Finance Bill

House of Commons

Session 2006 - 07
Internet Publications
Other Bills before Parliament

Finance Bill

Finance Bill
Schedule 25 — Amendments connected with Gambling Act 2005
Part 6 — Commencement
277

      (4)
In paragraph 3(4)(a) (registrable persons: holders of licences under the
Gaming Act 1968)—
(a)
for “licence under the Gaming Act 1968” substitute “casino premises
licence or club gaming permit”, and
(b)
after “which the licence” insert “or permit”.
5
      (5)
In paragraph 6 (notification of premises)—
(a)
in sub-paragraph (10)(a), for “licence under the Gaming Act 1968”
substitute “casino premises licence or club gaming permit” and after
“of the licence” insert “or permit”, and
(b)
in sub-paragraph (11)(a), for “licence under the Gaming Act 1968”
10
substitute “casino premises licence or club gaming permit” and after
“of the licence” insert “or permit”.
      (6)
In paragraph 14 (disclosure of information)—
(a)
in sub-paragraph (1), for “the Gaming Board for Great Britain”
substitute “the Gambling Commission”, for “that Board” (in each
15
place) substitute “that Commission” and for “that Board’s functions
under the Gaming Act 1968” substitute “that Commission’s
functions under the Gambling Act 2005”, and
(b)
in sub-paragraph (2), for “the Gaming Board for Great Britain”
substitute “the Gambling Commission” and for “that Board” (in both
20
places) substitute “that Commission”.
Part 5
Miscellaneous amendments
Provision of FA 1966 relating to repealed law
21
In Schedule 3 to FA 1966 (provision relating to Schedule 1 to the Betting,
25
Gaming and Lotteries Act 1963 (c. 2)), omit paragraph 6.
Customs and Excise Management Act 1979
22
In section 1(1) of CEMA 1979 (interpretation), in paragraph (a)(ic) of the
definition of “revenue trader”, for the words from “any gaming” to the end
substitute “gaming within the meaning of the Betting and Gaming Duties
30
Act 1981 (see section 33(1))”.
Part 6
Commencement
23    (1)
Paragraphs 3, 4, 6, 7(1) and (5), 11(1) and (2), 13, 15, 16 and 20(1) and (6) and
this paragraph come into force on the day on which this Act is passed.
35
      (2)
The other provisions of this Schedule come into force in accordance with
provision made by the Treasury by order.
      (3)
The power to make an order under this paragraph is exercisable by statutory
instrument.
      (4)
An order under this paragraph—
40
(a)
may make different provision for different purposes, and

Finance Bill
Schedule 26 — Meaning of “recognised stock exchange” etc
278

(b)
may contain transitional provision and savings.
Schedule 26
Section 108

Meaning of “recognised stock exchange” etc
Meaning of “recognised stock exchange” etc in Tax Acts and TCGA 1992
1
For section 1005 of ITA 2007 substitute—
5
“1005
Meaning of “recognised stock exchange” etc
(1)
In the Income Tax Acts “recognised stock exchange” means—
(a)
any market of a recognised investment exchange which is for
the time being designated as a recognised stock exchange for
the purposes of this section by an order made by the
10
Commissioners for Her Majesty’s Revenue and Customs,
and
(b)
any market outside the United Kingdom which is for the time
being so designated.
(2)
An order under subsection (1) may—
15
(a)
designate a market by name or by reference to any class or
description of market (including, in the case of a market
outside the United Kingdom, one framed by reference to any
authority or approval given in a country outside the United
Kingdom),
20
(b)
contain incidental, supplemental, consequential and
transitional provision and savings, and
(c)
vary or revoke a previous order under that subsection.
(3)
References in the Income Tax Acts to securities which are listed on a
recognised stock exchange are to securities—
25
(a)
which are admitted to trading on that exchange, and
(b)
which are included in the official UK list or are officially
listed in a qualifying country outside the United Kingdom in
accordance with provisions corresponding to those generally
applicable in EEA states.
30
(4)
For this purpose “qualifying country outside the United Kingdom”
means any country outside the United Kingdom in which there is a
recognised stock exchange.
(5)
References in the Income Tax Acts to securities which are included in
the official UK list are to securities which are included in the official
35
list (within the meaning of Part 6 of FISMA 2000) in accordance with
the provisions of that Part.
(6)
In this section—
“recognised investment exchange” has the same meaning as in
FISMA 2000 (see section 285), and
40
“securities” includes shares and stock.”

