|
| |
|
in section 660(1) also acquired the securities with the right to receive unrealised |
| |
| |
(2) | The amount of the reduction depends on whether subsection (3) applies. |
| |
(3) | This subsection applies if— |
| |
(a) | T has received, as transferee, some or all of that unrealised interest, and |
| 5 |
(b) | T is liable for income tax on it for the tax year in which it was received. |
| |
(4) | If subsection (3) applies, the reduction is equal to the value on the day of the |
| |
transfer to T of the right to receive the unrealised interest (“the earlier value”) |
| |
less the total so received. |
| |
(5) | If subsection (3) does not apply, the reduction is equal to the earlier value. |
| 10 |
(6) | But if the reduction under subsection (4) or (5) exceeds the amount mentioned |
| |
in subsection (1), that amount is treated as reduced to nil. |
| |
662 | New securities issued with extra return: special rules about payments |
| |
(1) | In the case of a transfer treated as made under section 649 (new securities |
| |
issued with extra return), the amount of the payment treated as made under |
| 15 |
section 632(1) (payment on transfer with accrued interest) is not determined |
| |
under section 632(2) to (5). |
| |
(2) | Instead, that amount depends on whether under the issue arrangements the |
| |
person to whom the new securities are issued accounts to the issuer |
| |
| 20 |
(a) | for the extra return, and |
| |
(b) | for the rest of the issue price. |
| |
(3) | If the person does account for them separately, the amount of the payment is |
| |
the amount of the extra return separately accounted for. |
| |
(4) | If the person does not account for them separately, the amount of the payment |
| 25 |
is an amount equal to—![equation: cross[char[I],over[char[A],char[B]]]](missing.gif) |
| |
| |
I is the interest payable on the new securities on the first interest payment |
| |
day after the new issue day (“the payment day”), |
| |
A is the number of days in the relevant period, and |
| 30 |
B is the number of days in the period beginning with the first day of the |
| |
relevant period and ending with the payment day. |
| |
(5) | Subsection (4) is subject to section 659 (transfers with or without accrued |
| |
interest: interest in default). |
| |
(6) | In this section “the extra return”, “the new issue day”, “new securities” and “the |
| 35 |
relevant period” have the same meaning as in section 649. |
| |
663 | Transfers without accrued interest to makers of manufactured payments |
| |
(1) | This section applies if— |
| |
|
| |
|
| |
|
(a) | the manufactured payments conditions are met (see section 647(2)), |
| |
| |
(b) | the nominal value of the securities subject to the seller’s contract is less |
| |
than that of the securities transferred to the seller. |
| |
(2) | The amount of the payment treated as made to the seller under section 633 on |
| 5 |
the transfer of the securities to the seller is reduced. |
| |
(3) | The reduction is by so much of that amount as is attributable to securities (“the |
| |
matched securities”) of a nominal value equal to that of the securities subject to |
| |
| |
(4) | If there is more than one transfer of securities to the seller, those transferred to |
| 10 |
the seller earlier are treated as the matched securities before those transferred |
| |
| |
(5) | In this section “the seller” and “the seller’s contract” have the same meaning as |
| |
| |
(6) | For cases where subsection (1)(b) does not apply, see section 647(3) (under |
| 15 |
which the seller is treated as an excluded transferee). |
| |
664 | Foreign currency securities: sterling equivalent of payments on transfers |
| |
(1) | The sterling equivalent of the amount of the payment treated as made on a |
| |
transfer of securities is determined in accordance with this section if interest on |
| |
the securities is payable in a currency other than sterling (“a foreign currency”). |
| 20 |
(2) | If the payment is determined under section 632(3), 633(3) or 662(3) (transfers |
| |
under an arrangement by which interest is accounted for separately), the |
| |
amount of the payment depends on whether the sterling equivalent of the |
| |
interest separately accounted for is shown in an agreement for transfer. |
| |
(3) | If the sterling equivalent is so shown, the amount of the payment is taken to be |
| 25 |
that sterling equivalent. |
| |
(4) | If the sterling equivalent is not so shown, the amount is taken to be the sterling |
| |
equivalent on the settlement day of the interest separately accounted for. |
| |
(5) | If the amount of the payment treated as made is determined under any other |
