|
| |
|
174 | In section 431(2) (interpretative provisions relating to insurance companies) |
| |
in the definition of “annuity business” for the words “section 580C” |
| |
substitute “section 725 of ITTOIA 2005 (immediate needs annuities)”. |
| |
175 | In section 431D(3)(b) (meaning of “overseas life assurance business”) after |
| |
“Chapter II of Part XIII” insert “or Chapter 9 of Part 4 of ITTOIA 2005”. |
| 5 |
176 | In section 434 (franked investment income etc.) omit subsection (1A). |
| |
177 (1) | Amend section 437 (general annuity business) as follows. |
| |
(2) | In subsection (1C)(b)(ii) after “capital elements” insert “and amounts exempt |
| |
under section 717 of ITTOIA 2005”. |
| |
(3) | Omit “and” at the end of subsection (1C)(b). |
| 10 |
(4) | After subsection (1C)(c) insert “and |
| |
(d) | the amounts exempt under section 717 of ITTOIA 2005 shall |
| |
be determined in accordance with Chapter 7 of Part 6 of that |
| |
Act, but for this purpose— |
| |
(i) | it is immaterial whether or not an annuitant claims |
| 15 |
any relief to which the annuitant is entitled under that |
| |
| |
(ii) | where, by virtue of section 718 of that Act, section 717 |
| |
does not apply to an annuity, the annuity shall be |
| |
treated as being exempt to the same extent that it |
| 20 |
would have been apart from that section.” |
| |
178 (1) | Section 468J (dividend distributions of authorised unit trusts) is amended as |
| |
| |
(2) | In subsection (2) for “Tax Acts” substitute “Corporation Tax Acts”. |
| |
(3) | At the end of subsection (4) insert “(including a dividend treated as paid to |
| 25 |
a unit holder who is not liable to corporation tax)”. |
| |
179 (1) | Section 468L (interest distributions of authorised unit trusts) is amended as |
| |
| |
(2) | In subsection (1A) after “this Chapter” insert “and Chapter 2 of Part 4 of |
| |
| 30 |
(3) | In subsection (2) for “Tax Acts” substitute “Corporation Tax Acts”. |
| |
(4) | At the end of subsection (3) insert “(including a payment of interest treated |
| |
as made to a unit holder who is not liable to corporation tax)”. |
| |
180 (1) | Amend section 469 (other unit trusts) as follows. |
| |
(2) | In subsection (2A) for “section 231(1)” substitute “section 397(1) of ITTOIA |
| 35 |
| |
(3) | For subsection (2B) substitute— |
| |
“(2B) | Section 348(4)(a) above and sections 399(2) and (6) and 400(2) and (3) |
| |
of ITTOIA 2005 shall not apply where the recipient of the |
| |
distribution in question is the trustees of the scheme.” |
| 40 |
| |
(a) | after “the Tax Acts” insert “other than ITTOIA 2005”, and |
| |
|
| |
|
| |
|
(b) | at the end insert “(and see Chapter 10 of Part 4 of that Act for their |
| |
treatment under that Act)”. |
| |
(5) | In subsection (9) for “paragraph 7 of Schedule 5AA” substitute “section 568 |
| |
| |
181 | In section 472A (trading profits etc. from securities: taxation of amounts |
| 5 |
| |
(a) | in subsection (1) for “person” substitute “company”, and |
| |
(b) | in subsection (2) for “person’s” substitute “company’s”. |
| |
182 | In section 473(1) and (4) (conversion etc. of securities held as circulating |
| |
capital) for “person” substitute “company”. |
| 10 |
183 (1) | Amend section 477A (building societies: regulations for deduction of tax) as |
| |
| |
(2) | In subsection (1A) for “a qualifying certificate of deposit and other than” |
| |
substitute “uncertificated eligible debt security units, a qualifying certificate |
| |
| 15 |
| |
(a) | for “terminal bonus” substitute “interest”, and |
| |
(b) | for “contractual savings scheme” substitute “SAYE savings |
| |
| |
(4) | Omit subsections (5) and (6). |
| 20 |
(5) | In subsection (9) omit the words from “but” to the end of the subsection. |
| |
| |
(a) | after “this section—” insert— |
| |
““certified SAYE savings arrangement” has the meaning |
| |
given by section 703 of ITTOIA 2005”, and |
| 25 |
(b) | at the end insert “and |
| |
“uncertificated eligible debt security units” has the same |
| |
meaning as in section 349”. |
| |
184 | Omit section 480C (relevant deposits: computation of tax on interest). |
| |
185 (1) | Amend section 481 (“deposit-taker”, “deposit” and “relevant deposit”) as |
| 30 |
| |
(2) | In subsection (1A) for “sections 480A and 480C” substitute “section 480A”. |
| |
| |
