|
| |
|
129 | In section 237B (liability of scheme administrator), in subsection (8), omit “, |
| |
| |
130 | In section 239 (scheme sanction charge), in subsection (4), omit “, ordinarily |
| |
| |
131 | In section 242 (de-registration charge), in subsection (3), omit “, ordinarily |
| 5 |
| |
132 | The amendments of Part 4 of FA 2004 made by this Part of this Schedule |
| |
have effect in relation to the tax year 2013-14 and any subsequent tax year. |
| |
| |
133 (1) | In section 30 of FA 2005 (qualifying trust gains: special capital gains tax |
| 10 |
treatment), in subsection (1), for paragraph (c) substitute— |
| |
“(c) | the trustees are resident in the United Kingdom during any |
| |
part of the tax year, and”. |
| |
(2) | The amendment made by this paragraph has effect in relation to the tax year |
| |
2013-14 and any subsequent tax year. |
| 15 |
| |
134 | F(No.2)A 2005 is amended as follows. |
| |
135 (1) | In section 7 (charge to income tax on lump sum), in subsection (3), omit “, |
| |
| |
(2) | The amendment made by this paragraph has effect in relation to the tax year |
| 20 |
2013-14 and any subsequent tax year. |
| |
136 | In section 18 (section 17(3): specific powers), in subsection (1)(f) and (g), omit |
| |
| |
| |
137 | CTA 2009 is amended as follows. |
| 25 |
138 (1) | In section 900 (which relates to roll-over relief for disposals of pre-FA 2002 |
| |
assets), in subsection (2), omit “or ordinarily UK resident”. |
| |
(2) | The amendment made by this paragraph applies in relation to gains |
| |
accruing or treated as accruing on or after 6 April 2013. |
| |
139 (1) | In section 936 (meaning of “UK estate” and “foreign estate”), in subsection |
| 30 |
(3), omit “or not ordinarily UK resident”. |
| |
(2) | The amendment made by this paragraph applies if the tax year in question |
| |
begins on or after 6 April 2013. |
| |
140 (1) | In section 947 (aggregate income of the estate), in subsection (2)(b)(i), omit |
| |
“who was ordinarily UK resident”. |
| 35 |
(2) | The amendment made by this paragraph applies if the tax year in question |
| |
begins on or after 6 April 2013. |
| |
141 (1) | In section 1009 (conditions relating to employee’s income tax position), in |
| |
subsection (5)(a), omit “and ordinarily UK resident”. |
| |
|
| |
|
| |
|
(2) | The amendment made by this paragraph applies in relation to shares |
| |
acquired on or after 6 April 2013. |
| |
142 (1) | In section 1017 (condition relating to employee’s income tax position), in |
| |
subsection (4)(a), omit “and ordinarily UK resident”. |
| |
(2) | The amendment made by this paragraph applies in relation to options |
| 5 |
obtained on or after 6 April 2013. |
| |
143 (1) | In section 1025 (additional relief available if shares acquired are restricted |
| |
shares), in subsection (5)(a), omit “and ordinarily UK resident”. |
| |
(2) | The amendment made by this paragraph applies in relation to restricted |
| |
shares acquired on or after 6 April 2013. |
| 10 |
144 (1) | In section 1032 (meaning of “chargeable event”), in subsection (5)(a), omit |
| |
“and ordinarily UK resident”. |
| |
(2) | The amendment made by this paragraph applies in relation to convertible |
| |
shares acquired on or after 6 April 2013. |
| |
| 15 |
145 (1) | Section 1034 of CTA 2010 (purchase by unquoted trading company of own |
| |
shares: requirements as to residence) is amended as follows. |
| |
(2) | In subsections (1) and (2), omit “and ordinarily resident”. |
| |
(3) | In subsection (3), omit “and ordinary residence” in both places. |
| |
| 20 |
(5) | The amendments made by this paragraph do not apply in relation to a |
| |
purchase by an unquoted trading company of its own shares if the purchase |
| |
takes place before 6 April 2013. |
| |
| |
146 | In section 363A of TIOPA 2010 (residence of offshore funds which are |
| 25 |
undertakings for collective investment in transferable securities), in |
| |
subsection (3), for “neither resident nor ordinarily resident” substitute “not |
| |
| |
Constitutional Reform and Governance Act 2010 |
| |
147 (1) | In section 41 of the Constitutional Reform and Governance Act 2010 (tax |
