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Other relieving provisions |
| Relief for expenditure on remediation of contaminated land. |
70. - (1) Schedule 22 to this Act (tax relief for expenditure on land remediation) has effect for accounting periods ending on or after 1st April 2001.
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(2) In that Schedule-
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Part I provides for a deduction for certain capital expenditure in computing the profits of a Schedule A business or the profits of a trade for the purposes of Case I of Schedule D, |
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Part II provides for entitlement to relief, |
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Part III provides for the manner of giving effect to the relief, |
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Part IV makes special provision for companies carrying on life assurance business, and |
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Part V contains supplementary provisions. |
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(3) Schedule 23 to this Act (which contains consequential amendments) has effect accordingly.
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| Creative artists: relief for fluctuating profits. |
71. - (1) In Chapter V of Part IV of the Taxes Act 1988 (computational provisions relating to the Schedule D charge), before section 96 and after the cross-heading "Special provisions" insert-
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| "Creative artists: relief for fluctuating profits. |
95A. Schedule 4A (which enables individuals to make an averaging claim in respect of profits derived wholly or mainly from creative works) shall have effect.
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The provisions of that Schedule apply for the year 2000-01 and subsequent years of assessment (so that the first years which may be the subject of an averaging claim are 2000-01 and 2001-02).".
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(2) After Schedule 4 to that Act insert the Schedule 4A set out in Part I of Schedule 24 to this Act.
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(3) The following provisions of the Taxes Act 1988 are repealed-
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section 534 (relief for copyright payments etc.); |
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section 535 (relief where copyright sold after ten years or more); |
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section 537A (relief for payments in respect of designs); |
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section 538 (relief for painters, sculptors and other artists). |
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The repeals have effect in relation to payments actually receivable on or after 6th April 2001.
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(4) Part II of Schedule 24 to this Act contains amendments consequential on the preceding provisions of this section.
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| Expenditure on film production etc. |
72. In section 48(2)(a) of the Finance (No.2) Act 1997 (favourable tax treatment for certain expenditure on film production, etc. incurred before 2nd July 2002) for "2nd July 2002" substitute "2nd July 2005".
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| Deductions for business gifts: yearly limit. |
73. - (1) Section 577 of the Taxes Act 1988 (prohibition on deduction of expenses in providing business entertainment or gifts) is amended as follows.
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(2) In subsection (8)(b) (under which gifts not amounting to more than £10 in any year are disregarded)-
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(a) for "year" substitute "relevant tax period", and |
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(b) for "£10" substitute "£50". |
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(3) After that subsection insert-
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"(8A) In subsection (8)(b) "relevant tax period" means-
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(a) for the purposes of corporation tax, an accounting period; |
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(b) for the purposes of income tax- |
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(i) for a year of assessment in relation to which sections 60 to 63 apply and give a basis period, that basis period;
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(ii) in any other case, a year of assessment.".
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(4) This section applies in relation to the year 2001-02 and subsequent years of assessment or, in the case of companies, in relation to accounting periods beginning on or after 1st April 2001.
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Pension funds |
| Payments to employers out of pension funds. |
74. - (1) Section 601 of the Taxes Act 1988 (charge on payment to employer out of funds held for purposes of exempt approved scheme) is amended as follows.
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(2) In subsection (2) (amount recoverable by Board from employer) for "40 per cent. of the payment" substitute "the relevant percentage of the payment".
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(3) After that subsection insert-
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"(2A) The relevant percentage is 35% or such other percentage (whether higher or lower) as may be prescribed.".
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(4) This section applies to payments made to employers after the passing of this Act.
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Limited liability partnerships |
| Limited liability partnerships: general. |
75. - (1) For section 118ZA of the Taxes Act 1988 (treatment of limited liability partnerships) substitute-
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| "Treatment of limited liability partnerships. |
118ZA. - (1) For the purposes of the Tax Acts, where a limited liability partnership carries on a trade, profession or other business with a view to profit-
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(a) all the activities of the partnership are treated as carried on in partnership by its members (and not by the partnership as such), |
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(b) anything done by, to or in relation to the partnership for the purposes of, or in connection with, any of its activities is treated as done by, to or in relation to the members as partners, and |
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(c) the property of the partnership is treated as held by the members as partnership property. |
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References in this subsection to the activities of the limited liability partnership are to anything that it does, whether or not in the course of carrying on a trade, profession or other business with a view to profit.
