|
| |
|
assessment etc), after sub-paragraph (2) insert— |
| |
“(2A) | Those restrictions, other than the restriction in paragraph 45, do not |
| |
apply so far as regards any income or chargeable gains of the |
| |
company in relation to which the company has been given, after any |
| |
enquiries have been completed into the return, a notice under section |
| 5 |
804ZA of the Taxes Act 1988.” |
| |
(5) | The amendments made by this section have effect in accordance with section |
| |
| |
Controlled foreign companies |
| |
89 | ADP dividends and double taxation relief |
| 10 |
(1) | Section 801 of ICTA (dividends paid between related companies: relief for UK |
| |
and third country taxes) is amended as follows. |
| |
(2) | In subsection (2A) (restriction on cases where section 799(1)(b) applies for the |
| |
purposes of section 801(2)) after paragraph (a) insert— |
| |
“(aa) | if the overseas company is an ADP controlled foreign company |
| 15 |
as respects any of its accounting periods and the dividend |
| |
mentioned in subsection (1) above is an ADP dividend of that |
| |
company (in which case see also subsection (2B)); or”. |
| |
(3) | After subsection (2A) insert— |
| |
“(2B) | In any case falling within subsection (2A)(aa) above, section 799(1)(b) |
| 20 |
applies for the purposes of subsection (2) above as if for section 799(1A) |
| |
| |
“(1A) The formula is—![equation: cross[over[char[D],plus[num[1.0000000000000000,"1"],minus[char[X]]]],char[X]]](missing.gif) |
| |
| |
| D is the amount of the dividend; and |
| 25 |
| X is the maximum relievable rate, expressed as a decimal |
| |
| |
| and for the purposes of this subsection the maximum relievable rate is |
| |
the rate of corporation tax in force when the dividend was paid.”.”. |
| |
(4) | After subsection (5) insert— |
| 30 |
“(6) | For the purposes of this section— |
| |
(a) | a controlled foreign company is an “ADP controlled foreign |
| |
company” as respects any of its accounting periods if, by virtue |
| |
only of section 748(1)(a), no apportionment under section 747(3) |
| |
falls to be made as respects that accounting period; |
| 35 |
(b) | an “ADP dividend” of a controlled foreign company is a |
| |
dividend by virtue of which the controlled foreign company is |
| |
an ADP controlled foreign company as respects any of its |
| |
| |
| 40 |
|
| |
|
| |
|
“accounting period”, in relation to a controlled foreign company, |
| |
has the same meaning as in Chapter 4 of Part 17 (see section |
| |
| |
“controlled foreign company” has the same meaning as in Chapter |
| |
4 of Part 17 (see section 747(2)).”. |
| 5 |
(5) | The amendments made by this section have effect where the dividend |
| |
mentioned in section 799(1) of ICTA is paid on or after 2nd December 2004 and |
| |
is, or represents, in whole or in part an ADP dividend of an ADP controlled |
| |
| |
90 | Foreign taxation of group as single entity: exclusion of ADP CFCs |
| 10 |
(1) | Section 803A of ICTA is amended as follows. |
| |
(2) | After subsection (1) (company resident in territory outside the UK paying tax |
| |
in respect of one or more other companies resident in that territory) insert— |
| |
| |
(a) | a company is (within the meaning of section 801) an ADP |
| 15 |
controlled foreign company as respects any of its accounting |
| |
| |
(b) | the whole or any part of the profits or gains of that accounting |
| |
period are included in the aggregate profits, or aggregate |
| |
profits or gains, mentioned in subsection (1) above, |
| 20 |
| subsection (2) below shall have effect as if the companies mentioned in |
| |
subsection (1) above did not include that company.”. |
| |
(3) | The amendment made by this section has effect in relation to dividends paid |
| |
on or after 16th March 2005. |
| |
Annual payments and double taxation relief |
| 25 |
91 | Tax avoidance involving annual payments and double taxation relief |
| |
(1) | ICTA is amended as follows. |
| |
(2) | In section 125 (annual payments for non-taxable consideration) in subsection |
| |
(2) (payments to which the section applies) for paragraph (b) substitute— |
| |
“(b) | is made under a liability incurred for consideration in money or |
| 30 |
money’s worth all or any of which— |
| |
(i) | consists of, or of the right to receive, a dividend, or |
| |
(ii) | is not required to be brought into account in computing |
| |
for the purposes of income tax or corporation tax the |
| |
income of the person making the payment.”. |
| 35 |
