|
| |
|
268 | In section 657(2)(a) (purchased life annuities to which section 656 does not |
| |
apply) for “Tax Acts” substitute “Corporation Tax Acts”. |
| |
269 (1) | Amend section 658 (supplementary provisions about purchased life |
| |
| |
| 5 |
(a) | for “If any person” substitute “Any person who”, and |
| |
(b) | omit “for himself or for any other person” and “, he”. |
| |
(3) | After subsection (5) insert— |
| |
“(6) | It does not matter for whom that relief or repayment is to be |
| |
| 10 |
270 | Omit sections 660A and 660B (income arising under settlement where settlor |
| |
retains an interest and payments to unmarried minor children of settlor). |
| |
271 (1) | Amend section 660C (nature of charge on settlor) as follows. |
| |
(2) | Omit subsections (1) to (2). |
| |
| 15 |
(a) | for “this Chapter” substitute “section 624 or 629 of ITTOIA 2005 |
| |
(income where settlor retains an interest or income paid to |
| |
unmarried minor children of settlor)”, and |
| |
(b) | for “this section” substitute “section 619 of that Act (charge to tax |
| |
under Chapter 5 of Part 5 of that Act) so far as relating to income so |
| 20 |
| |
(4) | After subsection (3) insert— |
| |
“(4) | Income which is treated for income tax purposes as the income of the |
| |
settlor alone by virtue of section 624 or 629 of ITTOIA 2005 is |
| |
accordingly not the income of any company for corporation tax |
| 25 |
| |
272 | Omit sections 660D to 660G (settlements: supplementary provisions etc.). |
| |
273 | Omit section 677 (sums paid to settlor otherwise than as income). |
| |
274 | Omit section 678 (capital sums paid by body connected with settlement). |
| |
275 | Omit sections 682 and 682A (ascertainment of undistributed income and |
| 30 |
supplementary provisions for Chapter 1B). |
| |
276 (1) | Amend section 686 (accumulation and discretionary trusts: special rates of |
| |
| |
(2) | In subsection (1) for “Schedule F” substitute “dividend”. |
| |
(3) | In subsection (1AA)(a)— |
| 35 |
(a) | for “Schedule F”, in the first place where it occurs, substitute |
| |
| |
(b) | for “Schedule F”, in the second place where it occurs, substitute |
| |
| |
(4) | In subsection (1A) for “Schedule F” substitute “dividend”. |
| 40 |
(5) | In subsection (2AA) for “Schedule F” substitute “dividend”. |
| |
|
| |
|
| |
|
(6) | In subsection (5A) for ““Schedule F type” substitute ““distribution type” and |
| |
for paragraphs (a) to (g) substitute— |
| |
“(a) | income chargeable under Chapter 3 of Part 4 of ITTOIA 2005 |
| |
(dividends etc. from UK resident companies etc.); |
| |
(b) | income chargeable under Chapter 4 of that Part (dividends |
| 5 |
from non-UK resident companies); |
| |
(c) | income treated as arising to the trustees under Chapter 5 of |
| |
that Part (stock dividends from UK resident companies); |
| |
(d) | income chargeable under Chapter 6 of that Part (release of |
| |
loan to participator in close company); |
| 10 |
(e) | a relevant foreign distribution chargeable under Chapter 8 of |
| |
Part 5 of that Act (income not otherwise charged); or |
| |
(f) | any amount which, by virtue of section 686A of this Act, is |
| |
treated for the purposes of the Tax Acts as if it were income |
| |
to which this section applies.” |
| 15 |
(7) | After that subsection insert— |
| |
“(5B) | In subsection (5A) “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, |
| 20 |
| |
(b) | would be chargeable under Chapter 3 of that Part if the |
| |
company were resident in the United Kingdom.” |
| |
(8) | In subsection (6) for “Part XVI” substitute “Chapter 6 of Part 5 of ITTOIA |
| |
| 25 |
277 (1) | Amend section 687 (payments under discretionary trusts) as follows. |
| |
(2) | In subsection (1)(b) for “section 660B” substitute “section 629 of ITTOIA 2005 |
| |
(income paid to unmarried minor children of settlor)”. |
| |
(3) | In subsection (3)(a) for “Schedule F” substitute “dividend”. |
| |
(4) | In subsection (3)(a1)— |
| 30 |
(a) | for “Schedule F”, in the first two places where it occurs, substitute |
| |
| |
(b) | for “Schedule F”, in the third place where it occurs, substitute |
| |
“Chapter 3 of Part 4 of ITTOIA 2005 (dividends etc. from UK resident |