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(2) For all purposes, except as otherwise provided, in the Tax Acts-
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(a) references to a partnership include a limited liability partnership in relation to which subsection (1) above applies, |
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(b) references to members of a partnership include members of such a limited liability partnership, |
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(c) references to a company do not include such a limited liability partnership, and |
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(d) references to members of a company do not include members of such a limited liability partnership. |
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(3) Subsection (1) above continues to apply in relation to a limited liability partnership which no longer carries on any trade, profession or other business with a view to profit-
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(a) if the cessation is only temporary, or |
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(b) during a period of winding up following a permanent cessation, provided- |
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(i) the winding up is not for reasons connected in whole or in part with the avoidance of tax, and
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(ii) the period of winding up is not unreasonably prolonged,
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but subject to subsection (4) below. |
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(4) Subsection (1) above ceases to apply in relation to a limited liability partnership-
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(a) on the appointment of a liquidator or (if earlier) the making of a winding-up order by the court, or |
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(b) on the occurrence of any event under the law of a country or territory outside the United Kingdom corresponding to an event specified in paragraph (a) above.". |
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(2) In the Taxation of Chargeable Gains Act 1992, for section 59A (limited liability partnerships) substitute-
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| "Limited liability partnerships. |
59A. - (1) Where a limited liability partnership carries on a trade or business with a view to profit-
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(a) assets held by the limited liability partnership are treated for the purposes of tax in respect of chargeable gains as held by its members as partners, and |
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(b) any dealings by the limited liability partnership are treated for those purposes as dealings by its members in partnership (and not by the limited liability partnership as such); |
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and tax in respect of chargeable gains accruing to the members of the limited liability partnership on the disposal of any of its assets shall be assessed and charged on them separately.
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(2) For all purposes, except as otherwise provided, in the enactments relating to tax in respect of chargeable gains-
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(a) references to a partnership include a limited liability partnership in relation to which subsection (1) above applies, |
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(b) references to members of a partnership include members of such a limited liability partnership, |
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(c) references to a company do not include such a limited liability partnership, and |
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(d) references to members of a company do not include members of such a limited liability partnership. |
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(3) Subsection (1) above continues to apply in relation to a limited liability partnership which no longer carries on any trade or business with a view to profit-
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(a) if the cessation is only temporary, or |
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(b) during a period of winding up following a permanent cessation, provided- |
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(i) the winding up is not for reasons connected in whole or in part with the avoidance of tax, and
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(ii) the period of winding up is not unreasonably prolonged,
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but subject to subsection (4) below. |
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(4) Subsection (1) above ceases to apply in relation to a limited liability partnership-
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(a) on the appointment of a liquidator or (if earlier) the making of a winding-up order by the court, or |
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(b) on the occurrence of any event under the law of a country or territory outside the United Kingdom corresponding to an event specified in paragraph (a) above. |
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(5) Where subsection (1) above ceases to apply in relation to a limited liability partnership with the effect that tax is assessed and charged-
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(a) on the limited liability partnership (as a company) in respect of chargeable gains accruing on the disposal of any of its assets, and |
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(b) on the members in respect of chargeable gains accruing on the disposal of any of their capital interests in the limited liability partnership, |
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it shall be assessed and charged on the limited liability partnership as if subsection (1) above had never applied in relation to it.
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(6) Neither the commencement of the application of subsection (1) above nor the cessation of its application in relation to a limited liability partnership shall be taken as giving rise to the disposal of any assets by it or any of its members.".
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(3) In Chapter II of Part V of the Taxation of Chargeable Gains Act 1992 (relief for gifts of business assets), after section 169 insert-
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| "Cessation of trade by limited liability partnership. |
169A. - (1) This section applies where section 59A(1) ceases to apply to a limited liability partnership.
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(2) A member of the partnership who immediately before the time at which section 59A(1) ceases to apply holds an asset, or an interest in an asset, acquired by him-
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(a) on a disposal to members of a partnership, and |
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(b) for a consideration which is treated as reduced under section 165(4)(b) or 260(3)(b), |
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shall be treated as if a chargeable gain equal to the amount of the reduction accrued to him immediately before that time.".
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(4) In section 170(9) of the Taxation of Chargeable Gains Act 1992 (groups of companies: meaning of "company"), in paragraph (b) after "company" insert "(other than a limited liability partnership)".
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(5) Subsection (3) above shall be deemed to have come into force on 3rd May 2001 and applies where section 59A(1) of the Taxation of Chargeable Gains Act 1992 ceased or ceases to apply as mentioned in section 169A of that Act (as inserted by that subsection) on or after that date.
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(6) The other provisions of this section shall be deemed to have come into force on 6th April 2001.
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