|
| |
|
34 | Schemes etc designed to increase double taxation relief |
| |
(1) | Section 804ZA of ICTA (schemes and arrangements designed to increase relief) |
| |
| |
(2) | In subsection (8)(c), omit “resident in a territory outside the United Kingdom”. |
| |
(3) | After subsection (11) insert— |
| 5 |
“(11A) | In this section “foreign tax” includes any tax which for the purpose of |
| |
allowing credit under any arrangements against corporation tax is |
| |
treated by section 801 as if it were tax payable under the law of any |
| |
territory outside the United Kingdom.” |
| |
(4) | The amendments made by this section have effect in relation to a credit for |
| 10 |
foreign tax which relates to— |
| |
(a) | a payment of foreign tax on or after 6th December 2006, or |
| |
(b) | income received on or after that date in respect of which foreign tax has |
| |
| |
| but see also subsections (6) and (7). |
| 15 |
| |
(a) | references to foreign tax are to be construed in accordance with section |
| |
804ZA(11A) of ICTA (as inserted by subsection (3) above), and |
| |
(b) | the reference to tax deducted at source is to tax deducted (or treated as |
| |
deducted) from income or treated as paid in respect of income. |
| 20 |
(6) | The DTR anti-avoidance provisions have effect in relation to any action (or |
| |
failure to act) that occurs under any scheme or arrangement on or after 6th |
| |
December 2006 (as well as in relation to the cases mentioned in section 87(3) of |
| |
FA 2005 or subsection (4) above). |
| |
(7) | “The DTR anti-avoidance provisions” means section 804ZA of ICTA (as |
| 25 |
amended by this section), sections 804ZB and 80ZC of that Act and Schedule |
| |
| |
| |
35 | Industrial and agricultural buildings allowances |
| |
(1) | No balancing adjustment is to be made under Part 3 of CAA 2001 (industrial |
| 30 |
buildings allowances) if— |
| |
(a) | the qualifying expenditure in question is not qualifying enterprise zone |
| |
expenditure for the purposes of that Part, and |
| |
(b) | the balancing event in question is a post-commencement balancing |
| |
| 35 |
| and in paragraph (b) “post-commencement balancing event” means any |
| |
balancing event for the purposes of that Part which occurs on or after 21st |
| |
March 2007, but does not include an event which occurs before 1st April 2011 |
| |
in pursuance of a relevant pre-commencement contract (see subsection (7)). |
| |
(2) | For the purposes of section 311 of that Act (calculation of allowance after sale |
| 40 |
of relevant interest) the amount of the residue of qualifying expenditure |
| |
immediately after a post-commencement relevant event is taken to be the |
| |
amount of the residue of qualifying expenditure immediately before that |
| |
| |
|
| |
|
| |
|
| |
“qualifying expenditure” does not include any expenditure which is |
| |
qualifying enterprise zone expenditure for the purposes of that Part, |
| |
| |
“post-commencement relevant event” means any relevant event within |
| 5 |
the meaning of section 311 of that Act which occurs on or after 21st |
| |
March 2007, but does not include an event which occurs before 1st |
| |
April 2011 in pursuance of a relevant pre-commencement contract. |
| |
(4) | No balancing adjustment is to be made under Part 4 of that Act (agricultural |
| |
buildings allowances) if the balancing event in question is a post- |
| 10 |
commencement balancing event. |
| |
(5) | For the purposes of section 376 of that Act (calculation of allowance after |
| |
acquisition) the amount of the residue of qualifying expenditure immediately |
| |
after a post-commencement balancing event is taken to be the amount of the |
| |
residue of qualifying expenditure immediately before that event. |
| 15 |
(6) | In subsections (4) and (5) “post-commencement balancing event” means any |
| |
balancing event under section 381 of that Act (as a result of an election made in |
| |
accordance with section 382 of that Act) which occurs on or after 21st March |
| |
2007, but does not include an event which occurs before 1st April 2011 in |
| |
pursuance of a relevant pre-commencement contract. |
| 20 |
(7) | For the purposes of this section a contract is “a relevant pre-commencement |
| |
| |
