|
| |
|
(4) | Subsection (6) applies if— |
| |
(a) | an officer of Revenue and Customs requires the trustees of a |
| |
charitable trust to make a specification under this section, |
| |
| |
(b) | the trustees have not given notice under subsection (3) of the |
| 5 |
specification before the end of the required period. |
| |
(5) | The required period is 30 days beginning with the day on which the |
| |
officer made the requirement. |
| |
(6) | An officer of Revenue and Customs may determine the attributable |
| |
gains that are to be attributed to the non-exempt amount.” |
| 10 |
328 | In section 257 (gifts to charities etc) after subsection (2) insert— |
| |
“(2A) | Subsection (2B) applies if relief is available under Chapter 3 of Part 8 |
| |
of ITA 2007 or section 587B of the Taxes Act (gifts of shares, securities |
| |
and real property to charities) in relation to the disposal of a |
| |
qualifying investment to a charity (whether or not a claim for relief |
| 15 |
| |
(2B) | The consideration for which the charity’s acquisition of the |
| |
qualifying investment is treated by virtue of subsection (2) above as |
| |
| |
(a) | is reduced by the relievable amount if relief in relation to the |
| 20 |
disposal is available only under Chapter 3 of Part 8 of ITA |
| |
| |
(b) | is reduced by the relevant amount if relief in relation to the |
| |
disposal is available only under section 587B of the Taxes Act, |
| |
(c) | is reduced by the relievable amount if relief in relation to the |
| 25 |
disposal is available both under that Chapter and that section |
| |
as a result of section 442 of ITA 2007 and section 587BA of the |
| |
| |
(d) | is reduced to nil if that consideration is less than the amount |
| |
referred to in paragraph (a), (b) or (c) (as the case may be). |
| 30 |
(2C) | In subsections (2A) and (2B)— |
| |
“qualifying investment” has the same meaning as in Chapter 3 |
| |
of Part 8 of ITA 2007 (see section 432 of that Act), |
| |
“relevant amount” has the same meaning as in section 587B of |
| |
| 35 |
“relievable amount” has the same meaning as in Chapter 3 of |
| |
Part 8 of ITA 2007 (see section 434 of that Act).” |
| |
329 | After section 261A insert— |
| |
“Deduction of trading losses or post-cessation expenditure etc |
| |
“261B | Treating trade loss etc as CGT loss |
| 40 |
(1) | A person may make a claim under this section if— |
| |
(a) | relief is available to the person under section 64 or 128 of ITA |
| |
2007 (trade or employment loss relief against general income) |
| |
for a tax year in relation to an amount of loss, and |
| |
|
| |
|
| |
|
(b) | the person makes a claim under that section for the amount |
| |
to be deducted in calculating the person’s net income for the |
| |
| |
(2) | A person may also make a claim under this section if— |
| |
(a) | relief is available to the person as mentioned in subsection |
| 5 |
(1)(a) for a tax year in relation to an amount of loss, but |
| |
(b) | the person’s total income for the tax year is nil or does not |
| |
include any income from which the amount can be deducted. |
| |
(3) | A claim under this section is for determining so much of the amount |
| |
of the loss (“the relevant amount”) as— |
| 10 |
(a) | is not deducted in calculating the person’s net income for the |
| |
| |
(b) | has not already been taken into account for the purposes of |
| |
any relief for any other tax year or any year of assessment |
| |
(whether under ITA 2007, this section or otherwise). |
| 15 |
(4) | When the relevant amount can no longer be varied— |
| |
(a) | by the Commissioners on appeal, or |
| |
(b) | on the order of a court, |
| |
| it is treated for the purposes of capital gains tax as an allowable loss |
| |
accruing to the person in the year of assessment corresponding to the |
| 20 |
| |
(5) | But so much of the relevant amount as exceeds the maximum |
| |
amount (see section 261C) is not to be treated for the purposes of |
| |
capital gains tax as an allowable loss. |
| |
(6) | The excess may, however, be used in giving effect to any other loss |
| 25 |
relief under Part 4 of ITA 2007 (depending on the terms of the relief). |
| |
(7) | The amount treated as an allowable loss under this section— |
| |
(a) | is no longer to be regarded as an amount available for income |
| |
| |
(b) | is not to be deductible from chargeable gains accruing to a |
| 30 |
person in any year of assessment that begins after the person |
| |
has permanently ceased to carry on the trade, profession, |
| |
vocation, employment or office in which the loss was made. |
| |
(8) | A claim under this section must be made on or before the first |
| |
anniversary of the normal self-assessment filing date for the tax year |
| 35 |
in which the loss was made in the trade, profession, vocation, |
| |
| |
(9) | In this section “normal self-assessment filing date”, “tax year” and |
| |
“total income” have the same meaning as in the Income Tax Acts (see |
| |
section 989 of ITA 2007). |
| 40 |
261C | Meaning of “the maximum amount” for purposes of section 261B |
| |
(1) | For the purposes of section 261B “the maximum amount” is the |
| |
amount on which the person would be chargeable to capital gains tax |
| |
