Finance Bill

House of Commons

Session 2005 - 06
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Other Bills before Parliament

Finance Bill

Finance Bill
Part 2 — Income tax, corporation tax and capital gains tax
Chapter 6 — Miscellaneous
36

(3)
After subsection (1) insert—
“(1A)
If in the case of that accounting period there is any income, or any
income and any expenditure, of the company—
(a)
which is brought into account in determining the profits of the
company in respect of which tax is paid under the law of that
5
territory, but
(b)
which does not also fall to be brought into account in
determining the chargeable profits of the company,

the local tax shall be treated for the purposes of this Chapter as reduced
to what it would have been had that income and any such expenditure
10
not been so brought into account.
(1B)
If—
(a)
under the law of that territory any tax (“the company’s tax”)
falls to be paid by the company in respect of profits of the
company arising in that accounting period,
15
(b)
under that law, any repayment of tax, or any payment in respect
of a credit for tax, is made to a person other than the company,
and
(c)
that payment or repayment is directly or indirectly in respect of
the company’s tax,
20

the local tax shall be treated for the purposes of this Chapter as reduced
(or further reduced) by the amount of that payment or repayment.”.
(4)
The amendments made by this section have effect in relation to accounting
periods of companies resident outside the United Kingdom beginning on or
after 2nd December 2004.
25
(5)
Where an accounting period of a company resident outside the United
Kingdom—
(a)
would, without amendment, have ended on or after 2nd December
2004, but
(b)
is amended on or after that date so as to end before that date,
30

an accounting period of the company shall be deemed for the purposes of
Chapter 4 of Part 17 of ICTA to have ended with 1st December 2004.
(6)
In this section “accounting period” has the same meaning as in Chapter 4 of
Part 17 of ICTA (see section 751).
Miscellaneous
35
45
Lloyd’s underwriters: assessment and collection of tax
(1)
Omit section 173 of, and Schedule 19 to, FA 1993 (Lloyd’s underwriters:
assessment and collection of tax).
(2)
In section 182 of that Act (regulations) in subsection (1)(a) (power of
Commissioners for Her Majesty’s Revenue and Customs to make regulations
40
providing for assessment and collection of tax charged in accordance with
section 171 of FA 1993, so far as not provided for by Schedule 19 to that Act)
omit “(so far as not provided for by Schedule 19 to this Act)”.

Finance Bill
Part 2 — Income tax, corporation tax and capital gains tax
Chapter 6 — Miscellaneous
37

(3)
In that section, at the end insert—
“(6)
Any power to make regulations conferred by this section includes
power to make—
(a)
different provision for different cases or different purposes, and
(b)
incidental, supplemental or transitional provision and
5
savings.”.
(4)
Omit section 221 of FA 1994 (Lloyd’s underwriters: corporations etc:
assessment and collection of tax).
(5)
Renumber section 229 of that Act (regulations) as subsection (1) of that section.
(6)
In subsection (1) of that section (as amended by subsection (5) above), in
10
paragraph (a) (power of Commissioners for Her Majesty’s Revenue and
Customs to make regulations providing for assessment and collection of tax
charged in accordance with section 219 of FA 1994, so far as not provided for
by Schedule 19 to FA 1993 as applied by section 221 of FA 1994) omit “(so far
as not provided for by Schedule 19 to the 1993 Act as applied by section 221
15
above)”.
(7)
In that section, at the end insert—
“(2)
Any power to make regulations conferred by this section includes
power to make—
(a)
different provision for different cases or different purposes, and
20
(b)
incidental, supplemental or transitional provision and
savings.”.
(8)
For the purpose of enabling the making of any regulations under—
(a)
section 182(1)(a) of FA 1993 (as amended by subsection (2)), or
(b)
section 229(1)(a) of FA 1994 (as amended by subsection (6)),
25

