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| For other Amendment(s) see the following page(s) of Supplement to Votes:
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| Mr Chancellor of the Exchequer |
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| To move the following Clause:— |
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| | ‘Schedule [Transfer of deductions]— |
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| | (a) | inserts into CTA 2010 a new Part 14A (transfer of deductions), and |
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| | (b) | makes consequential provision.’. |
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| | Restrictions on buying capital allowances |
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| Mr Chancellor of the Exchequer |
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| To move the following Clause:— |
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| | ‘ | Schedule [Restrictions on buying capital allowances] contains provision |
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| | amending Chapter 16A of Part 2 of CAA 2001 (restrictions on allowance |
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| | High quality liquid assets |
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| Mr Chancellor of the Exchequer |
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| To move the following Clause:— |
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| | ‘(1) | In paragraph 70 of Schedule 19 to FA 2011 (bank levy: definitions), in sub- |
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| | paragraph (1), in the definition of “high quality liquid asset” for “section |
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| | 12.7.2(1) to (4)” substitute “section 12.7 (assets that are eligible for inclusion in |
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| | a firm’s regulatory liquid assets buffer)’. |
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| | (2) | The amendment made by this section has effect in relation to chargeable periods |
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| | ending on or after 1 January 2011, and in relation to those chargeable periods the |
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| | amendment is to be treated as always having had effect.’. |
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| | Restrictions on interim payments in proceedings relating to taxation matters |
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| Mr Chancellor of the Exchequer |
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| To move the following Clause:— |
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| | ‘(1) | This section applies to an application for an interim remedy (however described), |
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| | made in any court proceedings relating to a taxation matter, if the application is |
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| | founded (wholly or in part) on a point of law which has yet to be finally |
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| | determined in the proceedings. |
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| | (2) | Any power of a court to grant an interim remedy (however described) requiring |
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| | the Commissioners for Her Majesty’s Revenue and Customs, or an officer of |
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| | Revenue and Customs, to pay any sum to any claimant (however described) in the |
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| | proceedings is restricted as follows. |
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| | (3) | The court may grant the interim remedy only if it is shown to the satisfaction of |
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| | (a) | that, taking account of all sources of funding (including borrowing) |
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| | reasonably likely to be available to fund the proceedings, the payment of |
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| | the sum is necessary to enable the proceedings to continue, or |
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| | (b) | that the circumstances of the claimant are exceptional and such that the |
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| | granting of the remedy is necessary in the interests of justice. |
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| | (4) | The powers restricted by this section include (for example)— |
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| | (a) | powers under rule 25 of the Civil Procedure Rules 1998 (S.I. 1998/3132); |
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| | (b) | powers under Part II of Rule 29 of the Rules of the Court of Judicature |
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| | (Northern Ireland) (Revision) 1980 (S.R. 1980 No.346). |
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| | (5) | This section applies in relation to proceedings whenever commenced, but only in |
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| | relation to applications made in those proceedings on or after 26 June 2013. |
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| | (6) | This section applies on and after 26 June 2013. |
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| | (7) | Subsection (8) applies where, on or after 26 June 2013 but before the passing of |
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| | this Act, an interim remedy was granted by a court using a power which, because |
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| | of subsection (6), is to be taken to have been restricted by this section. |
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| | (8) | Unless it is shown to the satisfaction of the court that paragraph (a) or (b) of |
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| | subsection (3) applied at the time the interim remedy was granted, the court must, |
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| | on an application made to it under this subsection— |
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| | (a) | revoke or modify the interim remedy so as to secure compliance with this |
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| | (b) | if the Commissioners have, or an officer of Revenue and Customs has, |
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| | paid any sum as originally required by the interim remedy, order the |
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| | repayment of the sum or any part of the sum as appropriate (with interest |
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| | from the date of payment). |
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| | (9) | For the purposes of this section, proceedings on appeal are to be treated as part of |
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| | the original proceedings from which the appeal lies. |
