|
| |
|
(b) | in paragraph (c) for “those purposes” substitute “the purposes of |
| |
| |
(c) | for “his income” substitute “the person’s Step 3 income”, and |
| |
(d) | for “that amount” substitute “the amount of the deficiency or (as the |
| |
case may be) the amount mentioned in paragraph (c)”. |
| 5 |
(3) | In subsection (3) for “his total income” substitute “the person’s Step 3 |
| |
| |
| |
298 | For section 11 (visiting forces, agents-general etc) substitute— |
| |
“11 | Visiting forces and official agents |
| 10 |
(1) | If section 766 of ITA 2007 (visiting forces and staff of designated |
| |
allied headquarters) applies to an individual throughout a period, |
| |
the period is not treated for capital gains tax purposes as— |
| |
(a) | a period of residence in the United Kingdom, or |
| |
(b) | creating a change of the individual’s residence or domicile. |
| 15 |
(2) | If an individual is entitled to immunity from income tax by virtue of |
| |
section 774 of ITA 2007 (which provides immunity from income tax |
| |
for official agents of Commonwealth countries or the Republic of |
| |
Ireland etc), the individual is entitled to the same immunity from |
| |
capital gains tax as that to which a member of the staff of a mission |
| 20 |
is entitled under the Diplomatic Privileges Act 1964. |
| |
(3) | “A member of the staff of a mission” is to be read in accordance with |
| |
the Diplomatic Privileges Act 1964.” |
| |
299 | In section 16(1) (computation of losses) for “section 72 of the Finance Act |
| |
1991” substitute “sections 261B, 261D and 263ZA”. |
| 25 |
300 | In section 37 (consideration chargeable to tax on income) at the end insert— |
| |
| |
(a) | because section 692(4) or (6) of ITA 2007 applies, the person |
| |
charged to tax under Chapter 3 of Part 12 of that Act |
| |
(transactions in land) is a person other than the person (“A”) |
| 30 |
by whom the gain was realised, and |
| |
(b) | the income tax has been paid, |
| |
| for the purposes of this section the amount charged to that tax is |
| |
regarded as having been charged as the income of A. |
| |
| 35 |
(a) | because section 710(5) of that Act applies, the person charged |
| |
to tax under Chapter 4 of Part 12 of that Act (sales of |
| |
occupation income) is a person other than the person (“B”)— |
| |
(i) | for whom the capital amount was obtained, or |
| |
(ii) | in the case of income treated as arising under section |
| 40 |
712 of that Act, by whom the property or right was |
| |
| |
(b) | the income tax has been paid, |
| |
| for the purposes of this section the amount charged to that tax is |
| |
regarded as having been charged as the income of B. |
| 45 |
|
| |
|
| |
|
(7) | In subsection (6) “capital amount” has the same meaning as in |
| |
Chapter 4 of Part 12 of that Act (sales of occupation income) (see |
| |
section 710(7) of that Act).” |
| |
301 | In section 39 (exclusion of expenditure by reference to tax on income) after |
| |
| 5 |
| |
(a) | because section 692(4) or (6) of ITA 2007 applies, the person |
| |
charged to tax under Chapter 3 of Part 12 of that Act |
| |
(transactions in land) is a person other than the person (“A”) |
| |
by whom the gain was realised, and |
| 10 |
(b) | the income tax has been paid, |
| |
| for the purposes of this section the amount charged to that tax is |
| |
regarded as having been charged as the income of A.” |
| |
302 | In section 79(8) (charge on settlor with interest in settlement etc: |
| |
supplementary provisions) for “691(2) of the Taxes Act (certain income of |
| 15 |
maintenance funds for historic buildings not to be income of settlor etc)” |
| |
substitute “508 of ITA 2007 (trustees’ election in respect of income arising |
| |
from heritage maintenance property)”. |
| |
303 | In section 97(3) (settlements etc: supplementary provisions) for “section |
| |
740(2)(b) of the Taxes Act” substitute “section 666 of ITA 2007”. |
| 20 |
304 | In section 98(2) (power to obtain information for purposes of sections 87 to |
| |
| |
(a) | for the words from the beginning to “745(1)” substitute “Sections |
| |
681(3) to (5), 682 and 683 of ITA 2007 shall have effect in relation to |
| |
subsection (1) above as they have effect in relation to section 681(1) |
| 25 |
and (2) of that Act”, and |
| |
(b) | in paragraph (a) for “Chapter III of Part XVII of the Taxes Act” |
| |
substitute “Chapter 2 of Part 12 of that Act”. |
| |
305 | In section 101B(1)(a) (transfer of a company’s assets to VCT), for “section |
