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(a) after "8" there shall be inserted ", or any supply of goods is treated by virtue of section 9A,", and
And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
That provision (including provision having retrospective effect) may be made in relation to securities acquired pursuant to a right or opportunity available by reason of employment.
That provision may be made amending sections 82B and 508 of the Income and Corporation Taxes Act 1988 and section 88 of the Income Tax (Trading and Other Income) Act 2005.
That provision may be made about the taxation of unit holders in authorised unit trust schemes and shareholders in open-ended investment companies.
That provision (including provision having retrospective effect) may be made for the purposes of corporation tax about—
(a) amounts that are not to be allowed as deductions for the purposes of the Corporation Tax Acts; and
(b) contributions to the capital of any company that are to be treated as income arising to the company.
That provision (including provision having retrospective effect) may be made amending, or making amendments connected with, the Taxation of Chargeable Gains Act 1992.
That provision (including provision having retrospective effect) may be made with respect to matters connected with accounting practice.
That provision (including provision having retrospective effect) may be made in relation to charges on income for the purposes of corporation tax.
(a) amending any enactment contained in sections 43A to 43G of the Income and Corporation Taxes Act 1988, or
(b) in relation to finance agreements (whenever entered into) to which section 43D of that Act would apply but for section 43E(1)(a) or (b) of it.
That provision (including provision having retrospective effect) may be made for the purposes of corporation tax in relation to—
(b) other relationships where a company stands, or is to be treated as standing, in the position of a creditor or debtor in relation to a debt.
That provision (including provision having retrospective effect) may be made in relation to assets which—
the payment of, or payments corresponding to, the whole or a part of one or more payments remaining to be made under an annuity or other obligation to make annual payments.
That provision (including provision having retrospective effect) may be made amending paragraph 3 of Schedule 23A to the Income and Corporation Taxes Act 1988.
That provision (including provision having retrospective effect) may be made in relation to assets which—
the payment of, or payments corresponding to, the whole or a part of one or more payments remaining to be made under a security.
That provision (including provision having retrospective effect) may be made for the purposes of corporation tax in relation to—
That provision (including provision having retrospective effect) may be made in relation to capital redemption policies, within the meaning of Chapter 2 of Part 13 of the Income and Corporation Taxes Act 1988.
That provision (including provision having retrospective effect) may be made amending Schedule 28AA to the Income and Corporation Taxes Act 1988.
That provision (including provision having retrospective effect) may be made amending Schedule 29 to the Finance Act 2002 and section 86(2) of the Finance Act 1993.
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That provision (including provision having retrospective effect) may be made about insurance companies and friendly societies.
That provision (including provision having retrospective effect) may be made amending Chapter 4 of Part 17 of the Income and Corporation Taxes Act 1988.
That provision (including provision having retrospective effect) may be made in relation to the United Kingdom Atomic Energy Authority.
(1) Part 4 of the Finance Act 2003 shall be amended in accordance with the following provisions of this Resolution.
(2) In section 45, at the end of subsection (3) there shall be inserted "except in a case where the secondary contract gives rise to a transaction that is exempt from charge by virtue of subsection (3) of section 73 (alternative property finance: land sold to financial institution and re-sold to individual)".
(3) In paragraph 1 of Schedule 7, in sub-paragraph (7) for "paragraph 3" there shall be substituted "paragraphs 3 and 4A".
"(2) The amount chargeable is the tax that would have been chargeable in respect of the relevant transaction but for group relief if the chargeable consideration for that transaction had been an amount equal to—
or, as the case may be, an appropriate proportion of the tax that would have been so chargeable.", and
(b) at the end of sub-paragraph (5) there shall be inserted "and paragraph 4A (withdrawal of group relief in certain cases involving successive transactions)".
(b) in sub-paragraph (5), for "this purpose" there shall be substituted "the purposes of sub-paragraphs (3) and (4)".
4A(1) Where, in the case of a transaction ("the relevant transaction") that is exempt from charge by virtue of paragraph 1 (group relief)—
(i) before the end of the period of three years beginning with the effective date of the relevant transaction, or
(c) apart from this paragraph, group relief in relation to the relevant transaction would not be withdrawn under paragraph 3, and
paragraphs 3 and 4 have effect in relation to the relevant transaction as if the vendor in relation to the earliest previous transaction falling within sub-paragraph (2) were the vendor in relation to the relevant transaction.