| 30 |
status of MPs and members of the House of Lords), in subsection (2), omit “, |
| |
| |
(2) | The amendment made by this paragraph has effect for the purposes of a |
| |
member’s liability to income tax or capital gains tax for the tax year 2013-14 |
| |
or any subsequent tax year. |
| 35 |
|
| |
|
| |
|
| |
| |
Controlled foreign companies |
| |
Relevant finance leases etc |
| |
1 | Part 9A of TIOPA 2010 (controlled foreign companies) is amended as |
| |
| 5 |
2 | Chapter 5 (the CFC charge gateway: non-trading finance profits) is amended |
| |
| |
3 | In section 371ED (arrangements in lieu of dividends) in subsection (1) omit |
| |
“(other than a relevant finance lease)”. |
| |
4 (1) | Section 371EE (leases to UK resident companies etc) is amended as follows. |
| 10 |
(2) | In subsection (2)(b)(i) for “which is the subject of the lease” substitute “(“the |
| |
relevant asset”) which is the subject of the lease or making (directly or |
| |
indirectly) an arrangement which would fall within subsection (3)”. |
| |
(3) | After subsection (2) insert— |
| |
“(3) | An arrangement would fall within this subsection if— |
| 15 |
(a) | the arrangement would meet one or both of the following |
| |
| |
(i) | it would not be a relevant finance lease; |
| |
(ii) | it would not involve the CFC, and |
| |
(b) | under the arrangement the other company would (directly or |
| 20 |
indirectly) purchase rights to use the relevant asset.” |
| |
5 | Chapter 22 (supplementary provision) is amended as follows. |
| |
6 | In section 371VA (definitions) for the definition of “relevant finance lease” |
| |
| |
““relevant finance lease” is to be read in accordance with section |
| 25 |
| |
7 (1) | Section 371VG (finance profits) is amended as follows. |
| |
(2) | In subsection (1) for paragraph (b) substitute— |
| |
“(b) | which are included in the CFC’s assumed total profits for the |
| |
accounting period in question and which— |
| 30 |
(i) | arise from a relevant finance lease, but |
| |
(ii) | are not trading profits.” |
| |
(3) | In subsection (4)(b) omit “an arrangement which would be”. |
| |
8 (1) | Section 371VH (interests in companies) is amended as follows. |
| |
(2) | In subsection (9) omit the second sentence. |
| 35 |
(3) | After subsection (10) insert— |
| |
“(10A) | For the purposes of subsection (9), if for any relevant period accounts |
| |
for a loan creditor are not prepared in accordance with international |
| |
accounting standards or UK generally accepted accounting practice, |
| |
any question relating to generally accepted accounting practice is to |
| 40 |
be determined in relation to the loan creditor for that period by |
| |
|
| |
|
| |
|
reference to generally accepted accounting practice in relation to |
| |
accounts prepared in accordance with international accounting |
| |
| |
9 | After section 371VI insert— |
| |
“371VIA | Relevant finance leases |
| 5 |
(1) | In this Part “relevant finance lease” means an arrangement falling |
| |
within subsection (2) or (3). |
| |
| (An arrangement which is a loan relationship of any company does |
| |
not fall within either of those subsections.) |
| |
(2) | An arrangement falls within this subsection if— |
| 10 |
(a) | it provides for an asset to be leased or otherwise made |
| |
available by a person (“the lessor”) to another person, and |
| |
(b) | in accordance with generally accepted accounting practice, it |
| |
falls (or would fall) to be treated in the accounts of the lessor, |
| |
or of a person connected with the lessor, as a finance lease or |
| 15 |
| |
(3) | A hire-purchase, conditional sale or other arrangement relating to an |
| |
asset falls within this subsection if it does not fall within subsection |
| |
(2) but is of a similar character to an arrangement which would fall |
| |
| 20 |
(4) | If for any relevant period accounts for a person are not prepared in |
| |
accordance with international accounting standards or UK generally |
| |
accepted accounting practice, any question relating to generally |
| |
accepted accounting practice is to be determined for the purposes of |
| |
