|
| |
|
(b) | the terms of the policy had not been varied significantly |
| |
during the period beginning with 5th April 2006 and |
| |
| |
| and any exercise of rights conferred by the policy is to be regarded |
| |
for this purpose as a variation. |
| 5 |
(3) | Sub-paragraph (4) applies where any of the lump sum death |
| |
benefits mentioned in sub-paragraph (2) of paragraph 11B would |
| |
have been payable under an occupational pension scheme. |
| |
(4) | The lump sum death benefit is only to be taken into account in |
| |
arriving at the aggregate mentioned in that sub-paragraph if— |
| 10 |
(a) | the individual was employed by a person on 5th April 2006 |
| |
and continued to be employed by that person or a person |
| |
connected with that person until the time when the |
| |
| |
(b) | that person was a sponsoring employer in relation to the |
| 15 |
pension scheme on 5th April 2006, and |
| |
(c) | the individual had not become entitled to the present |
| |
payment of benefits in respect of rights under the pension |
| |
scheme before the time when the individual died. |
| |
(5) | Section 839 of ICTA (connected persons) applies for the purposes |
| 20 |
| |
38 | In paragraph 14 (enhanced protection: relevant contributions), after sub- |
| |
| |
“(3) | A contribution is not a relevant contribution for the purposes of |
| |
| 25 |
(a) | it may only be applied for or towards the payment of |
| |
premiums under a policy of insurance on the life of the |
| |
| |
(b) | the policy is issued, or issued in respect of insurances |
| |
made, before 6th April 2006, |
| 30 |
(c) | there is no right to surrender any rights under the policy, |
| |
(d) | the terms of the policy are not varied significantly during |
| |
the period beginning with 6th April 2006 and ending with |
| |
the individual’s actual death so as to increase the benefits |
| |
payable under the policy or extend the period during |
| 35 |
which benefits are so payable, and |
| |
(e) | no benefits are paid, or other payments made, under (or on |
| |
the surrender of rights under) the policy except by reason |
| |
of the individual’s death; |
| |
| and any exercise of rights conferred by the policy is to be regarded |
| 40 |
for this purpose as a variation. |
| |
(4) | A contribution is not a relevant contribution for the purposes of |
| |
paragraph 13(a) if it is paid— |
| |
(a) | by a sponsoring employer, |
| |
(b) | under a relevant hybrid arrangement, and |
| 45 |
(c) | solely in respect of the provision in respect of the |
| |
individual of lump sum death benefits which are defined |
| |
benefits or cash balance benefits. |
| |
|
| |
|
| |
|
(5) | A “relevant hybrid arrangement” is a hybrid arrangement under |
| |
an occupational pension scheme— |
| |
(a) | which subsequently becomes a money purchase |
| |
arrangement that is not a cash balance arrangement, and |
| |
(b) | under which lump sum death benefits would have been |
| 5 |
payable in respect of the individual if the individual had |
| |
| |
39 (1) | Paragraph 15 (enhanced protection: “the relevant crystallised amount”) is |
| |
| |
(2) | In sub-paragraph (3), for “paragraph 16” substitute “paragraphs 15A and |
| 10 |
| |
(3) | In sub-paragraph (4), for “is the greater” substitute “is (subject to paragraph |
| |
| |
(4) | In sub-paragraph (5), after “(4)(a)” insert “and paragraph 15A(2)(a)”. |
| |
(5) | In sub-paragraph (6), after “(4)(b)” insert “and paragraph 15A(2)(b)”. |
| 15 |
40 | After that paragraph insert— |
| |
“15A (1) | This paragraph applies where— |
| |
(a) | a person is paid a defined benefits lump sum death benefit |
| |
or an uncrystallised funds lump sum death benefit in |
| |
respect of the individual under the arrangement, and |
| 20 |
(b) | notice of intention to rely on this paragraph is given to an |
| |
officer of Revenue and Customs by that person in |
| |
accordance with regulations made by the Commissioners |
| |
for Her Majesty’s Revenue and Customs. |
| |
(2) | For the purposes of paragraph 13(b), if the amount yielded by sub- |
| 25 |
paragraph (3) is greater than what would otherwise be the |
| |
appropriate limit in relation to a relevant event which consists |
| |
| |