(a) | at the end of paragraph (a) insert “above or an uncertificated right |
| |
falling within section 552(1)(c) of ITTOIA 2005”, and |
| 35 |
| |
(i) | for “, as defined in section 56(5), has” substitute “or |
| |
uncertificated eligible debt security units have”, and |
| |
| |
(4) | In subsection (6) omit the word “, 480C”. |
| 40 |
186 (1) | Amend section 482 (supplementary provisions) as follows. |
| |
| |
|
| |
|
| |
|
(a) | after “481(5)” insert “and (5A)”, |
| |
(b) | after the definition of “appropriate person” insert— |
| |
““certificate of deposit” for corporation tax purposes has |
| |
the meaning given in section 56(5) above and for income |
| |
tax purposes has the meaning given in section 552(2) of |
| 5 |
| |
(c) | in the definition of “qualifying certificate of deposit” for “, as defined |
| |
in section 56(5),” substitute “or uncertificated eligible debt security |
| |
| |
(d) | after the definition of “qualifying time deposit” insert— |
| 10 |
““uncertificated eligible debt security units” has the |
| |
meaning given in section 552(2) of ITTOIA 2005”. |
| |
(3) | In subsection (8) for “section 56(5)” substitute “subsection (6) above”. |
| |
187 (1) | Section 486 (industrial and provident societies and co-operative |
| |
associations) is amended as follows. |
| 15 |
| |
(a) | after “distribution” insert “for the purposes of corporation tax”, and |
| |
(b) | for “the purposes of corporation tax” substitute “those purposes”. |
| |
(3) | In subsection (4) at the end insert “for the purposes of corporation tax”. |
| |
| 20 |
188 (1) | Amend section 491 (distribution of assets of body corporate carrying on |
| |
mutual business) as follows. |
| |
(2) | In subsection (1) for “any person” substitute “any company”. |
| |
(3) | In subsection (2) for “the person” substitute “the company”. |
| |
| 25 |
(a) | for “the purposes of tax”, wherever it occurs, substitute “the |
| |
purposes of corporation tax”, |
| |
(b) | for “the recipient”, wherever it occurs, substitute “the recipient |
| |
| |
(c) | after “be charged” insert “to corporation tax”, and |
| 30 |
(d) | for “chargeable period” substitute “accounting period”. |
| |
(5) | In subsection (4) omit “113 or”. |
| |
| |
(7) | In subsection (10) omit “or vocation”. |
| |
189 (1) | Amend section 492 (treatment of oil extraction activities etc for tax purposes) |
| 35 |
| |
(2) | In subsection (1) for “for all purposes of income tax, and for the purposes of |
| |
the charge of corporation tax on income,” substitute “for the purposes of the |
| |
charge of corporation tax on income”. |
| |
| 40 |
(a) | in paragraph (a) after “are treated by virtue of” insert “section 16(1) |
| |
| |
|
| |
|
| |
|
(b) | in paragraph (a) for “the purposes specified in that subsection” |
| |
substitute “income tax purposes or (as the case may be) for the |
| |
purposes of the charge of corporation tax on income”, |
| |
(c) | in paragraph (b) after “but which, apart from” insert “section 16(1) of |
| |
| 5 |
(d) | after “notwithstanding anything in that” insert “section or”. |
| |
190 | In section 493(2)(a)(i) (valuation of oil disposed of or appropriated in certain |
| |
circumstances) for “falling within section 492(1)(a) or (b)” substitute “falling |
| |
within the definition of “oil-related activities” in section 16(2) of ITTOIA |
| |
2005 or within section 492(1)(a) or (b) above”. |
| 10 |
191 | In section 495(2) (regional development grants) for “section 492(1)” |
| |
substitute “section 16(1) of ITTOIA 2005 or section 492(1) above”. |
| |
192 | In section 496(1)(c) (tariff receipts and tax-exempt tariffing receipts) for |
| |
“section 492(1)” substitute “section 16(1) of ITTOIA 2005 or section 492(1) |
| |
| 15 |
193 | In section 502(1) (interpretation of Chapter 5), in the definition of “ring fence |
| |
| |
(a) | in paragraph (a) for “any of paragraphs (a) to (c) of subsection (1) of |
| |
section 492” substitute “the definition of “oil-related activities” in |
| |
section 16(2) of ITTOIA 2005 or within section 492(1) above”, and |
| 20 |
(b) | in paragraph (b) for “that subsection” substitute “section 16(1) of |
| |
ITTOIA 2005 or section 492(1) above”. |
| |
194 (1) | Amend section 503 (letting of furnished holiday accommodation treated as |
| |
a trade for certain purposes) as follows. |
| |
| 25 |
(a) | for “specified in subsection (2)” substitute “of Chapter 2 of Part 10 |
