|
| |
|
(b) | for “charity”, in both places where it occurs, substitute “charitable |
| |
| |
(c) | in paragraph (a) for “charity’s” substitute “charitable company’s”, |
| |
| |
(d) | in that paragraph for “chargeable” substitute “accounting”. |
| 5 |
(6) | In subsection (4)(b)— |
| |
(a) | for “charity’s” substitute “charitable company’s”, and |
| |
(b) | for “chargeable” substitute “accounting”. |
| |
(7) | In subsection (5) for “a chargeable” substitute “an accounting”. |
| |
| 10 |
(a) | in the appropriate place insert— |
| |
““charitable company” means any body of persons |
| |
established for charitable purposes only;”, |
| |
(b) | omit the definition of “charity”, |
| |
(c) | in the definition of “gross income”, for “charity” substitute |
| 15 |
“charitable company”, and |
| |
(d) | in the definition of “income”— |
| |
(i) | for “charity” substitute “charitable company”, and |
| |
(ii) | omit paragraph (a) and the “or” at the end of that paragraph. |
| |
(9) | In subsection (7) omit the words from “for the year” to “companies,”. |
| 20 |
390 (1) | Amend Schedule 15 (the corporate venturing scheme) as follows. |
| |
(2) | In paragraph 16(4) (the unquoted status requirement) after “Taxes Act 1988” |
| |
insert “or section 184(3) of ITA 2007”. |
| |
(3) | In paragraph 55(4) (provision supplementary to paragraph 54) after “Taxes |
| |
Act 1988” insert “or Part 5 of ITA 2007”. |
| 25 |
(4) | In paragraph 56(3) (value received by other persons)— |
| |
(a) | after “Taxes Act 1988”, in the first place where it occurs, insert “or |
| |
| |
(b) | for “section 299 of that Act” substitute “section 299 of the Taxes Act |
| |
1988 or section 209 of ITA 2007”, |
| 30 |
(c) | for “section 300(2)(a) of that Act” substitute “section 300(2)(a) of the |
| |
Taxes Act 1988 or section 216(2)(a) of ITA 2007”, and |
| |
(d) | after “section 300 of the Taxes Act 1988” insert “, section 214 of ITA |
| |
| |
(5) | In paragraph 102 (minor definitions etc) after sub-paragraph (8) insert— |
| 35 |
“(9) | References in this Schedule 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.” |
| |
391 | In paragraph 41 of Schedule 22 (tonnage tax: the requirement not to enter |
| |
into tax avoidance arrangements) for sub-paragraph (3) substitute— |
| 40 |
“(3) | In this paragraph “tax advantage” has the meaning given by section |
| |
840ZA of the Taxes Act 1988.” |
| |
|
| |
|
| |
|
Capital Allowances Act 2001 (c.2) |
| |
392 | The Capital Allowances Act 2001 is amended as follows. |
| |
393 (1) | Amend section 4 (capital expenditure) as follows. |
| |
(2) | In subsection (4) for “section 348 or 349(1) of ICTA (annual payments)” |
| |
substitute “Chapter 6 of Part 14 of ITA 2007 (deduction from annual |
| 5 |
payments or patent royalties) or under section 839 of that Act (certain |
| |
royalties etc where usual place of abode of owner is abroad)”. |
| |
| |
394 | In section 70V(4) (tax avoidance involving international leasing) for |
| |
“Chapter 1” to the end substitute “section 840ZA of ICTA”. |
| 10 |
395 | Omit section 70YI(4) (application of section 839 of ICTA). |
| |
396 | In section 138(2)(b) (limit on amount deferred) for “section 385 or” substitute |
| |
“section 83 of ITA 2007 or section”. |
| |
397 | In section 156(1)(a) and (c) (connected persons) for “section 839 of ICTA” |
| |
substitute “section 575”. |
| 15 |
398 | In section 220(8)(a) (allocation of expenditure to a chargeable period) omit “, |
| |
within the meaning of section 840 of ICTA”. |
| |
399 | In section 232(1)(a) (meaning of connected person) for “section 839 of ICTA” |
| |
substitute “section 575”. |
| |
400 | In section 258 (special leasing: income tax) after subsection (3) insert— |
| 20 |
“(3A) | The allowance or (as the case may be) the proportionate part of the |
| |
allowance is given effect at Step 2 of the calculation in section 23 of |
| |
| |
401 | In section 266(5)(a) (election where predecessor and successor are connected |
| |
persons) for “section 839 of ICTA” substitute “section 575”. |
| 25 |
402 | In section 355 (buildings for miners etc: carry-back of allowances) after |
| |
| |
“(2A) | For income tax purposes the allowance is given effect at Step 2 of the |
| |
