(a) section 19 of the Revenue, Friendly Societies, and National Debt Act
1882,

(b) the National Debt (Conversion of Stock) Act 1884, and

(c) the National Debt (Conversion) Act 1888.

(6) 5Subsection (5) comes into force on such day as the Treasury may by regulations
made by statutory instrument appoint (and the regulations may appoint
different days for different paragraphs of that subsection).

(7) The other provisions of this section come into force on the day on which this
Act is passed.

10Part 5 Final provisions

125 Commencement orders and regulations

(1) In section 287(4) of TCGA 1992 (exceptions from negative resolution
procedure), for paragraph (b) substitute—

“(b) 15if the order or regulations provide for any provision of an
enactment relating to the taxation of chargeable gains to come
into force or have effect in accordance with the order or
regulations.”

(2) In section 1014(6) of ITA 2007 (exceptions from negative resolution procedure),
20for paragraph (b) substitute—

“(b) if the order or regulations provide for any provision of the
Income Tax Acts to come into force or have effect in accordance
with the order or regulations,”.

(3) In section 1171(6) of CTA 2010 (exceptions from negative resolution
25procedure), for paragraph (b) substitute—

“(b) if the order or regulations provide for any provision of the
Corporation Tax Acts to come into force or have effect in
accordance with the order or regulations.”

(4) The amendments made by this section have effect only in relation to powers
30conferred after this Act is passed.

126 Interpretation

(1) In this Act—

• “ALDA 1979” means the Alcoholic Liquor Duties Act 1979,

• “CAA 2001” means the Capital Allowances Act 2001,

• 35“CTA 2009” means the Corporation Tax Act 2009,

• “CTA 2010” means the Corporation Tax Act 2010,

• “IHTA 1984” means the Inheritance Tax Act 1984,

• “ITA 2007” means the Income Tax Act 2007,

• “ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003,

• 40“ITTOIA 2005” means the Income Tax (Trading and Other Income) Act
  2005,

• “OTA 1975” means the Oil Taxation Act 1975,

• “TCGA 1992” means the Taxation of Chargeable Gains Act 1992,

Finance (No. 2) BillPage 121

• “TIOPA 2010” means the Taxation (International and Other Provisions)
  Act 2010,

• “TMA 1970” means the Taxes Management Act 1970,

• “TPDA 1979” means the Tobacco Products Duty Act 1979,

• 5“VATA 1994” means the Value Added Tax Act 1994, and

• “VERA 1994” means the Vehicle Excise and Registration Act 1994.

(2) In this Act “FA”, followed by a year, means the Finance Act of that year.

127 Short title

This Act may be cited as the Finance Act 2015.

SCHEDULES

Section 13

SCHEDULE 1 Extension of benefits code except in relation to certain ministers of religion

Part 1 5Amendments of ITEPA 2003

1 ITEPA 2003 is amended as follows.

2 In section 7 (meaning of “employment income”, “general earnings” and
“specific employment income”), in subsection (5)(b), for “11” substitute “10”.

3 In section 17 (UK resident employees: treatment of earnings for year in
10which employment not held), in subsection (4), for “11” substitute “10”.

4 In section 30 (remittance basis and non-UK resident employees: treatment of
earnings for year in which employment not held), in subsection (4), for “11”
substitute “10”.

5 (1) Section 63 (the benefits code) is amended as follows.

(2) 15In subsection (1)—

(a) at the end of the entry relating to Chapter 7 insert “and”, and

(b) omit the entry relating to Chapter 11 and the “and” before it.

(3) Omit subsections (2) to (4).

6 In section 66 (meaning of “employment” and related expressions), after
20subsection (4) insert—

“(5) In the benefits code “lower-paid employment as a minister of
religion” has the same meaning as in Part 4 (see section 290D).”

7 In section 148 (reduction of cash equivalent where car is shared), omit
subsection (3).

8 25In section 157 (reduction of cash equivalent where van is shared), omit
subsection (3).

9 (1) Section 169 (car available to more than one family member etc employed by
same employer) is amended as follows.