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| | (10) | In this section “taxation matter” means anything, other than national insurance |
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| | contributions, the collection and management of which is the responsibility of the |
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| | Commissioners for Her Majesty’s Revenue and Customs (or was the |
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| | responsibility of the Commissioners of Inland Revenue or Commissioners of |
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| Mr Chancellor of the Exchequer |
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| To move the following Schedule:— |
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| | 1 | After Part 14 of CTA 2010 insert— |
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| | (1) | This Part makes provision restricting the circumstances in which |
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| | deductible amounts may be brought into account where there has been |
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| | a qualifying change in relation to a company. |
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| | (2) | For the meaning of “deductible amount” and “qualifying change” see |
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| | 730B | Interpretation of Part |
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| | “arrangements” includes any agreement, understanding, scheme, |
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| | transaction or series of transactions (whether or not legally |
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| | “C” means the company mentioned in section 730A(1), |
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| | “deductible amount” means— |
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| | (a) | an expense of a trade, |
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| | (b) | an expense of a UK property business or an overseas property |
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| | (c) | an expense of management of a company’s investment business |
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| | within the meaning of section 1219 of CTA 2009, |
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| | (d) | a non-trading debit within the meaning of Parts 5 and 6 of CTA |
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| | 2009 (loan relationships and derivative contracts) (see section |
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| | (e) | a non-trading debit within the meaning of Part 8 of CTA 2009 |
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| | (intangible fixed assets) (see section 746 of that Act), |
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| | but does not include any amount that has been taken into account in |
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| | determining RTWDV within the meaning of Chapter 16A of Part 2 of |
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| | CAA 2001 (restrictions on allowance buying) (see section 212K of |
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| | “qualifying change”, in relation to a company, has the same meaning as |
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| | “the relevant day” means the day on which the qualifying change in |
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| | (2) | In this Part, references to bringing an amount into account “as a |
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| | deduction” in any period are to bringing it into account as a deduction |
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| | (a) | in calculating profits, losses or other amounts for corporation |
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| | (b) | from profits or other amounts chargeable to corporation tax. |
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| | 730C | Disallowance of deductible amounts: relevant claims |
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| | (1) | This section applies where a relevant claim is made for an accounting |
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| | period ending on or after the relevant day. |
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| | (2) | “Relevant claim” means a claim by C, or a company connected with |
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| | (a) | section 37 (relief for trade losses against total profits), or |
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| | (b) | Chapter 4 of Part 5 (group relief). |
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| | (3) | A deductible amount that meets conditions A and B may not be the |
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| | subject of, or brought into account as a deduction in, the claim. |
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| | (4) | But subsection (3) does not exclude any amount which could have |
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| | been the subject of, or brought into account as a deduction in, the claim |
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| | in the absence of the qualifying change. |
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| | (5) | Condition A is that, on the relevant day, it is highly likely that the |
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| | amount, or any part of it, would (disregarding this Part) be the subject |
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| | of, or brought into account as a deduction in, a relevant claim for an |
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| | accounting period ending on or after the relevant day. |
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| | (6) | Any question as to what is “highly likely” on the relevant day for the |
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| | purposes of subsection (5) is to be determined having regard to— |
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| | (a) | any arrangements made on or before that day, and |
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| | (b) | any events that take place on or before that day. |
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| | (7) | Condition B is that the main purpose, or one of the main purposes, of |
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| | change arrangements is for the amount (whether or not together with |
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| | other deductible amounts) to be the subject of, or brought into account |
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| | as a deduction in, a relevant claim for an accounting period ending on |
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| | or after the relevant day. |
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| | (8) | “Change arrangements” means any arrangements made to bring about, |
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| | or otherwise connected with, the qualifying change. |