(a) | the contract is a contract in writing made before 21st March 2007, |
| |
(b) | the contract is unconditional or its conditions have been satisfied before |
| |
| 25 |
(c) | no terms remain to be agreed on or after that date, and |
| |
(d) | the contract is not varied in a significant way on or after that date. |
| |
36 | Temporary increase in first-year capital allowances for small enterprises |
| |
(1) | The amount of a first-year allowance under section 44 of CAA 2001 |
| |
(expenditure incurred by small or medium-sized enterprises) is to be |
| 30 |
determined, in the case of expenditure to which this subsection applies, as if |
| |
the percentage specified in the entry relating to that section in the Table in |
| |
section 52(3) of that Act were 50%. |
| |
(2) | Subsection (1) applies to expenditure incurred by a small enterprise (within the |
| |
meaning of section 44 of that Act) in the period of 12 months beginning with— |
| 35 |
(a) | 1st April 2007, if the small enterprise is within the charge to corporation |
| |
| |
(b) | 6th April 2007, if the small enterprise is within the charge to income tax. |
| |
(3) | Accordingly, in section 52(3) of CAA 2001, in the sentence following the Table, |
| |
| 40 |
“(c) | section 36 of the Finance Act 2007 (substitution of 50% in the |
| |
case of expenditure incurred by a small enterprise in 2007-08 or |
| |
| |
|
| |
|
| |
|
Insurance and friendly societies |
| |
37 | Insurance companies: gross roll-up business etc |
| |
(1) | Part 1 of Schedule 7 contains provisions relating to gross roll-up business, |
| |
capital redemption business and miscellaneous minor matters relating to |
| |
| 5 |
(2) | The amendments made by that Part of that Schedule have effect— |
| |
(a) | for the purposes of corporation tax, for periods of account of insurance |
| |
companies beginning on or after 1st January 2007, and |
| |
(b) | for the purposes of income tax, for the tax year 2007-08 and subsequent |
| |
| 10 |
(3) | Subsection (2) is subject to the transitional provisions in Part 2 of that Schedule. |
| |
38 | Insurance companies: basis of taxation etc |
| |
(1) | Part 1 of Schedule 8 contains provision about the basis of taxation of insurance |
| |
companies and related matters. |
| |
(2) | The amendments made by that Part of that Schedule have effect for periods of |
| 15 |
account of insurance companies beginning on or after 1st January 2007. |
| |
(3) | Subsection (2) is subject to the transitional provisions in Part 2 of that Schedule. |
| |
39 | Insurance companies: transfers etc |
| |
Schedule 9 contains provision about transfers by insurance companies and |
| |
| 20 |
40 | Insurance companies: miscellaneous |
| |
Schedule 10 contains miscellaneous provisions relating to insurance |
| |
| |
41 | Technical provisions made by general insurers |
| |
Schedule 11 contains provision in relation to technical provisions made by |
| 25 |
| |
42 | Lloyd’s: cessation of business by corporate members |
| |
(1) | In FA 1994, after section 227A (inserted by section 32) insert— |
| |
“227B | Transfer of underwriting business without change of ownership |
| |
(1) | This section applies where, in accordance with the rules or practice of |
| 30 |
Lloyd’s, a corporate member (“the successor”) has taken up the |
| |
syndicate capacity of another corporate member (“the predecessor”). |
| |
(2) | Section 343 of the Taxes Act 1988 (company reconstructions without a |
| |
change of ownership) applies as if— |
| |
(a) | the trade mentioned in that section were the underwriting |
| 35 |
business of the predecessor, |
| |
|
| |
|
| |
|
(b) | the predecessor ceases to carry it on, and the successor begins to |
| |
carry it on, at the end of the first underwriting year in which |
| |
profits or losses of the predecessor’s last active underwriting |
| |
| |
(c) | subsections (8) to (10) and (12) were omitted. |
| 5 |
(3) | For the purposes of subsection (1) above the successor has taken up the |
| |
predecessor’s syndicate capacity if it has taken up the rights to |
| |
participate in syndicates which were (or otherwise would be) offered to |
| |
| |
(4) | In subsection (2)(b) above “last active underwriting year” has the same |
| 10 |
meaning as in section 227A above (see subsections (2) to (4) of that |
| |
| |