(2) For subsection (2)(b) substitute—

“(b) 30M’s employment is lower-paid employment as a minister of
religion.”

(3) Omit subsections (3) and (4).

10 (1) Section 169A (van available to more than one family member etc employed
by same employer) is amended as follows.

(2) For subsection (2)(b) substitute—

“(b) M’s employment is lower-paid employment as a minister of
5religion.”

(3) Omit subsections (3) and (4).

11 In section 184 (interest treated as paid), in subsection (3), for the words
following “any of” substitute “the following Chapters of this Part—

• Chapter 3 (taxable benefits: expenses payments);

• 10Chapter 6 (taxable benefits: cars, vans and related benefits);

• Chapter 10 (taxable benefits: residual liability to charge).”

12 (1) Section 188 (loan released or written off: amount treated as earnings) is
amended as follows.

(2) In subsection (2), for “an excluded employment”, in each place, substitute
15“lower-paid employment as a minister of religion”.

(3) In subsection (3)(a), for “excluded employment” substitute “lower-paid
employment as a minister of religion”.

13 In section 228 (effect of exemptions in Part 4 on liability under provisions
outside Part 2), in subsection (2)(d), for “290 and” substitute “290, 290C to”.

14 (1) 20Section 239 (payments and benefits connected with taxable cars and vans
and exempt heavy goods vehicles) is amended as follows.

(2) In subsection (8), for “excluded employment” substitute “lower-paid
employment as a minister of religion (see section 290D)”.

(3) Omit subsection (9).

15 25In section 266 (exemption of non-cash vouchers for exempt benefits), in
subsection (5), for “excluded employment” substitute “lower-paid
employment as a minister of religion”.

16 In section 267 (exemption of credit-tokens used for exempt benefits), in
subsection (1)(b), for “excluded employment” substitute “lower-paid
30employment as a minister of religion”.

17 In section 269 (exemption where benefits or money obtained in connection
with taxable car or van or exempt heavy goods vehicle), in subsection (4)(b),
for “excluded employment” substitute “lower-paid employment as a
minister of religion”.

18 35In section 290 (accommodation benefits of ministers of religion), in
subsection (2), for “excluded employment” substitute “lower-paid
employment as a minister of religion (see section 290D)”.

19 In section 290A (accommodation outgoings of ministers of religion)—

(a) in subsection (1), for “a religious denomination” substitute
40“religion”,

(b) in subsection (3), omit the definition of “lower-paid employment”,
and

(c) in the heading of the section, after “outgoings of” insert “lower-
paid”.

(b) 45In section 290B (allowances paid to ministers of religion in respect of accommodation outgoings)—

(a) in subsection (1), for “a religious denomination” substitute
“religion”,

(b) in subsection (3), for “and “lower-paid employment” have the same
meanings” substitute “has the same meaning”, and

(c) 50in the heading of the section, after “to” insert “lower-paid”.

21 (1) Part 2 of Schedule 1 (index of defined expressions) is amended as follows.

(2) Omit both entries relating to “excluded employment” and the entry relating
to “lower-paid employment”.

(3) At the appropriate place insert—

22 (1) Schedule 7 (transitionals and savings) is amended as follows.

(2) In paragraph 17 (taxable benefits: benefits code)—

(a) in sub-paragraph (2), for “the Chapters” to “lower-paid
employments)” substitute “Chapters 3, 6, 7 and 10 of the benefits
65code (provisions not applicable before the tax year 2016-17 to lower-
paid employments)”, and

(b) omit sub-paragraph (4).

(3) In paragraph 27(3) (loans released or written off)—

(a) in paragraph (a), for ““not an excluded employment”” substitute
70““not lower-paid employment as a minister of religion””;

(b) in paragraph (b), for ““excluded employment”” substitute ““lower-
paid employment as a minister of religion””.

Part 2 Amendments of other enactments

23 (1) 75The Social Security Contributions and Benefits Act 1992 is amended as
follows.