| |
(loss relief for corporation tax)”, |
| |
(b) | omit “in the United Kingdom”, |
| |
(c) | after “chargeable to” insert “corporation”, and |
| |
(d) | for “particular person or partnership or body of persons” substitute |
| 30 |
“particular company or partnership”. |
| |
(3) | Omit subsections (2) and (3). |
| |
| |
(a) | for “Part X” substitute “Chapter 2 of Part 10”, and |
| |
(b) | after “other provision of the” insert “Corporation”. |
| 35 |
(5) | In the side-note after “certain” insert “corporation tax”. |
| |
195 (1) | Amend section 504 (meaning of the “commercial letting of furnished |
| |
accommodation”) as follows. |
| |
| |
| 40 |
(a) | omit “year of assessment or”, |
| |
(b) | for “person” substitute “company”, |
| |
(c) | omit “year or” in each place where it occurs, |
| |
(d) | for “he” substitute “the company”, and |
| |
(e) | for “him” substitute “the company”. |
| 45 |
|
| |
|
| |
|
(4) | In subsection (6A) for “above is—” to the end substitute “above is the period |
| |
of two years beginning at the end of the accounting period in which the |
| |
| |
| |
(a) | omit “year of assessment or”, and |
| 5 |
(b) | omit “year or” in both places where it occurs. |
| |
(6) | In subsection (8) omit “year of assessment or”. |
| |
| |
(a) | for “a person” substitute “a company”, and |
| |
(b) | for “he” substitute “it”. |
| 10 |
196 | After section 504 insert— |
| |
“504A | Letting of furnished holiday accommodation treated as trade for |
| |
certain income tax purposes |
| |
(1) | For the purposes specified in subsection (2)— |
| |
(a) | a UK property business which consists in, or so far as it |
| 15 |
consists in, the commercial letting of furnished holiday |
| |
accommodation is treated as if it were a trade the profits of |
| |
which are chargeable to income tax under Part 2 of ITTOIA |
| |
| |
(b) | all such lettings made by a particular person or partnership |
| 20 |
or body of persons are treated as one trade. |
| |
| The “commercial letting of furnished holiday accommodation” has |
| |
the same meaning as it has for the purposes of Chapter 6 of Part 3 of |
| |
| |
(2) | Subsection (1) applies for the purposes of— |
| 25 |
(a) | Chapter 1 of Part 10 (loss relief for income tax), |
| |
(b) | section 833(4)(c) (income regarded as earned income), and |
| |
(c) | section 189(2)(b) of the Finance Act 2004 (income regarded as |
| |
relevant UK earnings for pension purposes). |
| |
(3) | Chapter 1 of Part 10 as applied by this section has effect with the |
| 30 |
| |
(a) | no relief is to be given to an individual under section 381 |
| |
(relief for losses in early years of trade) in respect of a year of |
| |
assessment if any of the accommodation in respect of which |
| |
the trade is carried on in that year was first let by that person |
| 35 |
as furnished accommodation more than three years before |
| |
the beginning of that year of assessment; |
| |
(b) | section 384 (restrictions on right of set-off) has effect with the |
| |
omission of subsections (6) to (8) (which relate to certain |
| |
losses attributable to capital allowances); |
| 40 |
(c) | section 390 (treatment of interest as loss) has effect as if the |
| |
reference to a trade carried on wholly or partly in the United |
| |
Kingdom were a reference to the UK property business so far |
| |
as it is treated as a trade. |
| |
(4) | If there is a letting of accommodation only part of which is holiday |
| 45 |
accommodation, such apportionments are to be made for the |
| |
purposes of this section as are just and reasonable. |
| |
|
| |
|
| |
|
(5) | Relief is not to be given for the same loss, or the same portion of a |
| |
loss, both under a provision of Chapter 1 of Part 10 as applied by this |
| |
section and under any other provision of the Income Tax Acts.” |
| |
197 (1) | Amend section 505 (charities: general) as follows. |
| |
| 5 |
(a) | in paragraph (a) after “Schedules A and D” insert “, or under Parts 2 |
| |
| |
(b) | in paragraph (c)(ii) after “Schedule D” insert “or under Chapter 2, 7, |
| |
8 or 10 of Part 4 of ITTOIA 2005 (interest, purchased life annuity |
| |
payments, profits from deeply discounted securities and |
| 10 |
distributions from unauthorised unit trusts), section 579 of that Act |
| |
so far as it relates to annual payments (royalties etc. from intellectual |