| |
842AA of the Taxes Act” substitute “Part 6 of ITA 2007”. |
| 30 |
306 | In section 101C(7) (transfer within group to VCT), for “section 842AA of the |
| |
Taxes Act” substitute “Part 6 of ITA 2007”. |
| |
307 (1) | Amend section 105A (shares acquired on the same day: elections for |
| |
alternative treatment) as follows. |
| |
| 35 |
(a) | after “Chapter 3 of Part 7 of the Taxes Act” insert “, relief under Part |
| |
| |
(b) | after “section 299 of the Taxes Act” insert “or section 246 of ITA |
| |
| |
(c) | for “of that Act” substitute “or subsection (3) of section 246”, and |
| 40 |
(d) | for “that section” substitute “section 299 or subsection (4) of section |
| |
| |
| |
(a) | after “Chapter 3 of Part 7 of the Taxes Act” insert “or relief under Part |
| |
| 45 |
(b) | for “that Act” substitute “the Taxes Act or section 245 of ITA 2007”, |
| |
| |
|
| |
|
| |
|
(c) | after “that Chapter” insert “or relief under that Part”. |
| |
(4) | After subsection (8) insert— |
| |
“(9) | In this section references to Part 5 of ITA 2007 or any provision of that |
| |
Part are to a Part or provision that applies only in relation to shares |
| |
issued after 5 April 2007.” |
| 5 |
308 | After section 125 insert— |
| |
| |
125A | Effect of share loss relief |
| |
(1) | If loss relief under section 573 of the Taxes Act or Chapter 6 of Part 4 |
| |
of ITA 2007 (“share loss relief”) is obtained in respect of a loss or any |
| 10 |
part of a loss, no deduction is to be made in respect of the loss or (as |
| |
the case may be) the part under this Act. |
| |
(2) | If a claim is made for share loss relief in respect of a loss accruing on |
| |
the disposal of shares, section 30 has effect in relation to the disposal |
| |
as if for the references in subsections (1)(b) and (5) to a tax-free |
| 15 |
benefit there were substituted references to any benefit whether tax- |
| |
| |
(3) | All such adjustments of corporation tax on chargeable gains or |
| |
capital gains tax are to be made, whether by way of assessment or by |
| |
way of discharge or repayment of tax, as may be required in |
| 20 |
| |
(a) | share loss relief being obtained in respect of an allowable loss, |
| |
| |
(b) | such relief not being obtained in respect of the whole or part |
| |
of such a loss in respect of which a claim is made.” |
| 25 |
309 | In section 148C(1) (deemed disposals at a loss under section 564(4) of |
| |
ITTOIA 2005) for “section 392 of ICTA” substitute “section 152 of ITA 2007”. |
| |
310 (1) | Amend section 150A (enterprise investment schemes) as follows. |
| |
(2) | In subsection (2) after “section 312 (1A)(a) of the Taxes Act” insert “or section |
| |
| 30 |
(3) | In subsection (3) for paragraphs (a), (aa) and (b) substitute— |
| |
“(a) | an individual’s liability to income tax has been reduced (or |
| |
treated by virtue of section 304 of the Taxes Act or section 245 |
| |
of ITA 2007 (spouses and civil partners) as reduced) for any |
| |
year of assessment under section 289A of the Taxes Act or |
| 35 |
section 158 of ITA 2007 in respect of any issue of shares, |
| |
(b) | the amount of the reduction (“A”) is less than the amount |
| |
(“B”) which is equal to tax at the savings rate for that year on |
| |
the amount subscribed for the issue, and |
| |
(c) | A is not found under section 289A(2)(b) of the Taxes Act or |
| 40 |
(as the case may require) is not within paragraph (b) solely by |
| |
virtue of section 29(2) and (3) of ITA 2007,”. |
| |
(4) | In subsection (4) after “the Taxes Act” insert “or as provided by section 246 |
| |
| |
|
| |
|
| |
|
(5) | In subsection (8B) for the words from “subsection (2)” to the end substitute |
| |
“section 306(2) of the Taxes Act or section 203(1) of ITA 2007 and in |
| |
accordance with section 306 of the Taxes Act or sections 204 and 205 of ITA |
| |
| |
(6) | In subsection (8C) after “Taxes Act” insert “or section 159(2) of ITA 2007”. |
| 5 |
| |
(a) | after “section 304A of the Taxes Act” insert “or section 247 of ITA |
| |
| |
(b) | for paragraph (b) substitute— |
| |
| 10 |
(i) | subsections (2)(b), (3) and (4) of section 304A |
| |
of the Taxes Act and subsection (5) of that |
| |
section so far as relating to section 306(2) of |
| |
| |
(ii) | sections 247(3)(b), 248(2)(a) and 249 of ITA |
| 15 |
| |
| shall apply for the purposes of this section as they |
| |
apply for the purposes of Chapter 3 of Part 7 of the |
| |
Taxes Act or Part 5 of ITA 2007.” |
| |