this section in relation to that person for that period by reference to |
| 25 |
generally accepted accounting practice in relation to accounts |
| |
prepared in accordance with international accounting standards. |
| |
(5) | In this section “accounts”, in relation to a company, includes |
| |
accounts relating to two or more companies of which that company |
| |
| 30 |
Limit on double taxation relief in cases involving qualifying loan relationships of CFCs |
| |
10 | Part 2 of TIOPA 2010 (double taxation relief) is amended as follows. |
| |
11 | Chapter 2 (double taxation relief by way of credit) is amended as follows. |
| |
12 | In section 42 (limit on credit against corporation tax) after subsection (4) |
| |
| 35 |
“(5) | See also section 49A which contains an additional limit on credit |
| |
allowed in certain cases involving CFCs.” |
| |
13 | After section 49 insert— |
| |
“49A | Limit on credit in cases involving qualifying loan relationships of |
| |
| 40 |
(1) | This section applies if— |
| |
(a) | a claim is made under Chapter 9 of Part 9A (controlled |
| |
foreign companies: exemptions for profits from qualifying |
| |
|
| |
|
| |
|
loan relationships) in relation to an accounting period (“the |
| |
relevant period”) of a CFC (“the creditor CFC”), |
| |
(b) | in the relevant period, the creditor CFC has a qualifying loan |
| |
relationship in relation to which another CFC is the ultimate |
| |
debtor by virtue of section 371IG(4) or (5), and |
| 5 |
(c) | a UK resident company (“the relevant UK company”) has |
| |
loan relationship credits which arise in the relevant period |
| |
| |
(i) | loan B (see section 371IG(3)(b)), or |
| |
(ii) | loans out of which loan B is wholly or partly funded |
| 10 |
(directly or indirectly). |
| |
(2) | So far as any credit allowed under section 18(2) to the relevant UK |
| |
company is referable to loan relationship credits falling within |
| |
subsection (1)(c) which arise in an accounting period of the relevant |
| |
UK company, the credit must not exceed— |
| 15 |
| |
R has the same meaning as in section 42(2), and |
| |
| |
(a) | the relevant UK company’s share of the relevant |
| |
profit amount (see subsection (4)), or |
| 20 |
(b) | if only X% of the total amount of the loan relationship |
| |
credits falling within subsection (1)(c) arises in the |
| |
accounting period, X% of the relevant UK company’s |
| |
share of the relevant profit amount. |
| |
| (If the amount given by the formula above is nil, no credit is |
| 25 |
| |
(3) | The limit on credit contained in subsection (2) is in addition to the |
| |
limit given by section 42(2). |
| |
(4) | Take the following steps to determine the relevant profit amount and |
| |
the relevant UK company’s share of that amount. |
| 30 |
| |
| Determine the total amount of the loan relationship credits which |
| |
arise in the relevant period from loan B to the person who made loan |
| |
| |
| 35 |
| Deduct from the amount determined at step 1 above the credits from |
| |
the creditor CFC’s qualifying loan relationship determined at step 1 |
| |
in section 371IF for the relevant period. |
| |
| The result is the relevant profit amount. |
| |
| 40 |
| On a just and reasonable basis, apportion the relevant profit amount |
| |
amongst all the persons falling within subsection (5) (although the |
| |
amount apportioned to a person may be nil). |
| |
| The relevant UK company’s share of the relevant profit amount is the |
| |
amount apportioned to it (and is nil if no amount is apportioned to |
| 45 |
| |
|
| |
|
| |
|
(5) | The following persons (apart from the creditor CFC) fall within this |
| |
| |
(a) | the person who made loan B, and |
| |
(b) | any person who has made or received a loan out of which |
| |
loan B is wholly or partly funded (directly or indirectly). |
| 5 |
| |
(a) | references to loan B do not include any part of loan B— |
| |
(i) | which loan A (see section 371IG(3)(a)) is not made |
| |
| |
(ii) | in relation to which the requirement of section |
| 10 |
| |
(b) | “loan relationship credit” means, in relation to a person, a |
| |
credit which the person has under Part 5 of CTA 2009 or |
