Railways Bill

House of Commons

Session 2004 - 05
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Other Bills before Parliament

Railways Bill

Railways Bill
Schedule 8 — Proposals to discontinue excluded London services
112

      (3)
The service operator may give effect to the proposed closure only if the
Mayor of London consents to it.
      (4)
As soon as possible after the end of the period for the making of objections
to the London Transport Users’ Committee, the Committee must—
(a)
consider the objections made during that period;
5
(b)
consider any representations made by the service operator; and
(c)
report to the Mayor of London on the hardship the Committee
considers will be caused by the proposed closure.
      (5)
If the London Transport Users’ Committee decides—
(a)
to hear an objector orally, or
10
(b)
to hear oral representations from the service operator,

the hearing must be in public.
      (6)
The report to the Mayor of London under this paragraph may contain
proposals for alleviating any hardship to which it refers.
      (7)
After receiving that report the Mayor of London may require further reports
15
from the London Transport Users’ Committee relating to the proposed
closure.
      (8)
The London Transport Users’ Committee must send to the service operator
a copy of every report or further report it makes under this paragraph.
Consent of Mayor to closure
20
5     (1)
After—
(a)
receiving—
(i)
the report from the London Transport Users’ Committee
required by sub-paragraph (4) of paragraph 4, and
(ii)
any further reports required by him under that paragraph,
25
and
(b)
carrying out any consultation required by sub-paragraph (2),

the Mayor of London must decide whether or not to consent to the proposed
closure.
      (2)
If any of the services to which the proposed closure relates operates in any
30
area outside Greater London, the Mayor of London must, before deciding
whether to consent to the proposed closure, consult the local authority for
each such area.
      (3)
At any time after the period for making objections the Mayor of London may
make that decision without receiving a report or further report if—
35
(a)
he has made such enquiries as he thinks fit, and
(b)
he considers that the report or further report has been unreasonably
delayed.
      (4)
The Mayor of London may give his consent subject to such conditions as he
thinks fit.
40
      (5)
The Mayor of London may at any time vary or revoke conditions that are for
the time being required to be complied with.
      (6)
Where the Mayor of London gives his consent to a proposed closure, he
must—

Railways Bill
Schedule 9 — Bye-laws by railway operators
113

(a)
send a copy of his decision to every person who is the operator of a
station in the area affected by the closure; and
(b)
require that person to publish it by displaying it at the station.
      (7)
In this paragraph a reference to the area affected by the closure is a reference
to the area in which is situated the line or station referred to in paragraph
5
1(1).
      (8)
In this paragraph “local authority” means a county council, a community
council or council for a district in an area for which there is no county
council.
Schedule 9
10
Section 45

Bye-laws by railway operators
Introductory
1     (1)
In this Schedule—
“appropriate national authority”, in relation to any bye-laws, means—
(a)
where the relevant assets by reference to which the bye-laws are
15
or were made are all Scottish assets, the Scottish Ministers;
(b)
where some but not all of those assets are Scottish assets or
include assets that are used partly in Scotland and partly
elsewhere, the Secretary of State and the Scottish Ministers; and
(c)
in any other case, the Secretary of State;
20
“bye-laws” means bye-laws under section 45; and
“railway operator” has the same meaning as in that section.
      (2)
In sub-paragraph (1) “Scottish asset” means—
(a)
an asset that is permanently situated in Scotland; or
(b)
an asset that is used only in Scotland.
25
      (3)
In the case of bye-laws in relation to which both the Secretary of State and
the Scottish Ministers are the appropriate national authority —
(a)
anything that must be done under this Schedule in relation to those
bye-laws by the appropriate national authority must be done by
them both, acting jointly;
30
(b)
anything that may be done under this Schedule in relation to those
bye-laws by the appropriate national authority may be done only by
them both acting jointly; and
(c)
any requirement of this Schedule in relation to those bye-laws to
send something to the appropriate national authority is complied
35
with only if that thing is sent both to the Secretary of State and to the
Scottish Ministers.
Penalties
2
Bye-laws may provide that a person contravening them is guilty of an
offence and liable, on summary conviction, to a fine not exceeding—
40
(a)
level 3 on the standard scale; or
(b)
such lower amount as is specified in the bye-laws.

