Finance Bill

House of Lords

Session 2013 - 14
Internet Publications
Other Bills before Parliament

Finance Bill

Finance Bill
Part 6 — Other provisions
138

Interim remedies
234
Restrictions on interim payments in proceedings relating to taxation matters
(1)
This section applies to an application for an interim remedy (however
described), made in any court proceedings relating to a taxation matter, if the
application is founded (wholly or in part) on a point of law which has yet to be
5
finally determined in the proceedings.
(2)
Any power of a court to grant an interim remedy (however described)
requiring the Commissioners for Her Majesty’s Revenue and Customs, or an
officer of Revenue and Customs, to pay any sum to any claimant (however
described) in the proceedings is restricted as follows.
10
(3)
The court may grant the interim remedy only if it is shown to the satisfaction
of the court—
(a)
that, taking account of all sources of funding (including borrowing)
reasonably likely to be available to fund the proceedings, the payment
of the sum is necessary to enable the proceedings to continue, or
15
(b)
that the circumstances of the claimant are exceptional and such that the
granting of the remedy is necessary in the interests of justice.
(4)
The powers restricted by this section include (for example)—
(a)
powers under rule 25 of the Civil Procedure Rules 1998 (S.I. 1998/3132);
(b)
powers under Part II of Rule 29 of the Rules of the Court of Judicature
20
(Northern Ireland) (Revision) 1980 (S.R. 1980 No.346).
(5)
This section applies in relation to proceedings whenever commenced, but only
in relation to applications made in those proceedings on or after 26 June 2013.
(6)
This section applies on and after 26 June 2013.
(7)
Subsection (8) applies where, on or after 26 June 2013 but before the passing of
25
this Act, an interim remedy was granted by a court using a power which,
because of subsection (6), is to be taken to have been restricted by this section.
(8)
Unless it is shown to the satisfaction of the court that paragraph (a) or (b) of
subsection (3) applied at the time the interim remedy was granted, the court
must, on an application made to it under this subsection—
30
(a)
revoke or modify the interim remedy so as to secure compliance with
this section, and
(b)
if the Commissioners have, or an officer of Revenue and Customs has,
paid any sum as originally required by the interim remedy, order the
repayment of the sum or any part of the sum as appropriate (with
35
interest from the date of payment).
(9)
For the purposes of this section, proceedings on appeal are to be treated as part
of the original proceedings from which the appeal lies.
(10)
In this section “taxation matter” means anything, other than national insurance
contributions, the collection and management of which is the responsibility of
40
the Commissioners for Her Majesty’s Revenue and Customs (or was the
responsibility of the Commissioners of Inland Revenue or Commissioners of
Customs and Excise).

Finance Bill
Part 7 — Final provisions
139

Part 7
Final provisions
235
Interpretation
(1)
In this Act—
“ALDA 1979” means the Alcoholic Liquor Duties Act 1979,
5
“BGDA 1981” means the Betting and Gaming Duties Act 1981,
“CAA 2001” means the Capital Allowances Act 2001,
“CEMA 1979” means the Customs and Excise Management Act 1979,
“CRCA 2005” means the Commissioners for Revenue and Customs Act
2005,
10
“CTA 2009” means the Corporation Tax Act 2009,
“CTA 2010” means the Corporation Tax Act 2010,
“F(No.3)A 2010” means the Finance (No. 3) Act 2010,
“HODA 1979” means the Hydrocarbon Oil Duties Act 1979,
“ICTA” means the Income and Corporation Taxes Act 1988,
15
“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,
“ITTOIA 2005” means the Income Tax (Trading and Other Income) Act
2005,
20
“OTA 1975” means the Oil Taxation Act 1975,
“TCGA 1992” means the Taxation of Chargeable Gains Act 1992,
“TIOPA 2010” means the Taxation (International and Other Provisions)
Act 2010,
“TMA 1970” means the Taxes Management Act 1970,
25
“TPDA 1979” means the Tobacco Products Duty Act 1979,
“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;
30
“F(No.2)A”, followed by a year, means the Finance (No. 2) Act of that
year.
236
Short title
This Act may be cited as the Finance Act 2013.