| |
property), Chapter 4 of Part 5 of that Act so far as it relates to annual |
| |
payments (certain telecommunication rights: non-trading income) or |
| |
Chapter 7 of Part 5 of that Act (annual payments not otherwise |
| 15 |
| |
(c) | in paragraph (c)(iia) omit “IV or”, |
| |
(d) | after paragraph (c)(iia) insert— |
| |
“(iiaa) | from tax under Chapter 4 of Part 4 of ITTOIA |
| |
2005 (dividends from non-UK resident |
| 20 |
companies) or from tax under Chapter 8 of |
| |
Part 5 of that Act (income not otherwise |
| |
charged) so far as it applies to relevant foreign |
| |
| |
(e) | in paragraph (c)(iib) from “income” to “and” at the end of sub- |
| 25 |
paragraph (iib) substitute “such dividends as would, in the case of |
| |
income tax, be chargeable to tax under Chapter 4 of Part 4 of ITTOIA |
| |
2005 or such distributions (other than dividends) as would, in the |
| |
case of income tax, be chargeable to tax under Chapter 8 of Part 5 of |
| |
that Act so far as it would apply to what would be a relevant foreign |
| 30 |
| |
(f) | in paragraph (c)(iii) for “Schedule F” substitute “Chapter 3 of Part 4 |
| |
of ITTOIA 2005 (dividends etc. from UK resident companies etc.)”, |
| |
(g) | in paragraph (d) after “Schedule D” insert “or Chapter 2 of Part 4 of |
| |
| 35 |
(h) | in paragraph (e) after “Schedule D” insert “or Part 2 of ITTOIA 2005 |
| |
| |
(i) | in paragraph (f) after “Schedule D” insert “or Part 2 or 5 of ITTOIA |
| |
2005 (trading and miscellaneous income)”. |
| |
(3) | After subsection (1) insert— |
| 40 |
“(1AA) | In section (1)(c)(ii)(aa) and (iib) “relevant foreign distribution” means |
| |
any distribution of a company not resident in the United Kingdom |
| |
| |
(a) | is not chargeable under Chapter 4 of Part 4 of ITTOIA 2005, |
| |
| 45 |
(b) | would be chargeable under Chapter 3 of that Part of that Act |
| |
if the company were resident in the United Kingdom.” |
| |
(4) | In subsection (2) after “chargeable to”, in the second place where it occurs, |
| |
insert “income tax under Chapter 7 of Part 5 of ITTOIA 2005 (annual |
| |
|
| |
|
| |
|
payments not otherwise charged) so far as it does not apply to relevant |
| |
foreign income and shall be chargeable to corporation”. |
| |
198 | In section 512(1) (exemptions for Atomic Energy Authority and National |
| |
Radiological Protection Board)— |
| |
(a) | in paragraph (a) after “under” insert “Part 3 of ITTOIA 2005 so far as |
| 5 |
it relates to the profits of a UK property business and under”, |
| |
| |
(i) | after “under” insert “ITTOIA 2005 and”, and |
| |
(ii) | after “dividends” insert “or income within Chapter 10 of Part |
| |
4 of ITTOIA 2005 (distributions from unauthorised unit |
| 10 |
| |
(c) | in paragraph (c) for “Schedule F” substitute “Chapter 3 of Part 4 of |
| |
ITTOIA 2005 (dividends etc. from UK resident companies etc.)”. |
| |
199 | Omit section 514 (funds for reducing the national debt). |
| |
200 (1) | Amend section 524 (taxation of receipts from sale of patent rights) as follows. |
| 15 |
| |
(a) | for “person”, “he” and “him” substitute “company”, “the company” |
| |
| |
(b) | for “tax” substitute “corporation tax”, and |
| |
(c) | for “chargeable”, in both places where it occurs, substitute |
| 20 |
| |
| |
(a) | for “person” substitute “company”, |
| |
(b) | after “charged to”, in both places where it occurs, insert |
| |
| 25 |
(c) | for “chargeable” substitute “accounting”. |
| |
| |
(a) | omit paragraph (a), and |
| |
(b) | in paragraph (b) omit “in the case of an election for the purposes of |
| |
| 30 |
| |
(a) | for the words from the beginning to “in the United Kingdom” |
| |
substitute “Where a relevant non-resident company”, and |
| |
(b) | in paragraph (a), for “he shall be chargeable to tax” substitute “the |
| |
company shall be chargeable to corporation tax”. |
| 35 |
| |
(7) | For subsection (5) substitute— |
| |
“(5) | In subsection (3) above “relevant non-resident company” means a |
| |
company not resident in the United Kingdom which would be |
| |
within the charge to corporation tax in respect of any proceeds of the |
| 40 |
sale of the patent rights not consisting of a capital sum.” |
| |
(8) | In subsection (6) omit “subsection (4) shall not apply, but”. |
| |
| |
(a) | for “person” substitute “company”, |
| |
|
| |
|