subsections (1) to (7) come into force on the day on which this Act is passed.
(9)
Subject to that, those subsections come into force in accordance with provision
made by the Treasury by order.
(10)
Section 828(3) of ICTA shall not apply in relation to an order under subsection
(9).
30
(11)
The Commissioners for Her Majesty’s Revenue and Customs may by
regulations make such amendments, repeals or revocations in any enactment
(including an enactment amended by this section) as appear to them to be
appropriate in consequence of any one or more of the following—
(a)
any amendment made by this section;
35
(b)
the exercise by them of the power in section 182(1)(a) of FA 1993 (as
amended by subsection (2));
(c)
the exercise by them of the power in section 229(1)(a) of FA 1994 (as
amended by subsection (6)).
(12)
Any power conferred by this section to make an order or regulations includes
40
power to make—
(a)
different provision for different cases or different purposes, and
(b)
incidental, supplemental or transitional provision and savings.
(13)
In this section—
“enactment” includes an enactment comprised in subordinate legislation;
45

Finance Bill
Part 2 — Income tax, corporation tax and capital gains tax
Chapter 6 — Miscellaneous
38

“subordinate legislation” has the same meaning as in the Interpretation
Act 1978 (c. 30) (see section 21 of that Act).
46
Energy Act 2004 and Health Protection Agency Act 2004
(1)
This section provides for certain enactments to cease to have effect which relate
to—
5
(a)
the United Kingdom Atomic Energy Authority (“UKAEA”),
(b)
the National Radiological Protection Board (“NRPB”), or
(c)
pension schemes run by UKAEA.
(2)
In ICTA the following provisions shall cease to have effect—
(a)
section 349B(3)(g) (no deduction of tax from certain payments to
10
UKAEA);
(b)
section 349B(3)(h) (no deduction of tax from certain payments to
NRPB);
(c)
section 512(1) and (3) (certain exemptions from income tax and
corporation tax for UKAEA and NRPB);
15
(d)
section 512(2) (treatment of certain income of pension schemes run by
UKAEA).
(3)
In section 271(7) of TCGA 1992 (miscellaneous exemptions from tax in respect
of chargeable gains)—
(a)
for “Memorial Fund, the” substitute “Memorial Fund and the”;
20
(b)
omit “, the United Kingdom Atomic Energy Authority”;
(c)
omit “and the National Radiological Protection Board”;
(d)
omit from “; and for the purposes” to the end of the subsection
(treatment of gains accruing to pension schemes run by UKAEA).
(4)
In subsection (2)—
25
(a)
paragraph (a) has effect in relation to payments made on or after 1st
April 2005;
(b)
paragraph (b) has effect in relation to payments made after 1st April
2005;
(c)
paragraph (c), so far as relating to UKAEA, has effect on and after 1st
30
April 2005;
(d)
paragraph (c), so far as relating to NRPB, has effect after 1st April 2005;
(e)
paragraph (d) has effect in relation to income arising on or after 1st
April 2005.
(5)
In subsection (3)—
35
(a)
paragraphs (a) and (c) have effect in relation to gains accruing after 1st
April 2005;
(b)
paragraphs (b) and (d) have effect in relation to gains accruing on or
after 1st April 2005.
(6)
The repeal of subsection (3)(g) of section 349B of ICTA does not affect the
40
application of any other provision of that section in relation to UKAEA.
(7)
Nothing in this section affects—
(a)
any accounting period of UKAEA ending before 1st April 2005, or
(b)
any accounting period of NRPB ending on or before 1st April 2005.