(8) | In subsection (10A) for “the same meaning as in the Taxes Act” substitute |
| 20 |
“the meaning given in section 923 of ITA 2007”. |
| |
| |
(a) | after “Taxes Act” insert “or Part 5 of ITA 2007”, and |
| |
(b) | after “that Chapter” insert “or means shares that meet the |
| |
requirements of section 173(2) of ITA 2007”. |
| 25 |
(10) | After subsection (12) insert— |
| |
“(13) | References in this section to Part 5 of ITA 2007 or any provision of |
| |
that Part are to a Part or provision that applies only in relation to |
| |
shares issued after 5 April 2007.” |
| |
311 (1) | Amend section 150B (enterprise investment scheme: reduction of relief) as |
| 30 |
| |
| |
(a) | after “section 300(1A)(a) of the Taxes Act” insert “or section 213(2)(a) |
| |
| |
(b) | for “that Act” substitute “the Taxes Act or section 224(2)(a) of ITA |
| 35 |
| |
(3) | In subsection (6) for “Subsections (11) and (12)” substitute “Subsections (11) |
| |
| |
312 | In section 150D (enterprise investment scheme: application of taper relief) |
| |
after “or” insert “relief under” and after “Taxes Act” insert “or Part 5 of ITA |
| 40 |
| |
313 | In section 151A(7) (venture capital trusts: reliefs) for “the meaning of the |
| |
Taxes Act” substitute “the meaning given in section 923 of ITA 2007”. |
| |
314 (1) | Amend section 151B (VCTs: supplementary) as follows. |
| |
| 45 |
|
| |
|
| |
|
(a) | in paragraph (a) for “been given” substitute “obtained” and for “Part |
| |
1 of Schedule 15B to the Taxes Act” substitute “Chapter 2 of Part 6 of |
| |
| |
(b) | in paragraphs (b) and (c) for “been given” substitute “obtained” and |
| |
for “that Part of that Schedule” substitute “that Chapter of that Part”. |
| 5 |
(3) | In subsection (6)(b) for “section 842AA(8) of the Taxes Act” substitute |
| |
“section 281(3) of ITA 2007”. |
| |
(4) | In subsection (8)(b) for “given” substitute “obtained” and for “Part 1 of |
| |
Schedule 15B to the Taxes Act” substitute “Chapter 2 of Part 6 of ITA 2007”. |
| |
315 | After section 151B insert— |
| 10 |
“151BA | CITR: identification of securities or shares on a disposal |
| |
(1) | This section applies for the purpose of identifying the securities or |
| |
shares disposed of in any case where— |
| |
(a) | an individual or company (“the investor”) disposes of part of |
| |
a holding of securities or shares (“the holding”), and |
| 15 |
(b) | the holding includes securities or shares to which CITR is |
| |
attributable in respect of one or more years of assessment or |
| |
accounting periods that have been held by the investor |
| |
continuously from the time they were issued until the |
| |
| 20 |
(2) | Any disposal by the investor of securities or shares included in the |
| |
holding which have been acquired by the investor on different days |
| |
is treated as relating to those acquired on an earlier day rather than |
| |
to those acquired on a later day. |
| |
(3) | If there is a disposal by the investor of securities or shares included |
| 25 |
in the holding which have been acquired by the investor on the same |
| |
day, any of those securities or shares— |
| |
(a) | to which CITR is attributable, and |
| |
(b) | which have been held by the investor continuously from the |
| |
time they were issued until the time of disposal, |
| 30 |
| are treated as disposed of after any other securities or shares |
| |
included in the holding which were acquired by the investor on that |
| |
| |
(4) | For the purposes of this section a holding of securities is any number |
| |
of securities of a company which— |
| 35 |
(a) | carry the same rights, |
| |
(b) | were issued under the same terms, and |
| |
(c) | are held by the investor in the same capacity. |
| |
| It does not matter for this purpose that the number of the securities |
| |
grows or diminishes as securities carrying those rights and issued |
| 40 |
under those terms are acquired or disposed of. |
| |
(5) | For the purposes of this section a holding of shares is any number of |
| |
shares in a company which— |
| |
(a) | are of the same class, and |
| |
(b) | are held by the investor in the same capacity. |
| 45 |
|
| |
|
| |
|
| It does not matter for this purpose that the number of the shares |
| |
grows or diminishes as shares of that class are acquired or disposed |
| |
| |
(6) | Chapter 1 of Part 4 (share pooling, etc) has effect subject to this |
| |
| 5 |
(7) | Sections 104 to 107 (which make provision for the identification of |
| |
securities and shares on a disposal) do not apply to securities or |