Railways Bill
Schedule 9 — Bye-laws by railway operators
114

Confirmation
3
Bye-laws do not come into force until they have been confirmed by the
appropriate national authority.
4     (1)
A railway operator who proposes to make bye-laws must publish a notice
stating—
5
(a)
that he proposes to make bye-laws;
(b)
the manner in which a copy of the proposed bye-laws will be open to
public inspection; and
(c)
that any person affected by the proposed bye-laws may make
representations about them to the appropriate national authority
10
within the period specified in the notice.
      (2)
The publication of the notice must be in the manner approved by the
appropriate national authority.
      (3)
The period specified for the purposes of sub-paragraph (1)(c) must be the
period of 28 days beginning with the day after that on which the railway
15
operator’s notice is published, or a longer period.
      (4)
At the end of the period so specified the appropriate national authority must
forward any representations that have been made to it to the railway
operator.
      (5)
The railway operator must not submit the bye-laws for confirmation unless
20
he has considered the representations forwarded by the appropriate
national authority.
5     (1)
The appropriate national authority may—
(a)
confirm (with or without modifications) any bye-laws submitted to
it for confirmation; or
25
(b)
refuse to confirm them.
      (2)
The appropriate national authority may fix the date of the coming into force
of any bye-laws confirmed by it.
      (3)
If the appropriate national authority confirms bye-laws without fixing the
date on which they come into force, they come into force at the end of the
30
period of 28 days beginning with the day after that on which they are
confirmed.
Publicity for confirmed bye-laws
6
If the appropriate national authority has confirmed bye-laws—
(a)
copies of the bye-laws must be printed;
35
(b)
at least one copy must be kept at the principal offices of the railway
operator who made them;
(c)
the railway operator must send one copy to the appropriate national
authority; and
(d)
the railway operator must supply one copy (free of charge) to every
40
person who applies for a copy or for more than one copy.

Railways Bill
Schedule 10 — Taxation provisions relating to transfer schemes
Part 1 — Transfers to a national authority under section 1(2) schemes
115

Evidence
7     (1)
The production of a printed copy of bye-laws which is indorsed with a
certificate—
(a)
stating one or more matters specified in sub-paragraph (2), and
(b)
purporting to be signed by an officer of the railway operator by
5
whom the bye-laws purport to have been made,

is evidence of what is stated.
      (2)
Those matters are—
(a)
that the bye-laws were made by the railway operator in question;
(b)
that the copy is a true copy of the bye-laws;
10
(c)
that the bye-laws were confirmed by the appropriate national
authority on the date specified in the certificate;
(d)
the date of the coming into force of the bye-laws.
Power to amend or vary
8     (1)
The power to make bye-laws includes the power to make bye-laws
15
amending or revoking bye-laws.
      (2)
The appropriate national authority may by order revoke bye-laws.
Schedule 10
Section 52

Taxation provisions relating to transfer schemes
Part 1
20
Transfers to a national authority under section 1(2) schemes
Meaning of “relevant transfer” in Part 1 of Schedule
1
In this Part of this Schedule, “relevant transfer” means a transfer in
accordance with a scheme made under section 1(2) to a national authority.
Capital allowances: determination of disposal value of plant or machinery
25
2     (1)
This paragraph applies to a relevant transfer of plant or machinery which is
a disposal event for the purposes of Part 2 of the 2001 Act (capital allowances
for plant and machinery).
      (2)
For the purposes of the application of section 61 of that Act in relation to the
transferor, the disposal value of the plant or machinery is to be treated—
30
(a)
if a capital sum is received by the transferor by way of consideration
or compensation in respect of the transfer, as an amount equal to that
sum; or
(b)
if no such sum is received, as nil.
      (3)
For the purposes of this paragraph a sum received by a person connected
35
with the transferor is to be treated as received by the transferor.
      (4)
Section 88 of the 2001 Act (sales at an undervalue) is to be disregarded.

Railways Bill
Schedule 10 — Taxation provisions relating to transfer schemes
Part 1 — Transfers to a national authority under section 1(2) schemes
116

      (5)
This paragraph is subject to sections 63(5) and 68 of the 2001 Act.
Capital allowances: determination of disposal value of fixtures
3     (1)
This paragraph applies to a relevant transfer if—
(a)
it is a disposal event for the purposes of Part 2 of the 2001 Act; and
(b)
by virtue of the transfer a person is treated by section 188 of that Act
5
as ceasing to own a fixture.
      (2)
For the purposes of the application of section 196 of that Act in relation to the
transferor, the disposal value of the fixture is to be treated—
(a)
if a capital sum is received by the transferor by way of consideration
or compensation in respect of the transfer, as an amount equal to that
10
portion of that sum which, if the person to whom the disposal is
made were entitled to an allowance, would fall to be treated for the
purposes of Part 2 of that Act as expenditure incurred by that person
on the provision of the fixture; or
(b)
if no such sum is received, as nil.
15
      (3)
For the purposes of this paragraph a sum received by a person connected
with the transferor is to be treated as received by the transferor.
      (4)
This paragraph is subject to section 63(5) of the 2001 Act.
Capital allowances: determination of capital value of industrial buildings etc.
4     (1)
This paragraph applies for the purposes of Part 3 of the 2001 Act, and the
20
other provisions of that Act which are relevant to that Part, in relation to a
relevant transfer of the relevant interest in an industrial building or
structure.
      (2)
The transfer is to be treated as a sale of that relevant interest.
      (3)
The net proceeds of that sale are to be treated—
25
(a)
if a capital sum is received by the transferor by way of consideration
or compensation in respect of the transfer, as an amount equal to that
sum; or
(b)
if no such sum is received, as nil.
      (4)
Sections 567 to 570 of the 2001 Act (sales treated as being for alternative
30
amount) are not to have effect in relation to that sale.
      (5)
For the purposes of this paragraph a sum received by a person connected
with the transferor is to be treated as received by the transferor.
Chargeable gains: assets to be treated as disposed without a gain or a loss
5
For the purposes of the 1992 Act, a relevant transfer of an asset is to be
35
treated as a disposal of that asset to the transferee for a consideration of such
amount as would secure that, on the disposal, neither a gain nor a loss
accrues to the transferor.

