|
| |
|
14 (1) | In Schedule 27 to the Taxes Act 1988 (distributing funds), Part 2 |
| |
(modifications of conditions for certification in certain cases) is amended as |
| |
| |
| |
(a) | in sub-paragraph (1)(b) for the words from the beginning to “section |
| 5 |
760” substitute “those interests are such that, by virtue of section |
| |
| |
(b) | in the words following paragraph (c) of sub-paragraph (1), for |
| |
“section 760(3)(a) to (c)” substitute “section 760(3)(a)”; |
| |
(c) | in sub-paragraph (3)(a) for “section 760(3)(a) to (c)” substitute |
| 10 |
| |
(3) | In paragraph 7 for “section 760(3)(a) to (c)” (in both places) substitute |
| |
| |
| |
| 15 |
(a) | in sub-paragraphs (1) and (4), omit “section 760(3) and”, and |
| |
(b) | in sub-paragraph (1) for “sub-paragraph (3)” substitute “sub- |
| |
| |
(6) | Omit paragraphs 12 and 13. |
| |
(7) | In paragraph 14, for “any of the conditions in paragraphs (a) to (c) of section |
| 20 |
760(3)” substitute “the condition in section 760(3)(a)”. |
| |
(8) | In paragraph 16(1), omit “by a trustee or officer thereof”. |
| |
Exchange of interests of different classes |
| |
15 (1) | After section 762 of the Taxes Act 1988 insert— |
| |
| “762A Exchange of interests of different classes |
| 25 |
(1) | This section applies where— |
| |
(a) | classes of interest in an offshore fund (the “main fund”) are |
| |
treated as separate offshore funds under section 756C; and |
| |
| |
(i) | a reorganisation within the meaning of section 126 of |
| 30 |
| |
(ii) | a conversion of securities within the meaning of |
| |
| |
| a person exchanges an interest of one class (A) in the main |
| |
fund for an interest of another class (B) in that fund. |
| 35 |
| |
(a) | the interest of class A— |
| |
(i) | is at the time of the exchange an interest in a non- |
| |
qualifying offshore fund, or |
| |
(ii) | has been an interest in such a fund at any material |
| 40 |
| |
(b) | the interest of class B is at the time of the exchange an interest |
| |
in a fund which is certified by the Board as a distributing |
| |
| |
|
| |
|
| |
|
| section 127 of the 1992 Act (equation of original shares and new |
| |
holding) shall not prevent the exchange constituting a disposal for |
| |
the purposes of this Chapter. |
| |
(3) | Any such disposal shall be treated as a disposal for a consideration |
| |
equal to the market value of the rights at the time of the exchange. |
| 5 |
| |
| “class of interest” has the same meaning as in section 756C(1); |
| |
| “material time” has the same meaning as in section 757.”. |
| |
(2) | In section 763 of the Taxes Act 1988 (deduction of offshore income gain in |
| |
determining capital gain), after subsection (6) insert— |
| 10 |
“(6A) | Where the disposal to which this Chapter applies constitutes such a |
| |
disposal by virtue of section 762A (exchange of interests of different |
| |
classes), the 1992 Act shall have effect as if an amount equal to the |
| |
offshore income gain to which that disposal gives rise were given (by |
| |
the person making the exchange) as consideration for the new |
| 15 |
holding (within the meaning of section 128 of that Act (consideration |
| |
given or received for new holding on a reorganisation)).” |
| |
Correction of cross-reference |
| |
16 (1) | In section 763(6) of the Taxes Act 1988 (offshore income gain treated as |
| |
consideration given on certain disposals), for “section 757(6)” substitute |
| 20 |
| |
(2) | Sub-paragraph (1) has effect, and shall be deemed always to have had effect, |
| |
in relation to disposals on or after 17th April 2002. |
| |
| |
17 (1) | This paragraph applies for the purposes of determining whether an offshore |
| 25 |
| |
(a) | a part of an umbrella fund (which is treated as an offshore fund |
| |
under section 756B of that Act), or |
| |
(b) | a class of interest in a part of an umbrella fund (which is treated as an |
| |
offshore fund under section 756C of that Act), |
| 30 |
| may be certified as a distributing fund under Chapter 5 of Part 17 of the |
| |
Taxes Act 1988 in respect of an account period ending on or after the day on |
| |
which this Act is passed and on or before 31st December 2005. |
| |
(2) | Where this paragraph applies— |
| |
(a) | subsection (3) of section 760 of the Taxes Act 1988 shall not have |
| 35 |
| |
(b) | the fund shall not be certified as a distributing fund in respect of a |
| |
period if at any time in that period— |
| |
(i) | more than 5 per cent by value of the assets of that offshore |
| |
fund consists of interests in other offshore funds, and |
| 40 |
(ii) | more than 5 per cent by value of the assets of the umbrella |
| |
