| Finance (No. 2) Bill, As Amended - continued | House of Commons |
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Tax Credits (Report) Mrs Theresa Villiers
NC13 To move the following Clause:— ‘Following the Budget speech but prior to 15 July, the Chancellor of the Exchequer shall lay before Parliament a report stating— (a) the estimate of overpayment of tax credits in the previous tax year. (b) the estimate of underpayment of tax credits in the previous tax year, (c) the estimate of fraud against the tax credits system in the previous tax year.’. Listing Requirements for Real Estate Investment Trusts Mrs Theresa Villiers
NC14 To move the following Clause:— ‘The shares forming the ordinary share capital of a Real Estate Investment Trust company must be listed on a recognised stock exchange or on the Alternative Investment Market of the London Stock Exchange or its equivalent European Union exchanges.’. Report on environmental impact taxation Julia Goldsworthy NC15 To move the following Clause:— ‘The Chancellor of the Exchequer shall publish a report at the time of the Budget Statement stating the amount of revenue taken from— (a) landfill tax, (b) the climate change levy, (c) any increase in real terms in the hydrocarbon oil duty, and (d) vehicle excise duty.’. Tax credits: putting things right Julia Goldsworthy NC16 To move the following Clause:— ‘(1) The Chancellor of the Exchequer shall within six months of the passing of this Act implement the twelve specific recommendations made by the Parliamentary and Health Service Ombudsman in Tax Credits: Putting things right (June 2005) (Paragraph 3.41, 5.17, 5.21, 5.29, 5.30, 5.30, 5.30, 5.41, 5.51, 5.61, 5.65, 7.14).’. Aviation fuel duty indexation Julia Goldsworthy NC17 To move the following Clause:— ‘Aviation Fuel Duty will be indexed to inflation.’. Remaining New Schedule Mr Alan Simpson
NS1 To move the following Schedule:— Stamp Duty Land Tax; lower rate for certain measures 21 After section 92 of the Finance Act 2003 insert— “92A Lower rate where notice given relating to specified measures (1) This section applies where— (a) the purchaser is liable to pay the tax in respect of a chargeable transaction, (b) the relevant land consists entirely of residential property, and (c) the purchaser has given notice of an intention to undertake or to have undertaken relevant specified measures within the relevant period. (2) Where this section applies, regulations shall prescribe a lower rate of tax chargeable in respect of the transaction, and different lower rates may apply to the undertaking of different relevant measures. (3) The lower rate in regulations under subsection (2) may be expressed as— (a) a percentage of the chargeable consideration, (b) a percentage of the amount of the tax in respect of the chargeable transaction that would be payable if this section were not to apply, or (c) a specified monetary reduction in the amount of tax payable. (4) In determining the lower rate in regulations under subsection (2), the Treasury shall have regard to— (a) any energy efficiency aims for residential accommodation designated under section 2 or 3 of the Sustainable Energy Act 2003 (energy efficiency in residential accommodation: designation by Secretary of State and by the National Assembly for Wales), and (b) the duty of the Secretary of State under section 217(1) of the Housing Act 2004 (duty in relation to increase in energy efficiency of residential accommodation in England), and (c) the microgeneration strategy published pursuant to section 82 of the Energy Act 2004; and (d) the need to conserve water. (5) Notice for the purpose of subsection (1)(c) shall be given in writing in such terms as may be prescribed by regulations. (6) Regulations shall— (a) prescribe ‘relevant specified measures’ for the purposes of this section, and (b) specify the extent to which the lower rate prescribed under regulations under this section is payable in relation to different specified measures undertaken. (7) The prescribed definition under subsection (6) shall include— (a) measures to improve the thermal insulation of the property, (b) other measures to improve the energy efficiency of the property, (c) the installation of microgeneration measures, (d) the installation of water saving measures. 92B Arrangements in relation to lower rate under s. 92A (1) Where section 92A applies, regulations may require a person or body other than the purchaser to retain the relevant amount until a decision is made that the relevant specified energy efficiency measures have been undertaking by or on behalf of the purchaser. (2) Regulations may prescribe the person or body that is to decide whether or not the relevant energy efficiency measures have been undertaken. (3) Any such decision must be taken within, or as soon as practicable after the relevant period. (4) Where it is decided that the relevant specified measures have been taken within the relevant period, the relevant amount, and any interest payable on it, shall be paid to the purchaser. (5) Where it is decided that the relevant specified measures have not been taken within the relevant period, the relevant amount, and any interest payable on it, shall be payable in the same manner as the tax. (6) Interest payable under subsections (4) and (5) shall be determined in accordance with the provisions of section 87. (7) Regulations may amend Schedules 10 and 12 so as to provide for— (a) the making of returns in relation to the provisions of section 92A and this section and regulations made under them, (b) duties to keep and preserve records in relation to those provisions and regulations, (c) appeals against decisions under those provisions and regulations, and (d) the recovery of relevant amounts and interest payable on them. (8) The powers to make regulations under section 92A and this section are exercisable by the Treasury. 