| |
| 35 |
(5) | In subsection (3)(a2)— |
| |
(a) | for “233(1A)” substitute “399 of ITTOIA 2005 (non-UK residents |
| |
other than eligible non-UK residents receiving qualifying |
| |
| |
(b) | for “Schedule F”, in both places where it occurs, substitute |
| 40 |
| |
(6) | In subsection (3)(aa)— |
| |
(a) | for “233(1B)” substitute “400 of that Act (non-qualifying |
| |
| |
(b) | for “Schedule F”, in both places where it occurs, substitute |
| 45 |
| |
|
| |
|
| |
|
(7) | In paragraphs (b), (bb) and (bc) of subsection (3) for “Schedule F”, in each |
| |
place where it occurs, substitute “dividend”. |
| |
(8) | In subsection (3)(b) for “section 249(6)” substitute “section 410(3) of ITTOIA |
| |
2005 (when stock dividend income arises)”. |
| |
(9) | In subsection (3)(bb) for “section 421(1)(a)” substitute “416(3) of ITTOIA 2005 |
| 5 |
(income charged on release of loan to participator in close company)”. |
| |
(10) | In subsection (3) after paragraph (k) insert— |
| |
“(l) | the amount of any tax on an amount which is treated as |
| |
income of the trustees by virtue of Chapter 8 of Part 4 of |
| |
ITTOIA 2005 (profits from deeply discounted securities) and |
| 10 |
is charged to tax at the rate applicable to trusts by virtue of |
| |
| |
278 | Omit section 688 (schemes for employees and directors to acquire shares). |
| |
279 (1) | Amend section 689B (order in which expenses to be set against income: trust |
| |
management expenses) as follows. |
| 15 |
(2) | In subsection (2) for paragraphs (za) to (c) substitute— |
| |
“(a) | so much of the income of the trustees as is income chargeable |
| |
under Chapter 3 of Part 4 of ITTOIA 2005 (dividends etc. |
| |
from UK resident companies etc.); |
| |
(b) | income treated as arising to the trustees under Chapter 5 of |
| 20 |
that Part (stock dividends from UK resident companies); or |
| |
(c) | income chargeable under Chapter 6 of that Part (release of |
| |
loan to participator in close company).” |
| |
(3) | In subsection (2A) for “income to which section 1A applies” to the end |
| |
| 25 |
(a) | income chargeable under Chapter 4 of Part 4 of ITTOIA 2005 |
| |
(dividends from non-UK resident companies); or |
| |
(b) | a relevant foreign distribution chargeable under Chapter 8 of |
| |
Part 5 of that Act (income not otherwise charged).” |
| |
(4) | After that subsection insert— |
| 30 |
“(2B) | In subsection (2A) “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, |
| |
| 35 |
(b) | would be chargeable under Chapter 3 of that Part if the |
| |
company were resident in the United Kingdom.” |
| |
280 | In section 691(2)(b)(ii) (certain income not to be income of settlor etc.) for |
| |
“section 677” substitute “section 633 of ITTOIA 2005 (capital sums paid to |
| |
settlor by trustees of settlement)”. |
| 40 |
281 | In section 692(1) (reimbursement of settlor) for “Schedule A business” |
| |
substitute “UK property business”. |
| |
282 | In section 694(3) (trustees chargeable to income tax in certain cases at higher |
| |
rate reduced by rate applicable to trusts) for “Chapter IA of this Part” |
| |
substitute “section 624 or 629 of ITTOIA 2005 (income where settlor retains |
| 45 |
|
| |
|
| |
|
an interest in settlement or income paid to unmarried minor children of |
| |
| |
283 (1) | Amend section 695 (estates of deceased persons in course of administration: |
| |
limited interests in residue) as follows. |
| |
(2) | In subsection (1) for “person who” substitute “company which”. |
| 5 |
| |
(a) | for “all tax” substitute “corporation tax”, |
| |
(b) | for “person” substitute “company”, and |
| |
(c) | for “year of assessment”, in both places where it occurs, substitute |
| |
| 10 |
| |
(a) | for “all tax” substitute “corporation tax”, |
| |
(b) | for “person” substitute “company”, |
| |
(c) | for “year of assessment”, in both places where it occurs, substitute |
| |
| 15 |
(d) | for “that period” substitute “the administration period”. |
| |
| |
(a) | for “person” substitute “company”, |
| |
(b) | for “for any year” substitute “for any accounting period”, |
| |
(c) | in paragraph (a) for “that year” substitute “the relevant year of |
