|
| |
|
(4) | A documents notice must specify the period for compliance with it. |
| |
(5) | In this section “information request” means a request to give the Board |
| |
information about a plan or investments held or formerly held under it. |
| |
(6) | The regulations must specify— |
| |
(a) | the kind of information to which an information request may relate, |
| 5 |
| |
(b) | the period from the making of the request for compliance with it. |
| |
701 | General and supplementary powers |
| |
(1) | Investment plan regulations may make provision generally for the purpose |
| |
| 10 |
(a) | the establishment and administration of plans, and |
| |
(b) | the administration of income tax in relation to them. |
| |
(2) | They may adapt or modify the effect of any enactment relating to income tax |
| |
for the purpose of securing that investors are entitled to exemption from |
| |
income tax in respect of investments. |
| 15 |
(3) | They may specify how exemption from tax is to be claimed by, and granted to, |
| |
investors or plan managers on behalf of investors. |
| |
| |
| |
702 | Interest under certified SAYE savings arrangements |
| 20 |
(1) | No liability to income tax arises in respect of interest payable under a certified |
| |
SAYE savings arrangement. |
| |
(2) | In this section “certified SAYE savings arrangement” has the meaning given in |
| |
| |
(3) | Subsection (1) is subject to— |
| 25 |
(a) | section 707(1) (which requires the providers of certain arrangements to |
| |
| |
(b) | paragraph 7 of Schedule 12 to FA 1988 (application of exemption on |
| |
change of status of building society). |
| |
(4) | In this Chapter “interest” includes any bonus. |
| 30 |
703 | Meaning of “certified SAYE savings arrangement” |
| |
(1) | In this Chapter “certified SAYE savings arrangement” means a linked savings |
| |
arrangement which is certified under section 705. |
| |
(2) | In this Chapter “linked savings arrangement” means an arrangement— |
| |
(a) | which is of a kind specified in section 704(1), and |
| 35 |
(b) | under which an individual who is eligible to participate in an approved |
| |
SAYE option scheme enters into a contract to make periodical |
| |
contributions for a specified period for the purpose of being able to |
| |
participate in that scheme. |
| |
|
| |
|
| |
|
| |
“to participate” means to obtain and exercise rights under the scheme, and |
| |
“SAYE option scheme” has the meaning given by section 516(4) of ITEPA |
| |
2003, and such a scheme is “approved” if it is approved under Schedule |
| |
| 5 |
704 | Types of arrangements and providers |
| |
(1) | A linked savings arrangement may be— |
| |
(a) | a national savings arrangement, or |
| |
(b) | an institutional arrangement. |
| |
(2) | In this Chapter “national savings arrangement” means an arrangement |
| 10 |
| |
(a) | provides for contributions to be paid to raise money under section 12 of |
| |
the National Loans Act 1968 (c. 13) (power of Treasury to borrow), |
| |
(b) | is governed by regulations made under section 11 of the National Debt |
| |
Act 1972 (c. 65) (power of Treasury to make regulations as to raising of |
| 15 |
money under auspices of Director of Savings), and |
| |
(c) | provides for the repayment of those contributions, together with |
| |
interest, in accordance with those regulations. |
| |
(3) | In this Chapter “institutional arrangement” means— |
| |
| 20 |
(b) | a building society arrangement, or |
| |
(c) | a European authorised institution arrangement. |
| |
| |
(a) | “bank arrangement” means an arrangement which provides for |
| |
contributions to be paid to a person within section 840A(1)(b) of ICTA |
| 25 |
| |
(b) | “provider”, in relation to such an arrangement, means that person. |
| |
| |
(a) | “building society arrangement” means an arrangement which provides |
| |
for contributions to be paid by way of investment in shares in a |
| 30 |
| |
(b) | “provider”, in relation to such an arrangement, means that society. |
| |
| |
“European authorised institution” means an EEA firm of the kind |
| |
mentioned in paragraph 5(b) of Schedule 3 to FISMA 2000 which has |
| 35 |
permission under paragraph 15 of that Schedule (as a result of |
| |
qualifying for authorisation under paragraph 12 of that Schedule) to |
