|
| |
|
66 | Unpaid remuneration and employee benefit contributions |
| |
(1) | Section 31 of ITTOIA 2005 (relationship between rules prohibiting and |
| |
allowing deductions: trading income) is amended as follows. |
| |
(2) | In subsection (1) (priority of relevant permissive rules over relevant |
| |
prohibitive rules), in paragraph (b) (sections to which that priority rule is |
| 5 |
subject), for “sections 48 (car or motor cycle hire) and” substitute “section 36 |
| |
(unpaid remuneration), section 38 (employee benefit contributions), section 48 |
| |
(car or motor cycle hire) and section”. |
| |
(3) | In subsection (3) (meaning of “relevant prohibitive rule”), after “sections” |
| |
| 10 |
(4) | Section 274 of ITTOIA 2005 (provision corresponding to section 31 of that Act |
| |
in case of property income) is amended as follows. |
| |
(5) | In subsection (1)(b), for “sections 48 (car or motor cycle hire) and” substitute |
| |
“section 36 (unpaid remuneration), section 38 (employee benefit |
| |
contributions), section 48 (car or motor cycle hire) and section”. |
| 15 |
(6) | In subsection (3), after “sections” insert “36, 38,”. |
| |
(7) | The amendments made by this section have effect for the tax year 2007-08 and |
| |
| |
| |
| 20 |
67 | Abolition of contributions relief for life assurance premium contributions |
| |
Schedule 18 contains provisions denying relief for contributions made by or on |
| |
behalf of members in respect of life assurance premiums. |
| |
68 | Alternatively secured pensions etc |
| |
Schedule 19 contains provisions about alternatively secured pensions and |
| 25 |
transfer lump sum death benefit etc. |
| |
| |
Schedule 20 contains miscellaneous provisions about registered pension |
| |
schemes and employer-financed retirement benefits schemes. |
| |
| 30 |
SDLT, stamp duty and SDRT |
| |
SDLT: anti-avoidance provisions |
| |
| |
(1) | In FA 2003, after section 75 insert (in place of the section inserted by the Stamp |
| |
Duty Land Tax (Variation of the Finance Act 2003) Regulations 2006 (S.I. 2006/ |
| 35 |
|
| |
|
| |
|
| |
| |
(1) | This section applies where— |
| |
(a) | one person (V) disposes of a chargeable interest and another |
| |
person (P) acquires either it or a chargeable interest deriving |
| 5 |
| |
(b) | a number of transactions (including the disposal and |
| |
acquisition) are involved in connection with the disposal and |
| |
acquisition (“the scheme transactions”), and |
| |
(c) | the sum of the amounts of stamp duty land tax payable in |
| 10 |
respect of the scheme transactions is less than the amount that |
| |
would be payable on a notional land transaction effecting the |
| |
acquisition of V’s chargeable interest by P on its disposal by V. |
| |
(2) | In subsection (1) “transaction” includes, in particular— |
| |
(a) | a non-land transaction, |
| 15 |
(b) | an agreement, offer or undertaking not to take specified action, |
| |
(c) | any kind of arrangement whether or not it could otherwise be |
| |
described as a transaction, and |
| |
(d) | a transaction which takes place after the acquisition by P of the |
| |
| 20 |
(3) | The scheme transactions may include, for example— |
| |
(a) | the acquisition by P of a lease deriving from a freehold owned |
| |
| |
(b) | a sub-sale to a third person; |
| |
(c) | the grant of a lease to a third person subject to a right to |
| 25 |
| |
(d) | the exercise of a right to terminate a lease or to take some other |
| |
| |
(e) | an agreement not to exercise a right to terminate a lease or to |
| |
| 30 |
(f) | the variation of a right to terminate a lease or to take some other |
| |
| |
(4) | Where this section applies— |
| |
(a) | any of the scheme transactions which is a land transaction shall |
| |
be disregarded for the purposes of this Part, but |
| 35 |
(b) | there shall be a notional land transaction for the purposes of this |
| |
Part effecting the acquisition of V’s chargeable interest by P on |
| |
| |
(5) | The chargeable consideration on the notional transaction mentioned in |
| |
subsections (1)(c) and (4)(b) is the largest amount (or aggregate |
| 40 |
| |
(a) | given by or on behalf of any one person by way of consideration |
| |
for the scheme transactions, or |
| |
(b) | received by or on behalf of V (or a person connected with V |
| |
within the meaning of section 839 of the Taxes Act 1988) by way |
| 45 |
of consideration for the scheme transactions. |
| |
(6) | The effective date of the notional transaction is— |
| |
|
| |
|
| |
|
(a) | the last date of completion for the scheme transactions, or |
| |
(b) | if earlier, the last date on which a contract in respect of the |
| |
scheme transactions is substantially performed. |
| |
(7) | This section does not apply where subsection (1)(c) is satisfied only by |
| |
| 5 |
(a) | sections 71A to 73, or |
| |
(b) | a provision of Schedule 9. |
| |
75B | Anti-avoidance: incidental transactions |
| |
(1) | In calculating the chargeable consideration on the notional transaction |
| |
for the purposes of section 75A(5), consideration for a transaction shall |
| 10 |
be ignored if or in so far as the transaction is merely incidental to the |
| |
transfer of the chargeable interest from V to P. |
| |
(2) | A transaction is not incidental to the transfer of the chargeable interest |
| |
| |
(a) | if or in so far as it forms part of a process, or series of |
| 15 |
