|
| |
| |
| |
“(1A) | For those purposes, “normal commercial loan” also includes any loan |
| |
which is not a normal commercial loan by virtue of subsection (1) but is |
| |
such a loan by virtue of section 164A(1) (loan forming part of tier two |
| |
| 5 |
(3) | After section 164 insert— |
| |
“164A | Loan forming part of tier two capital |
| |
(1) | A loan is a normal commercial loan by virtue of this subsection if it— |
| |
(a) | was made to a bank or a parent undertaking of a bank, and |
| |
(b) | forms part of the tier two capital resources of the bank or parent |
| 10 |
| |
(2) | Subsection (1) does not apply in the case of any loan if there are |
| |
arrangements the main purpose, or one of the main purposes, of which |
| |
is to obtain a tax advantage for any person as a result of the application |
| |
of that subsection in respect of that loan. |
| 15 |
(3) | For the purposes of this section— |
| |
(a) | “bank” has the meaning given by section 1120, |
| |
(b) | “tax advantage” has the meaning given by section 1139, |
| |
(c) | “parent undertaking” is to be read in accordance with section |
| |
| 20 |
(d) | the reference to tier two capital resources is to be read in |
| |
accordance with the PRA Handbook made by the Prudential |
| |
Regulation Authority (as that Handbook has effect from time to |
| |
| |
(4) | In relation to any time before 1 April 2013, the reference in subsection |
| 25 |
(3)(d) to the PRA Handbook is to be read as a reference to the |
| |
Handbook of Rules and Guidance made by the Financial Services |
| |
Authority (as that Handbook had effect at the time in question).” |
| |
(4) | In section 1029(1) (overview), after paragraph (c) insert— |
| |
“(ca) | section 1032A (payment in respect of tier two capital),”. |
| 30 |
(5) | After section 1032 insert— |
| |
| |
1032A | Payment in respect of tier two capital |
| |
(1) | A payment made in respect of tier two securities is not a distribution for |
| |
the purposes of the Corporation Tax Acts. |
| 35 |
(2) | Subsection (1) does not apply in the case of any tier two securities if |
| |
there are arrangements the main purpose, or one of the main purposes, |
| |
of which is to obtain a tax advantage for any person as a result of the |
| |
application of that subsection in respect of those securities. |
| |
(3) | For the purposes of this section— |
| 40 |
(a) | “tier two securities” means securities (other than shares) issued |
| |
by a bank or a parent undertaking of a bank that form part of the |
| |
tier two capital resources of the bank or parent undertaking, |
| |
| |
| |
|
| |
| |
(b) | “bank” has the meaning given by section 1120, |
| |
(c) | “tax advantage” has the meaning given by section 1139, |
| |
(d) | “parent undertaking” is to be read in accordance with section |
| |
| |
(e) | the reference to tier two capital resources is to be read in |
| 5 |
accordance with the PRA Handbook made by the Prudential |
| |
Regulation Authority (as that Handbook has effect from time to |
| |
| |
(4) | In relation to any time before 1 April 2013, the reference in subsection |
| |
(3)(e) to the PRA Handbook is to be read as a reference to the Handbook |
| 10 |
of Rules and Guidance made by the Financial Services Authority (as |
| |
that Handbook had effect at the time in question).” |
| |
(6) | The amendments made by this section are treated as having come into force on |
| |
| |
44 | Financing costs and income: group treasury companies |
| 15 |
(1) | In section 316 of TIOPA 2010 (group treasury companies) for subsections (2) to |
| |
| |
“(2) | A company is a group treasury company in the relevant period if— |
| |
(a) | it is a member of the worldwide group, |
| |
(b) | it undertakes treasury activities for the worldwide group in the |
| 20 |
relevant period (whether or not it also undertakes other |
| |
| |
(c) | at least 90% of the relevant income of the company for the |
| |
relevant period is group treasury revenue, and |
| |
(d) | it makes an election in respect of the relevant period for the |
| 25 |
purposes of this section. |
| |
(3) | Subsection (4) applies if throughout the relevant period— |
| |
(a) | all or substantially all of the activities undertaken by a group |
| |
treasury company consist of treasury activities undertaken by it |
| |
for the worldwide group, and |
| 30 |
(b) | all or substantially all of the assets and liabilities of the company |
| |
relate to such activities. |
| |
(4) | Where this subsection applies, the relevant amount, and all other |
| |
amounts that are relevant amounts in respect of the group treasury |
| |
company and the relevant period, are treated as not being a financing |
| 35 |
expense amount or a financing income amount of the group treasury |
| |
| |
(5) | If subsection (4) does not apply, those relevant amounts are treated as |
| |
not being a financing expense amount or a financing income amount of |
| |
the group treasury company only to the extent that they relate to |
| 40 |
treasury activities undertaken by the company for the worldwide |