(2) In section 10 (Class 1A contributions: benefits in kind etc), in subsection
(1)(b)(ii), for “an excluded employment” substitute “lower-paid
employment as a minister of religion”.

(3) 80In section 10ZB (non-cash vouchers provided by third parties), in subsection
(2)—

(a) in paragraph (a), for “an excluded employment for the purposes of
the benefits code” substitute “lower-paid employment as a minister
of religion”, and

(b) in paragraph (b) and in the words following that paragraph, for “an
excluded employment” substitute “lower-paid employment as a
minister of religion”.

(4) In section 122 (interpretation of Parts 1 to 6), in subsection (1)—

(a) 5omit the entry relating to “excluded employment”, and

(b) at the appropriate place insert—

• ““lower-paid employment as a minister of religion” has
  the meaning given by section 290D of ITEPA 2003;”.

24 (1) The Social Security Contributions and Benefits (Northern Ireland) Act 1992
10is amended as follows.

(2) In section 10 (Class 1A contributions: benefits in kind etc), in subsection
(1)(b)(ii), for “an excluded employment” substitute “lower-paid
employment as a minister of religion”.

(3) In section 10ZB (non-cash vouchers provided by third parties), in subsection
15(2)—

(a) in paragraph (a), for “an excluded employment for the purposes of
the benefits code” substitute “lower-paid employment as a minister
of religion”, and

(b) in paragraph (b) and in the words following that paragraph, for “an
20excluded employment” substitute “lower-paid employment as a
minister of religion”.

(4) In section 121 (interpretation of Parts 1 to 6), in subsection (1)—

(a) omit the entry relating to “excluded employment”, and

(b) at the appropriate place insert—

• 25““lower-paid employment as a minister of religion” has
  the meaning given by section 290D of ITEPA 2003;”.

25 (1) Section 173 of FA 2004 (provision of benefits by registered pension scheme)
is amended as follows.

(2) In subsection (2), for “an excluded employment” substitute “lower-paid
30employment as a minister of religion”.

(3) In subsection (3)—

(a) in the opening words, for “an excluded employment” substitute “an
employment which is lower-paid employment as a minister of
religion”, and

(b) 35in paragraph (a), for “an excluded employment” substitute “lower-
paid employment as a minister of religion”.

(4) In subsection (6), for “an excluded employment” substitute “lower-paid
employment as a minister of religion”.

(5) In subsection (7), for “an excluded employment” substitute “an employment
40which is lower-paid employment as a minister of religion”.

(6) In subsection (10), for the definition of “excluded employment” substitute—

• ““lower-paid employment as a minister of religion” has the
  meaning given by section 290D of that Act,”.

26 In CTA 2010, in section 1065 (exception for benefits treated as employment
45income etc), in the first column of the table, for the words from “in section

216” to “lower-paid employment)” substitute “in section 290C of that Act
(provisions of benefits code not applicable to lower-paid ministers of
religion)”.

Section 32

SCHEDULE 2 5Restrictions applying to certain deductions made by banking companies

Part 1 Main provisions

1 In CTA 2010, after Part 7 insert—

“ Part 7A 10Banking companies

CHAPTER 1 Introduction

269A Overview of Part

(1) This Part contains provision about banking companies.

(2) Chapter 2 defines “banking company” and contains other definitions
15applying for the purposes of this Part.

(3) Chapter 3 contains provision restricting the amount of certain
deductions which a banking company may make in calculating its
taxable total profits for an accounting period.

CHAPTER 2 Key definitions

20“Banking company”

269B Meaning of “banking company”

(1) In this Part “banking company”, in relation to an accounting period,
means—

(a) a company which meets conditions A to E,

(b) 25a company which—

(i) meets conditions A and B, and

(ii) is a member of a partnership which meets conditions
C to E, or

(c) a building society.

30In subsections (4) to (6) “the relevant entity” means the company or
the partnership (as the case may be).

(2) Condition A is that at any time during the accounting period the
company—

(a) is a UK resident company, or

(b) is a company which carries on a trade in the United Kingdom
5through a permanent establishment in the United Kingdom.