22 In section 92A and this section— “the relevant amount” means an amount that is the difference between— (a) the amount of the tax in respect of the chargeable transaction that would be payable if section 92A were not to apply, and (b) the amount of tax in respect of the chargeable transaction that is payable under section 92A; “the relevant period” means a period to be specified in regulations beginning with the date on which the tax becomes payable. 23 In section 114 (orders and regulations made by the Treasury or Inland Revenue), in subsection (4), at the end, insert “paragraph 9A(1) of Schedule 19 (commencement of sections 92A and 92B.” 24 In Schedule 19 (Stamp duty land tax: commencement and transitional provisions), after paragraph 9, insert— “Commencement of sections 92A and 92B 9A. (1) Sections 92A and 92B shall come into force in accordance with the provisions of an order made by the Treasury. (2) No order may be made under sub-paragraph (1) before the coming into force of section 155 of the Housing Act 2004 (duty to have a home information pack).”.’. Julia Goldsworthy 123 Page 14, line 15 [Clause 13], leave out Table A and insert—
Julia Goldsworthy 124 Page 14, line 26 [Clause 13], leave out Table B and insert—
Julia Goldsworthy 129 Page 14, line 26 [Clause 13], leave out Table B and insert—
Julia Goldsworthy 125 Page 15, line 8 [Clause 13], at end insert— ‘(3A) After paragraph 1B insert— “1BB For the purposes of paragraph 1B above, ‘remote rural area’ shall be defined in regulations made by the Treasury by statutory instrument.”.’. Mr Chancellor of the Exchequer 18 Page 22, line 6 [Clause 19], at beginning insert ‘An order under this subsection may confer power on the Commissioners to make regulations or exercise any other function,’. Mr Chancellor of the Exchequer 19 Page 22, line 40 [Clause 19], at end insert— ‘(2A) In section 65 of VATA 1994 (inaccuracies in EC sales statements)— (a) at the end insert— “(7) This section applies in relation to a statement which is required to be submitted to the Commissioners in accordance with regulations under paragraph 2(3A) of Schedule 11 as it applies in relation to an EC sales statement.”, and (b) in consequence of the amendment made by paragraph (a) the heading becomes “Inaccuracies in EC sales statements or in statements relating to section 55A”. (2B) In section 66 of VATA 1994 (failure to submit EC sales statements)— (a) at the end insert— “(10) This section applies in relation to a statement which is required to be submitted to the Commissioners in accordance with regulations under paragraph 2(3A) of Schedule 11 as it applies in relation to an EC sales statement.”, and (b) in consequence of the amendment made by paragraph (a) the heading becomes “Failure to submit EC sales statement or statement relating to section 55A”. (2C) In section 69 of VATA 1994 (breaches of regulatory provisions), in subsection (1) (failure to comply with a requirement imposed under provisions mentioned in the paragraphs in that subsection), after paragraph (b) insert— “(ba) paragraph 2(3B) of Schedule 11; or”.’. Mr Chancellor of the Exchequer 20 Page 22, line 44 [Clause 19], at end insert— ‘(3A) In Schedule 11 to VATA 1994 (administration, collection and enforcement), in paragraph 2 (accounting for VAT and payment of VAT), after sub-paragraph (3) insert— “(3A) Regulations under this paragraph may require the submission to the Commissioners by taxable persons, at such times and intervals, in such cases and in such form and manner as may be— (a) specified in the regulations, or (b) determined by the Commissioners in accordance with powers conferred by the regulations, of statements containing such particulars of supplies to which section 55A(6) applies in which the taxable persons are concerned, and of the persons concerned in those supplies, as may be prescribed. (3B) Regulations under this paragraph may make provision, in relation to the first occasion on which a person makes a supply of goods to which section 55A(6) applies, for requiring the person to give to the Commissioners such notification of the supply at such time and in such form and manner as may be specified in the regulations.”.’ Mrs Theresa Villiers
121 Page 23, line 3 [Clause 19], at
end insert— Mr Alex Salmond
63 Page 25, line 37 [Clause 24], at end insert— ‘(2) The Chancellor of the Exchequer shall bring forward proposals in his pre-budget report to allow the Scottish Parliament, the National Assembly for Wales and the Northern Ireland Assembly to introduce a variation of the main rate of corporation tax.’. Mrs Theresa Villiers
15 Page 155, line 21 [Schedule 1], leave out ‘immediately after the end of the currrent period’ and insert ‘when the claim for group relief was made’. Mrs Theresa Villiers
