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(1) | The provisions of the Taxes Act 1988 relating to offshore funds are amended in |
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accordance with Schedule 26 to this Act. |
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(2) | Except as otherwise provided— |
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(a) | the amendments have effect for account periods (within the meaning of |
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Chapter 5 of Part 17 of that Act) ending on or after the day on which this |
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(b) | regulations made under a power conferred by virtue of any of the |
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amendments may be made so as to have effect in relation to any such |
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136 | Meaning of “offshore installation” |
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Schedule 27 to this Act (which makes amendments relating to the meaning of |
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“offshore installation”) has effect. |
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137 | Immediate needs annuities |
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(1) | The Taxes Act 1988 is amended as follows. |
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(2) | In section 431 (interpretative provisions relating to insurance companies) in |
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subsection (2) (interpretation for purposes of Chapter 1 of Part 12) in the |
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definition of “annuity business”, at the end insert “, other than the business of |
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granting immediate needs annuities (within the meaning of section 580C)”. |
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(3) | After section 580B insert— |
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| “580C Relief from tax on annual payments under immediate needs annuities |
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(1) | No liability to income tax arises in respect of a relevant annual payment |
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made under an immediate needs annuity to the extent that— |
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(a) | it is made for the benefit of the person protected under the |
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immediate needs annuity, and |
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(b) | it is made to a care provider or a local authority in respect of the |
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provision of care for the person protected. |
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(2) | In this section “relevant annual payment” means an annual payment |
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(a) | would (apart from this section) be brought into charge under |
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Case III of Schedule D, or |
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(b) | is equivalent to a description of payment brought into charge |
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under Case III of that Schedule but would (apart from this |
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section) be brought into charge under Case V of that Schedule. |
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(3) | In this section “immediate needs annuity” means a contract for a life |
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(a) | the purpose, or one of the purposes, of which is to protect a |
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person against the consequences of his being unable, at the time |
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the contract is made, to live independently without assistance |
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(i) | mental or physical impairment, or |
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(ii) | injury, sickness or other infirmity, |
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| which is expected to be permanent, and |
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(b) | under which benefits are payable in respect of the provision of |
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care for the person protected. |
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(4) | In this section “care provider” means a person who carries on a trade, |
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profession or vocation which consists of or includes the provision of |
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(a) | in relation to care provided in England and Wales or Northern |
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Ireland, is registered under the relevant enactment in respect of |
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(b) | in relation to care provided in Scotland, provides care which is |
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registered under the relevant enactment; |
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(c) | in relation to care provided in a territory outside the United |
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Kingdom, satisfies comparable requirements under the law of |
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that territory relating to the provision of care. |
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(5) | In this section “the relevant enactment” means— |
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(a) | in relation to England and Wales, Part 2 of the Care Standards |
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(b) | in relation to Scotland, Part 1 of the Regulation of Care |
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(c) | in relation to Northern Ireland, Part 2 or 3 of the Registered |
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Homes (Northern Ireland) Order 1992 or Part 3 of the Health |
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and Personal Social Services (Quality, Improvement and |
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Regulation) (Northern Ireland) Order 2003. |
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(6) | In this section “care” means accommodation, goods or services which it |
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is necessary or desirable to provide to a person because of— |
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(a) | mental or physical impairment, or |
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(b) | injury, sickness or other infirmity, |
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| which is expected to be permanent. |
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(7) | In this section “life annuity” means an annuity to which section 656 |
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(read with section 657) applies. |
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(8) | The Treasury may by order amend— |
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(a) | the definition of “immediate needs annuity” in subsection (3) |
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(b) | the definitions of “care provider” in subsection (4) above and of |
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“the relevant enactment” in subsection (5) above.”. |
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(4) | The amendment made by subsection (2) has effect in relation to accounting |
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periods beginning on or after 1st January 2005. |
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(5) | For the purposes of section 547(5A)(b) of the Taxes Act 1988 (chargeable event |
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gains: method of charging gain to tax), an immediate needs annuity made |
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before 1st January 2005 shall not be taken, by virtue of the amendment made |
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by subsection (2), to fall or to have at any time fallen to be regarded as not |
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forming part of an insurance company or friendly society’s basic life assurance |
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and general annuity business the income and gains of which are subject to |
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(6) | The amendment made by subsection (3) has effect in relation to annual |
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payments made on or after 1st October 2004 (whenever the immediate needs |
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annuity in question was made). |
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138 | Corporation tax: health service bodies |
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At the end of section 519A of the Income and Corporation Taxes Act 1988 (c. 1) |
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(health service bodies: exemptions from income and corporation tax) add— |
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“(3) | The Treasury may by order disapply subsection (1)(b) in relation to a |
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specified activity, or class of activity, of an NHS foundation trust. |
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(4) | An order under subsection (3) shall make provision for determining the |
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amount of the profits relating to an activity that are to be charged to |
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corporation tax as a result of the disapplication of subsection (1)(b). |
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(5) | An order under subsection (3) may, in particular— |
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(a) | make provision for disregarding profits of less than a specified |
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amount in respect of a financial year or accounting period or a |