(b) the effective date of the previous transaction is less than three years before the date of the event falling within sub-paragraph (1)(a),
(c) the chargeable interest acquired under the relevant transaction by the purchaser in relation to that transaction is the same as, comprises, forms part of, or is derived from, the chargeable interest acquired under the previous transaction by the purchaser in relation to the previous transaction, and
(d) since the previous transaction, the chargeable interest acquired under that transaction has not been acquired by any person under a transaction that is not exempt from charge by virtue of paragraph 1, 7 or 8.
References to "control" in this sub-paragraph shall be construed in accordance with section 416 of the Taxes Act 1988.
(4) If two or more transactions effected at the same time are the earliest previous transactions falling within sub-paragraph (2), the reference in sub-paragraph (1) to the vendor in relation to the earliest previous transaction is a reference to the persons who are the vendors in relation to the earliest previous transactions.
(5) In this paragraph "arrangements" includes any scheme, agreement or understanding, whether or not legally enforceable."
(7) In paragraph 11(5)(a) of Schedule 17A, for the words from "the purchaser" to the end there shall be substituted "the event falling within paragraph 3(1)(a) of Schedule 7 (purchaser ceasing to be a member of the same group as the vendor), as read with paragraph 4A of that Schedule".
(a) in sub-paragraph (1)(b) for "the first and second conditions" there shall be substituted "all the conditions", and
"(5A) The third condition is that the undertaking or part acquired by the acquiring company has as its main activity the carrying on of a trade that does not consist wholly or mainly of dealing in chargeable interests.
"(2) The amount chargeable is the tax that would have been chargeable in respect of the relevant transaction but for reconstruction or acquisition relief if the chargeable consideration for that transaction had been an amount equal to—
(c) during the period of three years beginning with the date of the land transfer, a qualifying event occurs.
(a) a withdrawal from the partnership of money or money's worth which does not represent income profit by the relevant person—
(ii) a withdrawal by the relevant person from the partnership of money or money's worth which does not represent income profit.
(a) where the land transfer falls within paragraph 10(1)(a) or (b), the person who makes the land transfer, and
(b) where the land transfer falls within paragraph 10(1)(c), the partner concerned or a person connected with him.
(a) in a case falling within sub-paragraph (2)(a), equal to the value of the money or money's worth withdrawn from the partnership, or
(c) in a case falling within sub-paragraph (2)(b)(ii), equal to so much of the value of the money or money's worth withdrawn from the partnership as does not exceed the amount of the loan,
but (in any case) shall not exceed the market value, as at the effective date of the land transfer, of the chargeable interest transferred by the land transfer, reduced by any amount previously chargeable to tax."
3(1) Subject to sub-paragraph (2), where a person acquires a chargeable interest as bare trustee, this Part applies as if the interest were vested in, and the acts of the trustee in relation to it were the acts of, the person or persons for whom he is trustee.
(3) Where a lease is granted to a person as bare trustee, he is treated for the purposes of this Part, as it applies in relation to the grant of the lease, as purchaser of the whole of the interest acquired.
(4) Where a lease is granted by a person as bare trustee, he is to be treated for the purposes of this Part, as it applies in relation to the grant of the lease, as vendor of the whole of the interest disposed of."
"(1) This paragraph applies where the grant of a lease is exempt from charge by virtue of any of the provisions specified in sub-paragraph (3)."
"(1A) Where any consideration in money or money's worth (other than an increase in rent) is given by the lessee for any variation of a lease, other than a variation of the amount of the rent or of the term of the lease, the variation is treated for the purposes of this Part as an acquisition of a chargeable interest by the lessee.", and
(b) for the heading preceding that paragraph there shall be substituted "Reduction of rent or term or other variation of lease".
(a) the lessee, or any person connected with him or acting on his behalf, pays a deposit, or makes a loan, to any person, and
(b) the repayment of all or part of the deposit or loan is contingent on anything done or omitted to be done by the lessee or on the death of the lessee,
the amount of the deposit or loan (disregarding any repayment) is to be taken for the purposes of this Part to be consideration other than rent given for the grant of the lease.