122 Page 155, line 21 [Schedule 1], leave out from second ‘the’ to end of line 22 and insert ‘earlier of— (a) two years after the end of the accounting period; or (b) the deadline for filing corporate tax returns in the EEA territory concerned.’. Mr Chancellor of the Exchequer 98 Page 171, line 40 [Schedule 5], leave out ‘partly’ and insert ‘mainly’. Julia Goldsworthy 126 Page 46, line 29, leave out Clause 61. Mr Chancellor of the Exchequer 99 Page 181, line 2 [Schedule 6], at end insert— ‘Repeal of rent factoring provisions A1 (1) Sections 43A to 43G of ICTA (rent factoring) shall cease to have effect. (2) The amendment made by this paragraph has effect in relation to transactions entered into on or after 6th June 2006.’. Mr Chancellor of the Exchequer 16 Page 185, line 8 [Schedule 6], at end insert— ‘Multiple holders of securities subject to sale and repurchase agreement: no relief for deemed manufactured payments 3A (1) Section 737A of ICTA (sale and repurchase of securities: deemed manufactured payments) is amended as follows. (2) In subsection (5) (application of Schedule 23A and dividend manufacturing regulations), after “apply” insert “, subject to subsection (5A) below,”. (3) After that subsection insert— “(5A) If the relevant person is not the person to whom the transferor agreed to sell the securities, the relevant person is not entitled, by virtue of anything in Schedule 23A or any provision of dividend manufacturing regulations, or otherwise— (a) to any deduction in computing profits or gains for the purposes of income tax or corporation tax, or (b) to any deduction against total income or total profits, by virtue of subsection (5) above. Where the relevant person is a company, an amount may not be surrendered by way of group relief if a deduction in respect of it is prohibited by this subsection.”. (4) In subsection (6) (interpretation), for— (a) “subsection (5) above”, and (b) “that subsection”, substitute “this section”. (5) The amendments made by this paragraph have effect in relation to securities if— (a) the agreement to sell them was made on or after 27th June 2006, or (b) a person other than the person to whom the transferor agreed to sell them became the relevant person in consequence of any other agreement made on or after that date.’. Mr Chancellor of the Exchequer 100 Page 185, line 8 [Schedule 6], at end insert— ‘Structured finance arrangements: factoring of income receipts etc 3B (1) After section 774 of ICTA (transactions between dealing company and associated company) insert— (1) For the purposes of section 774B an arrangement is a structured finance arrangement in relation to a person (“the borrower”) if the following condition is met in relation to the borrower. (2) The condition is that— (e) in accordance with generally accepted accounting practice those payments reduce the amount of the financial liability in respect of the advance recorded in the accounts of the borrower. (3) For the purposes of this section, in any case where the borrower is a partnership, references to the accounts of the borrower include the accounts of any member of the partnership. (4) For the purposes of this section and section 774B— (a) references to a person connected with the borrower do not include the lender, and (b) references to a person connected with the lender do not include the borrower. (1) If— (a) an arrangement is a structured finance arrangement in relation to a person (“the borrower”), and (b) the arrangement would (disregarding this section) have had the relevant effect (see subsections (2) and (3)), the arrangement is not to have that effect. (a) an amount of income on which the borrower, or a person connected with the borrower, would otherwise have been charged to tax is not so charged, (b) an amount which would otherwise have been brought into account in calculating for tax purposes any income of the borrower, or of a person connected with the borrower, is not so brought into account, or (c) the borrower, or a person connected with the borrower, becomes entitled to an income deduction. (a) an amount of income on which a member of the partnership would otherwise have been charged to tax is not so charged, (b) an amount which would otherwise have been brought into account in calculating for tax purposes any income of a member of the partnership is not so brought into account, or (c) a member of the partnership becomes entitled to an income deduction. (4) If— (a) a person in relation to whom the structured finance arrangement would otherwise have had the relevant effect is a person within the charge to income tax, and (b) in accordance with generally accepted accounting practice the accounts of the person record an amount as a finance charge in respect of the advance, that person may treat the amount for income tax purposes as interest payable on a loan. (a) the advance is to be treated, in relation to the company, for the purposes of Chapter 2 of Part 4 of the Finance Act 1996 as a money debt owed by the company, (b) the arrangement is to be treated, in relation to the company, for the purposes of that Chapter as a loan relationship of the company (as a debtor relationship), and (6) For the purposes of this section, in any case where the borrower is a partnership,— (a) references to accounts include the accounts of the partnership, and (b) any deemed interest