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Finance Bill


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

37

 

Miscellaneous

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

5

Commissioners for Her Majesty’s Revenue and Customs to make regulations

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)”.

(3)   

In that section, at the end insert—

10

“(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

savings.”.

15

(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

paragraph (a) (power of Commissioners for Her Majesty’s Revenue and

20

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

above)”.

25

(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

(b)   

incidental, supplemental or transitional provision and

30

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)),

   

subsections (1) to (7) come into force on the day on which this Act is passed.

35

(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).

(11)   

The Commissioners for Her Majesty’s Revenue and Customs may by

40

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;

 
 

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

38

 

(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

5

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;

10

“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—

15

(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

20

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);

25

(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”;

30

(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)—

35

(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

40

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)—

45

 
 

Finance Bill
Part 3 — Stamp taxes

39

 

(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

5

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.

Part 3

10

Stamp taxes

Stamp duty land tax

47      

E-conveyancing

(1)   

In section 9(1) of the Public Finance and Accountability (Scotland) Act 2000

(asp 1) (Keeper of the Registers of Scotland: financial arrangements) after

15

“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

regulations.”

20

(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

Revenue and Customs may prescribe by regulations.”

25

(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

specify in regulations, be exercised—

30

(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;

(c)   

in relation to Northern Ireland, by the Registrar of Titles or

35

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—

(a)   

may make regulations conferring administrative functions on a land

40

registrar in connection with stamp duty land tax, and

(b)   

may make payments to land registrars in respect of the exercise of those

functions.

 
 

Finance Bill
Part 3 — Stamp taxes

40

 

(6)   

In subsection (5) “land registrar” means—

(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

5

(d)   

in any case, such other persons with functions relating to the

registration of land as regulations under subsection (5) may specify.

(7)   

Regulations under subsection (5)—

(a)   

shall be made by statutory instrument, and

(b)   

shall be subject to annulment in pursuance of a resolution of the House

10

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

(1)   

Relevant information contained in land transaction returns delivered

15

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

compilation and maintenance by them of valuation lists in

20

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,

(c)   

by the Commissioner of Valuation for Northern Ireland, for the

25

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

Treasury may by regulations prescribe.

30

(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

information in subsection (2).”

35

(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

the Commissioner of Valuation for Northern Ireland.”

40

(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

appoint.

45

 
 

Finance Bill
Part 3 — Stamp taxes

41

 

(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)

has effect.

5

Stamp duty and stamp duty reserve tax

50      

Power to extend exceptions relating to recognised exchanges

(1)   

The Treasury may by regulations extend the application of the provisions

mentioned in subsection (2) to any market (specified by name or by

description) which—

10

(a)   

is not a recognised exchange, but

(b)   

is a multilateral trading facility (or, assuming compliance with the

provisions of Title II of the Directive (authorisation and operating

conditions), would be such a facility).

(2)   

The provisions referred to in subsection (1) are—

15

(a)   

sections 80A and 80C of FA 1986 (stamp duty: exceptions for sales to

intermediaries and for repurchases and stock lending), and

(b)   

sections 88A and 89AA of that Act (stamp duty reserve tax: exceptions

for intermediaries and for repurchases and stock lending).

(3)   

In this section—

20

“the Directive” means Directive 2004/39/EC of the European Parliament

and of the Council of 21 April 2004 on markets in financial instruments;

“multilateral trading facility” has the same meaning as in the Directive

(see Article 4(15));

“recognised exchange” means any of the following—

25

(a)   

an EEA exchange,

(b)   

a recognised foreign exchange,

(c)   

a recognised foreign options exchange,

within the meaning of the provisions mentioned in subsection (2).

(4)   

Regulations under this section may provide for the application of the

30

provisions mentioned in subsection (2) subject to any adaptations appearing to

the Treasury to be necessary or expedient.

(5)   

In subsection (1)(b) the words “(or, assuming compliance with the provisions

of Title II of the Directive (authorisation and operating conditions), would be

such a facility)” shall cease to have effect on such day as the Treasury may by

35

order appoint.

(6)   

Section 117 of FA 2002 (power to extend the exceptions in subsection (2) to any

market prescribed by order under section 118(3) of the Financial Services and

Markets Act 2000) shall cease to have effect on such day as the Treasury may

by order appoint.

40

(7)   

The power to make regulations or an order under this section is exercisable by

statutory instrument.

