|
| |
|
(c) | the cancellation under section 66 of a person’s registration for gross |
| |
| |
76 | Consequential amendments |
| |
Schedule 12 to this Act (which makes consequential amendments) has effect. |
| |
77 | Commencement and transitional provision |
| 5 |
(1) | This Chapter has effect in relation to payments made on or after the appointed |
| |
day under contracts relating to construction operations. |
| |
(2) | Where a certificate issued to a person under section 561 of the Taxes Act 1988 |
| |
is in force immediately before the appointed day, the person is to be treated as |
| |
if, on the appointed day, the Board of Inland Revenue had registered him for |
| 10 |
| |
(3) | Where a registration card issued to a person in accordance with regulations |
| |
made under section 566(2A) of the Taxes Act 1988 is in force immediately |
| |
before the appointed day, the person is to be treated as if, on the appointed day, |
| |
the Board of Inland Revenue had registered him for payment under deduction. |
| 15 |
(4) | Subsection (5) applies in relation to the first payment (“the relevant payment”) |
| |
made after the appointed day by a person (“C”) to a sub-contractor (“SC”) |
| |
under a contract relating to construction operations if— |
| |
(a) | before the appointed day, C had made one or more payments to SC |
| |
under the contract or another such contract, |
| 20 |
(b) | the last of those payments (“the last payment”) was made in the year of |
| |
assessment in which the relevant payment was made or in either of the |
| |
two years of assessment before that, |
| |
(c) | at the time of the last payment— |
| |
(i) | a certificate issued to SC under section 561 of the Taxes Act 1988 |
| 25 |
| |
(ii) | a registration card issued to SC in accordance with regulations |
| |
made under section 566(2A) of that Act was in force, and |
| |
(d) | on making the relevant payment, C has no reason to believe that SC— |
| |
(i) | did not become registered for gross payment or (as the case may |
| 30 |
be) for payment under deduction by virtue of subsection (2) or |
| |
| |
(ii) | is not still so registered. |
| |
(5) | Where this subsection applies, regulations under section 69(1) shall not require |
| |
C, before making the relevant payment, to verify whether SC is registered for |
| 35 |
gross payment or for payment under deduction. |
| |
(6) | Where subsection (5) applies, C shall be entitled to assume, on making any |
| |
further payments to SC under a contract relating to construction operations, |
| |
that SC has not subsequently ceased to be so registered, unless notified to the |
| |
contrary in accordance with regulations made under section 69(3). |
| 40 |
(7) | In this section “the appointed day” means such day as the Treasury may by |
| |
| |
(8) | The Treasury may by order make such further supplemental and transitional |
| |
provision and savings as they think fit in connection with the coming into |
| |
| 45 |
|
| |
|
| |
|
| |
| |
| |
78 | Childcare and childcare vouchers |
| |
(1) | Schedule 13 to this Act contains amendments of the Income Tax (Earnings and |
| 5 |
Pensions) Act 2003 (c. 1) relating to childcare and childcare vouchers. |
| |
(2) | The amendments have effect for the year 2005-06 and subsequent years of |
| |
| |
79 | Exemption for loaned computer equipment |
| |
(1) | In Chapter 11 of Part 4 of the Income Tax (Earnings and Pensions) Act 2003 |
| 10 |
(employment income: miscellaneous exemptions), section 320 (limited |
| |
exemption for computer equipment) is amended as follows. |
| |
(2) | For subsection (1) substitute— |
| |
“(1) | If conditions A and B are met in respect of the provision of computer |
| |
| 15 |
(a) | no liability to income tax arises by virtue of section 62 (general |
| |
definition of earnings), and |
| |
(b) | liability to income tax by virtue of Chapter 10 of Part 3 (taxable |
| |
benefits: residual liability to charge) arises only in respect of so |
| |
much of the aggregate cash equivalent of the benefit in the tax |
| 20 |
| |
(3) | Omit subsections (4) and (5). |
| |
(4) | This section has effect for the year 2004-05 and subsequent years of assessment. |
| |
| |
(1) | Schedule 14 to this Act contains amendments of the Income Tax (Earnings and |