for the year of assessment if— |
| |
(a) | the provisions mentioned below were ignored, and |
| 45 |
(b) | no account were taken of the event mentioned below. |
| |
|
| |
|
| |
|
| |
(a) | section 2A (taper relief), |
| |
(b) | section 3(1) (annual exempt amount), and |
| |
| |
(3) | The event is any event— |
| 5 |
(a) | which occurs after the date on which the relevant amount |
| |
(see section 261B(3)) can no longer be varied by the |
| |
Commissioners on appeal or on the order of a court, and |
| |
(b) | in consequence of which the amount chargeable to capital |
| |
gains tax is reduced as a result of an enactment relating to |
| 10 |
| |
261D | Treating excess post-cessation trade or property relief as CGT loss |
| |
(1) | A person may make a claim under this section if— |
| |
(a) | relief is available to the person under section 96 or 125 of ITA |
| |
2007 (post-cessation trade or property relief) for a tax year in |
| 15 |
relation to an amount, and |
| |
(b) | the person makes a claim under that section to deduct the |
| |
amount in calculating the person’s net income for the tax |
| |
| |
(2) | A person may also make a claim under this section if— |
| 20 |
(a) | relief is available to the person as mentioned in subsection |
| |
(1)(a) for a tax year in relation to an amount, but |
| |
(b) | the person’s total income for the tax year is nil. |
| |
(3) | A claim under this section is for treating for the purposes of capital |
| |
gains tax so much of the amount as is not deducted in calculating the |
| 25 |
person’s net income for the tax year (“the relevant amount”) as an |
| |
allowable loss accruing to the person in the year of assessment |
| |
corresponding to the tax year. |
| |
(4) | But so much of the relevant amount as exceeds the maximum |
| |
amount (see section 261E) is not to be treated for the purposes of |
| 30 |
capital gains tax as an allowable loss. |
| |
(5) | The relevant amount is no longer to be regarded as an amount |
| |
available for income tax relief. |
| |
(6) | A claim under this section must be made on or before the first |
| |
anniversary of the normal self-assessment filing date for the tax year |
| 35 |
mentioned in subsection (1) or (2) (as the case may be). |
| |
(7) | In this section “normal self-assessment filing date”, “tax year” and |
| |
“total income” have the same meaning as in the Income Tax Acts (see |
| |
section 989 of ITA 2007). |
| |
261E | Meaning of “the maximum amount” for purposes of section 261D |
| 40 |
(1) | For the purposes of section 261D “the maximum amount” is the |
| |
amount on which the person would be chargeable to capital gains tax |
| |
for the year of assessment if the following were ignored. |
| |
(2) | The matters to be ignored are— |
| |
|
| |
|
| |
|
(a) | any allowable losses falling to be carried forward to that year |
| |
from a previous year for the purposes of section 2(2), |
| |
(b) | section 3(1) (annual exempt amount), and |
| |
(c) | any relief under section 261B or 261D.” |
| |
330 | After section 261E insert— |
| 5 |
“Repurchase price under repos |
| |
261F | Deemed manufactured payments: effect on repurchase price |
| |
(1) | This section applies if — |
| |
(a) | the repurchase price of UK shares, UK securities or overseas |
| |
securities is treated by section 604(2), (4) or (5) of ITA 2007 |
| 10 |
(deemed increase in repurchase price: repos and options) as |
| |
increased for the purposes of section 607 of that Act |
| |
(treatment of price differences under repos), |
| |
(b) | condition A or B is met, and |
| |
(c) | section 263A does not apply. |
| 15 |
(2) | Condition A is that, as a result of the increase, there is no difference |
| |
for the purposes of section 607 of that Act between the sale price and |
| |
| |
(3) | Condition B is that, as a result of an exception in section 608 of that |
| |
Act, section 607 of that Act does not apply. |
| 20 |
(4) | The deemed increase of the repurchase price also has effect for |
| |
capital gains tax purposes. |
| |
(5) | Expressions used in this section and in section 605 of ITA 2007 |
| |
(deemed increase in repurchase price: other income tax purposes) |
| |
have the same meanings in this section as in that section. |
| 25 |
331 | After section 261F insert— |
| |
261G | Price differences under repos: effect on repurchase price |
| |
(1) | Subsections (2) and (3) apply if— |
| |
(a) | section 607 of ITA 2007 (treatment of price differences under |
| |
| 30 |
(b) | an amount is treated under that section as a payment of |
| |
| |
(c) | section 263A does not apply. |
| |
(2) | If the repurchase price is more than the sale price, the repurchase |
| |
price is treated for capital gains tax purposes as reduced by the |
| 35 |
amount of the payment of interest. |
| |
(3) | If the sale price is more than the repurchase price, the repurchase |
| |
price is treated for capital gains tax purposes as increased by the |
| |
amount of the payment of interest. |
| |
(4) | Expressions used in this section and in section 609 of ITA 2007 |
| 40 |
(additional income tax consequences of price differences under |
| |
repos) have the same meanings in this section as in that section. |
| |
332 | After section 261G insert— |
| |
|
| |
|