|
| |
|
(c) | where P is a partnership, it is provided or to be provided |
| |
to any of the individual partners for private use in that |
| |
| |
(3) | P may opt for all supplies of goods within sub-paragraph (1) made |
| |
by P in the prescribed accounting period to be valued on the flat- |
| 5 |
| |
(4) | On the flat-rate basis, the value of all supplies made to any one |
| |
individual in respect of any one car is that determined in |
| |
accordance with an order under paragraph B1. |
| |
B1 (1) | The Treasury must, by order, make provision about the valuation |
| 10 |
of supplies on the flat-rate basis. |
| |
(2) | In particular, an order under this paragraph must— |
| |
(a) | set out a table (“the base valuation table”) by reference to |
| |
which the value of supplies is to be determined until such |
| |
time as the base valuation table is replaced under |
| 15 |
| |
(b) | provide that at regular intervals— |
| |
(i) | the amounts specified in the base valuation table |
| |
are to be revalorised by the Commissioners in |
| |
accordance with the order, and |
| 20 |
(ii) | a table (an “updated valuation table”) containing |
| |
the revalorised amounts is to take effect (and |
| |
replace any existing table) in accordance with the |
| |
| |
(c) | require the Commissioners to publish any updated |
| 25 |
valuation table before it takes effect, together with a |
| |
statement specifying the date from which it has effect. |
| |
(3) | An order under this paragraph may provide for the base valuation |
| |
table and any updated valuation table to be implemented or |
| |
supplemented by either or both of the following— |
| 30 |
(a) | rules set out in the order which explain how the value is to |
| |
be determined by reference to any table; |
| |
(b) | notes set out in the order with respect to the interpretation |
| |
or application of any table or any rules or notes. |
| |
(4) | Rules or notes may make different provision for different |
| 35 |
| |
| |
C1 (1) | For the purposes of this Part of this Schedule— |
| |
(a) | any reference to an individual’s own car is to be construed |
| |
as including any car of which for the time being the |
| 40 |
individual has the use, other than a car allocated to the |
| |
| |
(b) | subject to sub-paragraph (2), a car is at any time to be taken |
| |
to be allocated to an individual if at that time it is made |
| |
available (without any transfer of the property in it) either |
| 45 |
to the individual or to any other person, and is so made |
| |
available by reason of the individual’s employment and |
| |
| |
|
| |
|
| |
|
(c) | fuel provided by an employer to an employee and fuel |
| |
provided to any person for private use in a car which, by |
| |
virtue of paragraph (b), is for the time being taken to be |
| |
allocated to the employee is to be taken to be provided to |
| |
the employee by reason of the employee’s employment. |
| 5 |
(2) | For the purposes of this Part of this Schedule, in any prescribed |
| |
accounting period a car is not regarded as allocated to an |
| |
individual by reason of the individual’s employment if— |
| |
(a) | in that period it was made available to, and actually used |
| |
by, more than one of the employees of one or more |
| 10 |
employers and, in the case of each of them, it— |
| |
(i) | was made available to that employee by reason of |
| |
| |
(ii) | was not in that period ordinarily used by any one |
| |
of them to the exclusion of the others, |
| 15 |
(b) | in the case of each of the employees, any private use of the |
| |
car made by the employee in that period was merely |
| |
incidental to the employee’s other use of it in that period, |
| |
| |
(c) | in that period it was not normally kept overnight on or in |
| 20 |
the vicinity of any residential premises where any of the |
| |
employees was residing, except while being kept |
| |
overnight on premises occupied by the person making the |
| |
| |
(3) | In this Part of this Schedule— |
| 25 |
“employment” includes any office, and related expressions |
| |
are to be construed accordingly; |
| |
“car” means a motor car as defined by paragraph 1A(4) and |
| |
| |
“road fuel” means hydrocarbon oil as defined by the |
| 30 |
Hydrocarbon Oil Duties Act 1979 (see section 1(2) of that |
| |
Act) on which duty has been or is required to be paid in |
| |
accordance with that Act. |
| |