fund consists of interests in other offshore funds. |
| |
(3) | Where this paragraph applies, references to subsection (3) of section 760 of |
| |
the Taxes Act 1988 shall have effect as references to sub-paragraph (2)(b) |
| |
| 45 |
|
| |
|
| |
|
(4) | Words used in Chapter 5 of Part 17 of the Taxes Act 1988 have the same |
| |
meaning in this paragraph as they have in that Chapter. |
| |
| |
| |
Meaning of “offshore installation” |
| |
| 5 |
| |
1 | In Part 19 of the Taxes Act 1988 (supplemental provisions), after section 837B |
| |
| |
| “837C Meaning of “offshore installation” |
| |
(1) | For the purposes of the Tax Acts, unless the context otherwise |
| 10 |
requires, “offshore installation” means a structure which is, is to be, |
| |
or has been, put to a use specified in subsection (2) while— |
| |
(a) | standing in any waters, |
| |
(b) | stationed (by whatever means) in any waters, or |
| |
(c) | standing on the foreshore or other land intermittently |
| 15 |
| |
| |
(a) | use for the purposes of exploiting mineral resources by |
| |
| |
(b) | use for the purposes of exploration with a view to exploiting |
| 20 |
mineral resources by means of a well; |
| |
(c) | use for the storage of gas in or under the shore or the bed of |
| |
| |
(d) | use for the recovery of gas so stored; |
| |
(e) | use for the conveyance of things by means of a pipe; |
| 25 |
(f) | use mainly for the provision of accommodation for persons |
| |
who work on or from a structure which is, is to be, or has |
| |
been, put to a use specified in any of paragraphs (a) to (e) |
| |
| |
(i) | standing in any waters, |
| 30 |
(ii) | stationed (by whatever means) in any waters, or |
| |
(iii) | standing on the foreshore or other land intermittently |
| |
| |
(3) | But a structure is not an offshore installation if— |
| |
(a) | it has ceased permanently to be put to a use specified in |
| 35 |
| |
(b) | it is not, and is not to be, put to any other use specified in |
| |
| |
(c) | since ceasing permanently to be put to a use specified in |
| |
subsection (2) it has been put to a use which is not so |
| 40 |
| |
(4) | In this section “structure” includes a ship or other vessel. |
| |
|
| |
|
| |
|
(5) | The Treasury may make provision by regulations as to the meaning |
| |
of “offshore installation” for the purposes of the Tax Acts. |
| |
| |
(a) | add to, amend or repeal subsections (1) to (4) or any |
| |
provision of those subsections; |
| 5 |
(b) | make different provision for different purposes; |
| |
(c) | include incidental, consequential, supplemental, saving or |
| |
transitional provisions.” |
| |
2 | In section 832(1) of the Taxes Act 1988 (interpretation of the Tax Acts) at the |
| |
appropriate place insert— |
| 10 |
| ““offshore installation” has the meaning given by section 837C;”. |
| |
3 | Subject to the following provisions of this Schedule, paragraphs 1 and 2 have |
| |
| |
(a) | for the purposes of income tax and capital gains tax, for the year |
| |
2004-05 and subsequent years of assessment; |
| 15 |
(b) | for the purposes of corporation tax, for accounting periods ending on |
| |
| |
| |
Minor and consequential amendments |
| |
| 20 |
4 (1) | Chapter 3 of Part 7 of the Taxes Act 1988 (enterprise investment scheme) is |
| |
amended as set out in sub-paragraphs (2) to (4). |
| |
(2) | In section 293 (qualifying companies), in subsection (3C)(b) for “oil rigs” |
| |
substitute “offshore installations”. |
| |
(3) | In section 297 (qualifying trades), in subsection (6) for “oil rigs” substitute |
| 25 |
“offshore installations”. |
| |
(4) | In section 298 (provisions supplementary to sections 293 and 297), in |
| |
subsection (5) omit the definition of “oil rig”. |
| |
(5) | This paragraph has effect in relation to shares issued on or after 6th April |
| |
| 30 |
(6) | Nothing in this paragraph affects the operation of any of the following |
| |
provisions in relation to shares issued before that date— |
| |
(a) | Chapter 3 of Part 7 of the Taxes Act 1988 (enterprise investment |
| |
| |
(b) | sections 573 and 574 of that Act (relief for losses on unlisted shares in |
| 35 |
| |
(c) | Schedule 5B to the Taxation of Chargeable Gains Act 1992 (c. 12) |
| |
(enterprise investment scheme: re-investment). |
| |
5 (1) | Schedule 28B to the Taxes Act 1988 (venture capital trusts) is amended as set |
| |
out in sub-paragraphs (2) to (4). |
| 40 |
(2) | In paragraph 3 (requirements as to company’s business), in sub-paragraph |
| |
(8)(b) for “oil rigs” substitute “offshore installations”. |
| |
(3) | In paragraph 4 (qualifying trades), in sub-paragraph (7) for “oil rigs” |
| |
substitute “offshore installations”. |
| |
|
| |
