|
| |
|
(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 |
412 | In section 577(1) (other definitions)— |
| |
(a) | omit the definition of “tax year”, and |
| |
(b) | omit the definition of “the tax year 2001-02”. |
| |
413 (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 989 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 1001 and 1002 of ITA 2007 |
| |
| |
(d) | in the entry for “overseas property business”, in the second column, |
| 35 |
at the end insert “(as applied by section 989 of ITA 2007)”, |
| |
(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 989 of ITA 2007 and”, |
| 40 |
(g) | in the entry for “tax year”, in the second column, for “section 577(1)” |
| |
substitute “section 4(2) of ITA 2007 (as applied by section 989 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 989 of ITA 2007)”, |
| |
(i) | in the entry for “United Kingdom”, in the second column, for |
| |
“section 830 of ICTA and section 41 of ITEPA 2003” substitute |
| 5 |
“section 1013 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 1009 of ITA 2007 and”. |
| |
| |
414 | The Finance Act 2002 is amended as follows. |
| 10 |
| |
416 | In section 142 (interpretation) at the end insert “, and “ITA 2007” means the |
| |
| |
417 | In paragraph 19 of Schedule 12 (tax relief for expenditure on research and |
| |
development) for sub-paragraph (2) substitute— |
| 15 |
“(2) | For the purposes of this Schedule whether a person is connected |
| |
with another is determined in accordance with section 839 of the |
| |
| |
418 | In paragraph 27 of Schedule 13 (tax relief for expenditure on vaccine |
| |
research etc) for sub-paragraph (2) substitute— |
| 20 |
“(2) | For the purposes of this Schedule whether a person is connected |
| |
with another is determined in accordance with section 839 of the |
| |
| |
419 (1) | Amend Schedule 16 (community investment tax relief) as follows. |
| |
(2) | In paragraph 1(1), for “An individual or company” substitute “A company”. |
| 25 |
| |
(a) | in sub-paragraph (1), for “person” substitute “company” and for |
| |
“he”, in both places where it occurs, and “him” substitute “it”, and |
| |
(b) | in sub-paragraph (2), for “person”, in each place where it occurs, |
| |
| 30 |
(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 |
| |
Schedule as it applies for the purposes of that Part. |
| |
(2) | Chapter 2 of Part 7 of that Act makes provision with respect to— |
| 35 |
(a) | applications and criteria for accreditation as community |
| |
development finance institutions (see section 340), |
| |
(b) | the terms and conditions of accreditation (see section 341), |
| |
(c) | the period of accreditation (see section 342), and |
| |
(d) | the delegation of the Secretary of State’s functions under |
| 40 |
that Chapter (see section 343). |
| |
|
| |
|
| |
|
(3) | In this Schedule “accreditation period” has the meaning given by |
| |
section 342(1) of ITA 2007.” |
| |
(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 |
| 5 |
investments made in the CDFI in an accreditation period if the |
| |
| |
(a) | those investments, and |
| |
(b) | any investments to which sub-paragraph (2A) applies, |
| |
| will exceed the limit for that period. |
| 10 |
(2A) | This sub-paragraph applies to investments which— |
| |
(a) | have been made in the CDFI in the accreditation period, |
| |
| |
(b) | in respect of which the CDFI has issued tax relief |
| |
certificates under section 348 of ITA 2007 (which makes in |
| 15 |
relation to income tax provision corresponding to that |
| |
| |
(2B) | The limit for an accreditation period is— |
| |
(a) | £10 million if the CDFI is accredited for the period as a |
| |
retail community development finance institution (see |
| 20 |
section 340(8) of ITA 2007 as applied by paragraph 4), and |