(4) | The Treasury may, by order, amend the definition of “road fuel” |
| |
| 35 |
| |
| |
3 | In paragraph 6 of that Schedule (valuation of supplies of goods by virtue of |
| |
paragraph 5(1) of Schedule 4 etc), in sub-paragraph (1), after “except where” |
| |
insert “the person making the supply opts under paragraph A1(3) above for |
| 40 |
valuation on the flat-rate basis or”. |
| |
4 | Omit sections 56 and 57 (fuel for private use). |
| |
5 | In section 97(4) (orders subject to affirmative procedure), in paragraph (f)— |
| |
(a) | after “paragraph” insert “B1, C1(4),”, and |
| |
(b) | after “1A(7)” insert “, 2A(4)”. |
| 45 |
|
| |
|
| |
|
Supplies to employees etc at less than open market value |
| |
6 | After paragraph 2 of Schedule 6 insert— |
| |
“2A (1) | This paragraph applies if— |
| |
(a) | a taxable person (“P”) makes a supply of road fuel for a |
| |
| 5 |
(b) | the recipient of the supply is— |
| |
| |
(ii) | an employee or partner of P or a person who is |
| |
connected with such an employee or partner, |
| |
(c) | the value of the supply would (in the absence of this |
| 10 |
paragraph) be less than its open market value, and |
| |
(d) | the recipient of the supply is not entitled to credit for the |
| |
whole of the input tax arising on the supply. |
| |
(2) | The value of the supply is to be taken to be an amount equal to its |
| |
| 15 |
(3) | For the purposes of this paragraph— |
| |
(a) | “road fuel” means hydrocarbon oil as defined by the |
| |
Hydrocarbon Oil Duties Act 1979 (see section 1(2) of that |
| |
Act) on which duty has been or is required to be paid in |
| |
accordance with that Act, and |
| 20 |
(b) | any question whether a person is connected with another |
| |
is to be determined in accordance with section 1122 of the |
| |
Corporation Tax Act 2010. |
| |
(4) | The Treasury may, by order, amend the definition of “road fuel” |
| |
in sub-paragraph (3)(a).” |
| 25 |
Commencement and transitional provision |
| |
7 (1) | The amendments made by paragraphs 2 to 4 come into force in relation to |
| |
prescribed accounting periods beginning on or after 1 February 2014. |
| |
(2) | Subject to that, section 56 of VATA 1994 has effect on and after 11 December |
| |
2012 as if in subsection (2) of that section for the words after “it is supplied” |
| 30 |
there were substituted “for consideration.” |
| |
8 (1) | The amendment made by paragraph 6 is to be treated as coming into force |
| |
on 11 December 2012 and has effect in relation to— |
| |
(a) | supplies of goods on or after the commencement day, and |
| |
(b) | supplies of goods in the period beginning with 11 December 2012 |
| 35 |
and ending immediately before the commencement day, if and to the |
| |
extent that the goods are not made available before the end of that |
| |
period to the person to whom they are supplied. |
| |
(2) | “The commencement day” means the day on which this Act is passed. |
| |
|
| |
|
| |
|
| |
| |
Stamp duty land tax: transactions entered into before completion of |
| |
| |
1 | Part 4 of FA 2003 (stamp duty land tax) is amended as follows. |
| |
2 | For section 45 (contract and conveyance: effect of transfer of rights) |
| 5 |
| |
“45 | Transactions entered into before completion of contract |
| |
| |
(a) | provision about the application of section 44 (contract and |
| |
conveyance) in certain cases where an assignment of rights, |
| 10 |
subsale or other transaction is entered into without the |
| |
contract having been completed, and |
| |
(b) | other provision about such cases.” |
| |
3 | After Schedule 2 insert— |
| |
| 15 |
Transactions entered into before completion of contract |
| |
Pre-completion transactions |
| |
1 (1) | This Schedule applies where— |
| |
(a) | a person (“the original purchaser”) enters into a contract |
| |
(“the original contract”) for the acquisition by that person |
| 20 |
of a chargeable interest under which the acquisition is to be |
| |
completed by a conveyance, and |
| |
(b) | there is a pre-completion transaction. |
| |
(2) | A transaction is a “pre-completion transaction” for the purposes of |
| |
| 25 |
(a) | as a result of the transaction a person other than the |
| |
original purchaser (“the transferee”) becomes entitled to |
| |
call for a conveyance to that person of the whole or part of |
| |
the subject-matter of the original contract, and |
| |
(b) | immediately before the transaction took place a person |
