Finance (No. 2) Bill

House of Commons

Session 2004 - 05
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Other Bills before Parliament

Finance (No. 2) Bill

Finance (No. 2) Bill
Part 6 — Miscellaneous
79

(a)
for times before 6th April 2006, provisions having effect in relation to
exempt approved schemes (within the meaning of Chapter 1 of Part 14
of ICTA: see section 592(1) of that Act), and
(b)
for times on or after that date, provisions having effect in relation to
registered pension schemes (within the meaning of section 832(1) of
5
ICTA).
(8)
The regulations may include—
(a)
provision amending any enactment or instrument, and
(b)
consequential, supplementary and transitional provisions.
(9)
The regulations are to be made by statutory instrument which shall be subject
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to annulment in pursuance of a resolution of the House of Commons.
(10)
In this section—
“the Board of the Pension Protection Fund” means the body corporate
established under section 107 of the Pensions Act 2004 (c. 35),
“the Fraud Compensation Fund” means the Fund required to be held,
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managed and applied by that Board under paragraph (b) of subsection
(1) of section 110 of that Act, and
“the Pension Protection Fund” means the Fund required to be held,
managed and applied by that Board under paragraph (a) of that
subsection.
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Part 6
Miscellaneous
103
Civil partnerships etc
(1)
In the case of any tax or duty, the Treasury may by regulations make provision
for the purpose of securing that the events or persons specified in column 1 of
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the Table are treated in the same way as (or a similar way to) the corresponding
events or persons specified in column 2 of the Table.

1. Events or persons
2. Corresponding events or persons

1. The formation of a civil
A marriage.

partnership.

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2. Persons who are, have been, or
Persons who are, have been, or

may in future be, civil partners of
may in future be, married to each

each other.
other.

3. Persons who are not civil
Persons who are not married to

partners of each other but who are
each other but who are living

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living together as if they were.
together as husband and wife.

4. Persons who are not civil
Persons who are not married to

partners of each other.
each other.

5. A person who is not a civil
A person who is not married.

partner of any other person.

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Finance (No. 2) Bill
Part 7 — Supplementary provisions
80

(2)
The provision that may be made by regulations under subsection (1) includes
provision for or in connection with varying, for the purpose specified in
subsection (1), the treatment that would, apart from the regulations, apply—
(a)
on the occurrence of an event specified in column 2 of the Table, or
(b)
in the case of persons specified in column 2 of the Table.
5
(3)
The Treasury may by regulations make provision for the purpose of removing
any inequality of treatment of persons based on gender or, in the case of a
parent, marital status.
(4)
Any power to make regulations under this section is exercisable by statutory
instrument.
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(5)
A statutory instrument containing regulations under this section shall not be
made unless a draft of the instrument has been laid before, and approved by a
resolution of, the House of Commons.
(6)
The provision that may be made by regulations under this section includes
provision—
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(a)
amending any enactment, or
(b)
applying any provision of any enactment with or without
modifications.
(7)
Any power to make regulations under this section includes power—
(a)
to make different provision for different cases;
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(b)
to make incidental, supplemental, consequential or transitional
provision or savings.
(8)
The powers conferred by this section are exercisable in relation to enactments
(including enactments contained in, or made under, this Act) passed or made
at any time before the end of the Session following that in which this Act is
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passed.
(9)
In this section—
“civil partnership” means a civil partnership which exists under or by
virtue of the Civil Partnership Act 2004 (c. 33) (and “civil partner” is to
be read accordingly);
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“enactment” includes any provision comprised in—
(a)
an Act of the Scottish Parliament;
(b)
Northern Ireland legislation;
(c)
an instrument made under any enactment.
Part 7
35
Supplementary provisions
104
Repeals
(1)
The enactments mentioned in Schedule 11 (which include provisions that are
spent or of no practical utility) are repealed to the extent specified.
(2)
The repeals specified in that Schedule have effect subject to the commencement
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provisions and savings contained or referred to in the notes set out in that
Schedule.

Finance (No. 2) Bill
Part 7 — Supplementary provisions
81

105
Interpretation
In this Act—
“ALDA 1979” means the Alcoholic Liquor Duties Act 1979 (c. 4);
“CAA 2001” means the Capital Allowances Act 2001 (c. 2);
“FA”, followed by a year, means the Finance Act of that year;
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“F(No.2)A”, followed by a year, means the Finance (No.2) Act of that year;
“HODA 1979” means the Hydrocarbon Oil Duties Act 1979 (c. 5);
“ICTA” means the Income and Corporation Taxes Act 1988 (c. 1);
“IHTA 1984” means the Inheritance Tax Act 1984 (c. 51);
“ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003
10
(c. 1);
“ITTOIA 2005” means the Income Tax (Trading and Other Income) Act
2005 (c. 5);
“TCGA 1992” means the Taxation of Chargeable Gains Act 1992 (c. 12);
“TMA 1970” means the Taxes Management Act 1970 (c. 9);
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“VERA 1994” means the Vehicle Excise and Registration Act 1994 (c. 22).
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Short title
This Act may be cited as the Finance Act 2005.

