|
| |
|
Meaning of a company being “in administration” |
| |
89 (1) | Sub-paragraph (2) applies in relation to— |
| |
(a) | an administration order under Part 3 of the Insolvency (Northern |
| |
Ireland) Order 1989 the petition for which was presented before 6 |
| |
| 5 |
(b) | any corresponding order under the law of a country or territory |
| |
outside the United Kingdom the proceedings for which were |
| |
instituted before that date. |
| |
(2) | Section 331 applies with the substitution for subsection (2) of— |
| |
“(2) | A company is “in administration” if— |
| 10 |
(a) | it is in administration within the meaning of Schedule B1 to |
| |
the Insolvency Act 1986, or |
| |
(b) | there is in force in relation to it— |
| |
(i) | an administration order under Part 3 of the |
| |
Insolvency (Northern Ireland) Order 1989, or |
| 15 |
(ii) | any corresponding order under the law of a country |
| |
or territory outside the United Kingdom.” |
| |
(3) | In relation to an administration order under Part 2 of the Insolvency Act 1986 |
| |
the petition for which was presented before 15 September 2003, section 331 |
| |
applies with the substitution for subsection (2) of— |
| 20 |
“(2) | A company is “in administration” if there is in force in relation to it— |
| |
(a) | an administration order under Part 2 of the Insolvency Act |
| |
1986 or Part 3 of the Insolvency (Northern Ireland) Order |
| |
| |
(b) | any corresponding order under the law of a country or |
| 25 |
territory outside the United Kingdom.” |
| |
Meaning of “company”, “shares” and “research and development” in Part 6 |
| |
90 (1) | This paragraph applies in relation to the meaning of “company”, “shares” |
| |
and “research and development” in Part 6 (see section 332). |
| |
| 30 |
(a) | a company holds investments of any description in an entity |
| |
immediately before 6 April 2007, and |
| |
(b) | the entity is a company for any purposes of the Part 6 provisions but |
| |
not for the corresponding purposes of the ICTA provisions, |
| |
| any question whether the entity is a company for those purposes of the Part |
| 35 |
6 provisions is to be determined in accordance with the ICTA provisions |
| |
until such time as the company ceases to hold investments of that |
| |
| |
| |
(a) | a company holds investments of any description in an entity |
| 40 |
immediately before 6 April 2007, and |
| |
(b) | the investments are shares for any purposes of either of the |
| |
| |
(i) | the Part 6 provisions, and |
| |
(ii) | the ICTA provisions, |
| 45 |
|
| |
|
| |
|
| but not for the corresponding purposes of the other set of provisions, |
| |
| any question whether the investments are shares for those purposes of the |
| |
Part 6 provisions is to be determined in accordance with the ICTA |
| |
provisions until such time as the company ceases to hold investments of that |
| |
| 5 |
(4) | In sub-paragraphs (2) and (3)— |
| |
“the ICTA provisions” means section 842AA of ICTA (VCT approvals) |
| |
and Schedule 28B to that Act (qualifying holdings), |
| |
“the Part 6 provisions” means Chapter 3 of Part 6 (VCT approvals) and |
| |
Chapter 4 of that Part (qualifying holdings). |
| 10 |
(5) | For the purpose of determining whether any shares or securities are to be |
| |
regarded as comprised in a company’s qualifying holdings, section 332 |
| |
applies in relation to shares issued before 6 April 2000 with the substitution |
| |
for the definition of “research and development” of— |
| |
““research and development” means any activity which is |
| 15 |
intended to result in a patentable invention (within the |
| |
meaning of the Patents Act 1977) or in a computer program.” |
| |
| |
| |
Interest: loans for interests in close companies |
| 20 |
91 | Section 392(3)(a) does not apply if the shares were acquired before 14 March |
| |
| |
92 | Section 392(3)(b) does not apply if the shares were acquired before 6 April |
| |
| |
93 (1) | In relation to a loan made before 14 November 1986— |
| 25 |
(a) | section 395(1)(c) applies with the substitution for “the trustees of” of |
| |
“any person (other than the individual) interested in”, and |
| |
(b) | section 395(1)(d) applies with the substitution for “the personal |
| |
representatives” of “any person (other than the individual) |
| |
interested in the estate”. |
| 30 |
(2) | No individual is an associate because of sub-paragraph (1)(a) if the trust |
| |
relates exclusively to a registered pension scheme. |