140
Finance Bill
Schedule 1 — Annual investment allowance: periods straddling 1 January 2013 or 1 January 2015

Schedules
Schedule 1
Section 7

Annual investment allowance: periods straddling 1 January 2013 or 1 January
2015
Chargeable periods which straddle 1 January 2013
5
1     (1)
This paragraph applies in relation to a chargeable period which begins
before 1 January 2013 and ends on or after that date (“the first straddling
period”).
      (2)
The maximum allowance under section 51A of CAA 2001 for the first
straddling period is the sum of each maximum allowance that would be
10
found if—
(a)
so much (if any) of the first straddling period as falls before the
relevant date,
(b)
so much of the first straddling period as falls on or after the relevant
date but before 1 January 2013, and
15
(c)
so much of the first straddling period as falls on or after 1 January
2013,

were each treated as separate chargeable periods.
      (3)
But this is subject to paragraphs 2 and 3.
      (4)
In this Schedule “the relevant date” means—
20
(a)
for the purposes of corporation tax, 1 April 2012;
(b)
for the purposes of income tax, 6 April 2012.
Straddling period beginning before the relevant date
2     (1)
This paragraph applies where the first straddling period begins before the
relevant date.
25
      (2)
So far as concerns expenditure incurred before the relevant date, the
maximum allowance under section 51A of CAA 2001 for the first straddling
period is what would have been the maximum allowance for that period if
the amendment made by section 7(1) had not been made.
      (3)
So far as concerns expenditure incurred on or after the relevant date but
30
before 1 January 2013, the maximum allowance under section 51A of CAA
2001 for the first straddling period is—
      (4)
In sub-paragraph (3)—

Finance Bill
Schedule 1 — Annual investment allowance: periods straddling 1 January 2013 or 1 January 2015
141

(a)
“A” means the amount that would have been the maximum
allowance for the period beginning on the relevant date and ending
at the end of the first straddling period if—
(i)
that period had been a separate chargeable period, and
(ii)
the amendment made by section 7(1) had not been made;
5
(b)
“B” means the amount (if any) by which—
(i)
the AIA expenditure incurred in the period mentioned in
paragraph 1(2)(a) in respect of which a claim for an annual
investment allowance is made, exceeds
(ii)
the maximum allowance under section 51A of CAA 2001 for
10
that period if it were treated as a separate chargeable period.
      (5)
So far as concerns expenditure incurred on or after 1 January 2013, the
maximum allowance under section 51A of CAA 2001 for the first straddling
period is the sum of each maximum allowance that would be found if the
period mentioned in paragraph 1(2)(b) and the period mentioned in
15
paragraph 1(2)(c) were each treated as separate chargeable periods.
First straddling period beginning on or after the relevant date
3     (1)
This paragraph applies where no part of the first straddling period falls
within paragraph 1(2)(a).
      (2)
So far as concerns expenditure incurred before 1 January 2013, the maximum
20
allowance under section 51A of CAA 2001 for the first straddling period is
to be calculated as if the amendment made by section 7(1) had not been
made.
Chargeable periods which straddle 1 January 2015
4     (1)
This paragraph applies in relation to a chargeable period (“the second
25
straddling period”) which begins before 1 January 2015 and ends on or after
that date.
      (2)
The maximum allowance under section 51A of CAA 2001 for the second
straddling period is the sum of each maximum allowance that would be
found if—
30
(a)
the period beginning with the first day of the chargeable period and
ending with the day before 1 January 2015, and
(b)
the period beginning with 1 January 2015 and ending with the last
day of the chargeable period,

were treated as separate chargeable periods.
35
      (3)
But, so far as concerns expenditure incurred on or after 1 January 2015, the
maximum allowance under section 51A of CAA 2001 for the second
straddling period is the maximum allowance, calculated in accordance with
sub-paragraph (2), for the period mentioned in paragraph (b) of that sub-
paragraph.
40
Operation of annual investment allowance where restrictions apply
5     (1)
Paragraphs 1 to 4 also apply for the purpose of determining the maximum
allowance under section 51K of CAA 2001 (operation of annual investment
allowance where restrictions apply) in a case where one or more chargeable

Finance Bill
Schedule 2 — Tax advantaged employee share schemes
Part 1 — Retirement of participants
142

periods in which the relevant AIA qualifying expenditure is incurred are
chargeable periods within paragraph 1(1) or 4(1).

This is subject to sub-paragraphs (2) and (3).
      (2)
There is to be taken into account for those purposes only chargeable periods
of one year or less (whether or not they are chargeable periods within
5
paragraph 1(1) or 4(1)), and, if there is more than one such period, only that
period which gives rise to the greatest maximum allowance.
      (3)
For the purposes of sub-paragraph (2) any chargeable period which—
(a)
is longer than a year, and
(b)
ends in the tax year 2012-13, 2013-14, 2014-15, 2015-16 or 2016-17,
10

is to be treated as being a chargeable period of one year ending at the same
time as it actually ends.
      (4)
Section 11(11) of FA 2011 is repealed.
      (5)
That repeal has effect in relation to cases where one or more chargeable
periods in which the relevant AIA qualifying expenditure is incurred are
15
chargeable periods within paragraph 1(1).
      (6)
Nothing in this paragraph affects the operation of sections 51M and 51N of
CAA 2001.
Schedule 2
Section 14

