|
| |
|
| |
(1) | Tax is charged under this Chapter on the full amount of the annual payments |
| |
| |
(2) | Subsection (1) is subject to Part 8 (foreign income: special rules). |
| |
(3) | The amount charged under this Chapter in the case of certain payments made |
| 5 |
by trustees in the exercise of a discretion is subject to section 687 of ICTA |
| |
(grossing up of discretionary payments from trusts). |
| |
| |
The person liable for any tax charged under this Chapter is the person |
| |
receiving or entitled to the annual payments. |
| 10 |
686 | Payments received after deduction of tax |
| |
(1) | Income tax deducted under either of the following sections from an annual |
| |
payment within this Chapter is treated as income tax paid by the recipient— |
| |
section 348(1)(b) of ICTA (under which income tax may be deducted from |
| |
some payments by the payer), and |
| 15 |
section 349(1)(a) of that Act (under which income tax must be deducted |
| |
from some payments by the payer). |
| |
(2) | See also section 687(2) of that Act (sum treated as deducted from payments |
| |
made under a discretionary trust treated as income tax paid by the person to |
| |
whom the payment is made or the settlor). |
| 20 |
| |
Income not otherwise charged |
| |
687 | Charge to tax on income not otherwise charged |
| |
(1) | Income tax is charged under this Chapter on income from any source that is not |
| |
charged to income tax under or as a result of any other provision of this Act or |
| 25 |
| |
(2) | Subsection (1) does not apply to annual payments. |
| |
(3) | Subsection (1) does not apply to income that would be charged to income tax |
| |
under or as a result of another provision but for an exemption. |
| |
(4) | The definition of “income” in section 878(1) does not apply for the purposes of |
| 30 |
| |
(5) | For exemptions from the charge under this Chapter, see in particular— |
| |
section 768 (commercial occupation of woodlands), and |
| |
section 779 (gains on commodity and financial futures). |
| |
| 35 |
(1) | Tax is charged under this Chapter on the full amount of the income arising in |
| |
| |
|
| |
|
| |
|
(2) | Subsection (1) is subject to— |
| |
(a) | Chapter 1 of Part 7 (which provides relief on income from the use of |
| |
furnished accommodation in an individual’s only or main residence: |
| |
see, in particular, sections 794 and 798), |
| |
(b) | Chapter 2 of that Part (which provides relief on income from the |
| 5 |
provision by an individual of foster care: see, in particular, sections 814 |
| |
| |
(c) | Part 8 (foreign income: special rules). |
| |
| |
The person liable for any tax charged under this Chapter is the person |
| 10 |
receiving or entitled to the income. |
| |
| |
| |
| |
| 15 |
| |
(1) | This Part provides for certain exemptions from charges to income tax under |
| |
| |
(2) | The exemptions are dealt with in— |
| |
(a) | Chapter 2 (national savings income), |
| 20 |
(b) | Chapter 3 (income from individual investment plans), |
| |
(c) | Chapter 4 (SAYE interest), |
| |
(d) | Chapter 5 (venture capital trust dividends), |
| |
(e) | Chapter 6 (income from FOTRA securities), |
| |
(f) | Chapter 7 (purchased life annuity payments), |
| 25 |
(g) | Chapter 8 (other annual payments), and |
| |
(h) | Chapter 9 (other income). |
| |
(3) | Chapter 10 explains that, in general, the effect of the exemptions is that the |
| |
exempt amounts are ignored for other income tax purposes. |
| |
(4) | Other exemptions, such as exemptions relating to particular categories of |
| 30 |
persons, may also be relevant to the charges to income tax under this Act. |
| |
(5) | And the exemptions dealt with in this Part may themselves be relevant to |
| |
charges to income tax outside this Act. |
| |
|
| |
|
| |
|
| |
| |
691 | National Savings Bank ordinary account interest |
| |
(1) | No liability to income tax arises for an individual in respect of interest on |
| |
deposits in ordinary accounts with the National Savings Bank if the interest for |
| 5 |
the tax year does not exceed £70. |
| |
(2) | If the interest for the tax year exceeds £70, the individual is only liable to |
| |
income tax on the excess. |
| |
692 | Income from savings certificates |
| |
(1) | No liability to income tax arises in respect of income from authorised savings |
| 10 |
| |
(2) | A savings certificate is authorised so far as its acquisition was not prohibited |
| |
by regulations made by the Treasury limiting a person’s holding. |
| |
(3) | In this section “savings certificates” means— |
| |
(a) | savings certificates issued under— |
| 15 |
(i) | section 12 of the National Loans Act 1968 (c. 13) (power of |
| |
| |
(ii) | section 7 of the National Debt Act 1958 (c. 6) (power of Treasury |
| |
to issue national savings certificates), or |
| |
(iii) | section 59 of FA 1920 (power to borrow on national savings |
| 20 |
| |
(b) | war savings certificates, as defined in section 9(3) of the National Debt |
| |
| |
(c) | savings certificates issued under any enactment forming part of the law |
| |
of Northern Ireland and corresponding to section 12 of the National |
| 25 |
| |
(4) | But subsection (3)(c) does not include Ulster Savings Certificates (for which |
| |
there are special rules in section 693). |
| |
693 | Income from Ulster Savings Certificates |
| |
(1) | No liability to income tax arises in respect of income from authorised Ulster |
| 30 |
