Session 2013 - 14
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Finance Bill


Finance Bill
Schedule 36 — Valuation of certain supplies of fuel

428

 

(c)   

where P is a partnership, it is provided or to be provided

to any of the individual partners for private use in that

partner’s own car.

      (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

rate basis.

      (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

paragraph (b),

(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

order, and

(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

circumstances or cases.

Interpretation

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

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individual has the use, other than a car allocated to the

individual,

(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

for private use, and

 
 

Finance Bill
Schedule 36 — Valuation of certain supplies of fuel

429

 

(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

the employment, but

(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,

and

(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

car available to them.

      (3)  

In this Part of this Schedule—

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“employment” includes any office, and related expressions

are to be construed accordingly;

“car” means a motor car as defined by paragraph 1A(4) and

(5);

“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”

in sub-paragraph (3).

35

Part 2

Other provisions”.

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

 
 

Finance Bill
Schedule 36 — Valuation of certain supplies of fuel

430

 

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

consideration,

5

(b)   

the recipient of the supply is—

(i)   

connected with P, or

(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

open market value.

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.

 
 

Finance Bill
Schedule 37 — Stamp duty land tax: transactions entered into before completion of contract

431

 

Schedule 37

Section 193

 

Stamp duty land tax: transactions entered into before completion of

contract

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

substitute—

“45     

Transactions entered into before completion of contract

Schedule 2A contains—

(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—

“Schedule 2A

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

sub-paragraph (1) if—

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-

completion transaction.

35

      (4)  

The grant or assignment of an option is not a pre-completion

transaction.

      (5)  

The fact that a transaction has the effect of discharging the original

contract does not prevent that transaction from being a pre-

completion transaction.

40

 
 

Finance Bill
Schedule 37 — Stamp duty land tax: transactions entered into before completion of contract

432

 

      (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

another contract.

      (7)  

In this Schedule references to “part of the subject-matter of the

original contract”—

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.

Other key expressions

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-

completion transaction—

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

assignment of rights.

      (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

the transferee, or

 
 

Finance Bill
Schedule 37 — Stamp duty land tax: transactions entered into before completion of contract

433

 

(b)   

the original contract is substantially performed by the

transferee.

      (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

consideration).

      (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

omitted.

      (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

transferee, or

(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.

 
 

Finance Bill
Schedule 37 — Stamp duty land tax: transactions entered into before completion of contract

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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

Act has effect as if—

(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

is the transferor.

      (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

the case of which—

(a)   

the effective date is the effective date of the transferee’s

land transaction, and

(b)   

the purchaser is the transferor under that assignment of

rights.

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

and B.

      (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

of amounts A, B and C.

      (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

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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

 
 

 
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Revised 8 May 2013