| |
| |
(6) | For the purposes of subsection (5) the extent to which amounts relate to |
| |
the matters mentioned is to be determined on a just and reasonable |
| |
| 45 |
| |
| |
|
| |
| |
(7) | An election under this section must be made within 3 years after the |
| |
end of the relevant period.” |
| |
(2) | The amendment made by this section has effect in relation to periods of |
| |
account of the worldwide group beginning on or after 11 December 2012. |
| |
45 | Condition for company to be an “investment trust” |
| 5 |
(1) | In section 1158(2) of CTA 2010 (condition A for a company to be an “investment |
| |
trust”), for “the business of the company consists of” substitute “all, or |
| |
substantially all, of the business of the company is”. |
| |
(2) | The amendment made by this section has effect in relation to accounting |
| |
periods beginning on or after 1 January 2012. |
| 10 |
46 | Community amateur sports clubs |
| |
Schedule 21 contains provision about community amateur sports clubs. |
| |
| |
| |
47 | Lifetime allowance charge: power to amend the transitional provision in Part |
| 15 |
2 of Schedule 18 to FA 2011 etc |
| |
(1) | Part 2 of Schedule 18 to FA 2011 (lifetime allowance charge: commencement |
| |
and transitional provision relating to changes made for the tax year 2012-13 |
| |
and onwards) is amended as follows. |
| |
| 20 |
(a) | omit sub-paragraphs (2) and (15) to (17) (which confer power on the |
| |
HMRC Commissioners to make provision specifying how notices |
| |
under paragraph 14 are to be given), |
| |
(b) | in sub-paragraph (7) omit “the annual rate of” where it first appears, |
| |
| 25 |
(c) | in sub-paragraph (11) after “(5)(a)” insert “and (c)(i)”. |
| |
(3) | After paragraph 14 insert— |
| |
“15 (1) | The Commissioners for Her Majesty’s Revenue and Customs may by |
| |
regulations amend paragraph 14. |
| |
(2) | Regulations under this paragraph may (for example) add to the cases |
| 30 |
in which paragraph 14 is to apply or is to cease to apply. |
| |
(3) | Regulations under this paragraph may include provision having |
| |
effect in relation to a time before the regulations are made; but— |
| |
(a) | the time must be no earlier than 6 April 2012, and |
| |
(b) | the provision must not increase any person’s liability to tax. |
| 35 |
(4) | In relation to regulations under this paragraph made during 2013, |
| |
sub-paragraph (3) has effect with the omission of paragraph (b) so |
| |
long as the time in question is no earlier than 6 April 2013. |
| |
| |
| |
|
| |
| |
16 (1) | The Commissioners for Her Majesty’s Revenue and Customs may by |
| |
regulations make provision specifying how any notice required to be |
| |
given to an officer of Revenue and Customs under paragraph 14 is to |
| |
| |
(2) | In sub-paragraph (1) the reference to paragraph 14 is to that |
| 5 |
paragraph as amended from time to time by regulations under |
| |
| |
17 (1) | Regulations under paragraph 15 or 16 may include supplementary |
| |
| |
(2) | The powers to make regulations under paragraphs 15 and 16 are |
| 10 |
exercisable by statutory instrument. |
| |
(3) | A statutory instrument containing regulations under paragraph 15 |
| |
or 16 is subject to annulment in pursuance of a resolution of the |
| |
| |
(4) | The amendments made by subsection (2)(b) and (c) are treated as having come |
| 15 |
into force on 6 April 2012. |
| |
(5) | The Registered Pension Schemes (Lifetime Allowance Transitional Protection) |
| |
Regulations 2011 (S.I. 2011/1752) are to continue to have effect and, so far as |
| |
they were made under paragraph 14(2) and (15) of Schedule 18 to FA 2011, are |
| |
to be treated as if they were made under paragraphs 16 and 17(1) of that |
| 20 |
Schedule (as inserted by subsection (3) above). |
| |
48 | Lifetime allowance charge: new standard lifetime allowance for the tax year |
| |
2014-15 and subsequent tax years |
| |
(1) | Section 218 of FA 2004 (standard lifetime allowance etc) is amended as follows. |
| |
(2) | For subsection (2) substitute— |
| 25 |
“(2) | The standard lifetime allowance for the tax year 2014-15 and, subject to |
| |
subsection (3), subsequent tax years is £1,250,000.” |
| |
(3) | In subsection (3) for “the tax year 2012-13” substitute “the tax year 2014-15”. |
| |
(4) | The amendments made by subsections (2) and (3) have effect for the tax year |
| |
2014-15 and subsequent tax years. |
| 30 |
(5) | Schedule 22 contains transitional provision etc. |
| |
49 | Annual allowance: new annual allowance for the tax year 2014-15 and |
| |
| |
(1) | Section 228 of FA 2004 (annual allowance) is amended as follows. |
| |
(2) | For subsection (1) substitute— |
| 35 |
“(1) | The annual allowance for the tax year 2014-15 and, subject to subsection |
| |
(2), each subsequent tax year is £40,000.” |
| |
(3) | In subsection (2) for “2011-12” substitute “2014-15”. |
| |
(4) | The amendments made by this section have effect for the tax year 2014-15 and |
| |
| 40 |
| |
| |
|