Tax advantaged employee share schemes
20
Part 1
Retirement of participants
Introduction
1
Part 7 of ITEPA 2003 (employment income: income and exemptions relating
to securities) is amended as follows.
25
Share incentive plans
2
In section 498 (no charge on shares ceasing to be subject to plan in certain
circumstances) in subsection (2)(e) omit the words from “on” to “2)”.
3
In Part 4 of Schedule 2 (types of shares that may be awarded) in paragraph
32 (provision for forfeiture) in sub-paragraph (2)(e) omit the words from
30
“on” to “98)”.
4
Part 11 of Schedule 2 (supplementary provisions) is amended as follows.
5
Omit paragraph 98 (meaning of “specified retirement age”).
6
In paragraph 100 (index of defined expressions) omit the entry for “the
specified retirement age”.
35

Finance Bill
Schedule 2 — Tax advantaged employee share schemes
Part 1 — Retirement of participants
143

SAYE option schemes
7
Part 6 of Schedule 3 (requirements etc relating to share options) is amended
as follows.
8
In paragraph 27 (introduction) in sub-paragraph (1)—
(a)
omit the entry for paragraph 31,
5
(b)
after the entry for paragraph 32 insert “and”, and
(c)
omit the entry for paragraph 33 and the “and” after it.
9
In paragraph 30 (time for exercising options) in sub-paragraph (2)(a)—
(a)
for “32 to” substitute “32,”, and
(b)
omit “reaching the specified age without retiring,”.
10
10
Omit paragraph 31 (requirement to have a “specified age”).
11
Omit paragraph 33 (exercise of options: reaching specified age without
retiring).
12
In paragraph 34 (exercise of options: scheme-related employment ends) in
sub-paragraph (2)(b) omit the words from “on” to “employment”.
15
13
In Part 9 of Schedule 3 (supplementary provisions) in paragraph 49 (index
of defined expressions) omit the entry for “specified age”.
CSOP schemes
14
In section 524 (no charge in respect of exercise of option) in subsection (2C)
omit the definition of “retirement” and the “and” before it.
20
15
In Part 8 of Schedule 4 (supplementary provisions) omit paragraph 35A
(retirement age).
Transitional provision
16
The amendment made by paragraph 11 above has no effect in relation to
options granted before the day on which this Act is passed; and the effect of
25
the amendments made by paragraphs 8 to 10 and 13 above is limited
accordingly.
17    (1)
A SIP, SAYE option scheme or CSOP scheme approved before the day on
which this Act is passed has effect with any modifications needed to reflect
the amendments made by this Part of this Schedule.
30
      (2)
In relation to any shares awarded under a SIP before that day which are
subject to provision for forfeiture, that provision has effect with any
modifications needed to reflect the amendment made by paragraph 3 above.
      (3)
Because of paragraphs 48 and 58 below, that amendment is not relevant to
shares awarded under a SIP on or after that day.
35

Finance Bill
Schedule 2 — Tax advantaged employee share schemes
Part 2 — “Good leavers” (other than retirees)
144

Part 2
“Good leavers” (other than retirees)
Introduction
18
Part 7 of ITEPA 2003 (employment income: income and exemptions relating
to securities) is amended as follows.
5
Share incentive plans
19
In section 498 (no charge on shares ceasing to be subject to plan in certain
circumstances) after subsection (2) insert—
“(3)
A participant is not liable to income tax on shares (“the relevant
shares”) in a company (“the relevant company”) being withdrawn
10
from the plan if—
(a)
the withdrawal of the relevant shares from the plan relates
to—
(i)
a transaction resulting from a compromise,
arrangement or scheme falling within subsection (9),
15
(ii)
an offer forming part of a general offer falling within
subsection (10), or
(iii)
the application of sections 979 to 982 or 983 to 985 of
the Companies Act 2006 in the case of a takeover offer
(as defined in section 974 of that Act) falling within
20
subsection (13), and
(b)
as a result of, as the case may be—
(i)
the transaction,
(ii)
the offer, or
(iii)
the application of sections 979 to 982 or 983 to 985 of
25
the Companies Act 2006,

the participant receives cash (and no other assets) in
exchange for the relevant shares.
(4)
For the purposes of subsection (3)(b) it does not matter if the
participant receives other assets in exchange for shares other than the
30
relevant shares.
(5)
Subsection (3) does not apply to the relevant shares (or to a
proportion of them) if in connection with, as the case may be—
(a)
the compromise, arrangement or scheme,
(b)
the general offer, or
35
(c)
the takeover offer,

a course of action was open to the participant which, had it been
followed, would have resulted in other assets being received in
exchange for the relevant shares (or the proportion of them) instead
of cash.
40
(6)
Subsection (3) does not apply to the relevant shares (or to a
proportion of them) if it is reasonable to suppose that the relevant
shares (or the proportion of them) would not have been awarded to
the participant—
(a)
had, as the case may be—
45