| 30 |
was entitled under the original contract to call for a |
| |
conveyance of the whole or part of that subject-matter. |
| |
(3) | A transaction that effects a person’s acquisition of the whole or |
| |
part of the subject-matter of the original contract is not a pre- |
| |
| 35 |
(4) | The grant or assignment of an option is not a pre-completion |
| |
| |
(5) | The fact that a transaction has the effect of discharging the original |
| |
contract does not prevent that transaction from being a pre- |
| |
| 40 |
|
| |
|
| |
|
(6) | The reference in sub-paragraph (1)(a) to a contract does not |
| |
include a contract that is an assignment of rights in relation to |
| |
| |
(7) | In this Schedule references to “part of the subject-matter of the |
| |
| 5 |
(a) | are to a chargeable interest that is the same as the |
| |
chargeable interest referred to in sub-paragraph (1)(a) |
| |
except that it relates to part only of the land concerned, and |
| |
(b) | also include, so far as is appropriate, interests or rights |
| |
appurtenant or pertaining to the chargeable interest. |
| 10 |
(8) | This Schedule does not apply where paragraph 12B of Schedule |
| |
17A (assignment of agreement for lease) applies. |
| |
| |
2 (1) | A pre-completion transaction is an “assignment of rights” if the |
| |
entitlement of the transferee referred to in paragraph 1(2)(a) is an |
| 15 |
entitlement to exercise rights under the original contract. |
| |
(2) | A pre-completion transaction other than an assignment of rights is |
| |
referred to in this Schedule as a “free-standing transfer”. |
| |
(3) | In this Schedule “the transferor”, in relation to a pre-completion |
| |
transaction, means a party to the pre-completion transaction who |
| 20 |
immediately before the pre-completion transaction took place was |
| |
entitled to call for a conveyance of (what became) the subject- |
| |
matter of the pre-completion transaction. |
| |
(4) | References in this Schedule to the “subject-matter” of a pre- |
| |
| 25 |
(a) | are to the chargeable interest the conveyance of which the |
| |
transferee is entitled to call for as a result of the pre- |
| |
completion transaction, and |
| |
(b) | include, so far as appropriate, any interest or right |
| |
appurtenant or pertaining to the chargeable interest. |
| 30 |
Tax not charged on transferee by reason of the pre-completion transaction |
| |
3 | The transferee is not regarded as entering into a land transaction |
| |
by reason of the pre-completion transaction. |
| |
Assignments of rights: application of rules about completion and consideration |
| |
4 (1) | This paragraph applies if the pre-completion transaction is an |
| 35 |
| |
(2) | If the subject-matter of the original contract is conveyed to the |
| |
transferee, the conveyance is taken to effect the completion of the |
| |
original contract (despite section 44(10)). |
| |
(3) | Sub-paragraphs (4) to (6) apply if— |
| 40 |
(a) | the subject-matter of the original contract is conveyed to |
| |
| |
|
| |
|
| |
|
(b) | the original contract is substantially performed by the |
| |
| |
(4) | The transferee is taken to be the purchaser under the land |
| |
transaction effected as mentioned in section 44(3), or treated as |
| |
effected under section 44(4). |
| 5 |
(5) | For the purpose of determining the chargeable consideration for |
| |
that land transaction, the land transaction is taken to give effect to |
| |
a contract the consideration under which is— |
| |
(a) | the consideration under the original contract, and |
| |
(b) | the consideration for the assignment of rights. |
| 10 |
| Paragraph 1 of Schedule 4 has effect accordingly (but this sub- |
| |
paragraph does not allow any amount of consideration given by a |
| |
person to be counted twice in determining the chargeable |
| |
| |
(6) | In any case in which there is a relevant connection between parties |
| 15 |
as mentioned in paragraph 12(2) (minimum consideration rule), |
| |
the chargeable consideration for the land transaction mentioned in |
| |
sub-paragraph (4) of this paragraph is calculated (regardless of |
| |
whether the consideration is taken to be the amount in paragraph |
| |
(a), (b) or (c) of sub-paragraph 12(2)), as if in paragraph 1(1) of |
| 20 |
Schedule 4 the words, “or a person connected with him” were |
| |
| |