(2) | The amendment made by subsection (1) has effect in any case where the first |
| |
underwriting year in which profits or losses of the predecessor’s final |
| |
underwriting year are declared is 2007 or a later underwriting year. |
| 15 |
43 | Transfers of business by friendly societies to insurance companies etc |
| |
Schedule 12 contains provisions about transfers of business by friendly |
| |
societies to insurance companies etc. |
| |
44 | Tax exempt business of friendly societies |
| |
(1) | Section 462 of ICTA (conditions for tax exempt business) is amended as |
| 20 |
| |
(2) | For subsection (1) substitute— |
| |
“(1) | Subject to subsections (2) to (4) below, section 460 does not afford any |
| |
exemption from corporation tax in relation to so much of the profits |
| |
arising to a friendly society or insurance company from any business as |
| 25 |
is attributable to a policy which— |
| |
(a) | is not a qualifying policy (by virtue of sub-paragraph (2) of |
| |
paragraph 6(2) of Schedule 15) and is not an excluded policy, |
| |
| |
(b) | would not be a qualifying policy (by virtue of that sub- |
| 30 |
paragraph) if all excluded policies were left out of account. |
| |
(1A) | For the purposes of subsection (1) above a policy is an excluded policy |
| |
| |
(a) | it is a policy held otherwise than with the friendly society or |
| |
| 35 |
(b) | the person who has the contract effecting the policy acquired |
| |
the rights under it on an assignment (or, in Scotland, |
| |
assignation) otherwise than for money or money’s worth.” |
| |
(3) | In subsection (2), for “under section 460(1) for profits arising from any part of |
| |
a life or endowment” substitute “in relation to profits arising from any part of |
| 40 |
| |
(4) | In subsection (3), for the words after “section” substitute “460 does not afford |
| |
any exemption from corporation tax in relation to so much as is attributable to |
| |
that policy of the profits of the friendly society or insurance company |
| |
| 45 |
|
| |
|
| |
|
(5) | In section 462A(8)(b) of ICTA (election to tax exempt business), for |
| |
““societies”” substitute ““policies””. |
| |
(6) | The amendments made by this section are deemed to have come into force on |
| |
| |
45 | Purchased life annuities: self-assessment |
| 5 |
(1) | In section 437(1C) of ICTA (general annuity business), omit paragraphs (c)(i) |
| |
| |
(2) | In section 656 of that Act (purchased life annuities other than retirement |
| |
annuities), omit subsections (5) and (6). |
| |
(3) | In section 658 of that Act (supplementary), omit subsections (1) and (4) to (6). |
| 10 |
(4) | In section 828(4) of that Act (parliamentary procedure for orders and |
| |
regulations), omit “658(3)”. |
| |
(5) | In section 717 of ITTOIA 2005 (exemption for part of purchased life annuity |
| |
payment), omit subsection (3). |
| |
(6) | Omit section 723 of that Act (officer of Revenue and Customs to determine |
| 15 |
| |
(7) | In section 724 of that Act (regulations)— |
| |
(a) | in subsection (1)(a), for “723” substitute “722”, and |
| |
| |
(8) | In section 873(3) of that Act (parliamentary procedure for orders and |
| 20 |
regulations), omit paragraph (b). |
| |
(9) | The amendments made by subsections (1) to (3) and (5) to (7) come into force |
| |
on such day as the Treasury may by order appoint; and different days may be |
| |
appointed for different purposes. |
| |
| 25 |
46 | Sale and repurchase of securities |
| |
(1) | Schedule 13 contains provision for corporation tax purposes about the sale and |
| |
repurchase of securities. |
| |
(2) | Schedule 14 contains minor and consequential amendments in relation to the |
| |
sale and repurchase of securities. |
| 30 |
(3) | The Treasury may by order make such other amendments (including repeals |
| |
and revocations) of enactments or instruments as may appear appropriate in |
| |
consequence of, or otherwise in connection with, those Schedules. |
| |
(4) | Schedule 13, and the amendments made by Schedule 14, have effect in |
| |
accordance with provision made by the Treasury by order. |
| 35 |
(5) | Any order under this section— |
| |
(a) | may make different provision for different purposes, and |
| |
(b) | may contain transitional provision and savings. |
| |
|
| |
|