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Finance Bill


Finance Bill
Part 5 — Stamp duty

    77

 

     (3)    In subsection (1)(c) (circumstances in which relief withdrawn: acquiring

company holding estate or interest when control changes)—

           (a)           in the opening words, after “the acquiring company” insert “or a

relevant associated company”;

           (b)           in sub-paragraph (i) for “to it” substitute “to the acquiring company”;

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and

           (c)           for the closing words substitute “and that has not subsequently been

transferred at market value by a duly stamped instrument on which ad

valorem duty was paid and in respect of which section 76 relief was not

claimed”.

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     (4)    In subsection (3) for “what the acquiring company holds” substitute “what is

held by that company or, as the case may be, by that company and any relevant

associated companies”.

     (5)    After subsection (3) insert—

           “(3A)              In this section “relevant associated company”, in relation to the

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acquiring company, means a company—

                  (a)                 that is controlled by the acquiring company immediately before

the control of that company changes, and

                  (b)                 of which control changes in consequence of the change of

control of that company.”.

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     (6)    In Schedule 35 to the Finance Act 2002 (c. 23) (withdrawal of relief for company

acquisitions: supplementary provisions), in paragraphs 3(3)(b) and 4(3)(b)

(withdrawal of relief on later change of control)—

           (a)           in the opening words, after “the acquiring company” insert “or a

relevant associated company”,

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           (b)           in sub-paragraph (i) for “to it” substitute “to the acquiring company”,

and

           (c)           for the closing words substitute “and that has not subsequently been

transferred at market value by a duly stamped instrument on which ad

valorem duty was paid and in respect of which section 76 relief was not

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claimed”.

     (7)    This section applies to instruments executed after 14th April 2003.

     (8)    But this section does not apply to an instrument giving effect to a contract

made on or before 9th April 2003, unless—

           (a)           the instrument is made in consequence of the exercise after that date of

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any option, right of pre-emption or similar right, or

           (b)           the instrument transfers the property in question to, or vests it in, a

person other than the purchaser under the contract because of an

assignment (or, in Scotland, assignation) or further contract made after

that date.

40

     (9)    This section shall be deemed to have come into force on 15th April 2003.

 128   Exemption of certain leases granted by registered social landlords

     (1)    No stamp duty is chargeable under Part 2 of Schedule 13 to the Finance Act

1999 (c. 16) on a lease of a dwelling granted by a registered social landlord to

one or more individuals in accordance with arrangements to which this section

45

applies if the lease is for an indefinite term or is terminable by notice of a month

or less.

 

 

Finance Bill
Part 5 — Stamp duty

    78

 

     (2)    “Registered social landlord” means—

           (a)           in relation to England and Wales, a body registered in the register

maintained under section 1(1) of the Housing Act 1996 (c. 52);

           (b)           in relation to Scotland, a body registered in the register maintained

under section 57 of the Housing (Scotland) Act 2001 (asp 10);

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           (c)           in relation to Northern Ireland, a housing association registered in the

register maintained under Article 14 of the Housing (Northern Ireland)

Order 1992 (S.I. 1992/1725 (N.I. 15)).

     (3)    This section applies to arrangements between a registered social landlord and

a housing authority under which the landlord provides, for individuals

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nominated by the authority in pursuance of its statutory housing functions,

temporary rented accommodation which the landlord itself has obtained on a

short-term basis.

            The reference above to accommodation obtained by the landlord “on a short-

term basis” is to accommodation leased to the landlord for a term of five years

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or less.

     (4)    A “housing authority” means—

           (a)           in relation to England and Wales—

                  (i)                 a principal council within the meaning of the Local Government

Act 1972 (c. 70), or

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                  (ii)                the Common Council of the City of London;

           (b)           in relation to Scotland, a council constituted under section 2 of the Local

Government etc. (Scotland) Act 1994 (c. 39);

           (c)           in relation to Northern Ireland—

                  (i)                 the Department for Social Development in Northern Ireland, or

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                  (ii)                the Northern Ireland Housing Executive.

     (5)    An instrument on which stamp duty is not chargeable by virtue only of this

section shall not be taken to be duly stamped unless—

           (a)           it is stamped with the duty to which it would be liable but for this

section, or

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           (b)           it has, in accordance with section 12 of the Stamp Act 1891 (c. 39), been

stamped with a particular stamp denoting that it is not chargeable with

any duty.

     (6)    This section shall be construed as one with the Stamp Act 1891.

     (7)    This section applies to instruments executed after the day on which this Act is

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passed.

 129   Relief for certain leases granted before section 128 has effect

     (1)    This section applies to instruments that—

           (a)           are executed in the period beginning with 1 January 2000 and ending

with the day on which this Act is passed, and

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           (b)           are instruments to which section 128 (exemption of certain leases

granted by registered social landlords) would have applied if that

provision had been in force when the instrument was executed.

     (2)    If the instrument is not stamped until after the day on which this Act is passed,

the law in force at the time of its execution shall be deemed for stamp duty

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Finance Bill
Part 6 — Income tax and corporation tax: charge and rate bands

    79

 

purposes to be what it would have been if section 128 had been in force at that

time.

     (3)    If the Commissioners are satisfied that—

           (a)           the instrument was stamped on or before the day on which this Act is

passed,

5

           (b)           stamp duty was chargeable in respect of it, and

           (c)           had it been stamped after that day stamp duty would, by virtue of

section 128, not have been chargeable,

            they shall pay to such person as they consider appropriate an amount equal to

the duty (and any interest or penalty) that would not have been payable if that

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section had been in force at the time the instrument was executed.