| |
| |
“European authorised institution arrangement” means an arrangement |
| |
which provides for contributions to be paid to such a firm, and |
| 40 |
“provider”, in relation to such an arrangement, means that firm. |
| |
705 | Certification of arrangements |
| |
(1) | A linked savings arrangement is certified under this section if it is certified by |
| |
| |
|
| |
|
| |
|
(a) | as a linked savings arrangement, and |
| |
(b) | in the case of an institutional arrangement, as meeting such |
| |
requirements as the Treasury may specify for the purposes of this |
| |
| |
(2) | The requirements which may be specified under subsection (1)(b) are such |
| 5 |
requirements as the Treasury consider appropriate. |
| |
(3) | They may, in particular, relate to— |
| |
(a) | the descriptions of individuals who may enter into contracts under an |
| |
| |
(b) | the contributions to be paid by them, and |
| 10 |
(c) | the sums to be paid or repaid to them. |
| |
(4) | Different requirements may be specified for— |
| |
| |
(b) | building society arrangements, and |
| |
(c) | European authorised institution arrangements. |
| 15 |
706 | Withdrawal and variation of certifications and connected requirements |
| |
| |
(a) | withdraw the requirements specified under section 705(1)(b) for any |
| |
description of arrangements and any certification made by reference to |
| |
| 20 |
(b) | vary those requirements and withdraw any certification made by |
| |
| |
(2) | The withdrawal, or variation and withdrawal, is only effective if the |
| |
| |
(a) | specify the date on which it is to take effect, and |
| 25 |
(b) | give notice of it by post at least 28 days before that date to the provider |
| |
authorised under section 707 to enter into contracts under the |
| |
| |
(3) | The withdrawal, or variation and withdrawal, does not affect the operation of |
| |
the arrangement concerned before that date or contracts made under that |
| 30 |
| |
707 | Authorisation of providers |
| |
(1) | In the case of an institutional arrangement, section 702(1) (exemption of |
| |
interest payable under certified SAYE savings arrangements) only applies if, at |
| |
the time the contract under the arrangement is made, the provider is |
| 35 |
authorised by the Treasury to enter into contracts under it. |
| |
(2) | If the authorisation is conditional, the conditions must be met at that time. |
| |
(3) | Authorisation may be given for arrangements generally or a particular |
| |
| |
(4) | More than one authorisation may be given to the same provider. |
| 40 |
|
| |
|
| |
|
708 | Withdrawal and variation of authorisations |
| |
(1) | The Treasury may withdraw the authorisation of a provider or vary it by |
| |
imposing, varying or removing conditions. |
| |
(2) | The withdrawal or variation is only effective if the Treasury— |
| |
(a) | specify the date on which it is to take effect, and |
| 5 |
(b) | except in the case of a variation removing all conditions, give notice of |
| |
it by post to the provider at least 28 days before that date. |
| |
(3) | The withdrawal or variation does not affect contracts made before that date. |
| |
(4) | The fact that a provider has had its authorisation withdrawn or varied does not |
| |
affect the later exercise by the Treasury of its powers under section 707 or this |
| 10 |
section as respects the provider. |
| |
| |
Venture capital trust dividends |
| |
709 | Venture capital trust dividends |
| |
(1) | No liability to income tax arises in respect of a venture capital trust dividend |
| 15 |
| |
(a) | conditions A and B are met, and |
| |
(b) | where the dividend is paid in respect of shares acquired after 8th March |
| |
1999, condition C is met. |
| |
(2) | In subsection (1) a “venture capital trust dividend” means a dividend paid in |
| 20 |
respect of ordinary shares in a company which— |
| |
(a) | is a venture capital trust— |
| |
(i) | at the end of the accounting period in which the profits or gains |
| |
in respect of which it is paid arose or accrued, and |
| |
(ii) | when the dividend is paid, and |
| 25 |
(b) | was such a trust when the person to whom it is paid acquired the |
| |
| |
(3) | Condition A is that the person beneficially entitled to the dividend— |
| |
(a) | is an individual of at least 18 years, and |
