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House of Commons

Session 2006 - 07 Internet Publications Other Bills before Parliament

Income Tax Bill

Income Tax Bill viii
Chapter 7
Losses from miscellaneous transactions
Loss relief against miscellaneous income
152    Losses from miscellaneous transactions
153    How relief works
Deposit rights
154    Transactions in deposit rights
Supplementary
155    Time limit for claiming relief
Part 5
Enterprise investment scheme
Chapter 1
Introduction
EIS relief
156    Meaning of “EIS relief” and commencement
157    Eligibility for EIS relief
158    Form and amount of EIS relief
Miscellaneous
159    Periods A, B and C
160    Overview of other Chapters of Part
161    Other tax reliefs relating to EIS
Chapter 2
The investor
Introduction
162    Overview of Chapter
The requirements
163    The no connection with the issuing company requirement
164    The no linked loans requirement
165    The no tax avoidance requirement
Meaning of connection with issuing company
166    Connection with issuing company
Income Tax Bill ix
167    Employees, directors and partners
168    Directors excluded from connection
169    Directors qualifying for relief despite connection
170    Persons interested in capital etc of company
171    Persons subscribing for shares under certain arrangements
Chapter 3
General requirements
Introduction
172    Overview of Chapter
The requirements
173    The shares requirement
174    The purpose of the issue requirement
175    The use of the money raised requirement
176    The minimum period requirement
177    The no pre-arranged exits requirement
178    The no tax avoidance requirement
Meaning of "qualifying business activity"
179    Meaning of “qualifying business activity”
Chapter 4
The issuing company
Introduction
180    Overview of Chapter
The requirements
181    The trading requirement
182    Ceasing to meet trading requirement because of administration or
receivership
183    The issuing company to carry on the qualifying business activity requirement
184    The unquoted status requirement
185    The control and independence requirement
186    The gross assets requirement
187    The qualifying subsidiaries requirement
188    The property managing subsidiaries requirement
Definitions
189    Meaning of “qualifying trade”
190    Meaning of “qualifying 90% subsidiary”
191    Meaning of “qualifying subsidiary”
Income Tax Bill x
Excluded activities
192    Meaning of “excluded activities”
193    Excluded activities: wholesale and retail distribution
194    Excluded activities: leasing of ships
195    Excluded activities: receipt of royalties and licence fees
196    Excluded activities: property development
197    Excluded activities: hotels and comparable establishments
198    Excluded activities: nursing homes and residential care homes
199    Excluded activities: provision of services or facilities for another business
Supplementary
200    Power to amend by Treasury order
Chapter 5
Attribution of and claims for EIS relief
Attribution
201    Attribution of EIS relief to shares
Claims: general
202    Time for making claims for EIS relief
203    Entitlement to claim
Claims: supporting documents
204    Compliance certificates
205    Compliance statements
206    Appeal against refusal to authorise compliance certificate
207    Penalties for fraudulent certificate or statement etc
Chapter 6
Withdrawal or reduction of EIS relief
Introduction
208    Overview of Chapter
Disposals
209    Disposal of shares
210    Cases where maximum EIS relief not obtained
211    Call options
212    Put options
Value received by investor
213    Value received by the investor
214    Value received: receipts of insignificant value
215    Meaning of “receipts of insignificant value”
Income Tax Bill xi
216    When value is received
217    The amount of value received
218    Value received where there is more than one issue of shares
219    Value received where part of share issue treated as made in previous tax year
220    Cases where maximum EIS relief not obtained
221    Receipts of value by and from connected persons etc
222    Receipt of replacement value
223    Section 222: supplementary
Repayments etc of share capital to other persons
224    Repayments etc of share capital to other persons
225    Insignificant repayments ignored for purposes of section 224
226    Amount of repayments etc where there is more than one issue of shares
227    Single issue affecting more than one individual
228    Single issue treated as made partly in previous tax year
229    Maximum relief not obtained for share issue
230    Repayment of authorised minimum within 12 months
231    Restriction on withdrawal of relief under section 224
Miscellaneous
232    Acquisition of a trade or trading assets
233    Acquisition of share capital
234    Relief subsequently found not to have been due
Chapter 7
Withdrawal or reduction of EIS relief: procedure
Assessments and appeals
235    Assessments for the withdrawal or reduction of EIS relief
236    Appeals against section 234(3)(b) notices
237    Time limits for assessments
238    Cases where assessment not to be made
Interest
239    Date from which interest is chargeable
Information
240    Information to be provided by the investor
241    Information to be provided by the issuing company etc
242    Power to require information where section 240 or 241 applies or could have
applied
243    Power to require information in other cases
244    Obligations of secrecy
Income Tax Bill xii
Chapter 8
Supplementary and general
Disposals of shares
245    Transfers between spouses or civil partners
246    Identification of shares on a disposal
Acquisition of issuing company
247    Continuity of EIS relief where issuing company is acquired by new company
248    Carry over of obligations etc where EIS relief attributed to new shares
249    Substitution of new shares for old shares
Nominees etc
250    Nominees and bare trustees
251    Approved investment fund as nominee
Interpretation
252    Meaning of a company being “in administration” or “in receivership”
253    Meaning of “associate”
254    Meaning of “disposal of shares”
255    Meaning of “issue of shares”
256    Meaning of “the termination date”
257    Minor definitions etc
Part 6
Venture capital trusts
Chapter 1
Introduction
258    Overview of Part
259    Venture capital trusts and VCT approvals
260    Other tax reliefs relating to VCTs
Chapter 2
VCT relief
Entitlement to relief
261    Eligibility for relief
262    Entitlement to claim relief
263    Form and amount of relief
264    No entitlement to relief if there is a linked loan
265    No entitlement to relief which would have been lost if it had already been
obtained
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”

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