|
| |
|
(b) | with the substitution for references to the Stock Exchange of |
| |
references to the foreign stock exchange to which that list |
| |
| |
(c) | with any modifications which are necessary by reason of the |
| |
form of quotation adopted in the foreign stock exchange list |
| 5 |
(including, in a case where a single figure only is published, |
| |
taking that figure as the market value). |
| |
(6) | Where a strip or security is quoted in more than one foreign stock |
| |
| |
(a) | any such list published for a foreign stock exchange in the |
| 10 |
territory of the issuing government shall be used for the |
| |
purposes of sub-paragraph (5) above in preference to any |
| |
| |
(b) | any such list published for a foreign stock exchange which is |
| |
regarded as the major exchange in that territory for strips or |
| 15 |
securities shall be used for those purposes in preference to |
| |
| |
| |
| “the Daily List” means the The Stock Exchange Daily Official |
| |
| 20 |
| “foreign stock exchange” means a recognised stock exchange |
| |
in a territory outside the United Kingdom on which strips |
| |
| |
| “foreign stock exchange list” means any publication which |
| |
performs in the case of a foreign stock exchange a function |
| 25 |
equivalent, or broadly similar, to that performed by the |
| |
Daily List in relation to strips; |
| |
| “issuing government” means the government which issued |
| |
the security mentioned in sub-paragraph (4)(a) above. |
| |
(8) | The Treasury may by regulations make provision as to the manner of |
| 30 |
determining, for any of the purposes mentioned in sub-paragraph (1) |
| |
above, the market value at any time of— |
| |
| |
(b) | any security exchanged for strips of that security. |
| |
(9) | Regulations under sub-paragraph (8) above may— |
| 35 |
(a) | amend or modify any provision of this paragraph other than |
| |
that sub-paragraph, sub-paragraph (1) above or this sub- |
| |
| |
(b) | make different provision for different cases; and |
| |
(c) | contain such incidental, supplemental, consequential and |
| 40 |
transitional provision and savings as the Treasury may think |
| |
| |
(9) | In paragraph 15(1) (general interpretation) in the definition of “market value” |
| |
(which applies except in paragraph 14) for “(except in paragraph 14 above)” |
| |
substitute “(except as provided in relation to paragraph 8, 9, 14 or 14B above |
| 45 |
by paragraph 14E above)”. |
| |
(10) | The amendments made by— |
| |
(a) | subsections (2) and (3), and |
| |
(b) | subsections (8) and (9), so far as relating to paragraph 8 or 9 of Schedule |
| |
13 to the Finance Act 1996 (c. 8), |
| 50 |
|
| |
|
| |
|
| have effect in relation to any transfer of a strip on or after 17th March 2004. |
| |
(11) | The amendments made by— |
| |
| |
(b) | subsections (8) and (9), so far as relating to paragraph 14 of Schedule 13 |
| |
| 5 |
| have effect in relation to exchanges on or after 17th March 2004 and deemed |
| |
transfers and re-acquisitions under sub-paragraph (4) of that paragraph on or |
| |
| |
(12) | The amendments made by— |
| |
| 10 |
(b) | subsections (8) and (9), so far as relating to paragraph 14B of Schedule |
| |
13 to the Finance Act 1996, |
| |
| have effect in relation to any strip held on 15th January 2004 or acquired after |
| |
that date (and see subsection (15)). |
| |
(13) | The amendment made by subsection (6) has effect in relation to losses accruing |
| 15 |
on or after 17th March 2004. |
| |
(14) | The amendment made by subsection (7) has effect in relation to any strip |
| |
acquired on or after 15th January 2004 (and see subsection (15)). |
| |
(15) | In determining when a strip is acquired for the purposes of subsection (12) or |
| |
(14), any deemed transfers or re-acquisitions under paragraph 14(4) of |
| 20 |
Schedule 13 to the Finance Act 1996 (c. 8) shall be disregarded. |
| |
130 | Life policies etc.: restriction of corresponding deficiency relief |
| |
(1) | In Chapter 2 of Part 13 of the Taxes Act 1988 (life policies, life annuities and |
| |
capital redemption policies), section 549 (certain deficiencies allowable as |
| |
deductions) is amended as follows. |
| 25 |
(2) | In subsection (1) for the words from “the total amount” to the end substitute |
| |
| |
(3) | After that subsection insert— |
| |
“(1A) | The allowable amount is the total of any amounts that— |
| |
(a) | were treated as a gain by virtue of section 541(d), 543(1)(c) or |
| 30 |
546C(7) on the previous happenings of chargeable events, and |
| |
(b) | formed part of that individual’s total income for a previous year |