| |
(b) | is beneficially entitled to it as the holder of the shares or as the person |
| 30 |
for whom, or for whose benefit, they are held by a nominee. |
| |
| |
(a) | in the tax year in which the shares were acquired the market value of |
| |
all the shares acquired by the individual or any nominee of the |
| |
individual in companies which were venture capital trusts at the time |
| 35 |
of acquisition did not exceed £200,000, or |
| |
(b) | in that year that market value exceeded £200,000, but the shares are |
| |
treated under section 710 as having been acquired within that limit. |
| |
(5) | For the purposes of subsection (4), the market value of a share is determined as |
| |
at the time of its acquisition. |
| 40 |
|
| |
|
| |
|
(6) | Condition C is that the shares were acquired for genuine commercial reasons |
| |
and not as part of a scheme or arrangement the main purpose of which, or one |
| |
of the main purposes of which, was the avoidance of tax. |
| |
(7) | Shares that were not so acquired are ignored for the purposes of subsection (4) |
| |
and section 710 (whether or not they were acquired after 8th March 1999). |
| 5 |
(8) | In this section and in sections 710 and 711— |
| |
“market value” has the same meaning as in TCGA 1992 (see sections 272 |
| |
| |
“nominee”, in relation to an individual, includes the trustees of a bare |
| |
trust of which the individual is the only beneficiary, and |
| 10 |
“ordinary shares” means shares forming part of the company’s ordinary |
| |
| |
710 | Treatment of shares where annual acquisition limit exceeded |
| |
(1) | This section sets out the rules for determining which shares whose market |
| |
value is relevant for the limit in section 709(4) are treated as shares acquired |
| 15 |
within that limit (“exempt shares”) where that limit is exceeded in a tax year. |
| |
(2) | Shares are treated as exempt shares so far as their acquisition does not cause |
| |
the limit to be exceeded at the time they are acquired. |
| |
(3) | Subsection (2) is subject to subsection (4). |
| |
(4) | If shares of different descriptions acquired on the same day cause the limit to |
| 20 |
be exceeded on that day, shares of each description are treated as exempt |
| |
shares so far as their market value does not exceed the appropriate proportion |
| |
| |
| |
“the appropriate proportion”, in relation to shares of a particular |
| 25 |
description, means the proportion which their market value bears to |
| |
the market value of all the shares acquired on that day, and |
| |
“available value” means the maximum value of shares which could be |
| |
acquired on that day without exceeding the limit. |
| |
711 | Identification of shares after disposals |
| 30 |
(1) | In determining whether a disposal relates to shares in a company which were |
| |
acquired when it was a venture capital trust or others, it is assumed that the |
| |
others are disposed of first. |
| |
(2) | In determining whether a disposal of shares in a company which were |
| |
acquired when it was a venture capital trust relates to shares which meet the |
| 35 |
condition in section 709(4) (annual acquisition limit) or others (“excess |
| |
shares”), assumptions A and B are to be made. |
| |
(3) | Assumption A is that shares acquired on an earlier day are disposed of before |
| |
those acquired on a later day. |
| |
(4) | Assumption B is that where the shares were acquired on the same day, excess |
| 40 |
shares are disposed of first. |
| |
|
| |
|
| |
|
(5) | For the purposes of this section, acquisitions and disposals by an individual’s |
| |
nominee are treated as made by the individual, and acquisitions and disposals |
| |
between them are ignored. |
| |
712 | Identification of shares after reorganisations etc. |
| |
(1) | This section applies if shares (“the new shares”) are treated under Chapter 2 of |
| 5 |
Part 4 of TCGA 1992 (reorganisations etc.) as the same assets as other shares |
| |
| |
(2) | If all the old shares met— |
| |
(a) | the condition in section 709(4) (annual acquisition limit), and |
| |
(b) | if it applied to the old shares, the condition in section 709(6) (acquisition |
| 10 |
for genuine commercial reasons), |
| |
| the new shares are treated as doing so. |
| |