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specified part of a financial year or accounting period; |
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(b) | make provision for disregarding a specified part of profits in |
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respect of a financial year or accounting period or a specified |
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part of a financial year or accounting period; |
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(c) | make provision for disregarding all or part of profits relating to |
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activity in respect of which receipts or turnover (as defined by |
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the order) are less than a specified amount in respect of a |
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financial year or accounting period or a specified part of a |
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financial year or accounting period. |
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(6) | An order under subsection (3)— |
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(a) | may apply, with or without modification, a provision of the Tax |
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(b) | may disapply a provision of the Tax Acts, |
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(c) | may make provision similar to a provision of the Tax Acts, and |
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(d) | may make provision generally or in relation to a specified body |
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(7) | The Treasury may make an order under subsection (3) only— |
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(a) | in relation to an activity or class of activity that appears to the |
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Treasury to be of a commercial nature, |
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(b) | where it appears to the Treasury to be expedient for the purpose |
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of avoiding, removing or reducing differences between— |
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(i) | the fiscal treatment of the body undertaking the activity, |
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(ii) | the fiscal treatment of another body or class of body |
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which is of a commercial nature and which undertakes |
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or might undertake the same or a similar activity, and |
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(c) | if a draft has been laid before, and approved by resolution of, |
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(8) | An activity authorised under section 14(1) of the Health and Social Care |
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(Community Health and Standards) Act 2003 (c. 43) shall not be treated |
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as an activity of a commercial nature for the purposes of subsection |
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(1) | This Part contains tax provision about pension schemes and other similar |
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(2) | This Chapter defines some basic concepts. |
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(3) | As for the rest of this Part— |
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| Chapter 2 is about the registration and de-registration of pension |
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| Chapter 3 is about the payments that may be made by registered pension |
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schemes and related matters, |
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| Chapter 4 deals with tax reliefs and exemptions in connection with |
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registered pension schemes, |
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| Chapter 5 imposes tax charges in connection with registered pension |
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| Chapter 6 is about some schemes that are not registered pension schemes, |
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| Chapter 7 makes provision about compliance, and |
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| Chapter 8 contains interpretation and other supplementary provisions. |
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140 | Meaning of “pension scheme” |
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(1) | In this Part “pension scheme” means a scheme or other arrangements, |
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comprised in one or more instruments or agreements, having or capable of |
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having effect so as to provide benefits to or in respect of persons— |
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(c) | on having reached a particular age, |
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(d) | on the onset of serious ill-health or incapacity, or |
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(e) | in similar circumstances. |
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(2) | A pension scheme is a registered pension scheme for the purposes of this Part |
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at any time if it is at that time registered under Chapter 2. |
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(3) | In this Part “public service pension scheme” means a pension scheme— |
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(a) | established by or under any enactment, |
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(b) | approved by a relevant governmental or Parliamentary person or body, |
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(c) | specified in an order made by the Treasury. |
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|
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(4) | In subsection (3) “a relevant governmental or Parliamentary person or body” |
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(a) | a Minister of the Crown or a government department, |
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(b) | the Scottish Parliament, the Scottish Parliamentary Corporate Body or |
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a member of the Scottish Executive, |
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(c) | the National Assembly for Wales, or |
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(d) | the Northern Ireland Assembly, the Northern Ireland Assembly |
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Commission, a Northern Ireland Minister, the head of a Northern |
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Ireland department or a Northern Ireland department. |
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(5) | In this Part “occupational pension scheme” means a pension scheme |
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established by an employer or employers and having or capable of having |
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effect so as to provide benefits to or in respect of any or all of the employees |
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(a) | that employer or those employers, or |
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| (whether or not it also has or is capable of having effect so as to provide benefits |
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to or in respect of other persons). |
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(6) | In this Part “sponsoring employer”, in relation to an occupational pension |
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scheme, means the employer, or any of the employers, to or in respect of any |
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or all of whose employees the pension scheme has, or is capable of having, |
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effect so as to provide benefits. |
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(7) | In this Part “recognised overseas pension scheme” means a pension scheme |
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(a) | is established in a country or territory, other than the United Kingdom, |
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prescribed by regulations made by the Board of Inland Revenue, |
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(b) | is regulated as a pension scheme in the country or territory in which it |
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(c) | satisfies any requirements so prescribed. |
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(1) | In this Part “member” in relation to a pension scheme, means any active |
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member, pensioner member, deferred member or pension credit member of |
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(2) | For the purposes of this Part a person is an active member of a pension scheme |
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if there are presently arrangements made under the pension scheme for the |
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accrual of benefits to or in respect of the person. |
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(3) | For the purposes of this Part a person is a pensioner member of a pension |
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scheme if the person is entitled to the present payment of benefits under the |
| |
pension scheme and is not an active member. |
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(4) | A person is a deferred member of a pension scheme if the person has accrued |
| |
rights under the pension scheme and is neither an active member nor a |
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(5) | A person is a pension credit member of a pension scheme if the person has |
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rights under the pension scheme which are attributable (directly or indirectly) |
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