|
| |
|
(a) | in sub-paragraph (1), in the definition of “post-commencement period”, |
| |
after “2004” insert “but before 1st January 2006”, |
| |
(b) | in sub-paragraph (1), in the definition of “pre-commencement period”, |
| |
after “2004” insert “but before 1st January 2006”, |
| |
| 5 |
“(3) | In the case of an accounting period (a “straddling period”) of |
| |
any qualifying company beginning before 1st January 2006 |
| |
and ending on or after that date— |
| |
(a) | so much of the straddling period as falls before 1st |
| |
| 10 |
(b) | so much of the straddling period as falls on or after |
| |
| |
| are treated as separate accounting periods for the purposes of |
| |
| |
(4) | Special provision is made elsewhere in this Schedule in |
| 15 |
relation to straddling periods (see paragraphs 16, 18A and |
| |
| |
(6) | In paragraph 6 (qualifying E&A expenditure), in sub-paragraph (2) (condition |
| |
that expenditure incurred on or after 1st January 2004), after “2004” insert “but |
| |
before 1st January 2006”. |
| 20 |
(7) | In paragraph 15 (supplement in respect of a post-commencement period), in |
| |
sub-paragraph (2) (supplement to be treated as a loss for the purposes of |
| |
Corporation Tax Acts), for “this Schedule)” substitute “this Schedule or Part 4 |
| |
| |
(8) | In paragraph 16 (amount of post-commencement supplement for a post- |
| 25 |
commencement period), after sub-paragraph (2) (proportionate reduction of |
| |
supplement if post-commencement period less than 12 months) insert— |
| |
“(2A) | But, if the post-commencement period is the deemed accounting |
| |
period under paragraph 3(3) ending before 1st January 2006, sub- |
| |
paragraph (2) has no effect in relation to the amount of the |
| 30 |
supplement for that period.”. |
| |
(9) | After paragraph 18 (ring fence losses and non-qualifying losses) insert— |
| |
“Special rule for straddling periods |
| |
18A (1) | This paragraph applies in any case where the period of the loss in |
| |
which a ring fence loss is incurred is the deemed accounting period |
| 35 |
under paragraph 3(3) ending before 1st January 2006. |
| |
(2) | The following assumption shall be made for the purpose of |
| |
calculating the amount of the qualifying E&A loss and the amount of |
| |
| |
(3) | The assumption is that the loss made in the trade is taken to be the |
| 40 |
loss incurred in the accounting period beginning before 1st January |
| |
2006 and ending on or after that date (disregarding paragraph 3(3)). |
| |
(4) | The amount of the non-qualifying loss (found in accordance with |
| |
that assumption) is then reduced (but not below) by the following |
| |
| 45 |
|
| |
|
| |
|
(5) | The amount is the amount of the ring fence loss in the deemed |
| |
accounting period beginning on 1st January 2006 determined under |
| |
paragraph 18 of Schedule 19C for the purposes of Part 4 of that |
| |
| |
(10) | In paragraph 22 (reductions in respect of utilised ring fence profits), at the end |
| 5 |
| |
“(4) | If the post-commencement period is the deemed accounting period |
| |
under paragraph 3(3) ending before 1st January 2006 (“the deemed |
| |
accounting period”), the amount of the profits of the deemed |
| |
accounting period is determined as follows. |
| 10 |
(5) | The amount of the profits of the straddling period is apportioned to |
| |
the deemed accounting period in proportion to the number of days |
| |
in the deemed accounting period that fall in the straddling period. |
| |
(6) | The apportioned amount is taken for the purposes of this paragraph |
| |
to be the amount of the profits of the deemed accounting period. |
| 15 |
(7) | In this paragraph “the straddling period”, in relation to a qualifying |
| |
company, means an accounting period of the company beginning |
| |
before 1st January 2006 and ending on or after that date |
| |
(disregarding paragraph 3(3)).”. |
| |
(11) | After Schedule 19B insert the Schedule 19C set out in Schedule 19 to this Act. |
| 20 |
| |
| |
| |
156 | Rates and rate bands for 2008-09 and 2009-10 |
| |
(1) | For the Table in Schedule 1 to IHTA 1984 (rates and rate bands), as it has effect |
| 25 |
in relation to chargeable transfers made on or after 6th April 2008, there shall |
| |
be successively substituted— |
| |
(a) | the 2008-09 Table, which shall apply to any chargeable transfer made |
| |
on or after 6th April 2008 (but before 6th April 2009), and |
| |
(b) | the 2009-10 Table, which shall apply to any chargeable transfer made |
| 30 |
on or after 6th April 2009. |
| |
(2) | Subsection (1)(b) 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 2008 or any later year and that for the month of |
| |
September in the following year. |
| 35 |
(3) | The 2008-09 Table is— |
| |
|
|
| |
|
| |
|
|
|
(4) | The 2009-10 Table is— |
| 5 |
|
(5) | 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 2006 and that for the month of September |
| |
| |
(b) | for the month of September 2007 and that for the month of September |
| 15 |
| |
| |
| |
(1) | Schedule 20 contains— |
| |
(a) | amendments of provisions of IHTA 1984 relating to settled property, |
| 20 |