is treated as payable by the partnership (whether or not the finance charge is recorded in the accounts of the partnership). (7) For the purpose of determining when any deemed interest in respect of the advance is paid— (a) the payments mentioned in section 774A(2)(d) are treated as consisting of amounts for repaying the advance and amounts (“the interest elements”) in respect of interest on the advance, and (b) the interest elements of those payments are treated as paid when those payments are paid, and the deemed interest in respect of the advance is treated as paid at the times when the interest elements are treated as paid. (8) In this section “deemed interest” means any amount which is treated as interest as a result of subsection (4) or (5). (9) This section is subject to the exceptions contained in section 774E. (1) For the purposes of section 774D an arrangement is a structured finance arrangement in relation to a partnership (“the borrower partnership”) if condition A or B is met in relation to the borrower partnership. (2) Condition A is that— (b) the transferor partner is a member of the borrower partnership immediately after the disposal (whether or not a member immediately before the disposal), (g) in accordance with generally accepted accounting practice those payments reduce the amount of the financial liability in respect of the advance recorded in the accounts of the borrower partnership. (3) For the purposes of condition A, references to the accounts of the borrower partnership include the accounts of the transferor partner. (4) Condition B is that— (a) the borrower partnership holds an asset (“the security”) as a partnership asset at any time before the arrangement is made, (c) in accordance with generally accepted accounting practice the accounts of the borrower partnership for that period record a financial liability in respect of the advance, (f) in accordance with generally accepted accounting practice those payments reduce the amount of the financial liability in respect of the advance recorded in the accounts of the borrower partnership. (5) For the purposes of condition B, references to the accounts of the borrower partnership include the accounts of any person who is a member of the partnership immediately before the arrangement is made. (a) the lender, or a person connected with the lender, becomes a member of the borrower partnership at any time, or (7) For the purposes of subsection (6)(b) the reference to a person connected with the lender includes a person who at any time becomes connected with the lender directly or indirectly in consequence of, or otherwise in connection with, the arrangement. (1) This section applies if— (a) an arrangement is a structured finance arrangement in relation to a partnership (“the borrower partnership”), and (b) any relevant change in relation to the membership of the borrower partnership involving the lender or a person connected with the lender would (disregarding this section) have had the following effect. (a) an amount of income on which a relevant member of the borrower partnership would otherwise have been charged to tax is not so charged, (b) an amount which would otherwise have been brought into account in calculating for tax purposes any income of a relevant member of the borrower partnership is not so brought into account, or (c) a relevant member of the borrower partnership becomes entitled to an income deduction. (3) In this section “relevant member of the borrower partnership” means— (a) in any case where condition A in section 774C is met in relation to the arrangement, the transferor partner, and (b) in any case where condition B in that section is met in relation to the arrangement, any person other than the lender who is a member of the borrower partnership immediately before the time at which the relevant change in relation to the membership of the borrower partnership involving the lender or a person connected with the lender occurs. Accordingly, the structured finance arrangement is not to have the effect mentioned in subsection (2). (5) The following provisions of this section confer relief from tax the availability of which depends on which of the conditions in section 774C is met in relation to the arrangement. (a) the transferor partner is a person within the charge to income tax, and (b) in accordance with generally accepted accounting practice the accounts of the borrower partnership record an amount as a finance charge in respect of the advance, the transferor partner may treat the amount for income tax purposes as interest payable by the transferor partner on a loan. (a) the advance is to be treated, in relation to the company, for the purposes of paragraph 19 of Schedule 9 to the Finance Act 1996 (and the other provisions of Chapter 2 of Part 4 of that Act) as a money debt owed by the borrower partnership, (b) the arrangement is to be treated, in relation to the company, as a transaction for the lending of money from which that debt is treated as arising for those purposes, and (8) For the purposes of subsections (6) and (7), references to the accounts of the borrower partnership include the accounts of the transferor partner. (a) a relevant member of the borrower partnership is a person within the charge to income tax, and (b) in accordance with generally accepted