calculation in section 23 of ITA 2007.” |
| |
403 | In section 437 (research and development allowances) for subsection (2) |
| 30 |
| |
“(2) | In this Part “research and development”— |
| |
(a) | means activities that fall to be treated as research and |
| |
development in accordance with generally accepted |
| |
| 35 |
(b) | includes oil and gas exploration and appraisal. |
| |
| |
(a) | activities that, as a result of regulations made under section |
| |
940 of ITA 2007, are “research and development” for the |
| |
purposes of that section are also “research and development” |
| 40 |
for the purposes of this Part, and |
| |
|
| |
|
| |
|
(b) | activities that, as a result of any such regulations, are not |
| |
“research and development” for the purposes of that section |
| |
are also not “research and development” for the purposes of |
| |
| |
404 | In section 479 (persons having qualifying non-trade expenditure: income |
| 5 |
tax) after subsection (2) insert— |
| |
“(2A) | The allowance is given effect at Step 2 of the calculation in section 23 |
| |
| |
405 | At the beginning of Chapter 6 of Part 12 insert— |
| |
| 10 |
570B | Orders and regulations made by Treasury or Commissioners |
| |
(1) | Any orders or regulations made by the Treasury or the |
| |
Commissioners for Her Majesty’s Revenue and Customs under this |
| |
Act must be made by statutory instrument. |
| |
(2) | Any orders or regulations made by the Treasury or the |
| 15 |
Commissioners under this Act are subject to annulment in |
| |
pursuance of a resolution of the House of Commons. |
| |
(3) | Subsection (2) does not apply to any order made under section |
| |
| |
406 | In section 574(1) at the end insert “(but, for the purposes of section 575, this |
| 20 |
definition applies only where expressly indicated)”. |
| |
407 | For section 575 (connected persons) substitute— |
| |
“575 | Meaning of “connected” persons |
| |
(1) | For the purposes of this Act whether a person is connected with |
| |
another is determined in accordance with this section unless |
| 25 |
| |
(2) | An individual (“A”) is connected with another individual (“B”) if— |
| |
(a) | A is B’s spouse or civil partner, |
| |
(b) | A is a relative of B, |
| |
(c) | A is the spouse or civil partner of a relative of B, |
| 30 |
(d) | A is a relative of B’s spouse or civil partner, or |
| |
(e) | A is the spouse or civil partner of a relative of B’s spouse or |
| |
| |
(3) | A person, in the capacity as trustee of a settlement, is connected |
| |
| 35 |
(a) | any individual who is a settlor in relation to the settlement, |
| |
(b) | any person connected with such an individual, |
| |
(c) | any close company whose participators include the trustees |
| |
| |
(d) | any non-UK resident company which, if it were UK resident, |
| 40 |
would be a close company whose participators include the |
| |
trustees of the settlement, |
| |
|
| |
|
| |
|
(e) | any body corporate controlled (within the meaning of section |
| |
574) by a company within paragraph (c) or (d), |
| |
(f) | if the settlement is the principal settlement in relation to one |
| |
or more sub-fund settlements, a person in the capacity as |
| |
trustee of such a sub-fund settlement, and |
| 5 |
(g) | if the settlement is a sub-fund settlement in relation to a |
| |
principal settlement, a person in the capacity as trustee of any |
| |
other sub-fund settlements in relation to the principal |
| |
| |
(4) | A person who is a partner in a partnership is connected with— |
| 10 |
(a) | any partner in the partnership, |
| |
(b) | the spouse or civil partner of any individual who is a partner |
| |
| |
(c) | a relative of any individual who is a partner in the |
| |
| 15 |
| But this subsection does not apply in relation to acquisitions or |
| |
disposals of assets of the partnership pursuant to genuine |
| |
| |
(5) | A company is connected with another company if— |
| |
(a) | the same person has control of both companies, |
| 20 |
(b) | a person (“A”) has control of one company and persons |
| |
connected with A have control of the other company, |
| |
(c) | A has control of one company and A together with persons |
| |
connected with A have control of the other company, or |
