Finance Bill (HC Bill 10)

(5) In article 23C(4) of the Taxation of Pension Schemes (Transitional Provisions)
Order 2006 (S.I. 2006/572S.I. 2006/572) (modifications of Schedule 29 to FA 2004) in the
inserted paragraph 7A(1)(a) (limit at or below which additional sums can be
trivial commutation lump sums) for “£2,000” substitute “£10,000”.

(6) 5In the Registered Pension Schemes (Authorised Payments) Regulations 2009
(S.I. 2009/1171S.I. 2009/1171)—

(a) in each of regulations 6(1)(b), 8(1)(a), 11(1)(c), 11A(1)(b) and 12(1)(e)
(limit at or below which certain payments by registered pension
scheme can be authorised payments) for “£2,000” substitute “£10,000”,

(b) 10in regulation 10(3)(b) (certain payments by registered pension scheme
which can be authorised payments if value of member’s pension rights
is not more than £18,000) for “£18,000” substitute “£30,000”,

(c) in regulation 11(1)(d) (upper limit on total value of member’s benefits
under the scheme which would make the payment and all related
15schemes) for “£2,000” substitute “£10,000”,

(d) in regulation 11A(2) (may not be more than one previous payment
under regulation 11A) for “one payment” substitute “two payments”,
and

(e) in regulation 12(4) (certain payments by registered pension scheme can
20be authorised payments only if property held in respect of at least 20
members exceeds £2,000) for “£2,000” substitute “£10,000”.

(7) In consequence of subsection (6)(b), in the Registered Pension Schemes
(Miscellaneous Amendments) Regulations 2011 (S.I. 2011/1751S.I. 2011/1751) omit
regulation 8(4).

(8) 25The amendments made by subsections (1) to (4) have effect for commutation
periods beginning on or after 27 March 2014 and do so irrespective of whether
the nominated date is before, on or after 27 March 2014.

(9) The amendment made by subsection (5)—

(a) has effect for lump sums paid on or after 27 March 2014, and

(b) 30is to be treated as having been made by the Treasury under the powers
to make orders conferred by section 283(2) of FA 2004.

(10) The amendments made by subsection (6) and (7) have effect for payments
made on or after 27 March 2014.

(11) The amendments made by subsection (6) are to be treated as having been made
35by the Commissioners for Her Majesty’s Revenue and Customs under the
powers to make regulations conferred by section 164(1)(f) and (2) of FA 2004.

41 Transitional provision for new standard lifetime allowance for 2014-15 etc

Schedule 4 contains transitional provision in relation to the new standard
lifetime allowance for the tax year 2014-15 etc.

42 40Taxable specific income: effect on pension input amount for non-UK schemes

(1) Schedule 34 to FA 2004 (application of certain charges to non-UK pension
schemes) is amended as follows.

(2) In paragraph 10 (pension input amount for cash balance and defined benefits

arrangements), for sub-paragraph (2) substitute—

“(2) The appropriate fraction is—

(3) 15In paragraph 11 (pension input amount for other money purchase
arrangements), for sub-paragraph (2) substitute—

“(2) The appropriate fraction is—

(4) 30The amendments made by this section have effect for the tax year 2014-2015
and subsequent tax years.

43 Pension schemes

Schedule 5 makes provision in relation to pension schemes.

Sporting events

44 35Glasgow Grand Prix

(1) An accredited competitor who performs a Grand Prix activity is not liable to
income tax in respect of any income arising from the activity if the non-
residence condition is met.

(2) The following are Grand Prix activities—

(a) 40competing at the Glasgow Grand Prix, and

(b) any activity that is performed during the games period the main
purpose of which is to support or promote the Glasgow Grand Prix.

(3) The non-residence condition is that—

(a) the accredited competitor is non-UK resident for the tax year 2014-15,
5or

(b) the accredited competitor is UK resident for the tax year 2014-15 but the
year is a split year as respects the competitor and the activity is
performed in the overseas part of the year.