accounting practice the accounts of the borrower partnership record an amount as a finance charge in respect of the advance, the relevant partner may treat the amount for income tax purposes as interest payable by the borrower partnership on a loan. (a) the advance is to be treated, in relation to the company, for the purposes of paragraph 19 of Schedule 9 to the Finance Act 1996 (and the other provisions of Chapter 2 of Part 4 of that Act) as a money debt owed by that partnership, (b) the arrangement is to be treated, in relation to the company, as a transaction for the lending of money from which that debt is treated as arising for those purposes, and (c) any amount which, in accordance with generally accepted accounting practice, is recorded in the accounts of the borrower partnership as a finance charge in respect of the advance is to be treated as interest payable by the borrower partnership under that transaction. (11) For the purposes of subsections (9) and (10), references to the accounts of the borrower partnership include the accounts of any relevant member of the borrower partnership. (12) For the purpose of determining when any deemed interest in respect of the advance is paid— (a) the payments mentioned in section 774C(2)(f) or (4)(e) are treated as consisting of amounts for repaying the advance and amounts (“the interest elements”) in respect of interest on the advance, and (b) the interest elements of those payments are treated as paid when those payments are paid, and the deemed interest in respect of the advance is treated as paid at the times when the interest elements are treated as paid. (14) This section is subject to the exceptions contained in section 774E. (a) is charged to tax on a relevant person (see subsection (7)) as an amount of income, (b) is brought into account in calculating for tax purposes any income of a relevant person, or For the purposes of this subsection the effect of section 785A (rent factoring of leases of plant or machinery) is to be disregarded. (2) Subsection (1)(c) is not to be taken as met in any case where— (a) the receipt or proceeds gives rise to a balancing charge, and (b) the amount of the balancing charge is limited by any provision of the Capital Allowances Act. (3) Section 774B or 774D does not apply if, at all times, the whole of the advance under the structured finance arrangement— (a) is a debtor relationship of a relevant person for the purposes of Chapter 2 of Part 4 of the Finance Act 1996 (loan relationships), or (b) would be a debtor relationship of a relevant person for those purposes if that person were a company within the charge to corporation tax. For the purposes of this subsection references to a debtor relationship do not include a relationship to which section 100 of the Finance Act 1996 (money debts etc not arising from the lending of money) applies. (4) Section 774B or 774D does not apply in so far as the structured finance arrangement is an arrangement in relation to which— (a) section 263A of the 1992 Act (agreements for sale and repurchase of securities) applies, (b) paragraph 15 of Schedule 9 to the Finance Act 1996 (repo transactions and stock-lending) applies, or (c) Chapter 5 of Part 2 of the Finance Act 2005 (alternative finance arrangements) has effect. (5) Section 774B or 774D does not apply in so far as— (b) the structured finance arrangement is an arrangement in relation to which sections 228B to 228D of the Capital Allowances Act apply with the modifications contained in section 228F of that Act (lease and finance leaseback). (6) For the purposes of subsection (5)(a), whether plant or machinery is the subject of a sale and finance leaseback is determined in accordance with section 221 of the Capital Allowances Act. But, in applying that section, it is to be assumed that the words “and which are not a long funding lease in the case of the lessor” were omitted from section 219(1)(b) of that Act (meaning of “finance lease”). (a) if section 774B applies, a person in relation to whom the structured finance arrangement would (but for that section) otherwise have had the relevant effect (within the meaning of that section), and (b) if section 774D applies, a relevant member of the borrower partnership (within the meaning of that section). 774F Sections 774B and 774D: power to provide further exceptions (2) Any regulations under subsection (1) may make provision amending section 774E. (3) The power to make regulations under subsection (1) includes— (a) power to make provision having effect in relation to times before the making of the regulations (but not times earlier than 6th June 2006), (b) power to make different provision for different cases or different purposes, and (c) power to make incidental, supplemental, consequential or transitional provision and savings. 