| |
(d) | a group of two or more persons has control of both |
| 25 |
companies and the groups either consist of the same persons |
| |
or could be so regarded if (in one or more cases) a member of |
| |
either group were replaced by a person with whom the |
| |
| |
(6) | A company is connected with another person (“A”) if— |
| 30 |
(a) | A has control of the company, or |
| |
(b) | A together with persons connected with A have control of the |
| |
| |
(7) | In relation to a company, any two or more persons acting together to |
| |
secure or exercise control of the company are connected with— |
| 35 |
| |
(b) | any person acting on the directions of any of them to secure |
| |
or exercise control of the company. |
| |
575A | Section 575: supplementary |
| |
(1) | In section 575 and this section— |
| 40 |
“company” includes any body corporate or unincorporated |
| |
association, but does not include a partnership (and see also |
| |
| |
“control” is to be read in accordance with section 416 of ICTA |
| |
(except where otherwise indicated), |
| 45 |
“principal settlement” has the meaning given by paragraph 1 of |
| |
Schedule 4ZA to TCGA 1992, |
| |
“relative” means brother, sister, ancestor or lineal descendant, |
| |
|
| |
|
| |
|
“settlement” has the same meaning as in Chapter 5 of Part 5 of |
| |
ITTOIA 2005 (see section 620 of that Act), and |
| |
“sub-fund settlement” has the meaning given by paragraph 1 of |
| |
Schedule 4ZA to TCGA 1992. |
| |
(2) | For the purposes of section 575— |
| 5 |
(a) | a unit trust scheme is treated as if it were a company, and |
| |
(b) | the rights of the unit holders are treated as if they were shares |
| |
| |
(3) | For the purposes of section 575 “trustee”, in the case of a settlement |
| |
in relation to which there would be no trustees apart from this |
| 10 |
subsection, means any person— |
| |
(a) | in whom the property comprised in the settlement is for the |
| |
| |
(b) | in whom the management of that property is for the time |
| |
| 15 |
| Section 466(4) of ITA 2007 does not apply for the purposes of this |
| |
| |
(4) | If any provision of section 575 provides that a person (“A”) is |
| |
connected with another person (“B”), it also follows that B is |
| |
| 20 |
408 | In section 577(1) (other definitions)— |
| |
(a) | omit the definition of “tax year”, and |
| |
(b) | omit the definition of “the tax year 2001-02”. |
| |
409 (1) | Amend Schedule 1 (abbreviations and defined expressions) as follows. |
| |
(2) | In Part 1 in the appropriate place insert— |
| 25 |
| | The Income Tax Act 2007”. |
| | |
|
| |
(a) | in the entry for “body of persons”, in the second column, before |
| |
“section 832(1) of ICTA” insert “section 923 of ITA 2007 and”, |
| |
(b) | in the entry for “connected persons (general meaning)”, in the second |
| 30 |
column, for “section 575(1)” substitute “section 575”, |
| |
(c) | in the entry for “offshore installation”, in the second column, before |
| |
“section 837C of ICTA” insert “sections 935 and 936 of ITA 2007 and”, |
| |
(d) | in the entry for “overseas property business”, in the second column, |
| |
at the end insert “(as applied by section 923 of ITA 2007)”, |
| 35 |
(e) | in the entry for “research and development”, in the second column, |
| |
for “437(2) and section 837A of ICTA” substitute “437(2) and (3)”, |
| |
(f) | in the entry for “Schedule A business”, in the second column, before |
| |
“section 832(1) of ICTA” insert “section 923 of ITA 2007 and”, |
| |
(g) | in the entry for “tax year”, in the second column, for “section 577(1)” |
| 40 |
substitute “section 4(2) of ITA 2007 (as applied by section 923 of that |
| |
| |
(h) | in the entry for “UK property business”, in the second column, omit |
| |
“section 832(1) of ICTA and” and at the end insert “(as applied by |
| |
section 923 of ITA 2007)”, |
| 45 |
|
| |
|
| |
|
(i) | in the entry for “United Kingdom”, in the second column, for |
| |
“section 830 of ICTA and section 41 of ITEPA 2003” substitute |
| |
“section 947 of ITA 2007 and section 830(1) of ICTA”, and |
| |
(j) | in the entry for “within the charge to tax”, in the second column, |
| |
before “section 832(1) of ICTA” insert “section 943 of ITA 2007 and”. |