(3) | As from 2nd December 2004, the title of that section accordingly becomes |
| |
“Annual payments for dividends or non-taxable consideration”. |
| |
(4) | Section 801 (dividends paid between related companies: relief for UK and third |
| |
country taxes) is amended as follows. |
| |
(5) | In subsection (2) (case where overseas company has received a dividend from |
| 40 |
a third company) for “subject to subsections (4) to (4D)” substitute “subject to |
| |
| |
|
| |
|
| |
|
(6) | Subsections (4A) to (4D) (which relate to cases where the amount given by the |
| |
formula in section 799(1) exceeds U in that formula) shall cease to have effect. |
| |
(7) | The amendment made by subsection (2) has effect in relation to any annual |
| |
payment made on or after 2nd December 2004 (whether the contract or other |
| |
arrangement is one made before, on or after that date). |
| 5 |
(8) | The amendments made by subsections (4) to (6) have effect in relation to |
| |
dividends paid on or after 2nd December 2004. |
| |
| |
| |
| 10 |
92 | Capital allowances: renovation of business premises in disadvantaged areas |
| |
Schedule 6 (capital allowances in respect of expenditure on the conversion or |
| |
renovation of qualifying business premises in disadvantaged areas) has effect |
| |
in relation to expenditure incurred on or after such day as the Treasury may by |
| |
| 15 |
| |
| |
Schedule 7 (which makes provision amending Schedule 22 to FA 2000) has |
| |
| |
| 20 |
| |
| |
94 | Alternative property finance |
| |
Schedule 8 (which makes amendments of Part 4 of FA 2003 relating to |
| |
alternative property finance) has effect. |
| 25 |
Stamp duty land tax and stamp duty |
| |
| |
(1) | In subsection (2) of section 55 of FA 2003 (amount of stamp duty land tax |
| |
chargeable: general), in Table A (bands and percentages for residential |
| |
property) for “£60,000” in both places substitute “£120,000”. |
| 30 |
(2) | In paragraph 2(3) of Schedule 5 to that Act (amount of stamp duty land tax |
| |
chargeable: rent), in Table A (bands and percentages for residential property) |
| |
for “£60,000” in both places substitute “£120,000”. |
| |
|
| |
|
| |
|
(3) | In Schedule 13 to FA 1999 (stamp duty: instruments chargeable and rates of |
| |
duty), in paragraph 4 (bands and percentages for conveyance or transfer on |
| |
sale of property other than stock or marketable securities), for “£60,000” in both |
| |
places substitute “£120,000”. |
| |
(4) | Subsections (1) and (2) apply in relation to any transaction of which the |
| 5 |
effective date (within the meaning of Part 4 of FA 2003) is after 16th March |
| |
| |
(5) | Subsection (3) applies in relation to instruments executed after 16th March |
| |
| |
96 | Removal of disadvantaged areas relief for non-residential property |
| 10 |
Schedule 9 (which provides for the removal, in relation to non-residential |
| |
property, of relief from stamp duty land tax and stamp duty for land in |
| |
disadvantaged areas) has effect. |
| |
Stamp duty and stamp duty reserve tax |
| |
97 | Demutualisation of insurance companies |
| 15 |
(1) | Section 90 of FA 1986 (other exceptions to the principal charge to stamp duty |
| |
reserve tax under section 87 of that Act) is amended as follows. |
| |
(2) | In subsection (1A) (section 87 not to apply to agreement to transfer unit under |
| |
unit trust scheme if instrument giving effect to agreement would be exempt |
| |
from stamp duty by virtue of provision in paragraph (a) or (b)) after paragraph |
| 20 |
| |
(c) | section 96 of the Finance Act 1997 (demutualisation of |
| |
| |
(3) | Schedule 19 to FA 1999 (stamp duty and stamp duty reserve tax: unit trusts) is |
| |
| 25 |
(4) | In paragraph 6 (exclusion, in certain cases of change of ownership, of charge to |
| |
stamp duty reserve tax on surrender of unit to managers) in sub-paragraph (5) |
| |
(provisions under which certain instruments would be exempt from stamp |
| |
duty) after paragraph (b) insert “; and |
| |
(c) | section 96 of the Finance Act 1997 (demutualisation of |
| 30 |
| |
(5) | The amendment in subsection (2) applies where the relevant day for the |
| |
purposes of section 87 of FA 1986 falls on or after the day on which this Act is |
| |
| |
(6) | The amendment in subsection (4) applies in relation to surrenders (within the |
| 35 |
meaning of Part 2 of Schedule 19 to FA 1999) occurring on or after the day on |
| |
which this Act is passed. |
| |
|
| |
|
| |
|
| |
| |
| |