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| | (9) | This section does not apply to a deductible amount if, and to the extent |
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| | (a) | section 730D(2) applies to it, or |
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| | (b) | for the purposes of section 432, a loss, or any part of a loss, to |
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| | which section 433(2) applies derives from it. |
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| | 730D | Disallowance of deductible amounts: profit transfers |
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| | (1) | This section applies where arrangements (“the profit transfer |
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| | arrangements”) are made which result in— |
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| | (a) | an increase in the total profits of C, or of a company connected |
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| | (b) | a reduction of any loss or other amount for which relief from |
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| | corporation tax could (disregarding this section) have been |
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| | given to C or a company connected with C, |
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| | | in any accounting period ending on or after the relevant day. |
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| | (2) | A deductible amount that meets conditions D and E may not be |
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| | brought into account by C, nor any company connected with C, as a |
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| | deduction in any accounting period ending on or after the relevant day. |
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| | (3) | Condition D is that, on the relevant day, it is highly likely that the |
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| | amount, or any part of it, would (disregarding this Part) be brought into |
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| | account by C, or any company connected with C, as a deduction in any |
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| | accounting period ending on or after the relevant day. |
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| | (4) | Any question as to what is “highly likely” on the relevant day for the |
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| | purposes of subsection (3) is to be determined having regard to— |
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| | (a) | any arrangements made on or before that day, and |
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| | (b) | any events that take place on or before that day. |
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| | (5) | Condition E is that the main purpose, or one of the main purposes, of |
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| | the profit transfer arrangements is to bring the amount (whether or not |
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| | together with other deductible amounts) into account as a deduction in |
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| | any accounting period ending on or after the relevant day. |
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| | (6) | Subsection (7) applies if— |
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| | (a) | (disregarding subsection (7)) subsection (2) would prevent a |
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| | deductible amount being brought into account by a company |
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| | as a deduction in any accounting period ending on or after the |
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| | (b) | in the absence of the profit transfer arrangements and |
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| | disregarding any deductible amounts, the company would |
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| | have an amount of total profits for that accounting period. |
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| | (7) | Subsection (2) applies only in relation to such proportion of the |
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| | deductible amount mentioned in subsection (6)(a) as is just and |
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| | 2 (1) | In section 1(4) of CTA 2010 (overview of Act), after paragraph (a) insert— |
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| | “(aa) | transfer of deductions (see Part 14A),”. |
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| | (2) | In section 432 of that Act (sale of lessors: restriction on relief for certain |
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| | expenses), after subsection (1) insert— |
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| | “(1A) | For the purposes of subsection (1), an expense is to be disregarded if, |
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| | and to the extent that, section 730D(2) (disallowance of deductible |
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| | amounts: profit transfers) applies to it.” |
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| | (3) | In Schedule 4 to that Act (index of defined expressions), insert at the |
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| “arrangements (in Part 14A) |
| | | | | “as a deduction (in Part 14A) |
| | | | | | | | | | “deductible amount (in Part 14A) |
| | | | | “qualifying change (in Part 14A) |
| | | | | “the relevant day (in Part 14A) |
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| | Commencement and transitional provision |
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| | 3 (1) | The amendments made by this Schedule have effect in relation to a qualifying |
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| | change if the relevant day is on or after 20 March 2013. |
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| | (2) | But those amendments do not have effect if before that date— |
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| | (a) | the arrangements made to bring about the qualifying change were |
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| | (b) | there was an agreement, or common understanding, between the |
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| | parties to those arrangements as to the principal terms on which the |
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| | qualifying change would be brought about. |
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| | (a) | the relevant day in relation to a qualifying change is before 26 June |
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| | (b) | paragraph (a) or (b) of sub-paragraph (2) was satisfied before that date, |
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| | | those amendments have effect in relation to the qualifying change as if section |
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| | 730C(9)(b) were omitted.’. |
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| Mr Chancellor of the Exchequer |
