Finance Bill

House of Commons

Session 2013 - 14
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Finance Bill

Finance Bill
Schedule 20 — Community amateur sports clubs
319

(a)
after “travel” insert “or subsistence”, and
(b)
for “travelling to away matches” substitute “in connection with away
matches”.
      (4)
After subsection (4) insert—
“(4A)
In subsection (4)(g) “subsistence expenses” means expenses on food,
5
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
subsection (1) if—
(a)
the number of persons paid to play for the club does not at
10
any time exceed the specified maximum,
(b)
the number of such persons in any year does not exceed the
specified maximum for that year,
(c)
the amount paid to any such person in any year in respect of
activities undertaken for the club does not exceed the
15
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
specified maximum for that year.

“Specified” means specified in regulations made by the Treasury.
20
(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
person paid to play for a club, and
(b)
provision about calculating for the purposes of subsection
25
(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
a club is “organised on an amateur basis” for the purposes of section
658.
30
(9)
The provision that may be made by regulations under subsection (8)
includes—
(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;
35
(b)
provision as to what are, or are not, to be regarded as
“ordinary benefits of an amateur sports club” for the
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
40
(1).
(10)
Regulations made under subsection (8) may amend this section or
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
45
or make other amendments to this Chapter may not be made unless

Finance Bill
Schedule 20 — Community amateur sports clubs
320

a draft of the instrument has been laid before, and approved by a
resolution of, the House of Commons.”
      (7)
After subsection (11) insert—
“(12)
The provision that may be made by regulations under this section
includes—
5
(a)
different provision for different purposes, and
(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
10
section if a draft of the statutory instrument containing them has
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
15
(1A)(c), for “section 661” substitute “sections 660A and 661”.
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
20
or more eligible sports if the percentage of its members who are
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
25
sporting activities of the club.
(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;
(b)
as to the circumstances in which a member of a club is, or is
30
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
activities.
35
(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
regulations are made.
40
(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
Commons.”
45

Finance Bill
Schedule 20 — Community amateur sports clubs
321

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
specified as the relevant threshold in subsection (5)(a).
5
(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.”
7
In section 663 (exemption from corporation tax for UK property income),
10
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)
that amends that figure so as to substitute a lower figure may not be
15
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
registered as a community amateur sports club under section 658 of CTA
20
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—
(a)
provision restricting the amount of income, or income of a specified
25
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.

“Specified” means specified in the regulations.
30
      (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
regulations are made or this Act is passed.
35
      (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.
Commencement
40
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).

Finance Bill
Schedule 21 — Transitional provision relating to reduction in standard lifetime allowance etc
Part 1 — “Fixed protection 2014”
322

      (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
5
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
10
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
15
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
20
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—
25
(i)
a registered pension scheme, or
(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
30
enhancement factor,
(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
35
2012-13) does not apply on that date,

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
40
£1,500,000.
      (3)
But this paragraph ceases to apply if on or after 6 April 2014—

Finance Bill
Schedule 21 — Transitional provision relating to reduction in standard lifetime allowance etc
Part 1 — “Fixed protection 2014”
323

(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,
(c)
a transfer of sums or assets held for the purposes of, or representing
5
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.
      (4)
For the purposes of sub-paragraph (3)(a) there is benefit accrual in relation
10
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,
(b)
in the case of a cash balance arrangement or a defined benefits
15
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—
(i)
where the benefits that may be provided to or in respect of
20
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
(ii)
in any case, if there is an increase in the value of the
25
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
(and its amount if there is) is to be determined—
30
(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
assumptions, be available for the provision of benefits to or in respect
35
of the member (and, if there is, the amount of the increase), and
(b)
in the case of a defined benefits arrangement (or a hybrid
arrangement under which defined benefits may be provided to or in
respect of the individual under the arrangement), by reference to
whether there is an increase in the benefits amount.
40
      (6)
For the purposes of sub-paragraph (5)(b) “the benefits amount” is—

where—
LS is the lump sum to which the individual would, on the valuation
assumptions, be entitled under the arrangement (otherwise than by
commutation of pension);
45
P is the annual rate of the pension which would, on the valuation
assumptions, be payable to the individual under the arrangement;
RVF is the relevant valuation factor.

Finance Bill
Schedule 21 — Transitional provision relating to reduction in standard lifetime allowance etc
Part 1 — “Fixed protection 2014”
324