| |
shares to which CITR is attributable. |
| |
(8) | In a case to which section 127 (equation of original shares and new |
| |
holding) applies, shares included in the new holding are treated for |
| 10 |
the purposes of subsections (2) and (3) as acquired when the original |
| |
| |
| |
(a) | the reference to section 127 includes a reference to that |
| |
section as it is applied by virtue of any enactment relating to |
| 15 |
| |
(b) | “original shares” and “new holding” have the same meaning |
| |
as in section 127, or (as the case may be) that section as |
| |
applied by virtue of the enactment in question. |
| |
(10) | In this section and sections 151BB and 151BC— |
| 20 |
(a) | if the investor is an individual— |
| |
(i) | “CITR” has the meaning given by section 333 of ITA |
| |
| |
(ii) | references to CITR being attributable to securities, |
| |
shares or debentures are to be read in accordance with |
| 25 |
section 357 of that Act, and |
| |
(iii) | references to securities, shares or debentures having |
| |
been held by the investor continuously are to be read |
| |
in accordance with section 380 of that Act, |
| |
(b) | if the investor is a company— |
| 30 |
(i) | “CITR” means relief under Part 5 of Schedule 16 to |
| |
| |
(ii) | references to CITR being so attributable are to be read |
| |
in accordance with paragraph 26 of that Schedule, |
| |
| 35 |
(iii) | references to securities, shares or debentures having |
| |
been held by the investor continuously are to be read |
| |
in accordance with paragraph 49 of that Schedule. |
| |
316 | After section 151BA insert— |
| |
“151BB | CITR: rights issues etc |
| 40 |
| |
(a) | an individual or company (“the investor”) holds shares in the |
| |
CDFI which are of the same class and held in the same |
| |
capacity (“the existing holding”), |
| |
(b) | there is a reorganisation affecting the existing holding as a |
| 45 |
result of an allotment which— |
| |
|
| |
|
| |
|
(i) | falls within section 126(2)(a) (an allotment of shares or |
| |
debentures in respect of and in proportion to an |
| |
| |
(ii) | is not an allotment of corresponding bonus shares, |
| |
(c) | immediately after the reorganisation, CITR is attributable to |
| 5 |
the shares included in the existing holding or the shares or |
| |
debentures allotted in respect of those shares, in respect of |
| |
one or more years of assessment or accounting periods, and |
| |
(d) | if CITR is attributable to the shares included in the existing |
| |
holding at that time, those shares have been held by the |
| 10 |
investor continuously from the time they were issued until |
| |
| |
| sections 127 to 130 (treatment of share capital following a |
| |
reorganisation) do not apply in relation to the existing holding. |
| |
(2) | Section 116(10) (reorganisations, conversions and reconstructions) |
| 15 |
does not apply in any case where the old asset consists of shares held |
| |
(in the same capacity) by the investor— |
| |
(a) | that have been held by the investor continuously from the |
| |
time they were issued until the relevant transaction, and |
| |
(b) | to which CITR is attributable immediately before that |
| 20 |
| |
| In this subsection “old asset” and “the relevant transaction” have the |
| |
meaning given by section 116. |
| |
(3) | For the purposes of subsection (1)— |
| |
“corresponding bonus shares” means bonus shares that— |
| 25 |
(a) | are issued in respect of shares included in the existing |
| |
| |
(b) | are in the same company, are of the same class, and |
| |
carry the same rights as, those shares, |
| |
“reorganisation” has the meaning given in section 126. |
| 30 |
(4) | The following provisions of this Act have effect subject to this |
| |
| |
section 116 (reorganisations, conversions and reconstructions); |
| |
Chapter 2 of Part 4 (reorganisation of share capital, conversion |
| |
| 35 |
(5) | In this section “the CDFI” is to be read— |
| |
(a) | if the investor is an individual, in accordance with section |
| |
| |
(b) | if the investor is a company, in accordance with paragraph |
| |
1(2) of Schedule 16 to the Finance Act 2002.” |
| 40 |
317 | After section 151BB insert— |
| |
“151BC | CITR: company reconstructions etc |
| |
| |
(a) | an individual or company (“the investor”) holds shares in or |
| |
debentures of a company (“company A”), |
| 45 |
(b) | there is a reconstruction or amalgamation affecting that |
| |
holding (“the existing holding”), |
| |
|
| |
|