(7) | The original contract is said to be “substantially performed by the |
| |
transferee” where a land transaction is treated under section 44(4) |
| |
as effected by reason of— |
| 25 |
(a) | the transferee under the assignment of rights, or a person |
| |
connected with the transferee, taking possession of the |
| |
whole, or substantially the whole, of the subject-matter of |
| |
the original contract, or |
| |
(b) | a substantial amount of the consideration being paid or |
| 30 |
provided by the transferee or a person connected with the |
| |
| |
(c) | consideration paid or provided by a person within |
| |
paragraph (b) amounting, when taken together with |
| |
consideration paid or provided by another person, to a |
| 35 |
substantial amount of the consideration. |
| |
(8) | References in sub-paragraph (7) to possession and to the payment |
| |
or provision of a substantial amount of the consideration are to be |
| |
read in accordance with section 44(6) and (7). |
| |
(9) | In sub-paragraph (5) “the consideration”— |
| 40 |
(a) | in relation to the land transaction, means (what is to be |
| |
taken to be) the consideration for the acquisition of the |
| |
subject-matter of the land transaction; |
| |
(b) | in relation to the original contract, means the consideration |
| |
for the acquisition of the subject-matter of that contract; |
| 45 |
(c) | in relation to the assignment of rights, means the |
| |
consideration for the transferee’s acquisition of the rights |
| |
to which that contract relates. |
| |
|
| |
|
| |
|
Assignment of rights: transferor treated as making separate acquisition |
| |
5 (1) | Where paragraph 4(4) to (6) applies (assignment of rights: original |
| |
contract completed or substantially performed) this Part of this |
| |
| |
(a) | the effective date of the land transaction mentioned in |
| 5 |
paragraph 4(4) (“the transferee’s land transaction”) were |
| |
also the effective date of another land transaction (a |
| |
“notional land transaction”), and |
| |
(b) | the original purchaser were the purchaser under that |
| |
notional land transaction. |
| 10 |
| The notional land transaction is referred to below as “associated |
| |
with” the assignment of rights under which the original purchaser |
| |
| |
(2) | Where sub-paragraph (1) applies and the assignment of rights |
| |
mentioned in paragraph 4(1) (“the implemented assignment of |
| 15 |
rights”) was preceded by one or more related assignments of |
| |
rights, then for the purposes of this Part of this Act there is taken |
| |
to be, for each assignment of rights (other than the first) in the |
| |
chain formed by the implemented assignment of rights and those |
| |
preceding assignments of rights, an additional land transaction in |
| 20 |
| |
(a) | the effective date is the effective date of the transferee’s |
| |
| |
(b) | the purchaser is the transferor under that assignment of |
| |
| 25 |
| The additional land transaction is referred to below as “associated |
| |
with” the assignment of rights. |
| |
(3) | For the purpose of determining the chargeable consideration for |
| |
the notional land transaction, Schedule 4 has effect as if paragraph |
| |
1(1) of that Schedule provided that the chargeable consideration is |
| 30 |
(except as otherwise expressly provided) the total of amounts A |
| |
| |
(4) | For the purpose of determining the chargeable consideration for |
| |
any additional land transaction, Schedule 4 has effect as if |
| |
paragraph 1(1) of that Schedule provided that the chargeable |
| 35 |
consideration is (except as otherwise expressly provided) the total |
| |
| |
(5) | For the purposes of sub-paragraphs (3) and (4)— |
| |
| A is the total amount of any consideration in money or money’s |
| |
worth given (whether directly or indirectly) by any of the |
| 40 |
following as consideration under the original contract— |
| |
(a) | the transferee under the assignment of rights with |
| |
which the notional land transaction or (as the case |
| |
requires) the additional land transaction is associated; |
| |
(b) | where that assignment of rights is one in a chain of |
| 45 |
successive transactions that are pre-completion |
| |
transactions in relation to the original contract (all |
| |
having at least part of their subject-matter in |
| |
common), the transferee under any subsequent pre- |
| |
completion transaction in that chain; |
| 50 |
|
| |
|