(a) | the payment of the lump sum death benefit, or |
| |
(b) | the payment of any other lump sum death benefit in |
| 30 |
respect of the individual under the arrangement or another |
| |
cash balance arrangement or defined benefits arrangement |
| |
related to the arrangement, |
| |
| that greater amount is the appropriate limit in relation to such a |
| |
| 35 |
(3) | The amount yielded by this sub-paragraph is the greater of— |
| |
(a) | the value of the individual’s pre-commencement rights to |
| |
death benefits, as increased by the relevant indexation |
| |
percentage (see sub-paragraph (5) of paragraph 15), or |
| |
(b) | what would be the value of the individual’s pre- |
| 40 |
commencement rights to death benefits on the |
| |
assumptions specified in sub-paragraph (6) of that |
| |
paragraph (but subject to the modifications in sub- |
| |
paragraph (7) of this paragraph). |
| |
(4) | The value of the individual’s pre-commencement rights to death |
| 45 |
benefits is the aggregate of the maximum amounts that could have |
| |
|
| |
|
| |
|
been paid in respect of the individual as uncrystallised rights |
| |
lump sum death benefits under— |
| |
| |
(b) | any other cash balance arrangement or defined benefits |
| |
arrangement related to the arrangement, |
| 5 |
| if the individual had died on 5th April 2006. |
| |
(5) | Lump sum death benefits are “uncrystallised rights lump sum |
| |
death benefits” if they are attributable to rights in respect of which |
| |
the individual had not, on 5th April 2006, become entitled to the |
| |
present payment of benefits. |
| 10 |
(6) | Paragraphs 11C and 11D apply in arriving at the aggregate |
| |
mentioned in sub-paragraph (4) as in arriving at that mentioned in |
| |
paragraph 11B(2) but as if— |
| |
(a) | each of the references to paragraph 11B(2) were to sub- |
| |
paragraph (4) of this paragraph, and |
| 15 |
(b) | in paragraph 11D(1), for “of a pension scheme” there were |
| |
substituted “of any arrangement within paragraph 15A(4) |
| |
| |
(7) | In their operation for the purposes of this paragraph sub- |
| |
paragraphs (6) to (11) of paragraph 15 have effect as if— |
| 20 |
(a) | for the references in sub-paragraphs (6)(a) and (7)(a) and |
| |
(10) to the time of the first relevant event there were |
| |
substituted a reference to the time immediately before the |
| |
| |
(b) | the words in parentheses in sub-paragraph (6)(a) were |
| 25 |
| |
Transitional protection: right to take benefits before normal pension age |
| |
41 (1) | Paragraph 22 of Schedule 36 (right to take benefits before normal minimum |
| |
pension age: schemes within paragraph 1(1)(a) to (e) of Schedule 36) is |
| |
| 30 |
(2) | In sub-paragraph (7), for paragraph (b) substitute— |
| |
“(b) | in a case where on 5th April 2006 the member had an actual |
| |
or prospective right under the pension scheme to any |
| |
benefit from an age of less than 50, Condition 1 is met or, |
| |
in any other case, Condition 2 or 3 is met.” |
| 35 |
(3) | After that sub-paragraph insert— |
| |
“(7A) | Condition 1 is met if— |
| |
(a) | the member is not, after becoming entitled to the benefits |
| |
mentioned in sub-paragraph (7)(a), employed by a person |
| |
who is a sponsoring employer in relation to the pension |
| 40 |
scheme and with whom the member is connected, and |
| |
(b) | the member’s becoming entitled to those benefits is not |
| |
part of an arrangement the main purpose (or one of the |
| |
main purposes) of which is the avoidance of tax or national |
| |
| 45 |
(7B) | Condition 2 is met if— |
| |
|
| |
|
| |
|
(a) | the member is not, after becoming entitled to the benefits |
| |
mentioned in sub-paragraph (7)(a), employed by a person |
| |
specified in sub-paragraph (7C), and |
| |
(b) | the member’s becoming entitled to those benefits is not |
| |
part of an arrangement the main purpose (or one of the |
| 5 |
main purposes) of which is the avoidance of tax or national |
| |
| |
(7C) | The persons referred to in sub-paragraph (7B)(a) are— |
| |
(a) | any person who was a sponsoring employer in relation to |
| |
the pension scheme at any time during the period of six |
| 10 |
months ending with the day on which the member became |