| |
would have were the person a UK resident company within |
| |
the charge to corporation tax, and |
| 15 |
(c) | “loan” has the same meaning as it has in Chapter 9 of Part |
| |
| |
14 (1) | In Chapter 3 (miscellaneous provisions), section 112 (deduction from |
| |
income for foreign tax (instead of credit against UK tax)) is amended as |
| |
| 20 |
(2) | After subsection (3) insert— |
| |
“(3A) | Subsection (3B) applies if— |
| |
(a) | the requirements of section 49A(1)(a) to (c) are met, |
| |
(b) | amounts have been paid in respect of non-UK tax on loan |
| |
relationship credits falling within section 49A(1)(c) which |
| 25 |
arise in an accounting period of the relevant UK company, |
| |
| |
(c) | apart from subsection (3B), Z would exceed |
| |
| |
(i) | the total amount of any reductions under |
| 30 |
subsection (1) for amounts paid in respect of |
| |
| |
(ii) | the total amount of any increases under |
| |
subsection (3) for payments made by |
| |
reference to that non-UK tax, and |
| 35 |
R and S have the same meaning as in section 49A(2). |
| |
(3B) | The total amount of the reductions under subsection (1) is to be |
| |
reduced so that Z equals |
| |
(3) | In subsection (6), for “subsection (1)” substitute “this section”. |
| |
| 40 |
15 | In Part 6 of TIOPA 2010 (tax arbitrage), in section 236 (deduction schemes |
| |
involving hybrid entities) for subsection (4) substitute— |
| |
“(4) | Condition B is not met just because the party’s profits or gains are |
| |
subject to a charge under the law of a territory outside the United |
| |
Kingdom (by whatever name known) which is similar to the CFC |
| 45 |
| |
|
| |
|
| |
|
16 | Part 9A of TIOPA 2010 (controlled foreign companies) is amended as |
| |
| |
17 | In Chapter 3 (the CFC charge gateway: determining which (if any) of |
| |
Chapters 4 to 8 applies) in section 371CE (does Chapter 6 apply?) for |
| |
subsections (4) and (5) substitute— |
| 5 |
“(4) | The CFC is a “group treasury company” in the accounting period if, |
| |
assuming the relevant period were the accounting period— |
| |
(a) | the CFC would be a group treasury company in the relevant |
| |
period in accordance with section 316(2) (group treasury |
| |
| 10 |
(b) | throughout the relevant period, the requirements of section |
| |
316(3)(a) and (b) would be met in relation to the CFC as a |
| |
| |
(5) | For the purpose of applying section 316 in accordance with |
| |
| 15 |
(a) | section 316(2) applies with the omission of paragraph (d), |
| |
| |
(b) | section 337(1) (definition of “the worldwide group”) applies |
| |
with the omission of paragraph (a).” |
| |
18 | Chapter 9 (exemptions for profits from qualifying loan relationships) is |
| 20 |
| |
19 | In section 371IB (loans funded out of qualifying resources) after subsection |
| |
| |
“(9A) | Subsection (9) does not apply if the debt incurred by the member of |
| |
the CFC group as mentioned in subsection (8) represents the |
| 25 |
principal on a loan made to the member to which subsection (9B) or |
| |
| |
(9B) | This subsection applies to a loan if the member repays it within 48 |
| |
hours of the loan being made. |
| |
(9C) | But subsection (9B) does not apply to a loan if the repayment of the |
| 30 |
loan within the 48 hours occurs under, or is connected (directly or |
| |
indirectly) with, an arrangement the main purpose, or one of the |
| |
main purposes, of which is to ensure that subsection (9) does not |
| |
| |
| 35 |
(b) | any other debt which a member of the CFC group incurs (or |
| |
is expected to incur) in the United Kingdom. |
| |
(9D) | This subsection applies to a loan if— |
| |
(a) | there is an issue of shares which meets the requirements of |
| |
subsection (7)(c)(i) to (iii), |
| 40 |
(b) | the loan was made before the issue of shares but with the |
| |
expectation that it would be repaid by the member out of |
| |
funds deriving (directly or indirectly) from the issue of |
| |
| |
(c) | the loan is repaid by the member out of such funds within the |
| 45 |
period of 6 months beginning with the day on which the loan |
| |
| |
|
| |
|