| |
provision (except section 660 (transfers with unrealised interest: interest in |
| 30 |
default)), the amount is taken to be its sterling equivalent on the settlement |
| |
| |
(6) | For the purposes of this section, the sterling equivalent of an amount or value |
| |
in a foreign currency is to be calculated by reference to the London closing rate |
| |
of exchange for the day concerned. |
| 35 |
665 | Foreign currency securities: unrealised interest payable in foreign currency |
| |
(1) | This section applies if unrealised interest is payable in a currency other than |
| |
sterling (“a foreign currency”). |
| |
(2) | For the purposes of section 631(1) (amount of accrued income profits where |
| |
settlement day outside interest period) the amount of the unrealised interest is |
| 40 |
taken to be its sterling equivalent on the settlement day. |
| |
(3) | For the purposes of sections 660 (transfers with unrealised interest: interest in |
| |
default) and 661 (successive transfers with unrealised interest in default), the |
| |
|
| |
|
| |
|
value on any day of the right to receive unrealised interest is the sterling |
| |
equivalent on that day of that value in the foreign currency. |
| |
(4) | For the purposes of those sections unrealised interest received in a foreign |
| |
currency is taken to be the sterling equivalent on the day of receipt of the |
| |
| 5 |
(5) | For the purposes of this section, the sterling equivalent of an amount or value |
| |
in a foreign currency is to be calculated by reference to the London closing rate |
| |
of exchange for the day concerned. |
| |
| |
666 | Certain transfers by or to nominees or trustees treated as made by or to others |
| 10 |
(1) | Transfers of securities by or to a person as nominee for another person (“A”) |
| |
are treated for the purposes of this Chapter as transfers by or to A. |
| |
(2) | Transfers of securities by or to a person (“T”) as trustee for another person (“B”) |
| |
are treated for the purposes of this Chapter as transfers by or to B if B is |
| |
absolutely entitled as against T. |
| 15 |
(3) | For the purposes of subsection (2) where T is the transferor, B is absolutely |
| |
entitled as against T if immediately before the transfer B has the exclusive right |
| |
to direct how the securities are to be dealt with. |
| |
(4) | For the purposes of subsection (2) where T is the transferee, B is absolutely |
| |
entitled as against T if immediately after the transfer B has that exclusive right. |
| 20 |
(5) | For the purposes of subsections (3) and (4), a right to direct how securities are |
| |
to be dealt with is treated as an exclusive right despite being subject to |
| |
satisfying any outstanding charge, lien or other right of the trustee to resort to |
| |
the securities for payment of duty, taxes, costs or other outgoings. |
| |
(6) | Subsection (1) applies to a transfer of securities by or to a person as nominee |
| 25 |
for two or more persons as it applies to a transfer of securities by or to a person |
| |
as nominee for one person, taking the references to A as references to the two |
| |
| |
(7) | This section applies to a transfer of securities by or to a person as trustee for |
| |
two or more persons as it applies to a transfer of securities as trustee for one |
| 30 |
| |
(a) | the references to B as references to the two or more persons, and |
| |
(b) | the references to B being absolutely entitled as references to the two or |
| |
more persons being jointly absolutely entitled. |
| |
(8) | The fact that a person is an infant or otherwise lacks legal capacity is to be |
| 35 |
disregarded in determining for the purposes of this section whether the person |
| |
is absolutely entitled as against T. |
| |
667 | Trustees’ accrued income profits treated as settlement income |
| |
(1) | If the trustees of a settlement are treated as making qualifying accrued income |
| |
profits, those profits are to be taken to be income arising under the settlement |
| 40 |
for the purposes of Chapter 5 of Part 5 of ITTOIA 2005 (settlements: amounts |
| |
treated as income of settlor). |
| |
|
| |
|
| |
|
(2) | Subsection (3) applies if the trustees of a settlement— |
| |
(a) | are non-UK resident or domiciled outside the United Kingdom |
| |
throughout a tax year in which an interest period or part of an interest |
| |
| |
(b) | would have been treated as making an amount or an additional amount |
| 5 |
of qualifying accrued income profits in the interest period if the trustees |
| |
had been UK resident or domiciled in the United Kingdom during a |
| |
part of each such tax year. |