(b) | amendments of provisions relating to property that, for purposes of |
| |
that Act, is property subject to a reservation, and |
| |
(c) | related amendments of provisions relating to chargeable gains. |
| |
(2) | Those amendments have effect as mentioned in that Schedule. |
| |
158 | Purchase of interests in foreign trusts |
| 25 |
(1) | Section 48 of IHTA 1984 (settled property: excluded property) is amended as |
| |
| |
(2) | In subsection (3) (circumstances in which settled property situated outside the |
| |
United Kingdom is excluded property), after paragraph (b) insert— |
| |
| “; but this subsection is subject to subsection (3B) below.”. |
| 30 |
(3) | In subsection (3A) (circumstances in which a holding in an authorised unit |
| |
trust or a share in an open-ended investment company comprised in settled |
| |
|
| |
|
| |
|
property is excluded property), after paragraph (b) insert— |
| |
| “; but this subsection is subject to subsection (3B) below.”. |
| |
(4) | After subsection (3A) insert— |
| |
“(3B) | Property is not excluded property by virtue of subsection (3) or (3A) |
| |
| 5 |
(a) | a person is, or has been, beneficially entitled to an interest in |
| |
possession in the property at any time, |
| |
(b) | the person is, or was, at that time an individual domiciled in the |
| |
| |
(c) | the entitlement arose directly or indirectly as a result of a |
| 10 |
disposition made on or after 5th December 2005 for a |
| |
consideration in money or money’s worth. |
| |
(3C) | For the purposes of subsection (3B) above— |
| |
(a) | it is immaterial whether the consideration was given by the |
| |
person or by anyone else, and |
| 15 |
(b) | the cases in which an entitlement arose indirectly as a result of |
| |
a disposition include any case where the entitlement arose |
| |
under a will or the law relating to intestacy.”. |
| |
(5) | If, in consequence of the amendments made by this section, an amount of |
| |
inheritance tax would (but for this subsection) fall due before the day on which |
| 20 |
this Act is passed, that amount is to be treated instead as falling due at the end |
| |
of the period of 14 days beginning with that day. |
| |
(6) | This section is deemed to have come into force on 5th December 2005. |
| |
| |
| 25 |
159 | Taxable property held by investment-regulated pension schemes |
| |
(1) | Schedule 21 (taxable property held by investment-regulated pension schemes) |
| |
| |
(2) | This section and that Schedule are deemed to have come into force on 6th April |
| |
| 30 |
160 | Recycling of lump sums |
| |
(1) | In Schedule 29 to FA 2004 (authorised lump sums), after paragraph 3 insert— |
| |
“3A (1) | Where this paragraph applies in relation to a pension |
| |
commencement lump sum paid to the member, the pension scheme |
| |
is to be treated as making to the member an unauthorised payment |
| 35 |
of the appropriate amount. |
| |
(2) | Subject to sub-paragraphs (3) and (4), this paragraph applies in |
| |
relation to a pension commencement lump sum if— |
| |
(a) | because of the lump sum, the amount of the contributions |
| |
paid by or on behalf of, or in respect of, the member to the |
| 40 |
pension scheme, or to any other registered pension scheme, |
| |
is significantly greater than it otherwise would be, and |
| |
|
| |
|
| |
|
(b) | the member envisaged at the relevant time that that would be |
| |
| |
(3) | This paragraph does not apply in relation to any lump sum paid to |
| |
the member on any day if the amount of the lump sum, when added |
| |
to any other pension commencement lump sum paid to the member |
| 5 |
within the period of 12 months ending with that day, does not exceed |
| |
1 per cent. of the standard lifetime allowance on that day. |
| |
(4) | This paragraph does not apply if the amount by which the |
| |
contributions paid as mentioned in sub-paragraph (2)(a) is greater |
| |
than it otherwise would be because of the lump sum does not exceed |
| 10 |
30% of the amount of the lump sum. |
| |
(5) | “The appropriate amount” is so much of— |
| |
(a) | the amount crystallised by the benefit crystallisation event |
| |
constituted by the payment of the lump sum, as does not |
| |
| 15 |
(b) | the amount of the member’s lifetime allowance which is |
| |
| |
(6) | “The relevant time” is— |
| |
(a) | if paragraph (a) of sub-paragraph (2) is satisfied before the |
| |
lump sum is paid, the time when that paragraph is first |
| 20 |
| |
(b) | otherwise, the time when the lump sum is paid.” |
| |
(2) | This section is deemed to have come into force on 6th April 2006. |
| |
| |
(1) | Schedule 22 (provisions about inheritance tax in relation to registered pension |
| 25 |
| |
(2) | This section and that Schedule are deemed to have come into force on 6th April |
| |
| |
| |
(1) | Schedule 23 (miscellaneous amendments relating to pension schemes etc) has |
| 30 |
| |
(2) | This section and that Schedule are deemed to have come into force on 6th April |
| |
| |
| |
| 35 |
Stamp duty and stamp duty land tax: thresholds |
| |
163 | Raising of thresholds |
| |
(1) | In section 55 of FA 2003 (amount of stamp duty land tax chargeable: general) |