| |
entitled to the benefits mentioned in sub-paragraph (7)(a) |
| |
and by whom the member was employed at any time |
| |
| |
(b) | any person who is connected with any such person, or |
| 15 |
(c) | any person who is a sponsoring employer in relation to the |
| |
pension scheme and with whom the member is connected. |
| |
(7D) | If the member has become entitled to the benefits payable under |
| |
arrangements under the pension scheme by reason of service in |
| |
the armed forces of the Crown, any employment on compulsory |
| 20 |
recall is to be disregarded for the purposes of sub-paragraph |
| |
| |
(7E) | Condition 3 is met if — |
| |
(a) | paragraph (a) of sub-paragraph (7B) is not satisfied but one |
| |
of the re-employment conditions is met, and |
| 25 |
(b) | paragraph (b) of that sub-paragraph is satisfied. |
| |
(7F) | The re-employment conditions are— |
| |
(a) | that the member is not employed as mentioned in sub- |
| |
paragraph (7B)(a) during the period of six months |
| |
beginning with the day on which the member becomes |
| 30 |
entitled to the benefits mentioned in sub-paragraph (7)(a), |
| |
| |
(b) | that the member is not employed as mentioned in sub- |
| |
paragraph (7B)(a) during the period of one month |
| |
beginning with that day, but is so employed during the |
| 35 |
period of five months beginning at the end of that period, |
| |
and either the pension abatement condition or the |
| |
materially different employment condition is met. |
| |
(7G) | The pension abatement condition is met if— |
| |
(a) | the pension scheme is a public service pension scheme, |
| 40 |
| |
(b) | the member’s benefits under the scheme consist of or |
| |
include a scheme pension which is liable to reduction by |
| |
abatement while the member is employed as mentioned in |
| |
sub-paragraph (7B)(a) and is under the age of 55. |
| 45 |
(7H) | The materially different employment condition is met— |
| |
(a) | in a case where the member is employed as mentioned in |
| |
sub-paragraph (7B)(a) in more than one employment |
| |
|
| |
|
| |
|
during the period of five months mentioned in sub- |
| |
paragraph (7F)(b), if each of those employments, and |
| |
(b) | otherwise, if the employment in which the member is so |
| |
employed during that period, |
| |
| is materially different in nature from the employment in which the |
| 5 |
member was employed immediately before becoming entitled to |
| |
the benefits mentioned in sub-paragraph (7)(a). |
| |
(7I) | For the purposes of sub-paragraph (7D) “employment on |
| |
compulsory recall” means permanent service— |
| |
(a) | under Part 4 of the Reserve Forces Act 1996, |
| 10 |
(b) | under Part 5 of that Act, |
| |
(c) | under a call-out or recall order made under that Act, |
| |
(d) | having been called out or recalled under the Reserve |
| |
| |
(e) | because of any other call-out or recall obligation of an |
| 15 |
| |
(7J) | Section 839 of ICTA (connected persons) applies for the purposes |
| |
| |
Transitional provisions: minor corrections |
| |
42 | Schedule 36 (transitional provisions) is amended as follows. |
| 20 |
43 | In paragraphs 9(4)(a) and 26(3)(a) (primary protection: maximum permitted |
| |
pension and maximum permitted lump sum), for “611(1)(a)” substitute |
| |
| |
44 | In paragraph 54(1)(b) (benefits taxable under Chapter 2 of Part 6 of ITEPA |
| |
2003 where contributions taxed pre-commencement: old schemes), for “1st |
| 25 |
September 1993” substitute “1st December 1993”. |
| |
| |
| |
Stamp duty land tax: amendments of Schedule 15 to FA 2003 |
| |
| |
1 | Schedule 15 to FA 2003 (stamp duty land tax: partnerships) is amended as |
| 30 |
| |
Transfer of chargeable interest to a partnership |
| |
2 (1) | In paragraph 10 (transfer of chargeable interest to a partnership: general), for |
| |
sub-paragraphs (2) to (4) substitute— |
| |
“(2) | The chargeable consideration for the transaction shall (subject to |
| 35 |
paragraph 13) be taken to be equal to— |
| |
| |
|
| |
|
| |
|
MV is the market value of the interest transferred, and |
| |
SLP is the sum of the lower proportions.” |
| |
(2) | In sub-paragraph (6) of that paragraph, omit “(instead of sub-paragraphs (2) |
| |