| 25 |
Pensions) Act 2003 (c. 1) relating to vans. |
| |
(2) | The amendments have effect for the year 2005-06 and subsequent years of |
| |
| |
| |
(1) | In the Income Tax (Earnings and Pensions) Act 2003, after section 248 insert— |
| 30 |
| |
(1) | This section applies where— |
| |
(a) | an emergency vehicle is made available to a person employed |
| |
in an emergency service for the person’s private use, |
| |
(b) | the terms on which it is made available prohibit its private use |
| 35 |
otherwise than when the person is on call or engaged in on-call |
| |
| |
|
| |
|
| |
|
(c) | the person does not make private use of it otherwise than in |
| |
| |
(2) | No liability to income tax arises by virtue of Chapter 6 or 10 of Part 3 |
| |
(taxable benefits: cars, vans etc. and residual liability to charge) in |
| |
| 5 |
(3) | “Emergency vehicle” means a vehicle which is used to respond to |
| |
emergencies and which either— |
| |
(a) | has fixed to it a lamp designed to emit a flashing light for use in |
| |
| |
(b) | would have such a lamp fixed to it but for the fact that (if it did) |
| 10 |
a special threat to the personal physical security of those using |
| |
it would arise by reason of it being apparent that they were |
| |
employed in an emergency service. |
| |
(4) | The following are “employed in an emergency service”— |
| |
(a) | constables and other persons employed for police purposes, |
| 15 |
(b) | persons employed for the purposes of a fire, or fire and rescue, |
| |
| |
(c) | persons employed in the provision of ambulance or paramedic |
| |
| |
(5) | The Treasury may by order amend subsection (4). |
| 20 |
(6) | “Private use”, in relation to a person, means any use other than for the |
| |
person’s business travel; and “business travel” has the same meaning |
| |
as in Chapter 6 of Part 3 (see section 171(1)). |
| |
(7) | A person to whom an emergency vehicle is made available is on call |
| |
when liable, as part of normal duties, to be called on to use the |
| 25 |
emergency vehicle to respond to emergencies. |
| |
(8) | A person to whom an emergency vehicle is made available is engaged |
| |
in on-call commuting when the person— |
| |
(a) | is using it for ordinary commuting or for travel between two |
| |
places that is for practical purposes substantially ordinary |
| 30 |
| |
(b) | is required to do so in order that it is available for use by the |
| |
person, as part of normal duties, for responding to |
| |
| |
(2) | In section 236(2)(c) of that Act (mileage allowance and passenger payments: |
| 35 |
meaning of “company vehicle”), after “vans)” insert “and section 248A |
| |
| |
(3) | This section has effect for the year 2004-05 and subsequent years of assessment. |
| |
82 | European travel expenses of MPs and other representatives |
| |
(1) | The Income Tax (Earnings and Pensions) Act 2003 (c. 1) is amended as follows. |
| 40 |
(2) | In section 294 (EU travel expenses of MPs and other representatives) in |
| |
subsection (1) (exemption from income tax in respect of sums paid to Members |
| |
of the House of Commons and other representatives in respect of EU travel |
| |
expenses) for “EU” (in both places) substitute “European”. |
| |
|
| |
|
| |
|
(3) | In that section, for subsections (2) to (4) substitute— |
| |
“(2) | “European travel expenses” means the cost of, and any additional |
| |
expenses incurred in, travelling between the United Kingdom and a |
| |
relevant European location. |
| |
(3) | “Relevant European location” means— |
| 5 |
(a) | a European Union institution or agency, or |
| |
(b) | the national parliament of— |
| |
(i) | another member State, |
| |
(ii) | a candidate or applicant country, or |
| |
(iii) | a member State of the European Free Trade Association. |
| 10 |
(4) | The Treasury may by order amend subsection (3) by— |
| |
(a) | adding a European location, |
| |
(b) | removing a European location, or |
| |
(c) | varying the description of a European location.”. |
| |
(4) | In the heading of that section, “EU” accordingly becomes “European”. |
| 15 |
(5) | This section has effect in relation to sums paid in respect of costs or expenses |
| |
incurred on or after 6th April 2004. |
| |
| |
83 | Giving through the self-assessment return |