98 | Rates and rate bands for the next three years |
| |
(1) | For the Table in Schedule 1 to IHTA 1984 (rates and rate bands), as it has effect |
| 5 |
from time to time, there shall be successively substituted— |
| |
(a) | the 2005-06 Table, which shall apply to any chargeable transfer made |
| |
on or after 6th April 2005 (but before 6th April 2006), |
| |
(b) | the 2006-07 Table, which shall apply to any chargeable transfer made |
| |
on or after 6th April 2006 (but before 6th April 2007), and |
| 10 |
(c) | the 2007-08 Table, which shall apply to any chargeable transfer made |
| |
on or after 6th April 2007. |
| |
(2) | Subsection (1)(c) is without prejudice to the application of section 8 of IHTA |
| |
1984 (indexation) by virtue of the difference between the retail prices index for |
| |
the month of September in 2006 or any later year and that for the month of |
| 15 |
September in the following year. |
| |
(3) | The 2005-06 Table is— |
| |
|
(4) | The 2006-07 Table is— |
| |
|
|
| |
|
| |
|
(5) | The 2007-08 Table is— |
| |
|
(6) | Section 8(1) of IHTA 1984 (indexation of rate bands) shall not have effect as |
| |
respects any difference between the retail prices index— |
| |
(a) | for the month of September 2003 and that for the month of September |
| |
| 10 |
(b) | for the month of September 2004 and that for the month of September |
| |
| |
(c) | for the month of September 2005 and that for the month of September |
| |
| |
| 15 |
| |
(1) | In section 42 of FA 1996 (amount of landfill tax) for the amount specified in |
| |
subsection (1)(a), and the corresponding amount specified in subsection (2), |
| |
| |
(2) | The amendments made by this section have effect in relation to taxable |
| 20 |
disposals made, or treated as made, on or after 1st April 2005. |
| |
| |
100 | Lorry road-user charge |
| |
For section 137(7) of FA 2002 (lorry road-user charge: preparatory expenditure) |
| |
| 25 |
“(7) | A Minister of the Crown or government department may— |
| |
(a) | incur expenditure in connection with preparations for lorry |
| |
road-user charge (including any fuel credit to be paid in respect |
| |
of fuelling of lorries chargeable in respect of lorry road-user |
| |
| 30 |
(b) | enter into contracts in respect of the development or provision |
| |
of equipment, systems or services to be used in connection with |
| |
lorry road-user charge (including any fuel credit).” |
| |
|
| |
|
| |
|
| |
| |
| |
Schedule 10 contains provision about pension schemes and related matters. |
| |
102 | Pension Protection Fund etc. |
| 5 |
(1) | The Treasury may by regulations make provision for and in connection with |
| |
the application of the relevant taxes in relation to— |
| |
(a) | the Pension Protection Fund, |
| |
(b) | the Fraud Compensation Fund, and |
| |
(c) | the Board of the Pension Protection Fund, |
| 10 |
| and in relation to any person in connection with either of those Funds or that |
| |
| |
(2) | The provision that may be made by the regulations includes provision |
| |
imposing any of the relevant taxes (as well as provision for exemptions or |
| |
| 15 |
(3) | The relevant taxes are— |
| |
| |
| |
| |
| 20 |
| |
| |
(4) | The regulations may, in particular, include provision for and in connection |
| |
with the taxation of payments made in accordance with the pension |
| |
compensation provisions (within the meaning of Part 2 of the Pensions Act |
| 25 |
2004 (c. 35): see section 162(2) of that Act). |
| |
(5) | The exemptions and reliefs that may be given by the regulations include, in |
| |
particular, exemption from— |
| |
(a) | charges to corporation tax in respect of any income arising from any |
| |
assets of the Board (or in either Fund) and other receipts of the Board |
| 30 |
(or either Fund) and any chargeable gains arising from the disposal of |
| |
any assets of the Board (or in either Fund), |
| |
(b) | charges to income tax and corporation tax in respect of the levies |
| |
referred to in sections 117, 174, 175, 189 and 209 of the Pensions Act |
| |
| 35 |
(c) | any charge to capital gains tax, or corporation tax on chargeable gains, |
| |
in respect of the receipt of fraud compensation payments (within the |
| |
meaning of Part 2 of that Act: see section 182(1) of that Act). |
| |
(6) | The regulations may make provision in relation to any time after 5th April |
| |
| 40 |
(7) | The provision made by the regulations may be framed as provision applying |
| |
with appropriate modifications— |
| |
|
| |
|