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| To move the following Schedule:— |
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| | ‘Restrictions on buying capital allowances |
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| | 1 | Chapter 16A of Part 2 of CAA 2001 (avoidance involving allowance buying) |
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| | Restrictions where certain conditions met |
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| | 2 (1) | Section 212B (circumstances where Chapter 16A applies) is amended as |
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| | (2) | For subsection (1)(d) substitute— |
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| | “(d) | the qualifying change meets one of the limiting conditions.” |
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| | (3) | For subsection (4) substitute— |
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| | “(4) | Sections 212LA and 212M set out the limiting conditions and specify |
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| | when those conditions are met.” |
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| | 3 | After section 212L insert— |
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| | 212LA | Limiting conditions |
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| | (1) | The qualifying change meets one of the limiting conditions if |
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| | condition A, B, C or D is met. |
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| | (2) | Condition A is that the amount of the relevant excess of allowances is |
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| | (3) | Condition B is that the amount of the relevant excess of allowances— |
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| | (a) | is £2 million or more but less than £50 million, and |
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| | (b) | is not insignificant as a proportion of the total amount or value |
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| | of the benefits derived by any relevant person by virtue of the |
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| | qualifying change or change arrangements. |
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| | (4) | “Relevant person” means a person who, at the end of the relevant day, |
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| | (a) | a principal company of C, |
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| | (b) | a person carrying on the relevant activity in partnership, or |
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| | (c) | a person who is connected to a person within paragraph (a) or |
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| | (b) (within the meaning of section 1122 of CTA 2010). |
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| | (a) | the amount of the relevant excess of allowances is less than £2 |
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| | (b) | the qualifying change has an unallowable purpose. |
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| | | See section 212M for the meaning of “unallowable purpose”. |
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| | (6) | Condition D is that the main purpose, or one of the main purposes, of |
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| | any arrangements is to procure that condition A or B or paragraph (a) |
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| | of condition C is not met. |
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| | the amount of the relevant excess of allowances is the difference between |
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| | RTWDV and BSV (see sections 212K and 212L); |
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| | “change arrangements” and “arrangements” have the same meaning as in |
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| | 4 | In consequence of the amendments made by paragraphs 2 and 3, the heading |
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| | to Chapter 16A becomes “Restrictions on allowance buying”. |
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| | Extension of restrictions to other qualifying activities |
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| | 5 (1) | Section 212B (circumstances where Chapter 16A applies) is amended as |
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| | (a) | in paragraph (a), for “a trade (“the relevant trade”)” substitute “a |
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| | qualifying activity (“the relevant activity”)”, and |
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| | (b) | in paragraph (c), for “trade” (in both places) substitute “activity”. |
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| | (3) | In subsection (3) for “trade” substitute “activity”. |
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| | 6 (1) | Section 212C (when there is a a qualifying change in relation to C) is amended |
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| | (a) | after “Condition C is that” insert “the relevant activity is a trade |
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| | (within the meaning of this Part) and”, and |
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| | (b) | for “trade”, where it appears after “the relevant” (in both places), |
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| | (3) | In subsection (5) for “trade” (in both places) substitute “activity”. |
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| | 7 (1) | Section 212I (relevant percentage share) is amended as follows. |
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| | (2) | In subsections (1) and (3) for “trade” substitute “activity”. |
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| | (3) | In subsection (2) for “a trade” substitute “an activity”. |
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| | 8 | In section 212J(1) (relevant excess of allowances) for “trade” substitute |
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| | 9 | In section 212K(2), (3), (4) and (5) (relevant tax written-down value) for |
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| | “trade” substitute “activity”. |
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| | 10 | In section 212N(2), (3) and (4) (old and new accounting periods) for “trade” |
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| | 11 (1) | Section 212P (effect of excess on pools) is amended as follows. |
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| | (a) | for “a trade (or part of a trade)” substitute “a qualifying activity (or |
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| | part of a qualifying activity)”, |
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| | (b) | for “the activities of that trade (or part of a trade)” substitute “that |
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| | activity (or that part of an activity)”, |
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