(3) Condition B is that the company is not an excluded entity at any time
during the accounting period (see section 269BA).

(4) Condition C is that, at any time during the accounting period, the
relevant entity is an authorised person for the purposes of FISMA
102000 (see section 31 of that Act).

(5) Condition D is that, at any time during the accounting period—

(a) the relevant entity’s activities include the relevant regulated
activity described in the provision mentioned in section
269BB(a),

(b) 15the relevant entity is both an IFPRU 730k firm and a full scope
IFPRU investment firm, whose activities consist wholly or
mainly of any of the relevant regulated activities described in
the provisions mentioned in section 269BB(b) to (f), or

(c) the relevant entity is both a BIPRU 730k firm and a full scope
20BIPRU investment firm, whose activities consist wholly or
mainly of any of the relevant regulated activities described in
the provisions mentioned in section 269BB(b) to (f).

(6) Condition E is that the relevant entity carries on that relevant
regulated activity, or those relevant regulated activities, wholly or
25mainly in the course of trade.

(7) See also section 269BC (which contains definitions of terms used in
this section).

269BA Excluded entities

(1) For the purposes of section 269B “excluded entity” means any of the
30following entities—

(a) an insurance company or an insurance special purpose
vehicle;

(b) an entity which is a member of a group and does not carry on
any relevant regulated activities otherwise than on behalf of
35an insurance company or insurance special purpose vehicle
which is a member of the group;

(c) an entity which does not carry on any relevant regulated
activities otherwise than as the manager of a pension scheme;

(d) an investment trust;

(e) 40an entity which does not carry on any relevant regulated
activities other than asset management activities;

(f) an exempt IFPRU commodities firm or exempt BIPRU
commodities firm;

(g) an entity which does not carry on any relevant regulated
45activities otherwise than for the purpose of trading in
commodities or commodity derivatives;

(h) an entity which does not carry on any relevant regulated
activities otherwise than for the purpose of dealing in
contracts for differences—

(i) as principal with persons all or all but an insignificant
5proportion of whom are retail clients, or

(ii) with another person to enable the entity or other
person to deal in contracts for differences as principal
with persons all or all but an insignificant proportion
of whom are retail clients;

(i) 10a society incorporated under the Friendly Societies Act 1992;

(j) a society registered as a credit union under the Co-operative
and Community Benefit Societies Act 2014 or the Credit
Unions (Northern Ireland) Order 1985 (S.I. 1985/1205S.I. 1985/1205 (N.I.
12));

(k) 15a building society.

(2) For the meaning of “relevant regulated activity”, see section 269BB.

See also section 269BC (which contains definitions of other terms
used in this section).

269BB Relevant regulated activities

20In this Part “relevant regulated activity” means an activity which is a
regulated activity for the purposes of FISMA 2000 by virtue of any of
the following provisions of the Financial Services and Markets Act
2000 (Regulated Activities) Order 2001 (S.I. 2001/544S.I. 2001/544)—

(a) article 5 (accepting deposits);

(b) 25article 14 (dealing in investments as principal);

(c) article 21 (dealing in investments as agent);

(d) article 25 (arranging deals in investments);

(e) article 40 (safeguarding and administering investments);

(f) article 61 (entering into regulated mortgage contracts).

269BC 30 Banking companies: supplementary definitions

(1) This section contains definitions of terms used in sections 269B to
269BB (and this section).

(2) “Asset management activities” means activities which consist (or, if
they were carried on in the United Kingdom, would consist) of any
35or all of the following—

(a) acting as the operator of a collective investment scheme
(within the meaning of Part 17 of FISMA 2000: see sections
235 and 237 of that Act),

(b) acting as a discretionary investment manager for clients none
40of which is a linked entity (see subsection (3)), and

(c) acting as an authorised corporate director.