Railways Bill
Schedule 10 — Taxation provisions relating to transfer schemes
Part 2 — Other transfers under section 1(2) schemes
117

Continuity in relation to transfer of intangible assets
6     (1)
For the purposes of Schedule 29 to the Finance Act 2002 (c. 23), a relevant
transfer of a chargeable intangible asset of the transferor is to be treated as a
tax-neutral transfer.
      (2)
Expressions used in this paragraph and in that Schedule have the same
5
meanings in this paragraph as in that Schedule.
Neutral effect of transfer for loan relationships and derivative contracts
7
No credit or debit shall be required or allowed, in respect of a relevant
transfer, to be brought into account in the transferor’s case—
(a)
for the purposes of Chapter 2 of Part 4 of the Finance Act 1996 (c. 8)
10
(loan relationships); or
(b)
for the purposes of Schedule 26 to the Finance Act 2002 (derivative
contracts).
Leased assets
8     (1)
This paragraph applies for the purposes of section 781 of the Taxes Act
15
(assets leased to traders and others) where—
(a)
the interest of the lessor or the lessee under a lease, or any other
interest in an asset, is transferred under a relevant transfer; or
(b)
a lease, or any other interest in a lease, is granted to a national
authority in accordance with provision contained by virtue of
20
paragraph 3 or 4 of Schedule 2 in a scheme made under section 1(2).
      (2)
Section 783(4) of that Act is to be disregarded and the transfer or grant is to
be treated as made without any capital sum having been obtained in respect
of the interest or lease by the transferor or grantor.
      (3)
Expressions used in this paragraph and in sections 781 to 785 of that Act
25
have the same meanings in this paragraph as in those sections.
Part 2
Other transfers under section 1(2) schemes
Meaning of “relevant transfer” in Part 2 of Schedule
9
In this Part of this Schedule, “relevant transfer” means a transfer in
30
accordance with a scheme made under section 1(2) to a person other than a
national authority.
Computation of profits and losses in respect of transfer of trade
10    (1)
This paragraph applies where a person (“the predecessor”) is carrying on a
trade or a part of a trade and, in consequence of a scheme made under
35
section 1(2)—
(a)
the predecessor ceases to carry on that trade or that part of that trade;
and
(b)
a person who is not a national authority (“the successor”) begins to
carry on that trade or that part of it.
40

Railways Bill
Schedule 10 — Taxation provisions relating to transfer schemes
Part 2 — Other transfers under section 1(2) schemes
118

      (2)
For the purpose of computing, in relation to the time when the scheme
comes into force and subsequent times, the relevant trading profits or losses
of the predecessor and the successor—
(a)
the trade or part is to be treated as having been a separate trade at the
time of its commencement and as having been carried on by the
5
successor at all times since its commencement as a separate trade;
and
(b)
the trade carried on by the successor after the time when the scheme
comes into force is to be treated as the same trade as that which it is
treated, by virtue of paragraph (a), as having carried on as a separate
10
trade before that time.
      (3)
Where a trade or a part of a trade falls to be treated under this paragraph as
a separate trade, such apportionments of receipts, expenses, assets and
liabilities shall be made for the purpose of computing relevant trading
profits and losses as may be just and reasonable.
15
      (4)
This paragraph is subject to paragraphs 12 and 18.
      (5)
In this paragraph, “relevant trading profits and losses” means profits or
losses under Case I of Schedule D in respect of the trade or part of a trade in
question.
Trading losses: change in ownership
20
11    (1)
This paragraph applies to a relevant transfer of all the issued share capital of
a company (the “transferred company”).
      (2)
For the purposes of sections 768 and 768D of the Taxes Act, the transfer is not
to be taken to result in a change in the ownership of—
(a)
the transferred company; or
25
(b)
a company which is a wholly-owned subsidiary of the transferred
company when the transfer takes effect.
Capital allowances: transfer of whole trade
12    (1)
This paragraph applies where a person (“the predecessor”) is carrying on a
trade and, in consequence of a scheme made under section 1(2)—
30
(a)
the predecessor ceases to carry on that trade; and
(b)
a person who is not a national authority (“the successor”) begins to
carry on that trade.
      (2)
For the purposes of the allowances and charges provided for by the 2001 Act,
the trade is not to be treated as permanently discontinued, nor a new trade
35
as set up; but sub-paragraphs (3) and (4) of this paragraph are to apply.
      (3)
There are to be made to or on the successor, in accordance with the 2001 Act,
all such allowances and charges as would, if the predecessor had continued
to carry on the trade, have fallen to be made to or on the predecessor.
      (4)
The amounts of those allowances and charges are to be computed as if—
40
(a)
the successor had been carrying on the trade since the predecessor
began to do so; and
(b)
everything done to or by the predecessor had been done to or by the
successor;