Savings Certificates if condition A, B or C is met. |
| |
(2) | Condition A is that — |
| |
(a) | the holder purchased them, and |
| |
(b) | at the time of the purchase the holder was resident and ordinarily |
| |
resident in Northern Ireland. |
| 35 |
(3) | Condition B is that the holder is so resident and ordinarily resident when they |
| |
| |
| |
(a) | they are repaid after the holder’s death, and |
| |
(b) | at the time of the purchase the holder was so resident and ordinarily |
| 40 |
| |
|
| |
|
| |
|
(5) | An Ulster Savings Certificate is authorised so far as its acquisition was not |
| |
prohibited by regulations made by the Department of Finance and Personnel |
| |
limiting a person’s holding. |
| |
(6) | The exemption under this section requires a claim. |
| |
(7) | In this Act “Ulster Savings Certificates” means savings certificates issued or |
| 5 |
treated as issued under section 15 of the Exchequer and Financial Provisions |
| |
Act (Northern Ireland) 1950 (c. 3 (N.I.)). |
| |
| |
Income from individual investment plans |
| |
694 | Income from individual investment plans |
| 10 |
(1) | The Treasury may by regulations provide that income of an individual from |
| |
investments under a plan— |
| |
(a) | is exempt from income tax, or |
| |
(b) | is exempt from income tax to such extent as is specified in the |
| |
| 15 |
(2) | In this Chapter such regulations are referred to as “investment plan |
| |
| |
(3) | Investment plan regulations may, in particular, specify— |
| |
(a) | the description of individuals who may invest, and |
| |
(b) | maximum investment limits. |
| 20 |
(4) | They may provide for investment by an individual under more than one plan |
| |
| |
(5) | They must set out conditions subject to which plans are to operate. |
| |
(6) | The following provisions of this Chapter contain more particular provisions |
| |
about the scope of investment plan regulations. |
| 25 |
| |
(1) | Investment plan regulations may specify the kind of investments which may |
| |
be made under a plan or which may be made by particular descriptions of |
| |
individuals under a plan. |
| |
| 30 |
(a) | provide for a plan in the form of an account, and |
| |
(b) | authorise the ways in which the subscriptions to an account are to be |
| |
| |
| |
(a) | provide that plans are to be such as are approved by the Board of Inland |
| 35 |
| |
(b) | specify the circumstances in which approval may be granted and |
| |
| |
| |
|
| |
|
| |
|
(a) | provide for plans to be treated as being of different kinds, according to |
| |
criteria set out in the regulations, |
| |
(b) | provide for the Board to register a plan as being of a particular kind, |
| |
| |
(c) | make different provision about different kinds of plan. |
| 5 |
| |
(1) | Investment plan regulations may provide that investments are to be held by |
| |
persons on behalf of investors. |
| |
(2) | In this Chapter those persons, including the managers of any such account as |
| |
is specified in section 695(2), are referred to as “plan managers”, and references |
| 10 |
to “plan managers” in any other enactment are to be read accordingly. |
| |
(3) | Investment plan regulations may— |
| |
(a) | provide that plan managers are to be such as are approved by the Board |
| |
| |
(b) | specify the circumstances in which approval may be granted and |
| 15 |
| |
697 | Special requirements for certain foreign managers |
| |
(1) | Investment plan regulations may provide that a foreign institution may only |
| |
be a plan manager if one of the requirements set out in section 698(2), (3) and |
| |
(4) about the discharge of such of the institution’s duties as are specified in the |
| 20 |
| |
(2) | In this section “foreign institution” means— |
| |
(a) | an EEA firm of the kind mentioned in paragraph 5(a), (b) or (c) of |
| |
Schedule 3 to FISMA 2000 which is an authorised person for the |
| |
purposes of that Act as a result of qualifying for authorisation under |
| 25 |
paragraph 12 of that Schedule, |
| |
(b) | a firm which is an authorised person for those purposes as a result of |
| |
qualifying for authorisation under paragraph 2 of Schedule 4 to that |
| |
| |
(c) | an insurance company which is non-UK resident. |
| 30 |
(3) | Different duties may be specified under subsection (1) for different institutions |
| |
or different descriptions of institution. |
| |
| |
“insurance company” means an undertaking carrying on the business of |
| |
effecting or carrying out contracts of insurance, and |
| 35 |
“contract of insurance” has the meaning given by Article 3(1) of the |
| |
Financial Services and Markets Act 2000 (Regulated Activities) Order |
| |
| |
698 | Requirements for discharge of foreign institution’s duties |
| |
(1) | The requirements about the discharge of an institution’s duties which are |
| 40 |
referred to in section 697(1) (one of which may be imposed in the case of certain |
| |
foreign managers) are requirements A, B and C. |
| |
(2) | Requirement A is that— |
| |
|
| |
|
| |
|
(a) | a person is currently appointed by the institution to be responsible for |
| |
securing the discharge of the duties, |
| |
| |
(i) | is an individual who is a UK resident, or |
| |
(ii) | is not an individual and has a business establishment in the |
| 5 |
| |
(c) | the institution has notified the Board of Inland Revenue of that person’s |
| |
identity and appointment. |
| |