| |
in subsection (2) (calculation of percentage of chargeable consideration), in |
| |
|
| |
|
| |
|
Table A (bands and percentages for residential property), for “£120,000”, in |
| |
both places, substitute “£125,000”. |
| |
(2) | In Schedule 5 to FA 2003 (stamp duty land tax: amount of tax chargeable: rent), |
| |
in paragraph 2(3) (calculation of tax chargeable in respect of rent), in Table A |
| |
(bands and percentages for residential property), for “£120,000”, in both places, |
| 5 |
| |
(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 “£120,000”, in |
| |
both places, substitute “£125,000”. |
| 10 |
(4) | The amendments made by subsections (1) and (2) have effect in relation to any |
| |
transaction of which the effective date (within the meaning of Part 4 of FA |
| |
2003) is after 22nd March 2006. |
| |
(5) | The amendment made by subsection (3) has effect in relation to instruments |
| |
executed after 22nd March 2006. |
| 15 |
| |
| |
Schedule 24 (amendments of Schedule 15 to FA 2003) has effect. |
| |
| |
(1) | In section 77 of FA 2003 (notifiable transactions), for subsection (2A) |
| 20 |
| |
“(2A) | The assignment of a lease is notifiable if there is chargeable |
| |
consideration for the assignment and either— |
| |
(a) | the lease is for a term of seven years or more, or |
| |
(b) | the consideration for the assignment is chargeable at a rate of |
| 25 |
1% or higher, or would be so chargeable but for a relief.” |
| |
(2) | In Schedule 5 to FA 2003 (amount of tax chargeable: rent), in paragraph 3 (net |
| |
present value of rent payable over term of lease), for “in year i” substitute “in |
| |
| |
(3) | Subsection (1) has effect in relation to any assignment of which the effective |
| 30 |
date (within the meaning of Part 4 of FA 2003) is on or after the day on which |
| |
| |
(4) | Subsection (2) has effect in relation to any lease granted or treated as granted |
| |
| |
(5) | Schedule 25 (amendments of Schedule 17A to FA 2003) has effect. |
| 35 |
166 | Reallocation of trust property as between beneficiaries |
| |
(1) | In Schedule 16 to FA 2003 (trusts and powers), after paragraph 7 insert— |
| |
“Reallocation of trust property as between beneficiaries |
| |
| |
|
| |
|
| |
|
(a) | the trustees of a settlement reallocate trust property in such a |
| |
way that a beneficiary acquires an interest in certain trust |
| |
property and ceases to have an interest in other trust |
| |
| |
(b) | the beneficiary consents to ceasing to have an interest in that |
| 5 |
| |
| the fact that he gives consent does not mean that there is chargeable |
| |
consideration for the acquisition.” |
| |
(2) | Subsection (1) has effect in relation to any acquisition of which the effective |
| |
date (within the meaning of Part 4 of FA 2003) is on or after the day on which |
| 10 |
| |
| |
(1) | Part 4 of FA 2003 (stamp duty land tax) is amended as follows. |
| |
(2) | Omit section 64A (initial transfer of assets to trustees of unit trust scheme). |
| |
(3) | In section 101 (unit trust schemes)— |
| 15 |
(a) | in subsection (1) (application of Part (except for provisions mentioned |
| |
in subsection (7)) to unit trust schemes) for “provisions” substitute |
| |
| |
(b) | in subsection (7) (provisions for the purposes of which unit trust |
| |
schemes not to be treated as companies) omit from “section 53” to |
| 20 |
| |
(4) | This section has effect in relation to any land transaction of which the effective |
| |
date is, or is after, 22nd March 2006 (but see subsections (5) and (6)). |
| |
(5) | This section does not have effect in relation to— |
| |
(a) | any land transaction which is effected in pursuance of a contract |
| 25 |
entered into and substantially performed before 2 p.m. on 22nd March |
| |
2006 (“the relevant time”), or |
| |
(b) | any other land transaction which is effected in pursuance of a contract |
| |
entered into before the relevant time and which is not an excluded |
| |
| 30 |
(6) | For this purpose, a land transaction effected in pursuance of a contract is an |
| |
| |
(a) | any provision of the contract has effect by reference to a unit trust |
| |
scheme and the scheme is not established before the relevant time, |
| |
(b) | at or after the relevant time the contract is varied in a way that |
| 35 |
significantly affects the land transaction (see subsection (7)), |
| |
(c) | the subject-matter of the land transaction is not identified in the |
| |
contract in a way that would have enabled its acquisition before the |
| |
| |
(d) | rights under the contract are assigned at or after the relevant time, |
| 40 |
(e) | the land transaction is effected in consequence of the exercise, at or after |
| |
the relevant time, of any option, right of pre-emption or similar right, or |
| |
(f) | at or after the relevant time there is an assignment, subsale or other |
| |
transaction (relating to the whole or part of the contract’s subject- |
| |
matter) as a result of which a person other than the purchaser under the |
| 45 |
contract becomes entitled to call for a conveyance to him. |
| |
|
| |
|