(3) | If only some of the old shares met those conditions, the corresponding |
| |
proportion of the new shares are treated as meeting them and the remainder |
| |
are treated as not doing so. |
| 15 |
(4) | In the tax year in which the new shares are acquired the value of the new shares |
| |
is ignored in determining whether other shares acquired in the same tax year |
| |
meet the condition in section 709(4). |
| |
| |
Income from FOTRA securities |
| 20 |
713 | Introduction: securities free of tax to residents abroad (“FOTRA securities”) |
| |
(1) | This Chapter provides for exemptions from income tax in respect of FOTRA |
| |
| |
(2) | In this Chapter “FOTRA security” means— |
| |
(a) | a security issued with a condition about exemption from taxation |
| 25 |
authorised by section 22 of F(No.2)A 1931, |
| |
(b) | a gilt-edged security which was issued before 6th April 1998 and |
| |
without any such condition (other than 3½% War Loan 1952 Or After), |
| |
| |
(c) | 3½% War Loan 1952 Or After. |
| 30 |
(3) | In this Chapter “the exemption condition” has the meaning given by |
| |
subsections (4) to (6), according to the kind of FOTRA security involved. |
| |
(4) | In relation to a security within subsection (2)(a), it means the condition |
| |
authorised by section 22 of F(No.2)A 1931. |
| |
(5) | In relation to a security within subsection (2)(b), it means a condition with |
| 35 |
which 7.25% Treasury Stock 2007 was first issued, being a condition treated by |
| |
section 161(1) of FA 1998 (non-FOTRA securities)— |
| |
(a) | as a condition with which the security within subsection (2)(b) was |
| |
| |
(b) | as a condition authorised in relation to its issue by section 22 of |
| 40 |
| |
|
| |
|
| |
|
(6) | In relation to 3½% War Loan 1952 Or After, it means a condition of its issue |
| |
authorised by section 47 of F(No.2)A 1915. |
| |
714 | Exemption of profits from FOTRA securities |
| |
(1) | No liability to income tax arises in respect of profits from a FOTRA security if |
| |
conditions A and B are met. |
| 5 |
(2) | Subsection (1) is subject to subsection (5). |
| |
(3) | Condition A is that the profits are stated in the exemption condition to be |
| |
| |
(4) | Condition B is that any requirements for obtaining the exemption imposed by |
| |
the security’s conditions of issue are met. |
| 10 |
(5) | Whatever the exemption condition provides, amounts charged under the |
| |
provisions specified in subsection (6) are not exempted by subsection (1). |
| |
| |
Chapter 5 of Part 5 (settlements: amounts treated as income of settlor) so |
| |
far as it applies to income within section 619(1)(a) or (b), and |
| 15 |
Chapter 3 of Part 17 of ICTA (anti-avoidance provisions: transfer of assets |
| |
| |
(7) | This section does not affect the need to claim repayment of tax within the time |
| |
limit applicable for a claim. |
| |
715 | Interest from FOTRA securities held on trust |
| 20 |
(1) | This section applies if— |
| |
(a) | a FOTRA security is held on trust, and |
| |
(b) | apart from this section, interest payable on the security would not be |
| |
exempt from income tax under section 714 because of the security not |
| |
being in the beneficial ownership of a person not ordinarily UK |
| 25 |
| |
(2) | For the purposes of determining whether the interest is exempt under section |
| |
714 it is to be assumed that the security is in the beneficial ownership of a |
| |
person not ordinarily UK resident if none of the beneficiaries of the trust is |
| |
ordinarily UK resident at the time when the interest arises. |
| 30 |
(3) | In subsection (2) “beneficiaries of the trust” includes any person known to the |
| |
| |
(a) | who is, or will or may become, entitled under the terms of the trust to |
| |
receive income under the trust, or |
| |
(b) | to whom or for whose benefit such income may be paid or applied. |
| 35 |
(4) | In subsection (3) “income under the trust” includes any property held on the |
| |
terms of the trust and falling to be treated as capital so far as it is or represents |
| |
amounts received by the trustees as income. |
| |
716 | Restriction on deductions etc. relating to FOTRA securities |
| |
(1) | A person who meets conditions A and B may not bring into account for income |
| 40 |
| |
|
| |
|