Finance Bill
Schedule 26 — Meaning of “recognised stock exchange” etc
279

2
For section 841 of ICTA substitute—
“841
Meaning of “recognised stock exchange” etc
(1)
In the Corporation Tax Acts “recognised stock exchange” has the
same meaning as in the Income Tax Acts (see subsections (1) and (2)
of section 1005 of ITA 2007).
5
(2)
References in the Corporation Tax Acts to securities which are listed
on a recognised stock exchange are to be read in accordance with
subsections (3) and (4) of that section.
(3)
References in the Corporation Tax Acts to securities which are
included in the official UK list are to be read in accordance with
10
subsection (5) of that section.
(4)
In this section “securities” includes shares and stock.”
3
In section 288 of TCGA 1992 (interpretation), after subsection (5) insert—
“(5A)
References in this Act to shares or securities which are listed on a
recognised stock exchange shall be construed in accordance with
15
subsections (3) and (4) of section 1005 of ITA 2007.
(5B)
References in this Act to shares or securities which are included in
the official UK list shall be construed in accordance with subsection
(5) of that section.”
Valuation of shares listed on recognised stock exchange for purposes of TCGA 1992 etc
20
4     (1)
In section 272 of TCGA 1992 (valuation: general), for subsections (3) and (4)
substitute—
“(3)
The Treasury may make regulations as to the manner for
determining for the purposes of this Act—
(a)
the market value at any time of shares or securities which are
25
included in the official UK list, and
(b)
the market value at any time of shares or securities which are
listed on a recognised stock exchange outside the United
Kingdom.
(4)
The regulations may—
30
(a)
make different provision for different cases, and
(b)
contain incidental, supplemental, consequential and
transitional provision and savings.”
      (2)
The amendment made by sub-paragraph (1) has effect where the date of
valuation falls on or after such day as may be appointed by the Treasury by
35
order; and different days may be appointed for different purposes.
5     (1)
In ITTOIA 2005, for sections 450 and 451 substitute—
“450
Market value of strips etc
(1)
The Treasury may make regulations as to the manner for
determining—
40
(a)
the market value at any time of a strip for the purposes of this
Chapter, and

