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House of Commons

Session 2006 - 07 Internet Publications Other Bills before Parliament

Income Tax Bill

Income Tax Bill xiii
Loss of relief
266    Loss of relief if shares disposed of within 5 years
267    Transfers of shares between spouses or civil partners
268    Loss of relief if VCT approval withdrawn
269    Loss of relief which is subsequently found not to have been due
270    Assessment on withdrawal or reduction of relief
Supplementary
271    Provision of information
272    Regulations as to procedure etc
273    Interpretation of Chapter
Chapter 3
VCT approvals
Giving of approval
274    Requirements for the giving of approval
275    Alternative requirements for the giving of approval
276    Conditions relating to income
277    The 15% holding limit condition
278    Conditions relating to value of investments: general
279    Conditions relating to value of investments: qualifying holdings
280    Conditions relating to qualifying holdings and eligible shares
Withdrawal of approval
281    Withdrawal of VCT approval of a company
282    Withdrawal of VCT approval in cases for which provision made under
section 280(3)
Supplementary
283    Time as from which VCT approval has effect
284    Power to make regulations as to procedure
285    Interpretation of Chapter
Chapter 4
Qualifying holdings
Introduction
286    Qualifying holdings: introduction
The requirements
287    The maximum qualifying investment requirement
288    The no guaranteed loan requirement
289    The proportion of eligible shares requirement
290    The trading requirement
291    The carrying on of a qualifying activity requirement
Income Tax Bill xiv
292    Ceasing to meet requirements because of administration or receivership
293    The use of the money raised requirement
294    The relevant company to carry on the relevant qualifying activity
requirement
295    The unquoted status requirement
296    The control and independence requirement
297    The gross assets requirement
298    The qualifying subsidiaries requirement
299    The property managing subsidiaries requirement
Definitions
300    Meaning of “qualifying trade”
301    Meaning of “qualifying 90% subsidiary”
302    Meaning of “qualifying subsidiary”
Excluded activities
303    Meaning of “excluded activities”
304    Excluded activities: wholesale and retail distribution
305    Excluded activities: leasing of ships
306    Excluded activities: receipt of royalties and licence fees
307    Excluded activities: property development
308    Excluded activities: hotels and comparable establishments
309    Excluded activities: nursing homes and residential care homes
310    Excluded activities: provision of services or facilities for another business
Supplementary
311    Power to amend Chapter
312    Winding up of the relevant company
313    Interpretation of Chapter
Chapter 5
Powers: winding up and mergers of VCTs
Winding up
314    Power to treat VCT-in-liquidation as VCT
315    Power to treat conditions for VCT approval as met with respect to VCT-in-
liquidation
316    Power to make provision about distributions by VCT-in-liquidation
317    Power to facilitate disposal to VCT by VCT-in-liquidation
318    Power in respect of periods before and after winding up
319    Sections 314 to 318: supplementary
320    Meaning of “VCT-in-liquidation”
Mergers
321    Power to facilitate mergers of VCTs
322    Provision that may be made by regulations under section 321
323    Meaning of “merger” and “successor company”
Income Tax Bill xv
Supplementary
324    Regulations under Chapter
325    Interpretation of Chapter
Chapter 6
Supplementary and general
Acquisitions for restructuring purposes
326    Restructuring to which section 327 applies
327    Certain requirements of Chapter 4 to be treated as met
328    Supplementary
Conversion of shares etc and company reorganisations
329    Conversion of convertible shares and securities
330    Power to facilitate company reorganisations etc involving exchange of shares
Supplementary
331    Meaning of a company being “in administration” or “in receivership”
332    Minor definitions etc
Part 7
Community investment tax relief
Chapter 1
Introduction
CITR
333    Meaning of “CITR”
334    Eligibility for CITR
335    Form and amount of CITR
Miscellaneous
336    Meaning of “making an investment”
337    Determination of “the invested amount”
338    Meaning of “the 5 year period” and “the investment date”
339    Overview of other Chapters of Part
Chapter 2
Accredited community development finance institutions
340    Application and criteria for accreditation
341    Terms and conditions of accreditation
342    Period of accreditation
343    Delegation of Secretary of State’s functions
Income Tax Bill xvi
Chapter 3
Qualifying investments
344    Qualifying investments: introduction
345    Conditions to be met in relation to loans
346    Conditions to be met in relation to securities
347    Conditions to be met in relation to shares
348    Tax relief certificates
349    No pre-arranged protection against risks
Chapter 4
General conditions
350    No control of CDFI by investor
351    Investor must have beneficial ownership
352    No acquisition of share in partnership