(3) In subsection (2)(b) “linked entity”, in relation to an entity (“E”),
means—

(a) a member of the same group as E,

(b) 45a company in which a company which is a member of the
same group as E has a major interest (within the meaning of
Part 5 of CTA 2009: see section 473 of that Act), or

(c) a partnership the members of which include an entity—

(i) which is a member of the same group as E, and

(ii) whose share of the profits or losses of a trade carried
on by the partnership for an accounting period of the
5partnership any part of which falls within the
relevant accounting period is at least a 40% share (see
Part 17 of CTA 2009 for provisions about shares of
partnership profits and losses).

“The relevant accounting period” means the accounting period
10referred to in section 269B(3).

(4) “Building society” has the same meaning as in the Building Societies
Act 1986.

(5) “Insurance company” and “insurance special purpose vehicle” have
the meanings given by sections 65 and 139 of FA 2012 respectively.

(6) 15“Partnership” includes—

(a) a limited liability partnership, and

(b) an entity established under the law of a territory outside the
United Kingdom of a similar character to a partnership,

and “member”, in relation to a partnership, is to be read accordingly.

(7) 20The terms in subsection (8)—

(a) in relation to a PRA-authorised person, have the meaning
given by the PRA Handbook;

(b) in relation to any other authorised person, have the meaning
given by the FCA Handbook.

(8) 25The terms referred to in subsection (7) are—

• “authorised corporate director”;

• “BIPRU 730k firm”;

• “contracts for differences”;

• “discretionary investment manager”;

• 30“exempt BIPRU commodities firm”;

• “exempt IFPRU commodities firm”;

• “full scope BIPRU investment firm”;

• “full scope IFPRU investment firm”;

• “IFPRU 730k firm”;

• 35“pension scheme”;

• “principal”;

• “retail client”.

(9) A company or partnership which would be a BIPRU 730k firm and a
full scope BIPRU investment firm by virtue of activities carried on in
40the United Kingdom but for the fact that its registered office (or, if it
does not have a registered office, its head office) is not in the United
Kingdom is to be treated as being one for the purposes of section
269B.

(10) A company or partnership which would be an IFPRU 730k firm and
45a full scope IFPRU investment firm by virtue of activities carried on
in the United Kingdom but for the fact that its registered office (or, if
it does not have a registered office, its head office) is not in the United

Kingdom is to be treated as being one for the purposes of section
269B.

(11) In subsection (7)—

• “authorised person” and “PRA-authorised person” have the
  5same meaning as in FISMA 2000;

• “the FCA Handbook” means the Handbook made by the
  Financial Conduct Authority under FISMA 2000 (as that
  Handbook has effect from time to time);

• “the PRA Handbook” means the Handbook made by the
  10Prudential Regulation Authority under FISMA 2000 (as that
  Handbook has effect from time to time).

“Group”

269BD Meaning of “group”

(1) In this Part “group” means a group for the purposes of—

(a) 15those provisions of international accounting standards
relating to the preparation of consolidated financial
statements (whether or not the company that is the parent
within the meaning of those provisions (“the parent
company”) prepares financial statements under those
20standards), or

(b) in a case where subsection (2) applies, those provisions of US
GAAP which relate to the preparation of consolidated
financial statements.

(2) This subsection applies if—

(a) 25as at the end of a period of account of the parent company—

(i) the parent company is resident in a territory outside
the United Kingdom,

(ii) generally accepted accounting practice for companies
resident in that territory is or includes US GAAP, and

(iii) 30the parent company is a parent for the purposes of
those provisions of US GAAP which relate to the
preparation of consolidated financial statements (as
well as being a parent for the purposes of the
provisions mentioned in subsection (1)(a)), and

(b) 35the parent company prepares consolidated financial
statements for the period of account under US GAAP.

(3) Accordingly, for the purposes of this Part a company is a member of
a group if—

(a) it is the parent company in relation to the group, or

(b) 40it is a member of the group for the purposes of the provisions
mentioned in subsection (1)(a) or (b) (as the case may be).

(4) In this section “US GAAP” means United States Generally Accepted
Accounting Principles.

(5) Section 1127(1) and (3) (meaning of “generally accepted accounting
45practice”) do not apply for the purposes of this section.