|
| |
|
“relevant scheme” means an employee-financed retirement |
| |
benefits scheme (within the meaning of that Chapter) or a |
| |
superannuation fund to which section 615(3) of ICTA |
| |
| |
125 | In that Chapter, after section 554Z11 insert— |
| 5 |
“554Z11A | Temporary non-residents |
| |
(1) | This section applies if A is temporarily non-resident. |
| |
(2) | Any amount within subsection (3) is to be treated for the purposes of |
| |
section 554Z9(2) or (as the case may be) 554Z10(2) as if it were |
| |
remitted to the United Kingdom in the period of return. |
| 10 |
(3) | An amount is within this subsection if— |
| |
(a) | it is all or part of a relevant benefit provided to a relevant |
| |
person (see section 554C(2)) under a relevant scheme, |
| |
(b) | it is provided in the form of the lump sum, |
| |
(c) | it is remitted to the United Kingdom in the temporary period |
| 15 |
| |
(d) | ignoring this section— |
| |
(i) | no charge to tax arises by virtue of section 554Z9(2) or |
| |
554Z10(2) in respect of it, but |
| |
(ii) | such a charge would arise by virtue of one of those |
| 20 |
sections if the existence of any double taxation relief |
| |
arrangements were disregarded. |
| |
(4) | Subsection (3)(d)(i) includes a case where the charge could be |
| |
prevented by making a DTR claim, even if no claim is in fact made. |
| |
(5) | Nothing in any double taxation relief arrangements is to be read as |
| 25 |
preventing A from being chargeable to income tax in respect of any |
| |
income treated by virtue of this section as remitted to the United |
| |
Kingdom in the period of return (or as preventing a charge to that tax |
| |
from arising as a result). |
| |
(6) | Part 4 of Schedule 43 to FA 2013 (statutory residence test: anti- |
| 30 |
| |
(a) | when an individual is to be regarded as “temporarily non- |
| |
| |
(b) | what “the temporary period of non-residence” and “the |
| |
| 35 |
| |
“double taxation relief arrangements” means arrangements that |
| |
have effect under section 2(1) of TIOPA 2010; |
| |
“DTR claim” means a claim for relief under section 6 of that Act; |
| |
“relevant benefit” has the same meaning as in Chapter 2 of Part |
| 40 |
| |
“relevant scheme” means an employee-financed retirement |
| |
benefits scheme (within the meaning of that Chapter) or a |
| |
superannuation fund to which section 615(3) of ICTA applies; |
| |
“remitted to the United Kingdom” has the same meaning as in |
| 45 |
Chapter A1 of Part 14 of ITA 2007.” |
| |
|
| |
|
| |
|
126 | In that Chapter, in section 554Z12 (relevant step taken after A’s death etc), |
| |
after subsection (8) insert— |
| |
“(9) | Section 554Z4A and section 554Z11A apply for the purposes of |
| |
subsection (4) as for the purposes of section 554Z2 and section |
| |
554Z9(2) or 554Z10(2) respectively (reading references in sections |
| 5 |
554Z4A and 554Z11A to “A” as references to “the relevant person”). |
| |
(10) | But those sections do not apply for the purposes of subsection (4) if |
| |
the relevant person’s temporary period of non-residence began |
| |
| |
127 | In Chapter 3 of Part 9 (United Kingdom pensions: general rules), after |
| 10 |
| |
“572A | Temporary non-residents |
| |
(1) | This section applies if an individual is temporarily non-resident. |
| |
(2) | Any pension within subsection (3) is to be treated for the purposes of |
| |
section 571 as if it accrued in the period of return. |
| 15 |
(3) | A pension is within this subsection if— |
| |
(a) | section 569 applies to it, |
| |
(b) | it is in the form of a lump sum, |
| |
(c) | it accrued in the temporary period of non-residence, and |
| |
(d) | ignoring this section— |
| 20 |
(i) | it is not chargeable to tax under this Chapter, but |
| |
(ii) | it would be so chargeable if the existence of any |
| |
double taxation relief arrangements were |
| |
| |
(4) | Subsection (3)(d)(i) includes a case where the charge could be |
| 25 |
prevented by making a DTR claim, even if no claim is in fact made. |
| |
(5) | Nothing in any double taxation relief arrangements is to be read as |
| |
preventing the individual from being chargeable to income tax in |
| |
respect of any pension treated by virtue of this section as accruing in |
| |
the period of return (or as preventing a charge to that tax from |
| 30 |
| |
(6) | Part 4 of Schedule 43 to FA 2013 (statutory residence test: anti- |
| |
| |
(a) | when an individual is to be regarded as “temporarily non- |
| |
| 35 |
(b) | what “the temporary period of non-residence” and “the |