| 20 |
| |
(d) | in paragraph (b), omit the words from “and shall” to the end of the |
| |
| |
| |
(a) | for “person” substitute “company”, |
| 25 |
(b) | for “income tax for any year” substitute “corporation tax for any |
| |
| |
(c) | for “him”, in both places where it occurs, substitute “it”, and |
| |
(d) | for “that year” substitute “the relevant year of assessment”. |
| |
| 30 |
(a) | for “he” substitute “the company”, |
| |
(b) | for “to income tax” substitute “to corporation tax”, and |
| |
(c) | omit “, for the purpose of computing his total income,”. |
| |
(8) | After subsection (6) insert— |
| |
“(7) | In this section “the relevant year of assessment”, in relation to an |
| 35 |
amount deemed to have been paid to a company as income for an |
| |
accounting period by virtue of this section, means the year of |
| |
assessment for which the amount would have been deemed to have |
| |
been paid as income if references to accounting periods in |
| |
subsections (2) and (3) were references to years of assessment.” |
| 40 |
284 (1) | Amend section 696 (absolute interests in residue) as follows. |
| |
(2) | In subsection (1) for “person who” substitute “company which”. |
| |
| |
(a) | for “person”, wherever it occurs, substitute “company”, and |
| |
|
| |
|
| |
|
(b) | at the end add “; and references to the residuary income of a |
| |
company for an accounting period are to be construed in accordance |
| |
| |
| |
(a) | for “all tax” substitute “corporation tax”, |
| 5 |
(b) | for “person” substitute “company”, and |
| |
(c) | for “year of assessment” substitute “accounting period”. |
| |
| |
(a) | for “person”, in both places where it occurs, substitute “company”, |
| |
(b) | at the end of paragraph (b) insert “(whether or not the company was |
| 10 |
a company liable to corporation tax at the time of payment)”, and |
| |
(c) | for “year of assessment” substitute “accounting period”. |
| |
(6) | In subsection (3B) for— |
| |
(a) | “person”, in both places where it occurs, |
| |
(b) | “year of assessment”, in both places where it occurs, |
| 15 |
(c) | “years of assessment”, |
| |
| |
(e) | “his”, in both places where it occurs, and |
| |
(f) | “that year”, wherever it occurs in paragraph (a) and (b), |
| |
| substitute “company”, “accounting period”, “accounting periods”, “each |
| 20 |
accounting period”, “its” and “that accounting period” respectively. |
| |
(7) | In subsection (4) for “person”, “any year” and “that year” substitute |
| |
“company”, “any accounting period” and “that accounting period” |
| |
| |
(8) | In subsection (5) for— |
| 25 |
(a) | “person”, in both places where it occurs, and |
| |
(b) | “year of assessment”, |
| |
| substitute “company” and “accounting period” respectively. |
| |
| |
(a) | for “person” substitute “company”, |
| 30 |
(b) | for “year” substitute “accounting period”, and |
| |
(c) | omit the words from “and shall” to the end of the subsection. |
| |
(10) | In subsection (7) for— |
| |
| |
(b) | “income tax for any year”, |
| 35 |
| |
(d) | “him”, in both places where it occurs, |
| |
| substitute “company”, “corporation tax for any accounting period”, “the |
| |
relevant year of assessment” and “it” respectively. |
| |
(11) | In subsection (8) omit the words from the beginning to “this section”. |
| 40 |
(12) | After subsection (8) insert— |
| |
“(9) | In subsection (7) “the relevant year of assessment”, in relation to an |
| |
amount deemed to have been paid to a company as income for an |
| |
accounting period by virtue of this section, means the year of |
| |
|
| |
|
| |
|
assessment for which the amount would have been deemed to have |
| |
been paid as income if references in subsections (3) to (6) to |
| |
accounting periods were references to years of assessment.” |
| |
285 (1) | Amend section 697 (supplementary provisions as to absolute interests in |
| |
| 5 |
| |
(a) | for “person”, in both places, substitute “company”, and |
| |
(b) | for “his”, in both places where it occurs, substitute “its”. |
| |
(3) | In subsection (4), omit the words from “, and the residuary income” to the |
| |
| 10 |
(4) | After that subsection insert— |
| |