(4) Section 966 of ITA 2007 (deduction of sums representing income tax) does not
10apply to any payment or transfer which gives rise to income benefiting from
the exemption under subsection (1).

(5) In this section—

• “accredited competitor” means a person to whom an accreditation card in
  the athletes’ category has been issued by the company named UK
  15Athletics Limited which was incorporated on 16 December 1998;

• “the games period” means the period—

  (a)

  beginning with 5 July 2014, and

  (b)

  ending with 14 July 2014;

• “the Glasgow Grand Prix” means the Glasgow Grand Prix athletics event
  20held at Hampden Park Stadium in Glasgow in July 2014;

• “income” means employment income or profits of a trade, profession or
  vocation (including profits treated as arising as a result of section 13 of
  ITTOIA 2005).

(6) This section is treated as having come into force on 6 April 2014.

45 25Major sporting events: power to provide for tax exemptions

(1) Where a major sporting event is to be held in the United Kingdom, the
Treasury may make regulations providing for exemption from income tax and
corporation tax in relation to the event.

(2) The regulations may, in particular—

(a) 30exempt specified classes of person, income or activity from income tax;

(b) exempt specified classes of person, profit, income or activity from
corporation tax;

(c) provide for specified classes of activity to be disregarded in
determining for fiscal purposes whether a person has a permanent
35establishment in the United Kingdom;

(d) disapply a duty on a person to deduct a sum representing income tax
before making a payment.

(3) The regulations may specify classes of person wholly or partly by reference
to—

(a) 40residence outside the United Kingdom, determined in accordance with
the regulations;

(b) documents issued or authority given by persons exercising functions in
connection with the sporting event.

(4) Regulations under this section—

(a) 45may apply (with or without modifications) or disapply any enactment,

(b) may modify, amend, repeal or revoke any enactment,

(c) may make different provision for different purposes, and

(d) may include incidental, consequential, supplementary or transitional
provision.

(5) Regulations under this section may not be made unless a draft of the
5instrument containing them has been laid before, and approved by a resolution
of, the House of Commons.

(6) In this section, “enactment” includes an enactment contained in subordinate
legislation (within the meaning of the Interpretation Act 1978), and includes an
enactment whenever passed or made.

10Employee share schemes

46 Share incentive plans: increases in maximum annual awards etc

(1) Schedule 2 to ITEPA 2003 (share incentive plans) is amended as follows.

(2) In paragraph 35(1) (free shares: maximum annual award) for “£3,000”
substitute “£3,600”.

(3) 15In paragraph 46(1) (partnership shares: maximum amount of deductions from
employee’s salary) for “£1,500” substitute “£1,800”.

(4) The amendments made by this section are treated as having come into force on
6 April 2014.

47 Share incentive plans: power to adjust maximum annual awards etc

(1) 20Schedule 2 to ITEPA 2003 (share incentive plans) is amended as follows.

(2) In paragraph 35 (free shares: maximum annual award) after sub-paragraph (2)
insert—

“(2A) The Treasury may by order amend sub-paragraph (1) by substituting
for any amount for the time being specified there an amount
25specified in the order.”

(3) In paragraph 46 (partnership shares: maximum amount of deductions from
employee’s salary) after sub-paragraph (5) insert—

“(6) The Treasury may by order amend sub-paragraph (1) by substituting
for any amount for the time being specified there an amount
30specified in the order.”

(4) In paragraph 60 (matching shares: maximum ratio of matching shares to
partnership shares) after sub-paragraph (3) insert—

“(4) The Treasury may by order amend sub-paragraph (2) by substituting
for any ratio for the time being specified there a ratio specified in the
35order.”

48 Employee share schemes

Schedule 6 makes provision in relation to employee share schemes.

49 Employment-related securities etc

Schedule 7 contains provision relating to employment-related securities.

Investment reliefs

50 Venture capital trusts

5Schedule 8 contains provision about venture capital trusts.