353    No tax avoidance purpose
Chapter 5
Claims for and attribution of CITR
Claims
354    Loans: no claim after disposal or excessive repayments or receipts of value
355    Securities or shares: no claim after disposal or excessive receipts of value
356    No claim after loss of accreditation by the CDFI
Attribution
357    Attribution: general
358    Attribution: bonus shares
Chapter 6
Withdrawal or reduction of CITR
Introduction
359    Overview of Chapter
Disposals
360    Disposal of loan during 5 year period
361    Disposal of securities or shares during 5 year period
Repayment of loans
362    Repayment of loan capital during 5 year period
Income Tax Bill xvii
Receipts of value
363    Value received by investor during 6 year period: loans
364    Value received by investor during 6 year period: securities or shares
365    Receipts of insignificant value to be added together
366    When value is received
367    The amount of value received
368    Value received if there is more than one investment
369    Effect of receipt of value on future claims for CITR
370    Receipts of value by or from connected persons
CITR not due
371    CITR subsequently found not to have been due
Manner of withdrawal or reduction
372    Manner of withdrawal or reduction of CITR
Chapter 7
Supplementary and general
Miscellaneous
373    Information to be provided by the investor
374    Disclosure
375    Nominees
376    Application for postponement of tax pending appeal
377    Identification of securities or shares on a disposal
Definitions
378    Meaning of “issue of securities or shares”
379    Meaning of “disposal”
380    Construction of references to being “held continuously”
381    Meaning of “associate”
382    Minor definitions etc
Part 8
Other reliefs
Chapter 1
Interest payments
The relief: introduction
383    Relief for interest payments
384    General restrictions on relief under Chapter
385    General provisions about loans
386    Loans partly meeting requirements
387    Exclusion of double relief etc
Income Tax Bill xviii
Loans for plant or machinery
388    Loan to buy plant or machinery for partnership use
389    Eligibility requirements for interest on loans within section 388
390    Loan to buy plant or machinery for employment use
391    Eligibility requirements for interest on loans within section 390
Loans for interests in close companies
392    Loan to buy interest in close company
393    Eligibility requirements for interest on loans within section 392
394    Meaning of “material interest” in section 393
395    Meaning of “associate” in section 394
Loans for interests in employee-controlled companies
396    Loan to buy interest in employee-controlled company
397    Eligibility requirements for interest on loans within section 396
Loans for investing in partnerships
398    Loan to invest in partnership
399    Eligibility requirements for interest on loans within section 398
400    Film partnerships
Loans for investing in co-operatives
401    Loan to invest in co-operative
402    Eligibility requirements for interest on loans within section 401
Loans for paying inheritance tax
403    Loan to pay inheritance tax
404    Eligibility requirements for interest on loans within section 403
405    Carry back and forward of relief for interest on loans within section 403
General and supplementary
406    Effect of recovery of capital in the case of some loans
407    Events counting as recovery of capital for section 406
408    Replacement loans
409    Business successions between partnerships
410    Other business successions and reorganisations
411    Ineligibility of interest where business is occupation of commercial
woodlands
412    Information
Chapter 2
Gift aid
The relief
413    Overview of Chapter
414    Relief for gifts to charity
Income Tax Bill xix
415    Meaning of “grossed up amount”
416    Meaning of “qualifying donation”
417    Meaning of “benefits associated with a gift”
Restrictions on associated benefits
418    Restrictions on associated benefits
419    Gifts and benefits linked to periods of less than 12 months
Admission rights
420    Disregard of certain admission rights
421    Admission rights: supplementary
Disqualified overseas gifts
422    Disqualified overseas gifts
Measures to ensure donor’s liability not less than tax treated as deducted
423    Restriction of certain reliefs
424    Charge to tax
425    Total amount of income tax to which individual charged for a tax year
Election to carry back relief
426    Election by donor: gift treated as made in previous tax year
Supplementary
427    Meaning of “charged amount”
428    Meaning of “gift aid declaration”
429    Giving through self-assessment return
430    “Charity” to include exempt bodies
Chapter 3
Gifts of shares, securities and real property to charities etc
Entitlement to relief
431    Relief for gifts of shares, securities and real property to charities etc
432    Meaning of “qualifying investment”
433    Meaning of “qualifying interest in land”
Amount of relief
434    The relievable amount
435    Incidental costs of making disposal
436    Consideration
Value of net benefit to charity
437    Value of net benefit to charity

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