| |
(3) | No individual is an associate because of sub-paragraph (1)(a) if — |
| |
| |
(i) | is exclusively for the benefit of the employees, or the |
| 35 |
employees and directors, of the company or their |
| |
| |
(ii) | is not wholly or mainly for the benefit of the directors or their |
| |
| |
| 40 |
(i) | is not (either alone or with relatives) the beneficial owner of |
| |
more than 5% of the company’s ordinary share capital, and |
| |
(ii) | could not become so as a result of the operation of the trust. |
| |
|
| |
|
| |
|
(4) | For the purposes of sub-paragraph (3)(b), charitable trusts that may arise on |
| |
the failure or determination of other trusts are ignored. |
| |
(5) | In relation to any time before 6 April 2006, sub-paragraph (2) applies as if the |
| |
reference to a registered pension scheme were a reference to an exempt |
| |
approved scheme, as defined in section 592 of ICTA. |
| 5 |
94 | Section 395(2) does not apply in relation to a loan made before 26 July 1989, |
| |
and, for the purposes of that section, section 550 of ITEPA 2003 (which |
| |
defines “employee benefit trust” and is applied for the purposes of section |
| |
395 by section 395(6)) has effect as if section 550 of ITEPA 2003 referred to |
| |
that day instead of 13 March 1989. |
| 10 |
Interest: loans for interests in employee-controlled companies |
| |
95 (1) | In relation to a loan used before 6 April 1990 in one or more of the ways |
| |
specified in section 396(2)— |
| |
(a) | section 396 applies as if— |
| |
(i) | the reference in subsection (3) to full-time employees |
| 15 |
included a reference to full-time employees’ spouses, |
| |
(ii) | the references in subsection (4) to an individual included a |
| |
reference to an individual’s spouse, unless the individual and |
| |
the individual’s spouse are both full-time employees of the |
| |
company within the meaning of section 396(5), and |
| 20 |
(b) | section 397(4) applies as if references to the individual included |
| |
references to the individual’s spouse. |
| |
(2) | If a loan within section 396(2)(b) was made on or after that date, interest on |
| |
the loan is eligible for relief under section 383 only if interest on the original |
| |
loan would have been allowable under section 353 of ICTA after that date. |
| 25 |
Interest relief: film partnerships |
| |
96 | Section 399(4) (restriction on relief for interest on loans for purchasing |
| |
interest in some film partnerships) only applies if the interest accrued on or |
| |
| |
Interest: loans for investing in co-operatives |
| 30 |
97 | Section 401 applies in relation to a loan used in one or more of the ways |
| |
specified in subsection (2)(a) or (b) of that section only if the loan was made |
| |
after 10 March 1981, but subsection (2)(c) of that section applies whenever |
| |
the original loan was made. |
| |
Gift aid: gifts of money for relief in poor countries |
| 35 |
98 | Despite the amendments made by this Act to section 25 of FA 1990, that |
| |
section continues to apply for the purposes of section 48 of FA 1998 (gifts of |
| |
money for relief in poor countries) as if those amendments had not been |
| |
| |
Gift aid: restrictions on associated benefits |
| 40 |
99 (1) | This paragraph applies if— |
| |
(a) | a gift is made on or after 6 April 2007, and |
| |
|
| |
|
| |
|
(b) | a benefit associated with the gift is received before that date or relates |
| |
(wholly or partly) to a period falling before that date. |
| |
(2) | Step 2 of the calculation in section 419(8) is to be read as if the words “(and |
| |
neither condition C nor condition D is met in relation to it)” were omitted. |
| |
Gift aid: election to carry back relief |
| 5 |
100 (1) | This paragraph applies if in the tax year 2007-08 an individual makes a gift |
| |
to a charity that is a qualifying donation for the purposes of Chapter 2 of Part |
| |
| |
(2) | Section 426 has effect with the substitution for subsections (2) and (3) of— |
| |
“(2) | The condition is that in year P the grossed up amount of the gift |
| 10 |
would, if made in year P, be payable out of profits or gains brought |
| |
into charge to income tax or capital gains tax. |
| |
(3) | If an election is made, section 25(6) to (9A) of FA 1990 have effect in |
| |
relation to the individual as if the gift were a qualifying donation |
| |
(within the meaning of section 25 of FA 1990) made in year P.” |