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Finance (No. 2) Bill
Schedule 1 — Non-UK resident vulnerable persons: interpretation

Schedules
Schedule 1
Sections 28 and 33

Non-UK resident vulnerable persons: interpretation
Vulnerable person’s actual income
1
The “vulnerable person’s actual income” for the tax year means the income
5
that would arise (or be treated as arising) under the Income Tax Acts to the
vulnerable person in the tax year on the assumption that the vulnerable
person is resident and domiciled in the United Kingdom throughout the tax
year.
Trustees’ specially taxed income
10
2
The “trustees’ specially taxed income” for the tax year means income arising
(or treated as arising) to the trustees in the tax year from property held on
qualifying trusts for the benefit of the vulnerable person in connection with
which special income tax treatment applies for the tax year in accordance
with section 25 by virtue of a claim for special tax treatment under this
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Chapter.
Vulnerable person’s deemed CGT taxable amount
3     (1)
The “vulnerable person’s deemed CGT taxable amount” for the tax year
means the sum of—
(a)
the vulnerable person’s taxable amount for the tax year for the
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purposes of section 3 of TCGA 1992 calculated by reference only to
actual gains and actual losses, and
(b)
the vulnerable person’s taxable amount for the tax year for the
purposes of that section calculated by reference only to assumed
gains and assumed losses.
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      (2)
But in calculating the taxable amount under sub-paragraph (1)(b)—
(a)
no deduction is to be made under section 2(2)(b) of TCGA 1992, and
(b)
the words “except as provided by section 62” in section 2(3) of that
Act are to be disregarded.
      (3)
In determining the vulnerable person’s deemed CGT taxable amount for the
30
tax year any claims or elections made in relation to any assumed gains of the
vulnerable person are to be disregarded.
      (4)
In this paragraph—
(a)
“actual gains” and “actual losses” have the meanings given in
paragraph 5, and
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Finance (No. 2) Bill
Schedule 1 — Non-UK resident vulnerable persons: interpretation
83

(b)
“assumed gains” and “assumed losses” have the meanings given in
paragraph 6.
Vulnerable person’s notional section 77 gains
4     (1)
The “vulnerable person’s notional section 77 gains” for the tax year means
the chargeable gains that would be treated as accruing to the vulnerable
5
person in the tax year under section 77 of TCGA 1992 by virtue of section 31
of this Act if the relevant assumptions were made.
      (2)
In this paragraph “relevant assumptions” has the meaning given in
paragraph 7.
Actual gains and actual losses
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5     (1)
“Actual gains” means any chargeable gains which accrue to the vulnerable
person and in respect of which he is chargeable to capital gains tax for the
tax year.
      (2)
“Actual losses” means—
(a)
any allowable losses accruing to the vulnerable person in the tax
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year, and
(b)
so far as they have not been allowed as a deduction from chargeable
gains accruing to him in any previous tax year, any allowable losses
accruing to him in any previous tax year (not earlier than that
beginning on 6th April 1965).
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Assumed gains and assumed losses
6     (1)
“Assumed gains” means any chargeable gains, other than actual gains,
which, on the relevant assumptions, would accrue to the vulnerable person
and in respect of which, on those assumptions, he would be chargeable to
capital gains tax for the tax year.
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      (2)
“Assumed losses” means any allowable losses, other than actual losses,
which, on the relevant assumptions, would accrue to the vulnerable person
in the tax year.
      (3)
In this paragraph “relevant assumptions” has the meaning given in
paragraph 7.
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Relevant assumptions
7     (1)
For the purposes of paragraphs 4 and 6 the “relevant assumptions” are—
(a)
that the vulnerable person is resident and domiciled in the United
Kingdom throughout the tax year, and
(b)
that he has given a notice under subsection (2A) of section 16 of
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TCGA 1992 (computation of losses) in respect of each loss accruing
to him in the tax year which by virtue of subsection (3) of that section
would not be an allowable loss (but for the assumption in paragraph
(a)).
      (2)
But the relevant assumption in sub-paragraph (1)(a) does not apply for the
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purposes of section 10A of TCGA 1992 (temporary non-residents).