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to be a member of the new group in consequence of the transferee | |
company so ceasing.”. | |
(9) This section applies to instruments executed after 14th April 2003. | |
(10) But this section does not apply to an instrument giving effect to a contract | |
made on or before 9th April 2003, unless— | 5 |
(a) the instrument is made in consequence of the exercise after that date of | |
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 | 10 |
that date. | |
(11) This section shall be deemed to have come into force on 15th April 2003. | |
127 Circumstances in which relief for company acquisitions withdrawn | |
(1) Section 113 of the Finance Act 2002 (c. 23) (stamp duty: withdrawal of relief for | |
company acquisitions) is amended as follows. | 15 |
(2) In subsection (1)(b) (circumstances in which relief withdrawn: change of | |
control of acquiring company within two years) for “two years” substitute | |
“three years”. | |
(3) In subsection (1)(c) (circumstances in which relief withdrawn: acquiring | |
company holding estate or interest when control changes)— | 20 |
(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”; | |
and | |
(c) for the closing words substitute “and that has not subsequently been | 25 |
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”. | |
(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 | 30 |
associated companies”. | |
(5) After subsection (3) insert— | |
“(3A) In this section “relevant associated company”, in relation to the | |
acquiring company, means a company— | |
(a) that is controlled by the acquiring company immediately before | 35 |
the control of that company changes, and | |
(b) of which control changes in consequence of the change of | |
control of that company.”. | |
(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) | 40 |
(withdrawal of relief on later change of control)— | |
(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”, | |
and | 45 |
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(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”. | |
(7) This section applies to instruments executed after 14th April 2003. | 5 |
(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 | |
any option, right of pre-emption or similar right, or | |
(b) the instrument transfers the property in question to, or vests it in, a | 10 |
person other than the purchaser under the contract because of an | |
assignment (or, in Scotland, assignation) or further contract made after | |
that date. | |
(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 | 15 |
(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 | |
applies if the lease is for an indefinite term or is terminable by notice of a month | |
or less. | 20 |
(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); | 25 |
(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 | 30 |
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 | 35 |
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 | 40 |
(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 | 45 |
(ii) the Northern Ireland Housing Executive. | |
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(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 | |
(b) it has, in accordance with section 12 of the Stamp Act 1891 (c. 39), been | 5 |
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 | |
passed. | 10 |
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 | |
(b) are instruments to which section 128 (exemption of certain leases | 15 |
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 | |
purposes to be what it would have been if section 128 had been in force at that | 20 |
time. | |
(3) If the Commissioners are satisfied that— | |
(a) the instrument was stamped on or before the day on which this Act is | |
passed, | |
(b) stamp duty was chargeable in respect of it, and | 25 |
(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 | |
section had been in force at the time the instrument was executed. | 30 |
(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 | |
under this section or to other matters. | 35 |
(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. | |
(8) For the purposes of this section as it applies in relation to instruments executed | 40 |
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— | |
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(a) a housing association registered in the register maintained under | |
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 | 5 |
registered in a register kept for the purpose by Scottish Homes. | |
Part 6 | |
Income tax and corporation tax: charge and rate bands | |
Income tax | |
130 Charge and rates for 2003-04 | 10 |
Income tax shall be charged for the year 2003-04, and for that year— | |
(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 | 15 |
For the year 2003-04, section 1(5A) of the Taxes Act 1988 (which provides that | |
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 | |
repayments until 18th May in that year) shall have effect as if “14th June” were | |
substituted for “17th May”. | 20 |
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%. | |
133 Small companies’ rate and fraction for financial year 2003 | |
For the financial year 2003— | 25 |
(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. | |
134 Corporation tax starting rate and fraction for financial year 2003 | |
For the financial year 2003— | 30 |
(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) | 5 |
(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 | 10 |
(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. | 15 |
136 Exemption where homeworker’s additional expenses met by employer | |
(1) In Part 4 of the Income Tax (Earnings and Pensions) Act 2003 (employment | |
income: exemptions), after section 316 insert— | |
“316A Homeworker’s additional household expenses | |
(1) This section applies where an employer makes a payment to an | 20 |
employee in respect of reasonable additional household expenses | |
which the employee incurs in carrying out duties of the employment at | |
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— | 25 |
“homeworking arrangements” means arrangements between the | |
employee and the employer under which the employee | |
regularly performs some or all of the duties of the employment | |
at home; and | |
“household expenses” means expenses connected with the day to | 30 |
day running of the employee’s home.”. | |
(2) This section applies to payments which the employer makes on or after 6th | |
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 | 35 |
(1) In section 139 of the Income Tax (Earnings and Pensions) Act 2003 (cash | |
equivalent of the benefit of a car: calculation of the appropriate percentage for | |
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. | 40 |
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(2) In the entry relating to 2004-05 and subsequent tax years omit “and subsequent | |
tax years”. | |
(3) After that entry insert— | |
| | “2005-06 and subsequent tax | 140”. | | | | | years | | | 5 |
|
(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 | |
beginning on or after 6th April 2005) for “6th April 2005” substitute “6th April | |
2006”. | |
138 Approved share plans and schemes | 10 |
Schedule 21 to this Act (which contains amendments relating to share incentive | |
plans, SAYE option schemes and CSOP schemes) has effect. | |
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. | 15 |
140 Corporation tax relief for employee share acquisitions | |
Schedule 23 to this Act has effect with respect to deductions allowable for | |
corporation tax purposes in respect of employee share acquisitions. | |
141 Ending of relief for contributions to QUESTS | |
(1) Section 67 of the Finance Act 1989 (c. 26) (tax relief for contributions to trustees | 20 |
of qualifying employee share ownership trust) does not apply in relation to | |
sums expended by a company in an accounting period of the company | |
beginning on or after 1st January 2003. | |
(2) In section 69 of that Act (chargeable events)— | |
(a) the definitions in subsections (3AC) and (3AD) (by virtue of which | 25 |
certain transfers of shares by trustees of an employee share ownership | |
trust to a SIP trust are not chargeable events) have effect in relation to | |
26th November 2002 as they had effect in relation to 20th March 2000; | |
(b) in relation to shares that are relevant shares by virtue of paragraph (a) | |
above, subsection (3AB) (deemed order of disposal of shares) has effect | 30 |
as if the reference there to 21st March 2000 were to 27th November | |
2002; and | |
(c) the other provisions of that section have effect accordingly. | |
(3) In consequence of subsection (2), in paragraph 78(2)(b) of Schedule 2 to the | |
Income Tax (Earnings and Pensions) Act 2003 (c. 1) (reference to section | 35 |
69(3AA) of the Finance Act 1989) after “21st March 2000” insert “or, by virtue | |
of section 141(2) of the Finance Act 2003, 27th November 2002”. | |
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