| |
| |
| |
“double taxation relief arrangements” means arrangements that |
| |
have effect under section 2(1) of TIOPA 2010; |
| 40 |
“DTR claim” means a claim for relief under section 6 of that |
| |
| |
128 (1) | In Chapter 1 of Part 11 (pay as you earn: introduction), section 683 is |
| |
| |
|
| |
|
| |
|
(2) | After subsection (3) insert— |
| |
“(3ZA) | “PAYE employment income” for a tax year does not include any |
| |
taxable specific income treated as paid or received in that tax year by |
| |
section 394A or 554Z4A (temporary non-residents).” |
| |
(3) | For subsection (3B) substitute— |
| 5 |
“(3B) | “PAYE pension income” for a tax year does not include any taxable |
| |
pension income that is treated as accruing in that tax year by section |
| |
572A or 579CA (temporary non-residents).” |
| |
New special rule: distributions to participators in close companies etc |
| |
129 | Part 4 of ITTOIA 2005 (savings and investment income) is amended as |
| 10 |
| |
130 | In Chapter 1 (introduction), after section 368 insert— |
| |
“368A | Interpretation of special rules for temporary non-residents |
| |
(1) | This section concerns provisions of this Part that are expressed to |
| |
apply if an individual is “temporarily non-resident” (“TNR |
| 15 |
| |
(2) | Part 4 of Schedule 43 to FA 2013 (statutory residence test: anti- |
| |
avoidance) explains for the purposes of TNR provisions— |
| |
(a) | when an individual is to be regarded as “temporarily non- |
| |
| 20 |
(b) | what the following terms mean— |
| |
(i) | “the temporary period of non-residence”, |
| |
(ii) | “the year of departure”, and |
| |
(iii) | “the period of return”. |
| |
(3) | A reference in TNR provisions to “the year of return” is to the tax |
| 25 |
year consisting of or including the period of return. |
| |
(4) | Nothing in any double taxation relief arrangements is to be read as |
| |
preventing the individual from being chargeable to income tax by |
| |
virtue of any TNR provisions (or as preventing a charge to that tax |
| |
from arising as a result). |
| 30 |
(5) | In this section and in TNR provisions, “double taxation relief |
| |
arrangements” means arrangements that have effect under section |
| |
| |
131 | In Chapter 3 (dividends etc from UK resident companies and tax credits etc |
| |
in respect of certain distributions), after section 401B insert— |
| 35 |
| |
401C | Temporary non-residents |
| |
(1) | This section applies if— |
| |
(a) | an individual is temporarily non-resident, |
| |
(b) | a relevant distribution is made or treated as made to the |
| 40 |
individual in the temporary period of non-residence, |
| |
|
| |
|
| |
|
(c) | the tax year in which it is made or treated as made (“the |
| |
distribution year”) is a tax year for which the individual is UK |
| |
| |
(d) | the amount of income tax charged on the distribution under |
| |
this Chapter is less than it would have been if the existence of |
| 5 |
double taxation relief arrangements were disregarded. |
| |
(2) | Subsections (3) and (4) have effect in cases where the distribution |
| |
year is not the year of return. |
| |
(3) | The total income (see Step 1 of the calculation in section 23 of ITA |
| |
2007) on which the individual is charged to income tax for the year |
| 10 |
of return is to be increased by an amount equal to the amount on |
| |
which tax would be charged under this Chapter in respect of the |
| |
distribution disregarding any double taxation relief arrangements. |
| |
(4) | But the notional UK tax on that distribution is to be allowed as a |
| |
credit against the individual’s liability to income tax for the year of |
| 15 |
return under Step 6 of the calculation in section 23. |
| |
(5) | If the distribution year is the year of return, the tax charged under |
| |
this Chapter in respect of the relevant distribution is to be charged |
| |
and assessed without regard to the existence of double taxation relief |
| |
| 20 |
(6) | For the purposes of this section, a dividend or other distribution is a |
| |
“relevant distribution” if— |
| |
(a) | it is a dividend or other distribution of a close company, and |
| |
(b) | it is made or treated as made to the individual because the |
| |
individual was at a relevant time— |
| 25 |
(i) | a material participator in the company, or |
| |
(ii) | an associate of a material participator in the company. |
| |
(7) | But a dividend or other distribution within subsection (6) in the form |
| |
of a cash dividend is not a “relevant distribution” to the extent that |