(a) the assignee, or any person connected with him or acting on his behalf, pays a deposit, or makes a loan, to any person, and
(b) the repayment of all or part of the deposit or loan is contingent on anything done or omitted to be done by the assignee or on the death of the assignee,
the amount of the deposit or loan (disregarding any repayment) is to be taken for the purposes of this Part to be consideration other than rent given for the assignment of the lease.
(3) Sub-paragraph (1) or (2) does not apply in relation to a deposit if the amount that would otherwise fall within the sub-paragraph in question in relation to the grant or (as the case requires) assignment of the lease is not more than twice the relevant maximum rent.
(a) in relation to the grant of a lease, the highest amount of rent payable in respect of any consecutive twelve month period in the first five years of the term;
(b) in relation to the assignment of a lease, the highest amount of rent payable in respect of any consecutive twelve month period in the first five years of the term remaining outstanding as at the date of the assignment,
the highest amount of rent being determined (in either case) in the same way as the highest amount of rent mentioned in paragraph 7(3).
(a) merely because of paragraph 9(2) of Schedule 5 (which excludes the 0% band in the Tables in section 55(2) in cases where the relevant rental figure exceeds £600 a year), or
(b) merely because of paragraph 5(4)(b), 6(6)(b), 9(4)(b) or 10(6)(b) of Schedule 6 (which make similar provision in relation to land which is wholly or partly residential property and is wholly or partly situated in a disadvantaged area).
(6) Section 839 of the Taxes Act 1988 (connected persons) has effect for the purposes of this paragraph."
(15) In section 80 (adjustment where contingency ceases or consideration is ascertained) after subsection (4) there shall be inserted—
"(4A) Where the transaction ("the relevant transaction") is the grant or assignment of a lease, no claim may be made under subsection (4)—
(a) in respect of the repayment (in whole or part) of any loan or deposit that is treated by paragraph 18A of Schedule 17A as being consideration given for the relevant transaction, or
(b) in respect of the refund of any of the consideration given for the relevant transaction, in a case where the refund—
(ii) is contingent on the determination or assignment of the lease or on the grant of a chargeable interest out of the lease."
(16) Subject to paragraph (22) of this Resolution, paragraphs (3) to (7) of this Resolution shall have effect where the effective date of the relevant transaction (within the meaning of paragraph 3 or 4A of Schedule 7 to the Finance Act 2003) is after 19th May 2005.
(17) Subject to paragraph (22) of this Resolution, paragraph (9) of this Resolution shall have effect where the effective date of the relevant transaction (within the meaning of paragraph 9 of Schedule 7 to the Finance Act 2003) is after 19th May 2005.
(18) Subject to paragraph (22) of this Resolution, paragraph (10) of this Resolution shall have effect where the effective date of the transaction transferring the chargeable interest to the partnership is after 19th May 2005.
(19) Subject to paragraph (22) of this Resolution, paragraphs (11) and (12) of this Resolution shall have effect where the effective date of the land transaction consisting of the grant of the lease is after 19th May 2005.
(20) Subject to paragraph (22) of this Resolution, the amendments made by the other provisions of this Resolution shall have effect in relation to any transaction of which the effective date is after 19th May 2005.
(a) in relation to the amendments made by paragraphs (4)(a) and (9) of this Resolution, 19th May 2005, and
(a) in relation to any transaction which is effected in pursuance of a contract entered into and substantially performed on or before the specified date, or
(b) subject to paragraph (23) of this Resolution, in relation to any other transaction which is effected in pursuance of a contract entered into on or before the specified date.
(23) The exclusion by paragraph (22)(b) of this Resolution of transactions effected in pursuance of contracts entered into on or before the specified date shall not apply—
(a) if there is any variation of the contract or assignment of rights under the contract after that date,
(b) if the transaction is effected in consequence of the exercise after that date of any option, right of pre-emption or similar right, or
(c) if after that date there is an assignment, subsale or other transaction (relating to the whole or part of the subject-matter of the contract) as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance to him.
(24) In this Resolution "assignment", "effective date" and "substantially performed" have the same meaning as in Part 4 of the Finance Act 2003.
And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
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