      (7)
Paragraph 17A of Schedule 36 to FA 2004 (impermissible transfers) applies
for the purposes of sub-paragraph (3)(b) but as if the references to a relevant
existing arrangement were to the arrangement and the reference in sub-
paragraph (2) to 5 April 2006 were to 5 April 2014.
      (8)
Sub-paragraphs (7) to (8B) of paragraph 12 of Schedule 36 to FA 2004 (when
5
there is a permitted transfer) apply for the purposes of sub-paragraph (3)(c);
and where there is a permitted transfer—
(a)
if it is a permitted transfer by virtue of sub-paragraph (8)(a) of
paragraph 12, this paragraph applies in relation to the arrangement
to which the transfer is made,
10
(b)
if it is a permitted transfer by virtue of sub-paragraph (8)(b) of that
paragraph, this paragraph applies in relation to the arrangement to
which the transfer is made as if it were the same as that from which
it is made, and
(c)
if it is a permitted transfer by virtue of sub-paragraph (8)(c) of that
15
paragraph, this paragraph applies in relation to the arrangement to
which the transfer is made as if it were the same as that from which
it is made and (if the employment is transferred) as if the
employment with the transferee were the employment with the
transferor.
20
      (9)
Sub-paragraphs (2A) to (2C) of paragraph 12 of Schedule 36 to FA 2004
(“permitted circumstances”) apply for the purposes of sub-paragraph (3)(d).
     (10)
Paragraph 14 of Schedule 36 to FA 2004 (when a relevant contribution is paid
under an arrangement) applies for the purposes of sub-paragraph (4)(a) and
(c)(i).
25
     (11)
Increases in the value of the individual’s rights under an arrangement are to
be ignored for the purposes of sub-paragraph (4)(b) or (c)(ii) if in no tax year
do they exceed the relevant percentage.
     (12)
The relevant percentage, in relation to a tax year, means—
(a)
where the arrangement (or a predecessor arrangement) includes
30
provision for the value of the rights of the individual to increase
during the tax year at an annual rate specified in the rules of the
pension scheme (or a predecessor registered pension scheme) on 11
December 2012—
(i)
that percentage (or, where more than one arrangement
35
includes such provision, the higher or highest of the
percentages specified), plus
(ii)
the relevant statutory increase percentage;
(b)
otherwise—
(i)
the percentage by which the consumer prices index for the
40
month of September in the previous tax year is higher than it
was for the September before that (or nil per cent if it is not
higher), or
(ii)
if higher, the relevant statutory increase percentage.
     (13)
In sub-paragraph (12)(a)—
45
“predecessor arrangement”, in relation to an arrangement, means
another arrangement (under the same or another registered pension
scheme) from which some or all of the sums or assets held for the
purposes of the arrangement directly or indirectly derive;

Finance Bill
Schedule 21 — Transitional provision relating to reduction in standard lifetime allowance etc
Part 1 — “Fixed protection 2014”
325

“predecessor registered pension scheme”, in relation to a pension
scheme, means another registered pension scheme from which some
or all of the sums or assets held for the purposes of the arrangement
under the pension scheme directly or indirectly derive.
     (14)
In sub-paragraph (12) “the relevant statutory increase percentage”, in
5
relation to a tax year, means the percentage increase in the value of the
individual’s rights under the arrangement during the tax year so far as it is
attributable solely to one or more of the following—
(a)
an increase in accordance with section 15 of the Pension Schemes Act
1993 or section 11 of the Pension Schemes (Northern Ireland) Act
10
1993 (increase of guaranteed minimum where commencement of
guaranteed minimum pension postponed);
(b)
a revaluation in accordance with section 16 of the Pension Schemes
Act 1993 or section 12 of the Pension Schemes (Northern Ireland) Act
1993 (early leavers: revaluation of earnings factors);
15
(c)
a revaluation in accordance with Chapter 2 of Part 4 of the Pension
Schemes Act 1993 or the Pension Schemes (Northern Ireland) Act
1993 (early leavers: revaluation of accrued benefits);
(d)
a revaluation in accordance with Chapter 3 of Part 4 of the Pension
Schemes Act 1993 or the Pension Schemes (Northern Ireland) Act
20
1993 (early leavers: protection of increases in guaranteed minimum
pensions);
(e)
the application of section 67 of the Equality Act 2010 (sex equality
rule for occupational pension schemes).
     (15)
Sub-paragraph (16) applies in relation to a tax year if—
25
(a)
the arrangement is a defined benefits arrangement which is under an
annuity contract treated as a registered pension scheme under
section 153(8) of FA 2004,
(b)
the contract provides for the value of the rights of the individual to
be increased during the tax year at an annual rate specified in the
30
contract, and
(c)
the contract limits the annual rate to the percentage increase in the
retail prices index over a 12 month period specified in the contract.
     (16)
Sub-paragraph (12)(b)(i) applies as if it referred instead to the annual rate of
the increase in the value of the rights during the tax year.
35
     (17)
For the purposes of sub-paragraph (15)(c) the 12 month period must end
during the 12 month period preceding the month in which the increase in the
value of the rights occurs.
     (18)
Subject to sub-paragraphs (19) to (21), sub-paragraph (3) applies in relation
to an individual who is a relieved member of a relieved non-UK pension
40
scheme as if the relieved non-UK pension scheme were a registered pension
scheme; and the other sub-paragraphs of this paragraph apply accordingly.
     (19)
Sub-paragraphs (20) and (21) apply for the purposes of sub-paragraph (3)(a)
(instead of sub-paragraph (4)) in determining if there is benefit accrual in
relation to an individual under an arrangement under a relieved non-UK
45
pension scheme of which the individual is a relieved member.
     (20)
There is benefit accrual in relation to the individual under the arrangement
if there is a pension input amount under sections 230 to 237 of FA 2004 (as
applied by Schedule 34 to that Act) greater than nil in respect of the