| |
(b) | £20 million in any other case.” |
| |
| |
(a) | in sub-paragraph (4), for “he” substitute “it” and for “his” substitute |
| |
| 25 |
(b) | in sub-paragraph (6), for “his” substitute “its”. |
| |
| |
(9) | In paragraph 20(1), omit paragraph (a). |
| |
| |
(a) | in sub-paragraph (2), omit “tax year or”, in each place where it |
| 30 |
| |
(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 |
| |
year or period” substitute “that period”. |
| |
| 35 |
(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 |
| |
year or period” substitute “that period”, and |
| |
(c) | in sub-paragraph (3), for “a tax year or” substitute “an” and for “that |
| 40 |
year or period” substitute “that period”. |
| |
| |
(a) | in sub-paragraph (1), omit “tax year or” in both places where it |
| |
| |
|
| |
|
| |
|
(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 |
| |
| |
(14) | In paragraph 25(1), omit “is a company and”. |
| 5 |
| |
(a) | in sub-paragraph (1), omit paragraph (a), |
| |
(b) | in sub-paragraph (2), omit “income or”, for “a tax year or” substitute |
| |
“an” and, in paragraph (b)(i), omit “year or”, |
| |
(c) | in sub-paragraphs (3) and (4), omit “income tax or”, and |
| 10 |
(d) | in sub-paragraph (5), for “a tax year or” substitute “an” and for “that |
| |
year or period” substitute “that period”. |
| |
| |
(a) | omit sub-paragraphs (2) and (3), and |
| |
(b) | in sub-paragraph (4), omit “Where the investor is a company,”. |
| 15 |
(17) | In paragraph 28(1), omit “tax year or”. |
| |
| |
(a) | in sub-paragraph (2), omit “tax year or”, |
| |
(b) | in sub-paragraph (3), for “a tax year or” substitute “an”, |
| |
(c) | in sub-paragraph (5), omit “tax year or” and for “that year or period”, |
| 20 |
in both places where it occurs, substitute “that period”, and |
| |
(d) | in sub-paragraph (6), for “a tax year or” substitute “an”. |
| |
(19) | In paragraph 30(1), omit “tax year or”. |
| |
(20) | In paragraphs 31(5), 32(1)(b), 32(3) and 34(5)(b)(ii) for “he” and “him” |
| |
substitute “the investor”. |
| 25 |
(21) | In paragraph 31(8), omit “tax years or”. |
| |
| |
(a) | in sub-paragraph (1), omit “tax year or”, and |
| |
(b) | in sub-paragraph (5), omit “tax years or”. |
| |
(23) | In paragraph 35(1)(d)(ii), omit “if the investor is a company,”. |
| 30 |
(24) | In paragraph 35(5)(a) for “his” substitute “the investor’s”. |
| |
(25) | In paragraph 36(d)(ii), for “his” substitute “the investor”. |
| |
(26) | In paragraph 37(6), for “him” substitute “the investor”. |
| |
| |
(a) | in sub-paragraph (1), for “him” substitute “the investor”. |
| 35 |
(b) | in sub-paragraph (2), omit “tax year or”, |
| |
(c) | in sub-paragraph (3), omit “tax years or” and, in both places where it |
| |
occurs, “tax year or”, and |
| |
(d) | in sub-paragraph (4), for “he” substitute “the investor”. |
| |
(28) | Omit paragraphs 40 and 41. |
| 40 |
| |
|
| |
|
| |
|
(a) | in sub-paragraph (1), omit “tax year or”, and |
| |
(b) | in sub-paragraph (2), omit paragraph (a) and the “and” immediately |
| |
after it and, in paragraph (b), “if the investor is a company,”. |
| |
(30) | In paragraph 43(1), for “Tax Acts” substitute “Corporation Tax Acts”. |
| |
(31) | In paragraph 45, for “person”, in both places where it occurs, substitute |
| 5 |
| |
(32) | In paragraph 46(2), for “person”, in both places where it occurs, substitute |
| |
| |
| |
(a) | in sub-paragraph (1), omit “tax years or”, |
| 10 |
(b) | in sub-paragraphs (3) and (4), omit “of capital gains tax or |
| |
corporation tax on chargeable gains and”, |
| |
(c) | omit sub-paragraphs (5) and (6), and |
| |
(d) | in sub-paragraph (7) for “that Act” substitute “the 1992 Act”. |
| |
| 15 |
(a) | omit “, and for the purposes of capital gains tax or corporation tax on |
| |
