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6 (1) | After Chapter 3A insert— |
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Repayments and return payments |
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464C | Treatment of certain repayments and return payments |
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(a) | within any period of 30 days— |
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(i) | the qualifying amount of repayments made to a close |
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company in respect of one or more chargeable |
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payments made by the company to a person totals |
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(ii) | the available amount of the relevant chargeable |
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payments made by the company to the person or an |
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associate of the person totals £5,000 or more, and |
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(b) | the relevant chargeable payments are made in an accounting |
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period subsequent to that in which the chargeable payments |
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mentioned in paragraph (a)(i) were made, |
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| the qualifying amount of the repayments, so far as not exceeding the |
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available amount of the relevant chargeable payments, is to be |
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treated for the purposes of this Chapter as a repayment of the |
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relevant chargeable payments. |
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(2) | A chargeable payment is a relevant chargeable payment for the |
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purposes of subsection (1) if (or to the extent that) it is not repaid |
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within the period of 30 days mentioned in that subsection. |
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(a) | immediately before a repayment is made in respect of one or |
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more chargeable payments made by a close company to a |
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person, the total amount owed to the company by the person |
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in respect of chargeable payments is £15,000 or more, |
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(b) | at the time the repayment is made, arrangements had been |
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made for one or more chargeable payments to be made to |
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replace some or all of the amount repaid, and |
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(c) | the available amount of the chargeable payments made by |
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the company to the person or an associate of the person |
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under the arrangements totals £5,000 or more, |
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| the qualifying amount of the repayment, so far as not exceeding the |
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available amount of the chargeable payments mentioned in |
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paragraph (c), is to be treated for the purposes of this Chapter as a |
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repayment of those chargeable payments. |
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(4) | An amount contained in a charg eable payment is an available |
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(a) | for the purposes of subsection (1), to the extent that no |
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repayment has been treated as made in respect of it by the |
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previous operation of that subsection, and |
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(b) | for the purposes of subsection (3), to the extent that no |
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repayment has been treated as made in respect of it— |
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(i) | by the operation of subsection (1), or |
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(ii) | by the previous operation of subsection (3). |
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(5) | An amount contained in a repayment is a qualifying amount to the |
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extent that it has not been treated by the previous operation of this |
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section as a repayment of a chargeable payment. |
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(6) | This section does not apply in relation to a repayment which gives |
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rise to a charge to income tax on the participator or associate by |
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reference to whom the loan, advance or benefit was a chargeable |
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(7) | The Treasury may by order vary a sum specified in subsection (1) or |
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(8) | An order under subsection (7) may contain incidental, supplemental, |
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consequential and transitional provision and savings. |
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464D | Section 464C: supplementary |
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(1) | All such assessments and adjustments of assessments are to be made |
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as are necessary to give effect to section 464C(1) and (3). |
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(2) | If a person who has made a tax return becomes aware that, after |
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making it, anything in it has become incorrect because of the |
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operation of section 464C(1) or (3), the person must give notice to an |
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officer of Revenue and Customs specifying how the return needs to |
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(3) | The notice must be given within 3 months beginning with the day on |
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which the person became aware that anything in the return had |
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become incorrect because of the operation of section 464C(1) or (3). |
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(4) | In section 464C, “chargeable payment” means— |
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(a) | a loan or advance made by a close company which gives rise |
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to a charge to tax under section 455, or |
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(b) | the conferral of a benefit on an individual in circumstances |
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which give rise to a charge to tax under section 464A. |
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(5) | In a case within subsection (4)(b)— |
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(a) | the conferral of the benefit is to be treated for the purposes of |
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section 464C as a loan made by the close company to the |
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individual to the value of the benefit conferred, and |
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(b) | any payment in respect of which (apart from section 464C) |
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relief is due to the close company under section 464B is to be |
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treated for the purposes of section 464C as a repayment of the |
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(2) | The amendment made by this paragraph has effect in relation to repayments |
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and return payments made on or after 20 March 2013. |
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7 | In section 465 (power to obtain information), after “Chapter 3” (in both |
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Taxes Management Act 1970 |
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8 | TMA 1970 is amended as follows. |
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9 | In section 59E(11)(a) (provision as to when tax is due and payable)— |
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(a) | after “455” insert “or 464A”, and |
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(b) | after “loan” insert “or benefit”. |
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10 | In section 59F(6)(a) (arrangements for paying tax on behalf of group |
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(a) | after “455” insert “or 464A”, and |
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(b) | after “loan” insert “or benefit”. |
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11 (1) | Section 109 (corporation tax on close company in connection with loans to |
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participators etc) is amended as follows. |
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(a) | after “459” insert “and 464A and 464B”, and |
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(b) | for “by close companies” insert “or benefits”. |
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(3) | For subsection (3) substitute— |
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“(3) | For the purposes of section 87A of this Act as applied by subsection |
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(a) | the date when tax under section 455 of CTA 2010 became due |
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and payable is that determined in accordance with |
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subsection (3) of that section, and |
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(b) | the date when tax under section 464A of CTA 2010 became |
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due and payable is that determined in accordance with |
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subsection (4) of that section.” |
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(4) | After subsection (3A) insert— |
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“(3B) | If there is a payment which for the purposes of section 464B of CTA |
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2010 is a return payment in respect of a benefit conferred, interest |
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under section 87A of this Act on so much of the tax under section |
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464A of CTA 2010 as is referable to the return payment is not payable |
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in respect of any period after the date on which the return payment |
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(5) | In subsection (4), after “458” insert “or 464B”. |
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(6) | In subsection (5), after “459” insert “or 464A and 464B”. |
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(7) | In the heading, after “loans” insert “or benefits”. |
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12 | The amendments made by paragraphs 9 to 11 are treated as having come |
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into force on 20 March 2013. |
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13 (1) | Schedule 18 to FA 1998 (company tax returns, assessments and related |
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matters) is amended as follows. |
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(2) | In paragraph 1 (meaning of “tax”), after the entry relating to section 455 of |
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“section 464A of that Act (tax on other benefit conferred on |
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(3) | In paragraph 8(1) (calculation of tax payable), in paragraph 1 of the third |
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(a) | after “455” insert “or 464A”, and |
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(b) | for “or advance made by close company” substitute “, advance or |
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(4) | In paragraph 18 (failure to deliver return: tax-related penalty), for sub- |
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paragraph (4) substitute— |
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“(4) | In determining that amount no account is to be taken of— |
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(a) | any relief under section 458 of the Corporation Tax Act |
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2010 (relief in respect of repayment, etc of loan) which is |
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deferred under subsection (5) of that section, or |
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(b) | any relief under section 464B of that Act (relief in respect of |
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return payment) which is deferred under subsection (5) of |
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(5) | The amendments made by this paragraph are treated as having come into |
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Income Tax (Trading and Other Income) Act 2005 |
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14 (1) | In section 417 of ITTOIA 2005 (person liable for charge on release of loan or |
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advance), for subsection (1) substitute— |
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“(1) | The person liable for any tax charged under this Chapter is— |
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(a) | in the case of a loan or advance made to a partnership, any |
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partner who is an individual, and |
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(b) | in any other case, the person to whom the loan or advance |
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(1A) | If more than one person is liable in a case within subsection (1)(a), the |
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liability is to be apportioned between them in a just and reasonable |
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(2) | The amendment made by this paragraph has effect in relation to loans or |
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advances made on or after 20 March 2013. |
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