| |
3 | In paragraph 11 (transfer of chargeable interest to a partnership: chargeable |
| 5 |
consideration including rent), for sub-paragraphs (2) to (7) substitute— |
| |
“(2) | Schedule 5 (amount of tax chargeable: rent) has effect with the |
| |
modifications set out in sub-paragraphs (2A) to (2C). |
| |
| |
(a) | for “the net present value of the rent payable over the term |
| 10 |
of the lease” substitute “the relevant chargeable proportion |
| |
of the net present value of the rent payable over the term |
| |
| |
(b) | for “the net present values of the rent payable over the |
| |
terms of all the leases” substitute “the relevant chargeable |
| 15 |
proportions of the net present values of the rent payable |
| |
over the terms of all the leases”. |
| |
| |
(a) | for “the annual rent” substitute “the relevant chargeable |
| |
proportion of the annual rent”, and |
| 20 |
(b) | for “the total of the annual rents” substitute “the relevant |
| |
chargeable proportion of the total of the annual rents”. |
| |
(2C) | For paragraph 9(4) substitute— |
| |
“(4) | Tax chargeable under this Schedule is in addition to any |
| |
tax chargeable under section 55 as it has effect by virtue |
| 25 |
of paragraph 10 of Schedule 15.”. |
| |
(2D) | For the purposes of sub-paragraphs (2A) and (2B) the relevant |
| |
chargeable proportion is— |
| |
| where SLP is the sum of the lower proportions.” |
| |
4 (1) | In paragraph 13 (transfer of chargeable interest to a partnership consisting |
| 30 |
wholly of bodies corporate), in sub-paragraph (3), for “sub-paragraphs (2) to |
| |
(5)” substitute “sub-paragraphs (2) and (5)”. |
| |
(2) | For sub-paragraphs (4) to (7) of that paragraph substitute— |
| |
“(4A) | In paragraph 11(2), for “sub-paragraphs (2) to (2C)” substitute |
| |
| 35 |
(5) | In paragraph 11, omit sub-paragraphs (2A), (2B), (2D) and (8).” |
| |
Transfer of chargeable interest from a partnership |
| |
5 (1) | In paragraph 18 (transfer of chargeable interest from a partnership: general), |
| |
|
| |
|
| |
|
for sub-paragraphs (2) to (4) substitute— |
| |
“(2) | The chargeable consideration for the transaction shall (subject to |
| |
paragraph 24) be taken to be equal to— |
| |
| |
MV is the market value of the interest transferred, and |
| 5 |
SLP is the sum of the lower proportions.” |
| |
(2) | In sub-paragraph (6) of that paragraph, omit “(instead of sub-paragraphs (2) |
| |
| |
6 | In paragraph 19 (transfer of chargeable interest from a partnership: |
| |
chargeable consideration including rent), for sub-paragraphs (2) to (7) |
| 10 |
| |
“(2) | Schedule 5 (amount of tax chargeable: rent) has effect with the |
| |
modifications set out in sub-paragraphs (2A) to (2C). |
| |
| |
(a) | for “the net present value of the rent payable over the term |
| 15 |
of the lease” substitute “the relevant chargeable proportion |
| |
of the net present value of the rent payable over the term |
| |
| |
(b) | for “the net present values of the rent payable over the |
| |
terms of all the leases” substitute “the relevant chargeable |
| 20 |
proportions of the net present values of the rent payable |
| |
over the terms of all the leases”. |
| |
| |
(a) | for “the annual rent” substitute “the relevant chargeable |
| |
proportion of the annual rent”, and |
| 25 |
(b) | for “the total of the annual rents” substitute “the relevant |
| |
chargeable proportion of the total of the annual rents”. |
| |
(2C) | For paragraph 9(4) substitute— |
| |
“(4) | Tax chargeable under this Schedule is in addition to any |
| |
tax chargeable under section 55 as it has effect by virtue |
| 30 |
of paragraph 18 of Schedule 15.”. |
| |
(2D) | For the purposes of sub-paragraphs (2A) and (2B) the relevant |
| |
chargeable proportion is— |
| |
| where SLP is the sum of the lower proportions.” |
| |
7 (1) | In paragraph 24 (transfer of chargeable interest from a partnership |
| 35 |
consisting wholly of bodies corporate), in sub-paragraph (3), for “sub- |
| |
paragraphs (2) to (5)” substitute “sub-paragraphs (2) and (5)”. |
| |
(2) | For sub-paragraphs (4) to (8) of that paragraph substitute— |
| |
“(4A) | In paragraph 19(2), for “sub-paragraphs (2) to (2C)” substitute |
| |
| 40 |
|
| |
|