| |
(3) | The amount or additional amount of qualifying accrued income profits that the |
| |
trustees would have been treated as making is to be taken to be income arising |
| 10 |
under the settlement for the purposes of Chapter 5 of Part 5 of ITTOIA 2005. |
| |
| |
(a) | “qualifying accrued income profits” means accrued income profits |
| |
which are treated as made— |
| |
(i) | under section 628(5), or |
| 15 |
(ii) | under section 630(2) in respect of a transfer of variable rate |
| |
| |
(b) | in any case where there are no trustees of a settlement, references to |
| |
such trustees are to any persons entitled to securities comprised in the |
| |
| 20 |
(5) | In the case of qualifying accrued income profits within subsection (4)(a)(ii)— |
| |
(a) | the reference in subsection (2)(a) to an interest period is to the period— |
| |
(i) | beginning with the day after the last day of the only or last |
| |
interest period of the securities, and |
| |
(ii) | ending with the settlement day, and |
| 25 |
(b) | the reference in subsection (2)(b) to making qualifying accrued income |
| |
profits in the interest period is to be read as making them in the tax year |
| |
in which settlement day falls. |
| |
Relief where transfer proceeds unremittable |
| |
668 | Relief for unremittable transfer proceeds: general |
| 30 |
(1) | This section applies if— |
| |
(a) | a person is liable for income tax on accrued income profits, |
| |
(b) | the profits are calculated by reference to payments treated as made to |
| |
the person in an interest period, |
| |
(c) | the payments are so treated as a result of the person making transfers |
| 35 |
of foreign securities of a particular kind, and |
| |
(d) | the proceeds of the transfers are unremittable in the tax year. |
| |
(2) | If the person makes a claim for relief under this section— |
| |
(a) | the profits are reduced by the amount of the payments treated as made |
| |
| 40 |
(b) | if that amount exceeds the profits, the profits are reduced to nil. |
| |
(3) | But see section 670 (withdrawal of relief). |
| |
(4) | In this section and section 669 “foreign securities” means securities which are |
| |
situated outside the United Kingdom. |
| |
|
| |
|
| |
|
(5) | For the purposes of this section and sections 669 and 670, proceeds of transfers |
| |
of foreign securities are unremittable in relation to a person if the person is |
| |
prevented from transferring them to the United Kingdom because of— |
| |
(a) | the laws of the territory where the securities are situated, |
| |
(b) | executive action of its government, or |
| 5 |
(c) | the impossibility of obtaining there currency that could be transferred |
| |
| |
(6) | For the purposes of this section the place where securities are situated is to be |
| |
determined in accordance with sections 275(1) and (2)(b) and 275C of TCGA |
| |
| 10 |
(7) | Any claim under this section must be made on or before the fifth anniversary |
| |
of the normal self-assessment filing date for the tax year for which the profits |
| |
would be chargeable to tax if no claim were made. |
| |
(8) | A person’s personal representatives may make any claim under this section |
| |
which the person might have made. |
| 15 |
669 | Relief for unremittable transfer proceeds: section 630 profits |
| |
(1) | This section applies if— |
| |
(a) | a person is liable for income tax on accrued income profits within |
| |
section 630(2) (making accrued income profits: settlement day outside |
| |
| 20 |
(b) | the person is so liable as a result of making transfers of foreign |
| |
securities of a particular kind, and |
| |
(c) | the proceeds of the transfers are unremittable in the tax year. |
| |
(2) | If the person makes a claim for relief under this section the profits are reduced |
| |
| 25 |
(3) | But see section 670 (withdrawal of relief). |
| |
(4) | Any claim under this section must be made on or before the fifth anniversary |
| |
of the normal self-assessment filing date for the tax year for which the profits |
| |
would be chargeable to tax if no claim were made. |
| |
(5) | A person’s personal representatives may make any claim under this section |
| 30 |
which the person might have made. |
| |
| |
(1) | This section applies if— |
| |
(a) | a claim under section 668(2) or 669(2) has been made in relation to |
| |
| 35 |
(b) | the proceeds of the transfers cease to be unremittable. |
| |
(2) | The claimant is treated as making accrued income profits of an amount equal |
| |
to the reduction under that section. |
| |
(3) | If the claimant has died, the claimant’s personal representatives are so treated. |
| |
|
| |
|