| |
| |
(4) | This section applies in relation to a deficiency occurring in connection with a |
| |
policy of life insurance if— |
| 35 |
(a) | it is issued in respect of an insurance made on or after 3rd March 2004, |
| |
| |
(b) | it is issued in respect of an insurance made before that date but on or |
| |
| |
(i) | it is varied so as to increase the benefits secured (any exercise of |
| 40 |
rights conferred by the policy being regarded for this purpose |
| |
| |
(ii) | there is an assignment (whether or not for money or money’s |
| |
worth) of the rights, or a share of the rights, conferred by the |
| |
| 45 |
|
| |
|
| |
|
(iii) | all or part of the rights conferred by the policy become held as |
| |
| |
(5) | This section applies in relation to a deficiency occurring in connection with a |
| |
contract for a life annuity if— |
| |
(a) | it is entered into on or after 3rd March 2004, or |
| 5 |
(b) | it is entered into before that date but on or after that date— |
| |
(i) | it is varied so as to increase the benefits secured (any exercise of |
| |
rights conferred by the contract being regarded for this purpose |
| |
| |
(ii) | there is an assignment (whether or not for money or money’s |
| 10 |
worth) of the rights, or a share of the rights, conferred by the |
| |
| |
(iii) | all or part of the rights conferred by the contract become held as |
| |
| |
(6) | This section applies in relation to a deficiency occurring in connection with a |
| 15 |
capital redemption policy if— |
| |
(a) | it is effected on or after 3rd March 2004, or |
| |
(b) | it is effected before that date but on or after that date— |
| |
(i) | it is varied so as to increase the benefits secured (any exercise of |
| |
rights conferred by the policy being regarded for this purpose |
| 20 |
| |
(ii) | there is an assignment (whether or not for money or money’s |
| |
worth) of the rights, or a share of the rights, conferred by the |
| |
| |
(iii) | all or part of the rights conferred by the policy become held as |
| 25 |
| |
| |
| |
| |
131 | Relief for research and development: software and consumable items |
| 30 |
(1) | In Schedule 20 to the Finance Act 2000 (c. 17) (tax relief for expenditure on |
| |
research and development) for paragraph 6 (expenditure on consumable |
| |
| |
“Expenditure on software or consumable items |
| |
6 (1) | For the purposes of this Schedule expenditure on software or |
| 35 |
consumable items means expenditure on— |
| |
(a) | computer software, or |
| |
(b) | consumable or transformable materials, |
| |
| and references to software or consumable items shall be construed |
| |
| 40 |
(2) | For the purposes of this Schedule consumable or transformable |
| |
materials include water, fuel and power. |
| |
|
| |
|
| |
|
(3) | Expenditure on software or consumable items is attributable to |
| |
relevant research and development if the software or consumable |
| |
items are employed directly in such research and development. |
| |
(4) | In the case of software or consumable items partly employed directly |
| |
in relevant research and development, an appropriate portion of the |
| 5 |
expenditure on the software or consumable items is treated as |
| |
attributable to relevant research and development. |
| |
(5) | For the purposes of sub-paragraphs (3) and (4), software or |
| |
consumable items employed in the provision of services, such as |
| |
secretarial or administrative services, in support of other activities |
| 10 |
are not, by virtue of their employment in the provision of those |
| |
services, to be treated as themselves directly employed in those other |
| |
| |
(2) | In each of the following enactments (which relate to tax relief for expenditure |
| |
on research and development)— |
| 15 |
(a) | Schedule 20 to the Finance Act 2000 (small or medium-sized |
| |
enterprises), other than paragraph 6, |
| |
(b) | Schedule 12 to the Finance Act 2002 (c. 23) (large companies, work sub- |
| |
contracted to, and large company relief for, small or medium-sized |
| |
| 20 |
(c) | Schedule 13 to that Act (vaccine research etc), |
| |
| for the words “consumable stores”, wherever occurring, substitute “software |
| |
| |
(3) | The amendments made by this section to Schedule 12 to the Finance Act 2002 |
| |
(large companies etc) have effect in relation to expenditure incurred on or after |
| 25 |
| |
(4) | Except as provided by subsection (5), the amendments made by this section |
| |
| |
(a) | Schedule 20 to the Finance Act 2000 (c. 17) (small or medium-sized |
| |
| 30 |