| |
the dividend is paid in respect of post-departure trade profits. |
| 30 |
(8) | “Post-departure trade profits” are— |
| |
(a) | trade profits of the close company arising in an accounting |
| |
period that begins after the start of the temporary period of |
| |
| |
(b) | so much of any trade profits of the close company arising in |
| 35 |
an accounting period that straddles the start of that |
| |
temporary period as is attributable (on a just and reasonable |
| |
basis) to a time after the start of that temporary period. |
| |
(9) | The extent to which a dividend is paid in respect of post-departure |
| |
trade profits is to be determined on a just and reasonable basis. |
| 40 |
(10) | The “notional UK tax” on the relevant distribution is so much of the |
| |
income tax paid by the individual for the distribution year as is |
| |
attributable on a just and reasonable basis to the relevant |
| |
| |
(11) | If section 393 applies, references in this section to a distribution being |
| 45 |
made to the individual are to a cash dividend being paid over to the |
| |
| |
|
| |
|
| |
|
| |
“associate” and “participator” have the same meanings as in |
| |
Part 10 of CTA 2010 (see sections 448 and 454); |
| |
“material participator” means a participator who has a material |
| |
interest in the company, as defined in section 457 of that Act; |
| 5 |
| |
(a) | any time in the year of departure or, if the year of |
| |
departure is a split year as respects the individual, the |
| |
| |
(b) | any time in one or more of the 3 tax years preceding |
| 10 |
| |
“trade profits of the close company” means the profits of any |
| |
trade carried on by the close company, as calculated in |
| |
accordance with Part 3 of CTA 2009 (trading income).” |
| |
132 | In Chapter 4 (dividends from non-UK resident companies), after section 408 |
| 15 |
| |
| |
408A | Temporary non-residents |
| |
(1) | This section applies if an individual is temporarily non-resident. |
| |
(2) | Dividends within subsection (3) are to be treated for the purposes of |
| 20 |
this Chapter as if they were received by the individual, or as if the |
| |
individual became entitled to them, in the period of return. |
| |
(3) | A dividend is within this subsection if— |
| |
(a) | the individual receives or becomes entitled to it in the |
| |
temporary period of non-residence, |
| 25 |
(b) | it is a dividend of a company that would be a close company |
| |
if the company were UK resident, |
| |
(c) | the individual receives or becomes entitled to it by virtue of |
| |
being at a relevant time— |
| |
(i) | a material participator in the company, or |
| 30 |
(ii) | an associate of a material participator in the company, |
| |
| |
(d) | ignoring this section, the individual— |
| |
(i) | is not liable for tax under this Chapter in respect of the |
| |
| 35 |
(ii) | would have been so liable if the individual had |
| |
received the dividend, or become entitled to it, in the |
| |
| |
(4) | For the purposes of subsection (3)— |
| |
(a) | “associate” and “participator” have the same meanings as in |
| 40 |
Part 10 of CTA 2010 (see sections 448 and 454), |
| |
(b) | a “material participator” is a participator who has a material |
| |
interest in the company, as defined in section 457 of that Act, |
| |
(c) | “relevant time” means— |
| |
(i) | any time in the year of departure or, if the year of |
| 45 |
departure is a split year as respects the individual, the |
| |
| |
|
| |
|
| |
|
(ii) | any time in one or more of the 3 tax years preceding |
| |
| |
(d) | paragraph (d)(i) includes a case where the individual could |
| |
be relieved of liability on the making of a claim under section |
| |
6 of TIOPA 2010 (double taxation relief), even if no claim is in |
| 5 |
| |
(5) | If section 809B, 809D or 809E of ITA 2007 (remittance basis) applies |
| |
to the individual for the year of return, any dividend within |
| |
subsection (3) that was remitted to the United Kingdom in the |
| |
temporary period of non-residence is to be treated as remitted to the |
| 10 |
United Kingdom in the period of return. |
| |
(6) | This section does not apply to a dividend within subsection (3) to the |
| |
extent that it is paid in respect of post-departure trade profits. |
| |
(7) | “Post-departure trade profits” are— |
| |
(a) | trade profits of the company arising in an accounting period |
| 15 |
that begins after the start of the temporary period of non- |
| |
| |