(3) | Requirement B is that there are other current arrangements with the Board for |
| |
a person other than the institution to secure the discharge of the duties. |
| 10 |
(4) | Requirement C is that there are other current arrangements with the Board |
| |
designed to secure the discharge of the duties. |
| |
(5) | Investment plan regulations may provide— |
| |
(a) | that requirement A or B is only met if the person concerned is of a |
| |
description specified in the regulations as respects that requirement, |
| 15 |
(b) | that appointments made for the purposes of requirement A or |
| |
arrangements made for the purposes of requirement B are treated as |
| |
terminated in circumstances specified in the regulations as respects that |
| |
| |
(6) | Investment plan regulations may provide that a person currently appointed as |
| 20 |
mentioned in subsection (2) or as to whom there is a current arrangement |
| |
| |
(a) | may act on the institution’s behalf for any of the purposes of the |
| |
provisions relating to the duties, |
| |
(b) | is to secure the institution’s compliance with, and discharge of, the |
| 25 |
duties, where appropriate by acting on its behalf, |
| |
(c) | is personally liable for the institution’s failure to comply with or |
| |
discharge any of the duties, as if they were imposed on the person and |
| |
the institution jointly and severally. |
| |
699 | Non-entitlement to exemption |
| 30 |
(1) | Investment plan regulations may— |
| |
(a) | provide that in circumstances specified in the regulations an investor |
| |
ceases to be entitled to the exemption given by regulations made under |
| |
section 694(1) and is treated as not having been entitled to it, |
| |
(b) | adapt or modify the effect of any enactment relating to income tax for |
| 35 |
| |
(c) | provide that in those circumstances the investor or the plan manager |
| |
(depending on the terms of the regulations) is to account to the Board |
| |
of Inland Revenue for income tax from which exemption has already |
| |
been given on the basis that the investor was entitled to the exemption. |
| 40 |
(2) | They may provide that an investor or the plan manager (depending on the |
| |
terms of the regulations) is to account to the Board— |
| |
(a) | for income tax from which the exemption has been given in |
| |
circumstances where the investor was not entitled to it, or |
| |
(b) | for an amount determined in accordance with the regulations to be the |
| 45 |
amount to be taken as representing that tax. |
| |
|
| |
|
| |
|
(3) | They may modify the effect of or adapt any enactment relating to income tax |
| |
for the purposes of securing that investors or plan managers account for the tax |
| |
and other amounts mentioned in subsections (1) and (2). |
| |
(4) | They may also modify the provisions of or adapt Chapter 9 of Part 4 of this Act |
| |
(gains from contracts for life insurance etc.) or Chapter 2 of Part 13 of ICTA (life |
| 5 |
policies, life annuities and capital redemption policies) for cases where an |
| |
| |
(a) | ceases to be entitled to the exemption given by regulations made under |
| |
section 694(1) and is treated as not having been entitled to it, or |
| |
(b) | has been given the exemption on the basis of an entitlement to it when |
| 10 |
there was no such entitlement. |
| |
(5) | They may provide for plan managers (as well as investors) to be liable to |
| |
account for amounts becoming due from investors as a result of regulations |
| |
made under subsection (4). |
| |
(6) | They may provide that, instead of having to account as mentioned in |
| 15 |
subsection (2) or (5), an investor or a plan manager is liable to a penalty of an |
| |
amount specified in the regulations if— |
| |
(a) | an exemption has been given to which there was no entitlement, and |
| |
(b) | the circumstances are such as are specified in the regulations. |
| |
(7) | They may provide that liabilities are imposed in cases which— |
| 20 |
(a) | are not cases in which liabilities may be imposed under subsections (1) |
| |
to (6) where relief has been given to which there was no entitlement, but |
| |
| |
(i) | a contravention or failure to comply with investment plan |
| |
regulations that is specified in the regulations, or |
| 25 |
(ii) | the existence of such other circumstances as are so specified, |
| |
| would have the effect of excluding or limiting an entitlement to |
| |
exemption, apart from the regulations under this subsection. |
| |
(8) | Regulations under subsection (7)— |
| |
(a) | may only provide for the imposition of liabilities equivalent to those |
| 30 |
which may be imposed under subsections (1) to (6), and |
| |
(b) | must provide for those liabilities to replace the liabilities to tax which |
| |
| |
| |
(1) | Investment plan regulations may impose a duty on any current or former |
| 35 |
investor or plan manager— |
| |
(a) | to comply within the period specified by the regulations with any |
| |
documents notice served by the Board of Inland Revenue, or |
| |
(b) | to comply within the period specified by the regulations with any |
| |
information request made by the Board. |
| 40 |
(2) | In this section “documents notice” means a notice requiring a person to make |
| |
available for the Board’s inspection documents relating to a plan or |
| |
investments held or formerly held under it. |
| |
(3) | The regulations must specify the kind of documents to which a documents |
| |
| 45 |
|
| |
|