(b) | Schedule 13 to the Finance Act 2002 (vaccine research etc), |
| |
| have effect in relation to expenditure incurred on or after the appointed day. |
| |
(5) | The amendment made by subsection (1) (substitution of paragraph 6 of |
| |
Schedule 20 to the Finance Act 2000), in its application for the purposes of |
| |
Schedule 12 to the Finance Act 2002 by virtue of the amendments made to that |
| 35 |
Schedule by subsection (2), has effect in relation to expenditure incurred on or |
| |
| |
(6) | In this section “the appointed day” means such day as the Treasury may by |
| |
order appoint; and different days may be so appointed for different provisions |
| |
| 40 |
(7) | The days that may be appointed by an order under subsection (6) include days |
| |
earlier than the day on which this Act is passed, but not days earlier than 1st |
| |
| |
132 | Temporary increase in amount of first-year allowances for small enterprises |
| |
(1) | The amount of a first-year allowance under section 44 of the Capital |
| 45 |
Allowances Act 2001 (c. 2) (expenditure incurred by small or medium-sized |
| |
enterprises) shall be determined, in the case of expenditure to which this |
| |
|
| |
|
| |
|
subsection applies, as if the percentage specified in the entry relating to that |
| |
section in the Table in section 52(3) of that Act were 50%. |
| |
(2) | Subsection (1) applies to expenditure incurred by a small enterprise (within the |
| |
meaning of section 44 of that Act) in the period of 12 months beginning with— |
| |
(a) | 1st April 2004, if the small enterprise is within the charge to corporation |
| 5 |
| |
(b) | 6th April 2004, if the small enterprise is within the charge to income tax. |
| |
(3) | Accordingly, in section 52(3) of the Capital Allowances Act 2001, after the |
| |
| |
| “In the case of expenditure qualifying under section 44, see also |
| 10 |
section 132 of the Finance Act 2004 (substitution of 50% in the case of |
| |
expenditure incurred by a small enterprise in 2004-05 or financial |
| |
| |
133 | Deduction for expenditure by landlords on energy-saving items |
| |
(1) | After section 31 of the Taxes Act 1988 (Schedule A deductions and allowances: |
| 15 |
provisions supplementary to sections 25 to 30) insert— |
| |
“31A | Deductions for expenditure by landlords on energy-saving items |
| |
(1) | This section applies to a Schedule A business if the land mentioned in |
| |
paragraph 1(1) of Schedule A consists of or includes a dwelling-house. |
| |
(2) | In computing for the purposes of income tax the profits of a Schedule A |
| 20 |
business to which this section applies, a deduction shall be allowed in |
| |
respect of any expenditure to which subsection (3) applies. |
| |
| That is subject to any provision of regulations under subsection (13). |
| |
(3) | This subsection applies to expenditure as respects which the numbered |
| |
conditions set out in the following provisions of this section (“the |
| 25 |
qualifying conditions”) are satisfied. |
| |
(4) | Condition 1 is that the expenditure is incurred in the provision of a |
| |
qualifying energy-saving item in the dwelling-house. |
| |
(5) | Condition 2 is that the expenditure is incurred on or after 6th April 2004 |
| |
but before 6th April 2009. |
| 30 |
(6) | Condition 3 is that the expenditure is incurred wholly and exclusively |
| |
for the purposes of the Schedule A business. |
| |
(7) | Condition 4 is that the expenditure is capital expenditure. |
| |
(8) | Condition 5 is that, apart from this section, the expenditure is not |
| |
deductible in computing the profits of the Schedule A business. |
| 35 |
(9) | Condition 6 is that no allowance under the Capital Allowances Act may |
| |
be claimed in respect of the expenditure. |
| |
(10) | Condition 7 is that the expenditure is not incurred in respect of the |
| |
provision of an item in a dwelling-house which, at the time when the |
| |
| 40 |
(a) | is in the course of construction, or |
| |
|
| |
|
| |
|
(b) | is comprised in land in which the person claiming the |
| |
deduction under this section does not have an interest or is in |
| |
the course of acquiring an interest or further interest. |
| |
(11) | Condition 8 is that for the purposes of section 503 (letting of furnished |
| |
holiday accommodation to be treated as a trade for certain purposes) |
| 5 |
the Schedule A business either— |
| |
(a) | does not consist to any extent in the commercial letting of |
| |
furnished holiday accommodation, or |
| |
(b) | if it does so consist to any extent, the dwelling-house does not |
| |