Finance Bill
Schedule 26 — Meaning of “recognised stock exchange” etc
280

(b)
the market value at any time of a security exchanged for
strips of that security for the purposes of section 445(1).
(2)
The regulations may—
(a)
make different provision for different cases, and
(b)
contain incidental, supplemental, consequential and
5
transitional provision and savings.”
      (2)
The amendment made by sub-paragraph (1) has effect where the date of
valuation falls on or after such day as may be appointed by the Treasury by
order; and different days may be appointed for different purposes.
Minor and consequential amendments
10
6
In section 90(8) of FA 1986 (exceptions to the charge to SDRT), for paragraph
(b) substitute—
“(b)
references to anything listed on a recognised stock exchange
shall be construed in accordance with section 1005 of the
Income Tax Act 2007;”.
15
7     (1)
ICTA is amended as follows.
      (2)
In section 210(4) (bonus issue following repayment of share capital), in the
definition of “preference shares”, for “listed in the Official List of the Stock
Exchange” substitute “included in the official UK list”.
      (3)
In section 312(1E)(a) (interpretation of Chapter 3 of Part 7), for “section 841”
20
substitute “section 1005(1)(b) of ITA 2007”.
      (4)
In section 415(1)(b) (certain quoted companies not to be close companies),
for “in the official list of” substitute “on”.
      (5)
In section 576H(2)(a) (the unquoted status requirement), for “1005”
substitute “1005(1)(b)”.
25
      (6)
In section 587B (gifts of shares, securities and real property to charities etc)—
(a)
in subsection (9), in the definition of “qualifying investment”, for “or
dealt in on a recognised stock exchange” substitute “on a recognised
stock exchange or dealt in on any designated market in the United
Kingdom”, and
30
(b)
after that subsection insert—
“(9ZA)
In paragraph (a) of the definition of “qualifying investment”
in subsection (9) above, “designated” means designated by
an order made by the Commissioners for Her Majesty’s
Revenue and Customs for the purposes of that paragraph.
35
(9ZB)
An order under subsection (9ZA) above may—
(a)
designate a market by name or by reference to any
class or description of market, and
(b)
vary or revoke a previous order under that
subsection.”
40
      (7)
In section 704 (prescribed circumstances mentioned in section 703(1)), in
paragraph D(2)(b), for “listed in the Official List of the Stock Exchange, and
are dealt in on the Stock Exchange” substitute “included in the official UK
list, and are dealt in on a recognised stock exchange in the United Kingdom”.

Finance Bill
Schedule 26 — Meaning of “recognised stock exchange” etc
281

      (8)
In section 828(2) (orders and regulations made by the Treasury or the Board),
after “conferred by section” insert “587B(9ZA) or”.
      (9)
In section 842(1)(c) (investment trusts), for “listed in the Official List of the
Stock Exchange” substitute “included in the official UK list”.
     (10)
In paragraph 5 of Schedule 20 (charities: qualifying investments and loans),
5
omit “, or which are dealt in on the Unlisted Securities Market”.
8     (1)
TCGA 1992 is amended as follows.
      (2)
In section 130(1)(a) (composite new holdings)—
(a)
for “had quoted market values” substitute “were listed”, and
(b)
omit “in the United Kingdom or elsewhere”.
10
      (3)
In section 144(8)(a) (options and forfeited deposits), for “quoted on”
substitute “listed on”.
      (4)
In section 146(4)(b) (options: application of rules as to wasting assets), omit
“in the United Kingdom or elsewhere”.
      (5)
In section 273(2) (unquoted shares and securities), for “quoted” substitute
15
“listed”.
      (6)
Omit section 285 (recognised investment exchanges).
9     (1)
ITEPA 2003 (persons to whom section 421J applies) is amended as follows.
      (2)
In section 421L (persons to whom section 421J applies)—
(a)
in paragraph (b) of subsection (6), for “or dealt in on a recognised
20
stock exchange” substitute “on a recognised stock exchange or dealt
in on any designated market in the United Kingdom”, and
(b)
after that subsection insert—
“(7)
In subsection (6)(b) “designated” means designated by an
order made by the Commissioners for Her Majesty’s
25
Revenue and Customs for the purposes of that provision.
(8)
An order under subsection (7) may—
(a)
designate a market by name or by reference to any
class or description of market, and
(b)
vary or revoke a previous order under that
30
subsection.”
      (3)
In section 717(2) (orders and regulations made by Treasury or
Commissioners), insert at the end “or section 421L(7) (persons to whom
section 421J applies: order in relation to excluded securities).”
10    (1)
ITTOIA 2005 is amended as follows.
35
      (2)
In section 443(2) (application of Chapter 8 of Part 4 to strips of government
securities)—
(a)
at the end of paragraph (e) insert “and”, and
(b)
omit paragraph (g).
      (3)
In section 460(3) (minor definitions in Chapter 8 of Part 4), omit “or 451”.
40
11    (1)
ITA 2007 is amended as follows.