51 Removing time limit on seed enterprise investment scheme relief

(1) Section 257A of ITA 2007 (meaning of “SEIS relief” and commencement) is
amended as follows.

(2) For subsection (3) (which limits SEIS relief to shares issued on or after 6 April
102012 but before 6 April 2017) substitute—

“(3) This Part has effect in relation to shares issued on or after 6 April 2012
only.”

(3) Omit subsection (4) (which allows the Treasury to extend SEIS relief by order).

52 Removing time limit on CGT relief in respect of re-investment under SEIS

(1) 15In Schedule 5BB to TCGA 1992 (seed enterprise investment scheme: re-
investment), in paragraph 1 (SEIS re-investment relief)—

(a) in sub-paragraph (2)(a), for “or the tax year 2013-14” substitute “or any
subsequent tax year”, and

(b) in sub-paragraph (5A), in the definition of “the relevant percentage”, in
20paragraph (b), for “the tax year 2013-14” substitute “any subsequent tax
year”.

(2) Accordingly, in section 150G of TCGA 1992 (which introduces Schedule 5BB),
omit “in the tax years 2012-13 and 2013-14”.

Social investment relief

53 25Relief for investments in social enterprises

(1) Schedule 9 makes provision for and in connection with social investment tax
relief.

(2) Schedule 10 makes provision for relief under TCGA 1992 in connection with
investments in social enterprises.

30Capital gains

54 Relief on disposal of private residence

(1) TCGA 1992 is amended as follows.

(2) In section 223 (relief on disposal of private residence: amount of relief)—

(a) in subsections (1) and (2)(a), for “36 months” substitute “18 months”;

(b) omit subsections (5) and (6);

(c) in subsection (8), omit the “and” after paragraph (aa) and after that
paragraph insert—

“(ab) section 225E (disposals by disabled persons or persons
5in care homes etc), and”.

(3) After section 225D insert—

“225E Disposals by disabled persons or persons in care homes etc

(1) This section applies where a gain to which section 222 applies accrues
to an individual and—

(a) 10the conditions in subsection (2) are met, or

(b) the conditions in subsection (3) are met.

(2) The conditions mentioned in subsection (1)(a) are that at the time of the
disposal—

(a) the individual is a disabled person or a long-term resident in a
15care home, and

(b) the individual does not have any other relevant right in relation
to a private residence.

(3) The conditions mentioned in subsection (1)(b) are that at the time of the
disposal—

(a) 20the individual’s spouse or civil partner is a disabled person or a
long-term resident in a care home, and

(b) neither the individual nor the individual’s spouse or civil
partner has any other relevant right in relation to a private
residence.

(4) 25Where this section applies, the references in section 223(1) and (2)(a) to
18 months are treated as references to 36 months.

(5) An individual is a “long-term resident” in a care home at the time of the
disposal if at that time the individual —

(a) is resident there, and

(b) 30has been resident there, or can reasonably be expected to be
resident there, for at least three months.

(6) An individual has “any other relevant right in relation to a private
residence” at the time of the disposal if—

(a) at that time—

(i) 35the individual owns or holds an interest in a dwelling-
house or part of a dwelling-house other than that in
relation to which the gain accrued, or

(ii) the trustees of a settlement own or hold an interest in a
dwelling-house or part of a dwelling-house other than
40that in relation to which the gain accrued, and the
individual is entitled to occupy that dwelling-house or
part under the terms of the settlement, and

(b) section 222 would have applied to any gain accruing to the
individual or trustees on the disposal at that time of, or of that
45interest in, that dwelling house or part (or would have applied
if a notice under subsection (5) of that section had been given).

(7) In the application of this section in relation to a gain to which section
222 applies by virtue of section 225 (private residence occupied under
terms of settlement)—

(a) the reference in subsection (1) of this section to an individual is
5to the trustees of the settlement;

(b) the references in subsections (2) to (6) of this section to the
individual are to the person entitled under the terms of the
settlement, as mentioned in section 225.