constitute any or all of the furnished holiday accommodation in |
| 10 |
| |
(12) | Condition 9 is that the income of the person claiming the deduction is |
| |
not computed in accordance with paragraph 9 or 11 of Schedule 10 to |
| |
the Finance (No. 2) Act 1992 (furnished accommodation) in respect of |
| |
any qualifying residence which consists of or includes the dwelling- |
| 15 |
| |
(13) | The Treasury may by regulations make provision for any of the |
| |
| |
(a) | restricting or reducing the amount of expenditure in respect of |
| |
which deductions may be claimed under this section; |
| 20 |
(b) | excluding entitlement to a deduction under this section in such |
| |
cases as may be specified in, or determined in accordance with, |
| |
| |
(c) | determining which of two or more persons is (and which is not) |
| |
entitled to a deduction under this section in cases where |
| 25 |
different persons have different interests in land consisting of or |
| |
including the whole or part of a building containing one or |
| |
| |
(d) | making apportionments (including apportioning amounts to |
| |
companies which are not entitled to a deduction under this |
| 30 |
| |
(i) | a Schedule A business is carried on by two or more |
| |
persons in partnership, or |
| |
(ii) | an interest in land is beneficially owned by two or more |
| |
persons jointly or in common. |
| 35 |
(14) | Section 31B supplements this section. |
| |
31B | Provisions supplementary to section 31A |
| |
(1) | This section has effect for the purpose of supplementing section 31A |
| |
and shall be construed as one with that section. |
| |
(2) | Section 31A does not have effect for the purposes of corporation tax. |
| 40 |
(3) | No deduction may be made under section 31A unless a claim is made. |
| |
(4) | Where, on a just and reasonable apportionment of any expenditure, the |
| |
| |
(a) | would be satisfied as respects some part or parts of the |
| |
| 45 |
(b) | would not be satisfied as respects the remainder of the |
| |
| |
|
| |
|
| |
|
| a deduction under section 31A shall be allowed in respect of the part or |
| |
parts mentioned in paragraph (a) but not in respect of the remainder. |
| |
| Any such deduction is subject to, and must be in accordance with, the |
| |
other provisions of this section and regulations under section 31A(13). |
| |
(5) | Expenditure incurred by a person— |
| 5 |
(a) | for the purposes of a Schedule A business, but |
| |
(b) | before the time when he begins to carry on that business, |
| |
| is not deductible under section 31A by virtue of section 401 (relief for |
| |
pre-trading expenditure) unless the expenditure is incurred not more |
| |
than 6 months before that time (and on or after 6th April 2004). |
| 10 |
| The reference to section 401 is a reference to that section as it applies for |
| |
the purposes of Schedule A in relation to a Schedule A business by |
| |
| |
(6) | “Qualifying energy-saving items” are items of any of the following |
| |
| 15 |
(a) | cavity wall insulation; |
| |
| |
(7) | The Treasury may by regulations amend subsection (6)— |
| |
(a) | by adding further descriptions of items; or |
| |
(b) | by removing or varying descriptions of items. |
| 20 |
(8) | The Treasury may by regulations provide that an item is to be regarded |
| |
as an item of any particular description in subsection (6) only if it |
| |
satisfies such conditions as may be specified in, or determined in |
| |
accordance with, the regulations. |
| |
(9) | The conditions that may be imposed by regulations under subsection |
| 25 |
(8) include conditions imposed by reference to information or |
| |
documents issued by any body, person or organisation. |
| |
(10) | The provision that may be made by regulations under this section or |
| |
section 31A which are made on or before 31st December 2004 includes |
| |
| 30 |
(a) | having effect before the date on which the regulations are made, |
| |
| |
(b) | having effect in relation to expenditure incurred before that |
| |
| |
(11) | Any reference to the provision of a qualifying energy-saving item is a |
| 35 |
reference to the acquisition of such an item and its installation in the |
| |
| |
(2) | The amendment made by this section has effect in relation to expenditure |
| |
incurred on or after 6th April 2004 but before 6th April 2009. |
| |
134 | Lloyd’s names: conversion to limited liability underwriting |
| 40 |
Schedule 25 to this Act (which makes provision for certain reliefs to be |
| |
available where a member of Lloyd’s converts to limited liability |
| |
underwriting) has effect. |
| |
|
| |
|