“(5) | If the amount resulting from the computation mentioned in |
| |
subsection (4) is greater than the total amount of the reduction which |
| |
can be made under subsection (2), the share of the residuary income |
| |
of the estate of the last previous holder of the interest for the last year |
| 15 |
in which that person had that interest is to be reduced, and so on.” |
| |
286 (1) | Amend section 698 (special provisions as to certain interests in residue) as |
| |
| |
(2) | In subsection (1B)(c)(ii) for “year of assessment” substitute “accounting |
| |
| 20 |
(3) | In subsection (2)(b) “year” substitute “accounting period”. |
| |
| |
(a) | for “all tax” substitute “corporation tax”, and |
| |
(b) | for “year of assessment” substitute “accounting period”. |
| |
(5) | After subsection (3) insert— |
| 25 |
“(4) | Subsection (5) applies in any case where— |
| |
(a) | successively during the administration period there are |
| |
different persons with absolute interests in the residue of the |
| |
estate of a deceased person, or in parts of such a residue, and |
| |
(b) | some, but not all are companies liable to corporation tax in |
| 30 |
respect of income within this Part. |
| |
(5) | References in this section— |
| |
(a) | to sums deemed to be paid as income for an accounting |
| |
period to a person who is not such a company, |
| |
(b) | to the residuary income for any accounting period of such a |
| 35 |
| |
(c) | to amounts deemed to be paid to such a person as income, |
| |
| are references to sums that would be so deemed, to the income that |
| |
would be such residuary income or, as the case may be, to the |
| |
amounts that would be so deemed if the assumptions in subsection |
| 40 |
| |
| |
(a) | that each of the persons who is not a company liable to |
| |
corporation tax in respect of income within this Part is such a |
| |
| 45 |
|
| |
|
| |
|
(b) | that in the case of each person who is not a company, the |
| |
person’s accounting periods correspond with years of |
| |
| |
287 (1) | Amend section 698A (taxation of income of beneficiaries at lower rate or at |
| |
rates applicable to Schedule F income) as follows. |
| 5 |
(2) | In subsection (1) for “Schedule F” substitute “Chapter 3 of Part 4 of ITTOIA |
| |
2005 (dividends etc. from UK resident companies etc.)”. |
| |
| |
(a) | for “Schedule F”, in the first place where it occurs, substitute |
| |
| 10 |
(b) | for “Schedule F”, in the second place where it occurs, substitute |
| |
“Chapter 3 of Part 4 of ITTOIA 2005”. |
| |
| |
(a) | after “section 698(3)” insert “above or of section 662 of ITTOIA 2005 |
| |
read with section 656(3) or 657(4) of that Act”, |
| 15 |
(b) | for “Schedule F”, in the first place where it occurs, substitute |
| |
| |
(c) | for “Schedule F”, in the second place where it occurs, substitute |
| |
“Chapter 3 of Part 4 of ITTOIA 2005”, |
| |
(d) | for “Schedule F”, in the third place where it occurs, substitute |
| 20 |
| |
(e) | for “Schedule F”, in the fourth place where it occurs, substitute |
| |
“Chapter 3 of Part 4 of ITTOIA 2005”. |
| |
(5) | In the side-note for “Schedule F” substitute “distribution”. |
| |
288 | Omit section 699 (relief from higher rate tax for inheritance tax on accrued |
| 25 |
| |
289 (1) | Amend section 699A (untaxed sums comprised in the income of the estate) |
| |
| |
(2) | In subsection (1)(a) for “sections 249(5), 421(2) and 547(1)(c)” substitute |
| |
“paragraphs (c) to (e) of section 701(8) below”. |
| 30 |
| |
(a) | in paragraph (a) for “Schedule F” substitute “Chapter 3 of Part 4 of |
| |
ITTOIA 2005 (dividends etc. from UK resident companies etc.)”, and |
| |
(b) | omit paragraph (b) and the word “or” immediately preceding it. |
| |
| 35 |
(a) | in paragraph (a) for “section 249(5) or 421(2), at the Schedule F” |
| |
substitute “section 701(8)(c) or (d), at the dividend”, |
| |
(b) | in paragraph (b) for “section 547(1)(c)” substitute “section 701(8)(e)”, |
| |
| |
(c) | in paragraph (c) for “Schedule F” substitute “dividend”. |
| 40 |
| |
290 (1) | Amend section 700 (adjustments and information) as follows. |
| |
| |
(a) | for “person” substitute “company”, |
| |
|
| |
|