(8) In this section—

• 10“care home” means an establishment that provides
  accommodation together with nursing or personal care;

• “disabled person” has the meaning given by Schedule 1A to FA
  2005.”

(4) The amendments made by this section have effect in relation to disposals made
15on or after 6 April 2014.

55 Remittance basis and split year treatment

(1) Section 12 of TCGA 1992 (non-UK domiciled individuals to whom remittance
basis applies) is amended as follows.

(2) After subsection (1) insert—

“(1A) 20But it does not apply to foreign chargeable gains accruing to an
individual in the overseas part of a split year as respects that
individual, regardless of the part of the year (the overseas part or the
UK part) in which the foreign chargeable gains are remitted.”

(3) The amendment made by this section has effect in relation to gains accruing on
25or after 6 April 2013.

56 Termination of life interest and death of life tenant: disabled persons

(1) TCGA 1992 is amended as follows.

(2) In section 72 (termination of life interest on death of person entitled)—

(a) in subsection (1B)(a)(iii), for “within section 89B(1)(c) or (d)” substitute
30“, within the meaning given by section 89B”, and

(b) at the end insert—

“(6) An interest which is a disabled person’s interest by virtue of
section 89B(1)(a) or (b) of the Inheritance Tax Act 1984 is to be
treated as an interest in possession for the purposes of this
35section.”

(3) In section 73(3) (death of life tenant: exclusion of chargeable gain), for “to (5)”
substitute “to (6)”.

(4) The amendments made by this section have effect in relation to deaths
occurring on or after 5 December 2013.

57 40Capital gains roll-over relief: relevant classes of assets

(1) Section 155 of TCGA 1992 (relevant classes of assets) is amended as follows.

(2) After the heading “CLASS 7A” insert—

“Assets within heads A and B below.

Head A”

(3) Before the heading “CLASS 8” insert—

5“Head B

Payment entitlements under the basic payment scheme (that is, the
scheme of income support for farmers in pursuance of Regulation (EU)
No 1307/2013 of the European Parliament and of the Council).”

(4) The amendments made by this section have effect where the disposal of the old
10assets (or an interest in them) or the acquisition of the new assets (or an interest
in them) is on or after 20 December 2013.

58 Capital gains roll-over relief: intangible fixed assets

(1) In section 156ZB of TCGA 1992 (intangible fixed assets: interaction with relief
under Chapter 7 of Part 8 of CTA 2009), in subsection (1), for “This section”
15substitute “Subsection (2)”.

(2) In Chapter 14 of Part 8 of CTA 2009 (intangible fixed assets: miscellaneous
provisions), after section 870 insert—

“Roll-over relief under TCGA 1992

870A Claims for relief made under sections 152 and 153 of TCGA 1992

(1) 20Subsection (2) applies where—

(a) a company has made a claim for relief under section 152 or 153
of TCGA 1992 (roll-over relief) during the period beginning
with 1 April 2009 and ending with 19 March 2014, and

(b) the relief claimed relates to disposal proceeds that are applied
25in acquiring an intangible fixed asset within the meaning of this
Part.

(2) The company is treated for the purposes of this Part as if the cost of the
asset recognised for tax purposes were reduced on 19 March 2014 by
the amount in respect of which the relief under section 152 or 153 of
30TCGA 1992 is given.

(3) But the effect of subsection (2) must not be to reduce the tax written-
down value of the asset to below nil.

(4) The references to adjustments in sections 742(3) and 743(3) (assets
written down) include any adjustment required by subsection (2).”

(3) 35The amendment made by subsection (1) has effect in relation to claims for relief
under section 152 or 153 of TCGA 1992 made on or after 19 March 2014.

(4) The amendment made by subsection (2) has effect in relation to accounting
periods beginning on or after 19 March 2014.

(5) For the purposes of subsection (4), an accounting period beginning before, and
40ending on or after, 19 March 2014 is to be treated as if so much of the period as
falls before that date, and so much of the period as falls on or after that date,
were separate accounting periods.