     (4)    Any such payment must be claimed before 1st January 2004.

     (5)    Entitlement to a payment is subject to compliance with such conditions as the

Commissioners may determine with respect to the production of the

instrument, to its being stamped so as to indicate that it has been produced

15

under this section or to other matters.

     (6)    For the purposes of section 10 of the Exchequer and Audit Departments Act

1866 (c. 39) (Commissioners to deduct repayments from gross revenues) any

amount paid under this section is a repayment.

     (7)    This section shall be construed as one with the Stamp Act 1891 (c. 39).

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     (8)    For the purposes of this section as it applies in relation to instruments executed

before the coming into force of section 57 of the Housing (Scotland) Act 2001

(asp 10), the references in section 128 to a registered social landlord shall be

read in relation to Scotland as references to—

           (a)           a housing association registered in the register maintained under

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section 3(1) of the Housing Associations Act 1985 (c. 69) by Scottish

Homes, or

           (b)           a body corporate whose objects corresponded to those of a housing

association and which, pursuant to a contract with Scottish Homes, was

registered in a register kept for the purpose by Scottish Homes.

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Part 6

Income tax and corporation tax: charge and rate bands

Income tax

 130   Charge and rates for 2003-04

Income tax shall be charged for the year 2003-04, and for that year—

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           (a)           the starting rate shall be 10%;

           (b)           the basic rate shall be 22%;

           (c)           the higher rate shall be 40%.

 131   Indexed rate bands for 2003-04: PAYE deductions etc

For the year 2003-04, section 1(5A) of the Taxes Act 1988 (which provides that

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statutory inflation-linked changes to income tax rate bands for a year of

assessment do not require changes to be made to PAYE deductions or

 

 

Finance Bill
Part 7 — Income tax, corporation tax and capital gains tax: general

    80

 

repayments until 18th May in that year) shall have effect as if “14th June” were

substituted for “17th May”.

Corporation tax

 132   Charge and main rate for financial year 2004

Corporation tax shall be charged for the financial year 2004 at the rate of 30%.

5

 133   Small companies’ rate and fraction for financial year 2003

For the financial year 2003—

           (a)           the small companies’ rate shall be 19%, and

           (b)           the fraction mentioned in section 13(2) of the Taxes Act 1988 (marginal

relief for small companies) shall be 11/400ths.

10

 134   Corporation tax starting rate and fraction for financial year 2003

For the financial year 2003—

           (a)           the corporation tax starting rate shall be 0%, and

           (b)           the fraction mentioned in section 13AA of the Taxes Act 1988 (marginal

relief for small companies) shall be 19/400ths.

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Part 7

Income tax, corporation tax and capital gains tax: general

Employment income and related matters

 135   Provision of services through intermediary

     (1)    Chapter 8 of Part 2 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1)

20

(provision of services through an intermediary) is amended as follows.

     (2)    In section 49(1)(a) (services to which the Chapter applies), for “for the purposes

of a business carried on by another person” substitute “for another person”.

     (3)    In consequence of the above amendment—

           (a)           omit section 49(2) of that Act, and

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           (b)           in section 56(7) of that Act—

                  (i)                 at the end of paragraph (a) insert “, and”, and

                  (ii)                omit paragraph (c) and the word “and” preceding it.

     (4)    This section applies in relation to services performed or due to be performed

on or after 10th April 2003.

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 136   Exemption where homeworker’s additional expenses met by employer

     (1)    In Part 4 of the Income Tax (Earnings and Pensions) Act 2003 (employment

 

 

Finance Bill
Part 7 — Income tax, corporation tax and capital gains tax: general

    81

 

income: exemptions), after section 316 insert—

       “316A                           Homeworker’s additional household expenses

           (1)           This section applies where an employer makes a payment to an

employee in respect of reasonable additional household expenses

which the employee incurs in carrying out duties of the employment at

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home under homeworking arrangements.

           (2)           No liability to income tax arises in respect of the payment.

           (3)           In this section, in relation to an employee—

                                  “homeworking arrangements” means arrangements between the

employee and the employer under which the employee

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regularly performs some or all of the duties of the employment

at home; and

                                  “household expenses” means expenses connected with the day to

day running of the employee’s home.”.

     (2)    This section applies to payments which the employer makes on or after 6th

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April 2003 in respect of expenses which the employee incurs on or after that

date.

 137   Taxable benefits: lower threshold for cars with a CO2 emissions figure

     (1)    In section 139 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) (cash

equivalent of the benefit of a car: calculation of the appropriate percentage for

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a year for cars with a CO2 emissions figure) the table in subsection (4) (which

specifies the lower threshold for each year for the purposes of that calculation)

is amended as follows.

     (2)    In the entry relating to 2004-05 and subsequent tax years omit “and subsequent

tax years”.

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     (3)    After that entry insert—

 

“2005-06 and subsequent tax

140”.

 
 

years

  

     (4)    In section 170(3) of that Act (power to provide by order for a lower threshold

different from that specified in the table in section 139(4) to apply for tax years

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beginning on or after 6th April 2005) for “6th April 2005” substitute “6th April

2006”.

 138   Approved share plans and schemes

Schedule 21 to this Act (which contains amendments relating to share incentive

plans, SAYE option schemes and CSOP schemes) has effect.

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 139   Employee securities and options

Schedule 22 to this Act (which makes provision about securities, and options

to acquire securities, acquired by reason of employment) has effect.

 

 

 
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