| |
(1) | This section applies where— |
| 20 |
(a) | as a result of the making by an individual of a personal return for a year |
| |
of assessment, a tax repayment in respect of one or more years of |
| |
assessment falls to be made to him, |
| |
(b) | the personal return contains a single direction, in the form specified in |
| |
| 25 |
(i) | the whole of the tax repayment, or |
| |
(ii) | so much of the tax repayment as does not exceed a specified |
| |
| |
| to be paid on his behalf as a gift to a single specified charity, |
| |
(c) | the direction also requires the gift to be treated as a qualifying donation |
| 30 |
for the purposes of section 25 of the Finance Act 1990 (c. 29) (gift aid), |
| |
| |
(d) | the gift satisfies the requirements of subsection (2) of that section. |
| |
(2) | The gift is to be treated as a qualifying donation for the purposes of that section |
| |
made by the individual at the time the payment is received by the charity. |
| 35 |
(3) | Section 98 of the Finance Act 2002 (c. 23) (gift aid: election to be treated as if gift |
| |
made in previous tax year) accordingly does not apply to the gift. |
| |
(4) | The charity is to be treated as having made a claim for any exemption which |
| |
may be available under section 505(1)(c)(ii) of the Taxes Act 1988 (charities: |
| |
exemption from tax under Case III of Schedule D) as a result of the charity’s |
| 40 |
receipt of the gift (see section 25(10) of the Finance Act 1990). |
| |
| |
|
| |
|
| |
|
| “charity” means a charity within the meaning of section 25 of the Finance |
| |
Act 1990 (see subsection (12)(a) of that section) which, at the time the |
| |
personal return in question is made, is included (at the request of the |
| |
charity) in a list maintained for the purposes of this section by the |
| |
| 5 |
| “personal return” means a return under section 8 of the Taxes |
| |
Management Act 1970 (c. 9) (personal return); |
| |
| “tax repayment” means a repayment (after any set-off that falls to be made |
| |
against the individual’s liabilities) of either or both of— |
| |
(a) | income tax or amounts paid on account of income tax; |
| 10 |
| |
| and, for the purposes of subsection (1)(b), includes any repayment |
| |
supplement (within the meaning of section 824 of the Taxes Act 1988 or |
| |
section 283 of the Taxation of Chargeable Gains Act 1992 (c. 12)). |
| |
(6) | In section 25 of the Finance Act 1990 (gift aid) after subsection (12) insert— |
| 15 |
“(13) | This section is to be read with— |
| |
(a) | section 98 of the Finance Act 2002 (gift aid: election to be treated |
| |
as if gift made in previous tax year); |
| |
(b) | section 83 of the Finance Act 2004 (gift aid: giving through the |
| |
self-assessment return).”. |
| 20 |
(7) | This section has effect in relation to personal returns for the year 2003‑04 and |
| |
subsequent years of assessment. |
| |
| |
84 | Charge to income tax by reference to enjoyment of property previously owned |
| |
(1) | Schedule 15 (which contains provisions imposing a charge to income tax by |
| 25 |
reference to benefits received in certain circumstances by a former owner of |
| |
| |
(2) | That Schedule has effect for the year 2005-06 and subsequent years of |
| |
| |
| 30 |
85 | Relief where national insurance contributions met by employee |
| |
(1) | Schedule 16 to this Act provides— |
| |
(a) | for income tax relief in certain cases where national insurance |
| |
contributions are met by an employee, and |
| |
(b) | for consequential amendments. |
| 35 |
(2) | This section (and that Schedule) come into force in accordance with provision |
| |
made by the Treasury by order made by statutory instrument. |
| |
86 | Income of spouses: jointly held property |
| |
(1) | Section 282A of the Taxes Act 1988 is amended as follows. |
| |
|
| |
|
| |
|
(2) | After subsection (4) insert— |
| |
“(4A) | Subsection (1) above shall not apply to income consisting of a |
| |
distribution arising from property consisting of— |
| |
(a) | close company shares to which either the husband or the wife is |
| |
beneficially entitled to the exclusion of the other, or |
| 5 |
(b) | close company shares to which they are beneficially entitled in |
| |
| |