|
| |
|
(4) | In paragraph 5 (provisions supplemental to paragraph 4), in sub-paragraph |
| |
(1) omit the definition of “oil rig”. |
| |
(5) | This paragraph has effect for the purpose of determining whether shares or |
| |
securities issued on or after 6th April 2004 are, for the purposes of section |
| |
842AA of the Taxes Act 1988, to be regarded as comprised in a company’s |
| 5 |
| |
(6) | Nothing in this paragraph affects the operation of Schedule 28B to the Taxes |
| |
Act 1988 as it has effect for the purpose of determining whether shares or |
| |
securities issued before that date are, for the purposes of section 842AA of |
| |
the Taxes Act 1988, to be regarded as comprised in a company’s qualifying |
| 10 |
| |
| |
6 (1) | Schedule 15 to the Finance Act 2000 (the corporate venturing scheme) is |
| |
amended as set out in sub-paragraphs (2) to (4). |
| |
(2) | In paragraph 23 (the trading activities requirement), in sub-paragraph |
| 15 |
(8)(a)(i) for “oil rigs” substitute “offshore installations”. |
| |
(3) | In paragraph 28 (excluded activities: leasing of ships), in sub-paragraph (1) |
| |
for “oil rigs” substitute “offshore installations”. |
| |
(4) | In paragraph 28(6) omit the definition of “oil rig”. |
| |
(5) | This paragraph has effect in relation to shares issued on or after 6th April |
| 20 |
| |
(6) | Nothing in this paragraph affects the operation of Schedule 15 to the Finance |
| |
Act 2000 in relation to shares issued before that date. |
| |
7 (1) | In Schedule 22 to the Finance Act 2000 (tonnage tax), in paragraph 20 |
| |
(vessels excluded from being qualifying ships) omit sub-paragraph (5). |
| 25 |
(2) | This paragraph has effect for accounting periods ending on or after 1st April |
| |
| |
Capital Allowances Act 2001 (c. 2) |
| |
8 | In section 94 of the Capital Allowances Act 2001 (expenditure on ships that |
| |
is not long-life asset expenditure) omit subsections (2)(b) and (3). |
| 30 |
9 (1) | Section 153 of the Capital Allowances Act 2001 (ships that are not qualifying |
| |
ships) is amended as follows. |
| |
(2) | For subsection (2) substitute— |
| |
“(2) | A ship is not a qualifying ship at any time when it is an offshore |
| |
| 35 |
| |
10 | In Part 2 of Schedule 1 to the Capital Allowances Act 2001 (index of defined |
| |
expressions) at the appropriate place insert— |
| |
|
|
| |
|
| |
|
11 (1) | Paragraphs 8 to 10 have effect— |
| |
(a) | for income tax purposes, as respects allowances and charges falling |
| |
to be made for chargeable periods ending on or after 6th April 2004; |
| |
(b) | for corporation tax purposes, as respects allowances and charges |
| |
falling to be made for chargeable periods ending on or after 1st April |
| 5 |
| |
(2) | In this paragraph “chargeable period” has the meaning given by section 6 of |
| |
the Capital Allowances Act 2001. |
| |
Income Tax (Earnings and Pensions) Act 2003 (c. 1) |
| |
12 | In section 40 of the Income Tax (Earnings and Pensions) Act 2003 (duties on |
| 10 |
board vessel or aircraft), in subsection (5) for paragraph (b) (meaning of |
| |
| |
“(b) | “ship” does not include an offshore installation;”. |
| |
13 | In section 305 of the Income Tax (Earnings and Pensions) Act 2003 (offshore |
| |
oil and gas workers: mainland transfers), in subsection (6) omit the |
| 15 |
definition of “offshore installation”. |
| |
14 | For section 385 of the Income Tax (Earnings and Pensions) Act 2003 |
| |
| |
| |
In this Chapter “ship” does not include an offshore installation.” |
| 20 |
15 | In Part 2 of Schedule 1 to the Income Tax (Earnings and Pensions) Act 2003 |
| |
(index of defined expressions) at the appropriate place insert— |
| |
|
16 | Paragraphs 12 to 15 have effect for the year 2004-05 and subsequent years of |
| |
| 25 |
17 (1) | Schedule 5 to the Income Tax (Earnings and Pensions) Act 2003 (enterprise |
| |
management incentives) is amended as follows. |
| |
(2) | In paragraph 18 (excluded activities: leasing of certain ships), in sub- |
| |
paragraph (1) for “oil rigs” substitute “offshore installations”. |
| |
(3) | In paragraph 18(2) for “oil rig” substitute “offshore installation”. |
| 30 |
(4) | In paragraph 18(8) omit the definition of “oil rig”. |
| |
(5) | In paragraph 59 (index of defined expressions) at the appropriate place |
| |
| |
|
(6) | This paragraph has effect in relation to a right to acquire shares in a company |
| 35 |
granted on or after 6th April 2004. |
| |
(7) | Nothing in this paragraph affects the operation of Schedule 5 to the Income |
| |
Tax (Earnings and Pensions) Act 2003 in relation to a right to acquire shares |
| |
in a company granted before that date. |
| |
|
| |
|