| 5 |
| |
410 | The Finance Act 2002 is amended as follows. |
| |
| |
412 | In section 142 (interpretation) at the end insert “, and “ITA 2007” means the |
| |
| 10 |
413 | In paragraph 19 of Schedule 12 (tax relief for expenditure on research and |
| |
development) for sub-paragraph (2) substitute— |
| |
“(2) | For the purposes of this Schedule whether a person is connected |
| |
with another is determined in accordance with section 839 of the |
| |
| 15 |
414 | In paragraph 27 of Schedule 13 (tax relief for expenditure on vaccine |
| |
research etc) for sub-paragraph (2) substitute— |
| |
“(2) | For the purposes of this Schedule whether a person is connected |
| |
with another is determined in accordance with section 839 of the |
| |
| 20 |
415 (1) | Amend Schedule 16 (community investment tax relief) as follows. |
| |
(2) | In paragraph 1(1), for “An individual or company” substitute “A company”. |
| |
| |
(a) | in sub-paragraph (1), for “person” substitute “company” and for |
| |
“he”, in both places where it occurs, and “him” substitute “it”, and |
| 25 |
(b) | in sub-paragraph (2), for “person”, in each place where it occurs, |
| |
| |
(4) | For paragraphs 4 to 7 substitute— |
| |
“Application of Chapter 2 of Part 7 of ITA 2007 |
| |
4 (1) | Chapter 2 of Part 7 of ITA 2007 applies for the purposes of this |
| 30 |
Schedule as it applies for the purposes of that Part. |
| |
(2) | Chapter 2 of Part 7 of that Act makes provision with respect to— |
| |
(a) | applications and criteria for accreditation as community |
| |
development finance institutions (see section 340), |
| |
(b) | the terms and conditions of accreditation (see section 341), |
| 35 |
(c) | the period of accreditation (see section 342), and |
| |
(d) | the delegation of the Secretary of State’s functions under |
| |
that Chapter (see section 343). |
| |
(3) | In this Schedule “accreditation period” has the meaning given by |
| |
section 342(1) of ITA 2007.” |
| 40 |
(5) | In paragraph 9(5), for “person” substitute “company”. |
| |
|
| |
|
| |
|
(6) | For paragraph 12(2) substitute— |
| |
“(2) | The CDFI must not issue tax relief certificates in respect of |
| |
investments made in the CDFI in an accreditation period if the |
| |
| |
(a) | those investments, and |
| 5 |
(b) | any investments to which sub-paragraph (2A) applies, |
| |
| will exceed the limit for that period. |
| |
(2A) | This sub-paragraph applies to investments which— |
| |
(a) | have been made in the CDFI in the accreditation period, |
| |
| 10 |
(b) | in respect of which the CDFI has issued tax relief |
| |
certificates under section 348 of ITA 2007 (which makes in |
| |
relation to income tax provision corresponding to that |
| |
| |
(2B) | The limit for an accreditation period is— |
| 15 |
(a) | £10 million if the CDFI is accredited for the period as a |
| |
retail community development finance institution (see |
| |
section 340(8) of ITA 2007 as applied by paragraph 4), and |
| |
(b) | £20 million in any other case.” |
| |
| 20 |
(a) | in sub-paragraph (4), for “he” substitute “it” and for “his” substitute |
| |
| |
(b) | in sub-paragraph (6), for “his” substitute “its”. |
| |
| |
(9) | In paragraph 20(1), omit paragraph (a). |
| 25 |
| |
(a) | in sub-paragraph (2), omit “tax year or”, in each place where it |
| |
| |
(b) | in sub-paragraph (3), for “a tax year or” substitute “an”. |
| |
(11) | In paragraph 22(1) and (2), for “a tax year or” substitute “an” and for “that |
| 30 |
year or period” substitute “that period”. |
| |
| |
(a) | in sub-paragraph (1), for “a tax year or” substitute “an” and, in |
| |
paragraph (b), omit “tax year or”, |
| |
(b) | in sub-paragraph (2), for “a tax year or” substitute “an” and for “that |
| 35 |
year or period” substitute “that period”, and |
| |
(c) | in sub-paragraph (3), for “a tax year or” substitute “an” and for “that |
| |
year or period” substitute “that period”. |
| |
| |
(a) | in sub-paragraph (1), omit “tax year or” in both places where it |
| 40 |
| |
(b) | in sub-paragraph (2)— |
| |
(i) | omit “tax year or” in both places where it occurs, and |
| |
(ii) | in paragraph (b), omit “year or” in both places where it |
| |
| 45 |
|
| |
|