| 15 |
(3) | Section 426 has effect with the omission of subsections (4) and (5). |
| |
Qualifying maintenance payments: maintenance assessments |
| |
101 (1) | This paragraph applies for the purposes for which, on the day on which this |
| |
Act comes into force, the amendments to section 347B of ICTA made by |
| |
paragraph 8(1) and (2) of Schedule 3 to the Child Support, Pensions and |
| 20 |
Social Security Act 2000 (c. 19) (maintenance assessments superseded by |
| |
maintenance calculations) do not have effect. |
| |
(2) | Until a day is appointed for any of those purposes under this paragraph, |
| |
section 454 and 455 have effect for that purpose as if— |
| |
(a) | in section 454(7) and section 455(1)(a), (b), (c) and (3) for “calculation” |
| 25 |
there were substituted “assessment”, and |
| |
(b) | for section 454(8) there were substituted— |
| |
“(8) | In this section “maintenance assessment” means a |
| |
maintenance assessment made under the Child Support Act |
| |
1991 or the Child Support (Northern Ireland) Order 1991.” |
| 30 |
(3) | The power to appoint a day under this paragraph is exercisable by the |
| |
Secretary of State by order made by statutory instrument and different days |
| |
may be appointed for different purposes (including different days for |
| |
| |
| 35 |
Special rules about settlements and trustees |
| |
Trustees’ expenses to be set against trustees’ trust rate income |
| |
102 (1) | This paragraph applies if the trustees of a settlement incur an allowable |
| |
expense (see section 484) in a tax year prior to the tax year 2007-08. |
| |
|
| |
|
| |
|
(2) | So far as the trustees have not paid the expense, the expense cannot, under |
| |
Chapter 4 of Part 9, be set against the trustees’ trust rate income for any tax |
| |
| |
(3) | So far as the expense is paid by the trustees in a tax year (“the relevant tax |
| |
year”) after the tax year 2006-07, the expense is treated for the purposes of |
| 5 |
sections 484(1) and 485(1) as if it were incurred in the relevant tax year. |
| |
(4) | So far as the expense is paid by the trustees in a tax year prior to the tax year |
| |
2007-08, section 485 applies in relation to the expense with the following |
| |
| |
(5) | It applies as if for subsection (3) there were substituted— |
| 10 |
| |
(a) | that section 686(2AA) of ICTA could not be applied in |
| |
relation to the allowable expense so as to reduce the trustees’ |
| |
liability to tax for the tax year in which the trustees paid the |
| |
| 15 |
(b) | that was the case only because the trustees’ section 686 |
| |
income for that year was insufficient or they had no section |
| |
686 income for that year. |
| |
| “Section 686 income” means income to which section 686 of ICTA |
| |
| 20 |
(6) | It applies as if for subsection (4) there were substituted— |
| |
“(4) | Condition B is that— |
| |
(a) | for no tax year prior to the tax year 2007-08 has the allowable |
| |
expense been used to reduce the trustees’ liability to tax, and |
| |
(b) | the allowable expense has not been set against the trustees’ |
| 25 |
trust rate income for a tax year prior to the current tax year as |
| |
a result of this section.” |
| |
Share incentive plans: definition of “applicable period” |
| |
103 (1) | This paragraph applies for the purposes of section 489 if the relevant shares |
| |
(see subsection (1) of that section) were acquired by the trustees before 11 |
| 30 |
| |
(2) | That section applies in relation to those shares with the following |
| |
| |
(3) | It applies as if subsection (2) were omitted. |
| |
(4) | It applies as if in subsection (3) the words “If any were” were omitted. |
| 35 |
(5) | It applies as if in subsection (4)— |
| |
(a) | for “If none were” there were substituted “But if when the trustees |
| |
acquired the relevant shares none of the shares in the relevant |
| |
company were readily convertible assets”, and |
| |
(b) | in paragraph (b) for “any shares in the relevant company” there were |
| 40 |
substituted “the relevant shares”. |
| |
(6) | It applies as if in subsection (5) for “(2) to” there were substituted “(3) and”. |
| |
|
| |
|
| |
|
Discretionary payments: trustees’ tax pool |
| |
104 (1) | Section 497 applies with the following modifications in relation to the |
| |
trustees of a settlement established prior to the tax year 2007-08 if the current |
| |
tax year is the tax year 2007-08. |
| |