| |
(b) | for “paragraph 41 he” substitute “section 151BC(1) of the 1992 Act the |
| |
| |
(35) | In paragraph 49(2), for “he”, in both places where it occurs, substitute “the |
| 20 |
| |
(36) | In paragraph 51(1), omit the definition of “tax year”. |
| |
(37) | In paragraph 52 before the entry for “associate” insert— |
| |
|
420 (1) | Amend Schedule 18 (relief for community amateur sports clubs) as follows. |
| 25 |
| |
(a) | in sub-paragraph (3)(b) omit the words from “as it applies” to the |
| |
| |
(b) | after that sub-paragraph insert— |
| |
“(4) | For the purposes of this paragraph, section 25(10) of the |
| 30 |
Finance Act 1990 (gift aid) has effect as if a registered club |
| |
were a charitable company.” |
| |
(3) | In paragraph 9 for sub-paragraph (1) substitute— |
| |
“(1) | Chapter 2 of Part 8 of ITA 2007 (gift aid) confers relief from income |
| |
tax for donors to registered clubs (see section 430 of that Act).” |
| 35 |
421 | In Schedule 25 (loan relationships), omit paragraph 57. |
| |
422 (1) | Amend Schedule 26 (derivative contracts) as follows. |
| |
(2) | In paragraph 24 (derivative contracts for unallowable purposes: |
| |
|
| |
|
| |
|
supplementary) for sub-paragraph (5) substitute— |
| |
“(5) | In this paragraph “tax advantage” has the meaning given by |
| |
section 840ZA of the Taxes Act 1988.” |
| |
| |
(4) | In paragraph 45I(3) in the definition of “the retail prices index” for “section |
| 5 |
833(2) of the Taxes Act 1988” substitute “section 989 of ITA 2007”. |
| |
(5) | In paragraph 45J(10), in paragraph (b) of the definition of “securities house”, |
| |
for “section 349(5) and (6) of the Taxes Act 1988” substitute “section 984 of |
| |
| |
(6) | For paragraph 51 substitute— |
| 10 |
“51 | See section 980 of ITA 2007 (derivative contracts: exception from |
| |
| |
423 | Omit Schedule 33 (venture capital trusts). |
| |
Proceeds of Crime Act 2002 (c. 29) |
| |
424 | In paragraph 4 of Part 2 of Schedule 10 (tax) to the Proceeds of Crime Act |
| 15 |
2002 for the words from “sections 711” to the end substitute “Chapter 2 of |
| |
Part 12 of the Income Tax Act 2007, that Part does not apply to the transfer”. |
| |
Income Tax (Earnings and Pensions) Act 2003 (c. 1) |
| |
425 | The Income Tax (Earnings and Pensions) Act 2003 is amended as follows. |
| |
426 | In section 1 (overview of contents of Act) omit subsection (2). |
| 20 |
427 | In section 11(3) (calculation of “net taxable earnings”) for “section 380(1) of |
| |
ICTA” substitute “section 128 of ITA 2007”. |
| |
428 | In section 24(6)(a) (limit on chargeable overseas earnings where duties of |
| |
associated employment performed in UK) for “section 840 of ICTA” |
| |
substitute “section 995 of ITA 2007”. |
| 25 |
429 | In section 48(2) (scope of Chapter) for “subject to deduction of tax under |
| |
section 555 of ICTA (payments to non-resident entertainers and sportsmen)” |
| |
substitute “or transfers to which section 966(3) or (4) of ITA 2007 applies |
| |
(visiting performers: duty to deduct and account for sums representing |
| |
| 30 |
430 | In section 69(1) (extended meaning of “control”) for “section 840 of ICTA” |
| |
substitute “section 995 of ITA 2007”. |
| |
431 | In section 178 (exception for loans where interest qualifies for tax relief)— |
| |
(a) | in paragraph (a) for the words from “(general” to “MIRAS)” |
| |
substitute “or section 383 of ITA 2007 (relief for interest payments)”, |
| 35 |
| |
(b) | in paragraph (b) for “that section” substitute “section 353 of ICTA”. |
| |
432 | In section 180(5) (threshold for benefit of loan to be treated as earnings)— |
| |
(a) | in paragraph (a) for the words from “(general” to “MIRAS)” |
| |
substitute “or section 383 of ITA 2007 (relief for interest payments)”, |
| 40 |
| |
|
| |
|