Finance Bill
Part 3 — Stamp taxes
39

Part 3
Stamp taxes
Stamp duty land tax
47
E-conveyancing
(1)
In section 9(1) of the Public Finance and Accountability (Scotland) Act 2000
5
(asp 1) (Keeper of the Registers of Scotland: financial arrangements) after
“Sums” insert “(other than payments of stamp duty land tax)”.
(2)
In section 79(1) of FA 2003 (registration of land transactions) after “in relation
to the transaction” insert “or such information about compliance as the
Commissioners for Her Majesty’s Revenue and Customs may specify in
10
regulations.”
(3)
In section 119(1) of FA 2003 (land transactions: effective date) for “the date of
completion” substitute—
“(a)
the date of completion, or
(b)
such alternative date as the Commissioners for Her Majesty’s
15
Revenue and Customs may prescribe by regulations.”
(4)
After paragraph 7(1) of Schedule 10 to FA 2003 (land transaction returns:
correction of errors) insert—
   “(1A)
The power under sub-paragraph (1) may, in such circumstances as
the Commissioners for Her Majesty’s Revenue and Customs may
20
specify in regulations, be exercised—
(a)
in relation to England and Wales, by the Chief Land
Registrar;
(b)
in relation to Scotland, by the Keeper of the Registers of
Scotland;
25
(c)
in relation to Northern Ireland, by the Registrar of Titles or
the registrar of deeds;
(d)
in any case, by such other persons with functions relating to
the registration of land as the regulations may specify.”
(5)
The Commissioners for Her Majesty’s Revenue and Customs—
30
(a)
may make regulations conferring administrative functions on a land
registrar in connection with stamp duty land tax, and
(b)
may make payments to land registrars in respect of the exercise of those
functions.
(6)
In subsection (5) “land registrar” means—
35
(a)
in relation to England and Wales, the Chief Land Registrar,
(b)
in relation to Scotland, the Keeper of the Registers of Scotland,
(c)
in relation to Northern Ireland, the Registrar of Titles or the registrar of
deeds, and
(d)
in any case, such other persons with functions relating to the
40
registration of land as regulations under subsection (5) may specify.
(7)
Regulations under subsection (5)—
(a)
shall be made by statutory instrument, and

Finance Bill
Part 3 — Stamp taxes
40

(b)
shall be subject to annulment in pursuance of a resolution of the House
of Commons.
48
Disclosure of information contained in land transaction returns
(1)
After section 78 of FA 2003 insert—
“78A
Disclosure of information contained in land transaction returns
5
(1)
Relevant information contained in land transaction returns delivered
under section 76 (whether before or after the commencement of this
section) is to be available for use—
(a)
by listing officers appointed under section 20 of the Local
Government Finance Act 1992, for the purpose of facilitating the
10
compilation and maintenance by them of valuation lists in
accordance with Chapter 2 of Part 1 of that Act,
(b)
as evidence in an appeal by virtue of section 24(6) of that Act to
a valuation tribunal established under Schedule 11 to the Local
Government Finance Act 1988,
15
(c)
by the Commissioner of Valuation for Northern Ireland, for the
purpose of maintaining a valuation list prepared, and from time
to time altered, by him in accordance with Part 3 of the Rates
(Northern Ireland) Order 1977, and
(d)
by such other persons or for such other purposes as the
20
Treasury may by regulations prescribe.
(2)
In this section, “relevant information” means any information of the
kind mentioned in paragraph 1(4) of Schedule 10 (information
corresponding to particulars required under previous legislation).
(3)
The Treasury may by regulations amend the definition of relevant
25
information in subsection (2).”
(2)
In section 245 of FA 1994 (production of documents: supplementary) for
subsection (2) substitute—
“(2)
The information contained in any document produced to the
Commissioners under section 244(2) above shall be available for use by
30
the Commissioner of Valuation for Northern Ireland.”
(3)
For the heading to Part 6 of FA 1994 substitute “Stamp duty”.
(4)
Regulation 3 of the Stamp Duty Land Tax (Consequential Amendment of
Enactments) Regulations 2005 (S. I. 2005/82) is hereby revoked.
(5)
Subsections (1) to (4) come into force on such day as the Treasury may by order
35
appoint.
(6)
Section 114(3) of FA 2003 (negative resolution procedure) does not apply to an
order made under subsection (5).
49
Miscellaneous amendments
Schedule 10 (which makes miscellaneous amendments of Part 4 of FA 2003)
40
has effect.