(8)   

A statutory instrument containing—

 
 

Finance Bill
Part 4 — European company statute

42

 

(a)   

regulations under this section, or

(b)   

an order under subsection (5),

   

shall be subject to annulment in pursuance of a resolution of the House of

Commons.

Part 4

5

European company statute

51      

Chargeable gains

(1)   

After section 140D of TCGA 1992 (transfer of non-UK trade) insert—

“Formation of SE by merger

140E    

Merger leaving assets within UK tax charge

10

(1)   

This section applies where—

(a)   

an SE is formed by the merger of two or more companies in

accordance with Articles 2(1) and 17(2)(a) or (b) of Council

Regulation (EC) 2157/2001 on the Statute for a European

Company (Societas Europaea),

15

(b)   

each merging company is resident in a member State,

(c)   

the merging companies are not all resident in the same State,

and

(d)   

section 139 does not apply to any qualifying transferred assets.

(2)   

Where this section applies, qualifying transferred assets shall be treated

20

for the purposes of corporation tax on chargeable gains as if acquired

by the SE for a consideration resulting in neither gain nor loss for the

transferor.

(3)   

For the purposes of subsections (1) and (2) an asset is a qualifying

transferred asset if—

25

(a)   

it is transferred to the SE as part of the process of the merger

forming it, and

(b)   

subsections (4) and (5) are satisfied in respect of it.

(4)   

This subsection is satisfied in respect of a transferred asset if—

(a)   

the transferor is resident in the United Kingdom at the time of

30

the transfer, or

(b)   

any gain that would have accrued to the transferor, had it

disposed of the asset immediately before the time of the

transfer, would have been a chargeable gain forming part of the

transferor’s chargeable profits in accordance with section 10B.

35

(5)   

This subsection is satisfied in respect of a transferred asset if—

(a)   

the transferee SE is resident in the United Kingdom on

formation, or

(b)   

any gain that would accrue to the transferee SE were it to

dispose of the asset immediately after the transfer would be a

40

chargeable gain forming part of the SE’s chargeable profits in

accordance with section 10B.

 
 

Finance Bill
Part 4 — European company statute

43

 

(6)   

For the purposes of this section a company is resident in a member State

if—

(a)   

it is within a charge to tax under the law of the State as being

resident for that purpose, and

(b)   

it is not regarded, for the purposes of any double taxation relief

5

arrangements to which the State is a party, as resident in a

territory not within a member State.

(7)   

This section does not apply to the formation of an SE by merger if—

(a)   

it is not effected for bona fide commercial reasons, or

(b)   

it forms part of a scheme or arrangements of which the main

10

purpose, or one of the main purposes, is avoiding liability to

corporation tax, capital gains tax or income tax;

   

and section 138 (clearance in advance) shall apply to this subsection as

it applies to section 137 (with any necessary modifications).

140F    

Merger not leaving assets within UK tax charge

15

(1)   

This section applies where—

(a)   

an SE is formed by the merger of two or more companies in

accordance with Articles 2(1) and 17(2)(a) or (b) of Council

Regulation (EC) 2157/2001 on the Statute for a European

Company (Societas Europaea),

20

(b)   

each merging company is resident in a member State,

(c)   

the merging companies are not all resident in the same State,

(d)   

in the course of the merger a company resident in the United

Kingdom (“company A”) transfers to a company resident in

another member State (“company B”) all assets and liabilities

25

relating to a business which company A carried on in a member

State other than the United Kingdom through a permanent

establishment, and

(e)   

the aggregate of the chargeable gains accruing to company A on

the transfer exceeds the aggregate of any allowable losses so

30

accruing.

(2)   

Where this section applies, for the purposes of this Act—

(a)   

the allowable losses accruing to company A on the transfer shall

be set off against the chargeable gains so accruing, and

(b)   

the transfer shall be treated as giving rise to a single chargeable

35

gain equal to the aggregate of those gains after deducting the

aggregate of those losses.

(3)   

Where this section applies, section 815A of the Taxes Act shall also

apply.

(4)   

Subsections (6) and (7) of section 140E apply for the purposes of this

40

section as they apply for the purposes of that section.

140G    

Treatment of securities issued on merger

(1)   

This section applies where—

(a)   

an SE is formed by the merger of two or more companies in

accordance with Articles 2(1) and 17(2)(a) or (b) of Council

45

Regulation (EC) 2157/2001 on the Statute for a European

Company (Societas Europaea),

 
 

 
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