| In this subsection “close company shares” means shares in or securities |
| |
of a close company; and for this purpose “shares” and “securities” have |
| |
the same meaning as in Part 6 (see section 254).”. |
| 10 |
(3) | This section has effect in relation to the year 2004-05 and subsequent years of |
| |
| |
87 | Minor amendments of or connected with ITEPA 2003 |
| |
Schedule 17 to this Act contains minor amendments of or connected with the |
| |
Income Tax (Earnings and Pensions) Act 2003 (c. 1). |
| 15 |
| |
| |
88 | Enterprise investment scheme |
| |
Schedule 18 (which makes amendments to the enterprise investment scheme) |
| |
| 20 |
89 | Venture capital trusts |
| |
(1) | In relation to shares issued on or after 6th April 2004 but before 6th April 2006, |
| |
paragraph 1(5)(a) of Schedule 15B to the Taxes Act 1988 (calculation of income |
| |
tax relief by reference to lower rate) is to have effect as if the reference to the |
| |
lower rate were a reference to the higher rate. |
| 25 |
(2) | Accordingly, paragraph 3(4) of that Schedule (loss of investment relief) is to |
| |
have effect in relation to such shares as if the reference to the lower rate were a |
| |
reference to the higher rate. |
| |
(3) | Schedule 19 (which makes amendments relating to venture capital trusts) has |
| |
| 30 |
90 | Corporate venturing scheme |
| |
Schedule 20 (which makes amendments relating to the corporate venturing |
| |
| |
91 | Enterprise management incentives: subsidiaries |
| |
(1) | Schedule 5 to the Income Tax (Earnings and Pensions) Act 2003 (c. 1) |
| 35 |
(enterprise management incentives) is amended as follows. |
| |
(2) | In paragraph 8 (qualifying companies: introduction) after “having only |
| |
|
| |
|
| |
|
qualifying subsidiaries (see paragraphs 10 and 11),” insert— |
| |
| “property managing subsidiaries (see paragraphs 11A and 11B),”. |
| |
(3) | In paragraph 10 (the qualifying subsidiaries requirement) for sub-paragraph |
| |
| |
“(2) | In this paragraph “subsidiary” means any company which the |
| 5 |
company controls, either on its own or together with any person |
| |
| |
(3) | For the purpose of sub-paragraph (2), the question whether a person |
| |
controls a company is to be determined in accordance with section |
| |
416(2) to (6) of ICTA (“control” in the context of close companies).”. |
| 10 |
(4) | In paragraph 11 (meaning of “qualifying subsidiary”)— |
| |
(a) | in sub-paragraph (2), omit paragraphs (a) to (c), |
| |
(b) | before paragraph (d) of that sub-paragraph insert— |
| |
“(ca) | that the subsidiary is a 51% subsidiary of the |
| |
| 15 |
(c) | in paragraph (d) of that sub-paragraph, after “company” insert “or |
| |
another of its subsidiaries”, |
| |
(d) | in paragraph (e) of that sub-paragraph, for “the conditions in |
| |
paragraphs (a) to” substitute “either of the conditions in paragraphs |
| |
| 20 |
(e) | omit sub-paragraph (3), |
| |
(f) | after sub-paragraph (7) insert— |
| |
“(8) | Sub-paragraph (9) applies at a time when the subsidiary or |
| |
another company is in administration or receivership. |
| |
(9) | The subsidiary is not to be regarded, by reason only of |
| 25 |
anything done as a consequence of the company concerned |
| |
being in administration or receivership, as having ceased to |
| |
be a company in relation to which the conditions in sub- |
| |
paragraph (2) are met if— |
| |
(a) | the entry into administration or receivership, and |
| 30 |
(b) | everything done as a consequence of the company |
| |
concerned being in administration or receivership, |
| |
| is for commercial reasons and is not part of a scheme or |
| |
arrangement the main purpose (or one of the main purposes) |
| |
of which is the avoidance of tax. |
| 35 |
(10) | Section 312(2A) of ICTA (meaning of being in administration |
| |
or receivership) applies for the purposes of sub-paragraphs |
| |
(8) and (9) as it applies for the purposes of Chapter 3 of Part |
| |
7 of ICTA (enterprise investment scheme).”. |
| |
(5) | After paragraph 11 insert— |
| 40 |
“The property managing subsidiaries requirement |
| |
11A (1) | A company is not a qualifying company if it has a property |
| |
managing subsidiary which is not a qualifying 90% subsidiary of the |
| |
company (see paragraph 11B). |
| |
|
| |
|