(b) | so much of any trade profits of the company arising in an |
| |
accounting period that straddles the start of that temporary |
| |
period as is attributable (on a just and reasonable basis) to a |
| 20 |
time after the start of that temporary period. |
| |
(8) | The extent to which a dividend is paid in respect of post-departure |
| |
trade profits is to be determined on a just and reasonable basis. |
| |
(9) | If section 406 or 407 applies, references in this section to a dividend |
| |
being received by the individual are to a cash dividend being paid |
| 25 |
over to the individual or (as the case may be) a dividend being |
| |
treated as paid to the individual. |
| |
| |
“remitted to the United Kingdom” has the meaning given in |
| |
Chapter A1 of Part 14 of ITA 2007; |
| 30 |
“trade profits of the company” means the profits of any trade |
| |
carried on by the company, as they would be calculated in |
| |
accordance with Part 3 of CTA 2009 (trading income) if the |
| |
company were UK resident.” |
| |
133 | In Chapter 5 (stock dividends from UK resident companies), after section |
| 35 |
| |
“413A | Temporary non-residents |
| |
(1) | This section applies if— |
| |
(a) | an individual is temporarily non-resident, |
| |
(b) | relevant stock dividend income is treated under this Chapter |
| 40 |
as arising to the individual in the temporary period of non- |
| |
| |
(c) | the tax year in which it is treated as arising (“the arising |
| |
year”) is a tax year for which the individual is UK resident, |
| |
| 45 |
(d) | the amount of income tax charged on the relevant stock |
| |
dividend income under this Chapter is less than it would |
| |
|
| |
|
| |
|
have been if the existence of double taxation relief |
| |
arrangements were disregarded. |
| |
(2) | Subsections (3) and (4) have effect in cases where the arising year is |
| |
| |
(3) | The total income (see Step 1 of the calculation in section 23 of ITA |
| 5 |
2007) on which the individual is charged to income tax for the year |
| |
of return is to be increased by an amount equal to the amount on |
| |
which tax would be charged under this Chapter in respect of the |
| |
relevant stock dividend income disregarding any double taxation |
| |
| 10 |
(4) | But the notional UK tax on that relevant stock dividend income is to |
| |
be allowed as a credit against the individual’s liability to income tax |
| |
for the year of return under Step 6 of the calculation in section 23. |
| |
(5) | If the arising year is the year of return, the tax charged under this |
| |
Chapter in respect of the relevant stock dividend income is to be |
| 15 |
charged and assessed without regard to the existence of double |
| |
taxation relief arrangements. |
| |
(6) | Stock dividend income is “relevant stock dividend income” if— |
| |
(a) | the UK resident company that issues the share capital or |
| |
bonus share capital is a close company, and |
| 20 |
(b) | the individual is beneficially entitled to that share capital or |
| |
bonus share capital by virtue of being at a relevant time— |
| |
(i) | a material participator in the company, or |
| |
(ii) | an associate of a material participator in the company. |
| |
(7) | But stock dividend income within subsection (6) is not “relevant |
| 25 |
stock dividend income” to the extent that the share capital or bonus |
| |
share capital is issued in respect of post-departure trade profits. |
| |
(8) | “Post-departure trade profits” are— |
| |
(a) | trade profits of the close company arising in an accounting |
| |
period that begins after the start of the temporary period of |
| 30 |
| |
(b) | so much of any trade profits of the close company arising in |
| |
an accounting period that straddles the start of that |
| |
temporary period as is attributable (on a just and reasonable |
| |
basis) to a time after the start of that temporary period. |
| 35 |
(9) | The extent to which share capital or bonus share capital is issued in |
| |
respect of post-departure trade profits is to be determined on a just |
| |
| |
(10) | The “notional UK tax” on the relevant stock dividend income is so |
| |
much of the income tax paid by the individual for the arising year as |
| 40 |
is attributable on a just and reasonable basis to that income. |
| |
| |
“associate” and “participator” have the same meanings as in |
| |
Part 10 of CTA 2010 (see sections 448 and 454); |
| |
“material participator” means a participator who has a material |
| 45 |
interest in the company, as defined in section 457 of that Act; |
| |
| |
|
| |
|