59 Avoidance involving losses

(1) In section 184G of TCGA 1992 (avoidance involving losses: schemes converting
income to capital)—

(a) for subsections (2) and (3) substitute—

“(2) 5Condition A is that a receipt or other amount arises to a
company directly or indirectly in consequence of, or otherwise
in connection with, any arrangements.

(3) Condition B is that—

(a) that amount falls to be taken into account in calculating
10a chargeable gain (the “relevant gain”) which accrues to
a company (“the relevant company”), and

(b) losses accrue (or have accrued) to the relevant company
(whether before or after or as part of the
arrangements).”, and

(b) 15in subsection (4), for “the receipt” substitute “the amount mentioned in
subsection (2)”.

(2) In section 184H of that Act (avoidance involving losses: schemes securing
deductions)—

(a) in subsection (2)(b), omit “on any disposal of any asset”,

(b) 20for subsection (3) substitute—

“(3) Condition B is that the relevant company, or a company
connected with the relevant company, becomes entitled to an
income deduction directly or indirectly in consequence of, or
otherwise in connection with, the arrangements.”,

(c) 25in subsection (4), for paragraph (a) substitute—

“(a) that income deduction, and”, and

(d) in subsection (10), after the definition of “arrangements” insert—

• ““income deduction” means—

  (a)

  a deduction in calculating income for
  30corporation tax purposes, or

  (b)

  a deduction from total profits,”.

(3) The amendments made by this section have effect—

(a) in relation to arrangements entered into on or after 30 January 2014, and

(b) in relation to arrangements entered into before that date but only to the
35extent that any chargeable gain accrues on a disposal which occurs on
or after that date.

Capital allowances

60 Extension of capital allowances

(1) Part 2 of CAA 2001 (plant and machinery allowances) is amended as follows.

(2) 40In section 45D (expenditure on cars with low carbon dioxide emissions), after
subsection (1) insert—

“(1A) The Treasury may by order amend subsection (1)(a) so as to extend the
period specified.”

(3) In section 45DA (expenditure on zero-emission goods vehicles), after
subsection (1) insert—

“(1A) The Treasury may by order amend subsection (1)(a) so as to extend the
period specified.”

(4) 5In section 45E (expenditure on plant or machinery for gas refuelling station),
after subsection (1) insert—

“(1A) The Treasury may by order amend subsection (1)(a) so as to extend the
period specified.”

(5) In section 45K (expenditure on plant and machinery for used in designated
10assisted areas)—

(a) in subsection (1), in paragraph (b) for “5 years” substitute “8 years”, and

(b) after that subsection insert—

“(1A) The Treasury may by order amend subsection (1)(b) so as to
extend the period specified.”

61 15Business premises renovation allowances

(1) Section 360B of CAA 2001 (business premises renovation allowances: meaning
of “qualifying expenditure”) is amended in accordance with subsections (2) to
(6).

(2) For subsection (1) substitute—

“(1) 20In this Part “qualifying expenditure” means capital expenditure
incurred before the expiry date—

(a) in respect of which Conditions A and B are met, and

(b) which is not excluded by subsection (3), (3B) or (3D).”

(3) After subsection (2) insert—

“(2A) 25Condition A is that the expenditure is incurred on—

(a) the conversion of a qualifying building into qualifying business
premises,

(b) the renovation of a qualifying building if it is or will be
qualifying business premises, or

(c) 30repairs to a qualifying building or, where the building is part of
a building, to the building of which the qualifying building
forms part, to the extent that the repairs are incidental to
expenditure within paragraph (a) or (b).

(2B) Condition B is that the expenditure is incurred on—

(a) 35building works,

(b) architectural or design services,

(c) surveying or engineering services,

(d) planning applications, or

(e) statutory fees or statutory permissions.

(2C) 40But Condition B is treated as met in respect of expenditure incurred on
matters not mentioned in that Condition to the extent that that
expenditure (in total) does not exceed 5% of the qualifying expenditure
incurred on the matters mentioned in subsection (2B)(a) to (c).”