774G Sections 774A to 774D: minor definitions etc (1) For the purposes of sections 774A to 774D “arrangement” includes any agreement or understanding (whether or not legally enforceable). (2) For the purposes of sections 774A to 774D “income deduction” means— (a) a deduction in calculating any income for tax purposes, or (b) a deduction against total income or total profits. (3) For the purposes of sections 774A to 774D— (a) references to a person’s receiving any asset include the person’s obtaining directly or indirectly the value of any asset or otherwise deriving directly or indirectly any benefit from it, (b) references to a disposal of an asset include anything which constitutes a disposal of the asset for the purposes of the 1992 Act, (c) references to payments in respect of any asset include obtaining directly or indirectly the value of any asset or otherwise deriving directly or indirectly any benefit from it. (4) For the purposes of sections 774A to 774D, section 839 (connected persons) applies. (5) For the purposes of sections 774A to 774D references to the accounts of any person who is a company include the consolidated group accounts of a group of companies of which it is a member. (6) If any person does not draw up accounts in accordance with generally accepted accounting practice, sections 774A to 774D apply as if the accounts had been drawn up by the person in accordance with that practice. (7) Sections 277 to 281 of ITTOIA 2005 and section 34 above (lease premiums) are not to apply in relation to a premium paid in respect of a grant of a lease where the grant constitutes a disposal of an asset for the purposes of section 774A(2)(c) or 774C(2)(a).”. (2) The amendment made by this paragraph has effect in relation to any arrangements whenever made (but see sub-paragraphs (3) and (4)). (a) to be charged to tax, or (b) to be brought into account in calculating any income for tax purposes or deducted from any income for tax purposes, only if the amounts arise on or after that date. (5) In any case where, in relation to arrangements made before that date, a person is treated, as a result of the amendment made by this paragraph, as being a party to any loan relationship— (a) a period of account is to be treated for the purposes of Chapter 2 of Part 4 of FA 1996 as beginning on that date, and (b) the loan relationship is to be treated for those purposes as being entered into by the person for a consideration equal to the notional carrying value of the liability representing the relationship. (6) For this purpose, the notional carrying value is the amount that would have been the carrying value of the liability in the accounts of the person if a period of account had ended immediately before that date. (7) “Carrying value” has the same meaning here as it has for the purposes of paragraph 19A of Schedule 9 to FA 1996. Rent factoring of leases of plant or machinery 3C (1) Section 785A of ICTA (rent factoring of leases of plant or machinery) is amended as follows. (2) After subsection (5) (provision about partnerships with legal personality) insert— “(5A) This section does not apply in so far as section 774B or 774D (structured finance arrangements) applies in relation to the arrangements mentioned in paragraph (c) of subsection (1) above as a result of the transfer mentioned in that paragraph.”. Transactions associated with loans or credit 3D (1) Section 786 of ICTA (transactions associated with loans or credit) is amended as follows. (2) After subsection (5) (transaction under which a person assigns, surrenders etc income arising from property) insert— “(5ZA) But subsection (5) above does not apply if the person mentioned in that subsection is, as a result of section 774B or 774D (structured finance arrangements), chargeable to tax on the amount of income assigned, surrendered, waived or forgone.”. Structured finance arrangements: chargeable gains treatment of acquisitions and disposals 3E (1) After section 263D of TCGA 1992 (gains accruing to persons paying manufactured dividends) insert— (1) This section applies if— (a) section 774B of the Taxes Act (disregard of intended effects of arrangement involving disposals of assets) applies in relation to a structured finance arrangement, (b) the borrower or a person connected with the borrower makes a disposal of any security at any time under the arrangement to or for the benefit of the lender or a person connected with the lender, and (c) condition A or B is met. (2) Condition A is that the person making the disposal subsequently acquires under the arrangement the asset disposed of by that disposal. (3) Condition B is that— (a) the asset disposed of by that disposal subsequently ceases to exist at any time, and (b) that asset was held by the lender, or a person connected with the lender, from the time of the disposal until that time. (4) The disposal of the security by the borrower or a person connected with the borrower is to be disregarded for the purposes of this Act. (6) In this section— “the borrower”, in relation to a structured finance arrangement, means the person who is the borrower under the arrangement for the purposes of section 774A of the Taxes Act, “the lender”, in relation to a structured finance arrangement, means the person who is the lender under the arrangement for the purposes of that section, “security” means any such asset as is mentioned in subsection (2)(c) and (d) of that section. (7) For the purposes of this section— (a) references to a person connected with the borrower do not include the lender, and (b) references to a person connected with the lender do not include the borrower.”. (2) The amendment made by this paragraph has effect in relation to disposals made on or after 6th June 2006. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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