, and
(b)
the club has not made such arrangements as are necessary to
secure that those costs do not represent such an obstacle.
(2B)
The Treasury may by regulations make provision supplementing
subsection (2A), including—
25
(a)
provision as to what constitutes full participation in a club’s
activities;
(b)
provision as to costs that are, or are not, to be regarded as the
costs associated with membership of a club;
(c)
provision about calculating the amount of the costs
30
associated with membership of a club for any year.
(2C)
The provision that may be made by regulations under this section
includes—
(a)
different provision for different purposes, and
(b)
provision having effect in relation to times before the
35
regulations are made.
(2D)
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
been laid before, and approved by a resolution of, the House of
40
Commons.”

Finance Bill
Schedule 20 — Community amateur sports clubs
316

      (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.”
Meaning of “organised on an amateur basis”
5
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)
it does not exceed the limit on paid players (see subsection
10
(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
matches”.
15
      (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)
A club does not exceed the limit on paid players for the purposes of
20
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
specified maximum for that year,
25
(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
of activities undertaken for the club does not exceed the
30
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)
provision as when a person is, or is not, to be regarded as a
35
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)
The Treasury may by regulations make further provision as to when
40
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—

Finance Bill
Schedule 20 — Community amateur sports clubs
317

(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
“ordinary benefits of an amateur sports club” for the
5
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)
Regulations made under subsection (8) may amend this section or
10
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
a draft of the instrument has been laid before, and approved by a
15
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)
different provision for different purposes, and
20
(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
section if a draft of the statutory instrument containing them has
25
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
(1A)(c), for “section 661” substitute “sections 660A and 661”.
30
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
or more eligible sports if the percentage of its members who are
35
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
sporting activities of the club.
40
(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;

Finance Bill
Schedule 20 — Community amateur sports clubs
318

(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
not, to be regarded as participating only occasionally in those
5
activities.
(4)
The provision that may be made by regulations under this section
includes—
(a)
different provision for different purposes, and
(b)
provision having effect in relation to times before the
10
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
been laid before, and approved by a resolution of, the House of
15
Commons.”
Exemptions
6
In section 662 (exemption from corporation tax for UK trading income), after
subsection (5) insert—
“(5A)
The Treasury may by order amend the figure for the time being
20
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
approved by a resolution of, the House of Commons.”
25
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)
A statutory instrument containing an order under subsection (5A)
30
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)
The Treasury may by regulations provide that a club is not entitled to be
35
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
includes, in particular—
40
(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
specified description.
45

Finance Bill
Schedule 21 — Transitional provision relating to reduction in standard lifetime allowance etc
Part 1 — “Fixed protection 2014”
319


“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)
contain provision having effect in relation to times before the
5
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
of, the House of Commons.
10
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
to times before this Act is passed).
15
      (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)
provide for such amendments to be treated as having come into force
20
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
registered as such by virtue of this Schedule, an officer of Revenue and
25
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)
any information provided by a person (“P”) at the time of
30
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.
Schedule 21
Section 47

Transitional provision relating to reduction in standard lifetime allowance
35
etc
Part 1
“Fixed protection 2014”
1     (1)
This paragraph applies on or after 6 April 2014 in the case of an individual—
(a)
who, on that date, has one or more arrangements under—
40
(i)
a registered pension scheme, or

Finance Bill
Schedule 21 — Transitional provision relating to reduction in standard lifetime allowance etc
Part 1 — “Fixed protection 2014”
320

(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
enhancement factor,
5
(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
2012-13) does not apply on that date,
10

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
£1,500,000.
15
      (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
registered pension scheme relating to the individual,
20
(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
pension scheme otherwise than in permitted circumstances.
25
      (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
arrangement on or after 6 April 2014,
30
(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)
in the case of a hybrid arrangement—
35
(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
after 6 April 2014, and
40
(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
is an increase in the value of the individual’s rights under the arrangement
45
(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
there is an increase in the amount that would, on the valuation
50