(2) | It also so applies if— |
| 5 |
(a) | the current tax year is a tax year subsequent to the tax year 2007-08, |
| |
| |
(b) | the trustees have been UK resident for no tax year prior to the current |
| |
tax year or the last tax year prior to the current tax year for which |
| |
they were UK resident is a tax year prior to the tax year 2007-08. |
| 10 |
(3) | It applies as if in subsection (1) for Step 1 there were substituted— |
| |
| |
| Take the amount of the trustees’ final section 687(3) tax pool and |
| |
deduct from that amount (but not so that it goes below nil) the total |
| |
of all tax (if any) treated under section 687(2)(a) of ICTA as being |
| 15 |
paid as a result of payments made by the trustees in the tax year |
| |
| |
| “The amount of the trustees’ final section 687(3) tax pool” is the total |
| |
| |
(a) | available to the trustees under section 687(3) of ICTA for |
| 20 |
setting against tax assessable on them under section 687(2)(b) |
| |
of that Act for the tax year 2006-07, or |
| |
(b) | which would have been so available had tax been so |
| |
| |
(4) | It applies as if subsections (2) and (3) were omitted. |
| 25 |
| |
Special rules about charitable trusts etc |
| |
Transactions with substantial donors |
| |
105 | Section 543(1)(g) and (h) and sections 549 to 557 (non-charitable |
| |
expenditure: transactions with substantial donors) do not have effect in |
| 30 |
| |
(a) | a transaction occurring before 22 March 2006, or |
| |
(b) | a transaction entered into in pursuance of a contract made before 22 |
| |
March 2006 (otherwise than in pursuance of a variation on or after |
| |
| 35 |
106 | For the purposes of section 549 a person may meet the definition of |
| |
“substantial donor” by reference to gifts made at a time before this Act comes |
| |
| |
Non-charitable expenditure |
| |
107 (1) | This paragraph applies if, as a result of sections 562 to 564, an amount of |
| 40 |
expenditure for the tax year 2007-2008 or any subsequent tax year (“the carry |
| |
back tax year”) is treated as non-charitable expenditure for the tax year 2005- |
| |
2006 or any earlier tax year. |
| |
|
| |
|
| |
|
(2) | The amount of relief or exemption to be disallowed in respect of the tax year |
| |
2005-2006 or any earlier tax year is not to exceed the amount which would |
| |
have been disallowed in respect of that tax year if— |
| |
(a) | sections 562 to 564 had not applied in relation to the carry back tax |
| |
| 5 |
(b) | the amount of expenditure for the carry back tax year to be treated as |
| |
non-charitable expenditure for an earlier tax year had instead been |
| |
calculated in accordance with the provisions mentioned in sub- |
| |
| |
(3) | Those provisions are— |
| 10 |
(a) | sections 505 and 506 of ICTA, and |
| |
(b) | Part 3 of Schedule 20 to that Act, |
| |
| as those provisions would have had effect in relation to the carry back tax |
| |
year if the amendments made to them by section 55 of FA 2006 had not been |
| |
made and the amendments made to them by this Act had not been made. |
| 15 |
| |
Manufactured payments and repos |
| |
Tax credits: stock lending arrangements and repos |
| |
108 | Sections 592 and 593 do not apply if the qualifying distribution was made |
| |
| 20 |
109 (1) | Section 592(3) does not apply if the qualifying distribution was received by |
| |
the borrower before the relevant date. |
| |
(2) | The relevant date is— |
| |
(a) | if the borrower is an individual, 6 November 2003, and |
| |
(b) | if the borrower is not an individual, 17 March 2004. |
| 25 |
110 (1) | Section 593(3) does not apply if the qualifying distribution was received by |
| |
the interim holder before the relevant date. |
| |
(2) | The relevant date is— |
| |
(a) | if the interim holder is an individual, 6 November 2003, and |
| |
(b) | if the interim holder is not an individual, 17 March 2004. |
| 30 |
Deemed manufactured payments: stock lending arrangements |
| |
111 | Section 596 does not apply if the stock lending arrangement was made |
| |
| |
112 (1) | Section 597 does not apply if the stock lending arrangement was made |
| |
| 35 |
(2) | In relation to a stock lending arrangement made on or after 5 December 2005 |
| |
but before 22 March 2006, section 597 has effect with the omission of |
| |
| |
| |
(a) | a stock lending arrangement was made before 5 December 2005 in |
| 40 |
respect of any securities (“the original securities”), and |
| |
|
| |
|