Finance Bill
Schedule 26 — Meaning of “recognised stock exchange” etc
282

      (2)
In section 143(2)(a) (losses on disposal of shares: the unquoted status
requirement), for “1005” substitute “1005(1)(b)”.
      (3)
In section 151(2) (interpretation of Chapter 6 of Part 4), for “the Stock
Exchange” substitute “a recognised stock exchange”.
      (4)
In section 184 (EIS: the unquoted status requirement)—
5
(a)
in subsection (3)(a), for the words from “the Stock Exchange” to the
end substitute “a recognised stock exchange,”, and
(b)
in subsection (6)(a), for “1005” substitute “1005(1)(b)”.
      (5)
In section 257(5) (minor definitions in Part 5), for “the Stock Exchange”
substitute “a recognised stock exchange”.
10
      (6)
In section 274(2) (requirements for the giving of VCT approval), for “listed
throughout the relevant period in the Official List of the Stock Exchange”
substitute “included in the official UK list throughout the relevant period”.
      (7)
In section 295(3) (VCTs: the unquoted status requirement)—
(a)
in paragraph (a), for the words from “the Stock Exchange” to the end
15
substitute “a recognised stock exchange,”, and
(b)
in paragraph (c), omit “on the Unlisted Securities Market or dealt in”.
      (8)
In section 382(2) (minor definitions in Part 7), for “the Stock Exchange”
substitute “a recognised stock exchange”.
      (9)
In section 397(6) (eligibility requirements for interest on loans within section
20
396), in the definition of “unquoted company”, for “listed in the Official List
of the Stock Exchange” substitute “included in the official UK list”.
     (10)
In section 432 (gifts of shares, securities and real property to charities etc:
meaning of “qualifying investment”)—
(a)
in subsection (1)(a), for “or dealt in on a recognised stock exchange”
25
substitute “on a recognised stock exchange or dealt in on any
designated market in the United Kingdom”,
(b)
in subsection (2), after “In this section—” insert—
““designated” means designated by an order made by
the Commissioners for Her Majesty’s Revenue and
30
Customs for the purposes of subsection (1)(a),”, and
(c)
after that subsection insert—
“(3)
An order under subsection (2) may—
(a)
designate a market by name or by reference to any
class or description of market, and
35
(b)
vary or revoke a previous order under that
subsection.”
     (11)
In section 691(1)(b) (meaning of “relevant company” in sections 689 and
690), for sub-paragraphs (i) and (ii) substitute—
“(i)
included in the official UK list, and
40
(ii)
dealt in on a recognised stock exchange in the United
Kingdom regularly or from time to time.”
     (12)
In section 989 (list of Income Tax Acts definitions), after the definition of
“settlor” insert—
““shares, stock or other securities included in the official UK
45
list” is to be read in accordance with section 1005,

Finance Bill
Schedule 27 — Repeals
Part 1 — Environment
283

“shares, stock or other securities listed on a recognised stock
exchange” is to be read in accordance with section 1005,”.
     (13)
Omit section 1010 (application of Income Tax Acts to recognised investment
exchanges).
     (14)
In section 1014(2)(g) (orders and regulations)—
5
(a)
after sub-paragraph (ii) (but before the “and”) insert—
“(iia)
section 432(2) (gifts of shares, securities and
real property to charities etc: meaning of
“qualifying investment”),”, and
(b)
in sub-paragraph (iii), for “1005(1)(b)” substitute “1005(1)”.
10
     (15)
In Schedule 4 (index of defined expressions), after the entry relating to
“share loss relief (in Chapter 6 of Part 4)” insert—

“shares, stock or other securities
section 1005

included in the official UK list

shares, stock or other securities
section 1005”.

15

listed on a recognised stock

exchange

Schedule 27
Section 112

Repeals
Part 1
20
Environment
(1) Exempt aggregates: railways etc

Short title and chapter
Extent of repeal

Finance Act 2001 (c. 9)
In section 17(3), the word “or” at the end of

paragraph (d).

25