transactions, by which the transfer is effected, |
| |
(b) | if the transfer of the chargeable interest is conditional on the |
| |
completion of the transaction, or |
| |
(c) | if it is of a kind specified in section 75A(3). |
| |
(3) | A transaction may, in particular (but subject to subsection (2)), be |
| 20 |
incidental if or in so far as it is undertaken only for a purpose relating |
| |
| |
(a) | the construction of a building on property to which the |
| |
chargeable interest relates, |
| |
(b) | the sale or supply of anything other than land, or |
| 25 |
(c) | a loan to P secured by a mortgage, or any other provision of |
| |
finance to enable P, or another person, to pay for part of a |
| |
process, or series of transactions, by which the chargeable |
| |
interest transfers from V to P. |
| |
(4) | The exclusion required by subsection (1) shall be effected by way of just |
| 30 |
and reasonable apportionment if necessary. |
| |
75C | Anti-avoidance: supplemental |
| |
(1) | A transfer of shares or securities shall be ignored for the purposes of |
| |
section 75A if but for this subsection it would be the first of a series of |
| |
| 35 |
(2) | The notional transaction under section 75A attracts any relief under this |
| |
Part which it would attract if it were an actual transaction (subject to the |
| |
terms and restrictions of the relief). |
| |
(3) | The notional transaction under section 75A is a land transaction |
| |
entered into for the purposes of or in connection with the transfer of an |
| 40 |
undertaking or part for the purposes of paragraphs 7 and 8 of Schedule |
| |
7, if any of the scheme transactions is entered into for the purposes of |
| |
or in connection with the transfer of the undertaking or part. |
| |
(4) | In the application of section 75A(5) no account shall be taken of any |
| |
amount paid by way of consideration in respect of a transaction to |
| 45 |
|
| |
|
| |
|
which any of sections 60, 61, 63, 64, 65, 66, 67, 69, 71, 74 and 75, or a |
| |
provision of Schedule 6A or 8, applies. |
| |
(5) | Section 53 applies to the notional transaction under section 75A. |
| |
(6) | Paragraph 5 of Schedule 4 applies to the notional transaction under |
| |
| 5 |
(7) | For the purposes of section 75A— |
| |
(a) | an interest in a partnership is a chargeable interest in so far as it |
| |
concerns land owned by the partnership, and |
| |
(b) | where V or P is a partnership, Part 3 of Schedule 15 applies to |
| |
the notional transaction as to the transfer of a chargeable |
| 10 |
interest from or to a partnership. |
| |
(8) | For the purposes of section 75A a reference to an amount of |
| |
consideration includes a reference to the value of consideration given |
| |
| |
(9) | Stamp duty land tax paid in respect of a land transaction which is to be |
| 15 |
disregarded by virtue of section 75A(4)(a) is taken to have been paid in |
| |
respect of the notional transaction by virtue of section 75A(4)(b). |
| |
(10) | The Treasury may by order provide for section 75A not to apply in |
| |
| |
(11) | An order under subsection (10) may include incidental, consequential |
| 20 |
or transitional provision.” |
| |
(2) | The amendment made by subsection (1) has effect in respect of disposals and |
| |
acquisitions if the disposal mentioned in new section 75A(1)(a) (inserted by |
| |
that subsection) takes place on or after 6th December 2006. |
| |
(3) | But the transitional provisions of sub-paragraphs (2) to (5) of paragraph 1 of |
| 25 |
the Schedule to the Stamp Duty Land Tax (Variation of the Finance Act 2003) |
| |
Regulations 2006 (S.I. 2006/3237) continue to have effect in relation to this |
| |
section as in relation to that paragraph. |
| |
| |
(1) | Schedule 15 to FA 2003 (stamp duty land tax: partnerships) is amended as |
| 30 |
| |
(2) | A reference in this section to a provision of that Schedule is to the provision as |
| |
it had effect before variation by the Stamp Duty Land Tax (Variation of the |
| |
Finance Act 2003) Regulations 2006. |
| |
(3) | In Step Two of paragraph 12(1) (transfer to partnership: how to calculate the |
| 35 |
“sum of the lower proportions”)— |
| |
(a) | in paragraph (b), for “or is connected with the relevant owner” |
| |
substitute “or is an individual connected with the relevant owner”, and |
| |
| |
| “(If there is no relevant owner with a corresponding partner, the |
| 40 |
sum of the lower proportions is nil.)” |
| |
|
| |
|
| |
|
(4) | In paragraph 12, after sub-paragraph (2) insert— |
| |
“(3) | For the purpose of paragraph (b) of Step 2 a company is to be treated |
| |
as an individual connected with the relevant owner in so far as it— |
| |
(a) | holds property as trustee, and |
| |
(b) | is connected with the relevant owner only because of section |
| 5 |
839(3) of the Taxes Act 1988.” |
| |
(5) | Omit paragraph 13 (transfer to partnership where all partners are companies). |
| |
(6) | In paragraph 14 (transfer of interest in property-investment partnership)— |
| |
(a) | omit sub-paragraph (1)(b), and |
| |
| 10 |
“(9) | An interest in respect of the transfer of which this paragraph |
| |
applies shall be treated as a chargeable interest for the |
| |
purposes of paragraph 3(1) of Schedule 7 to the extent that |
| |
the relevant partnership property consists of a chargeable |
| |
| 15 |
| and in the italic cross-heading before it, omit “for consideration”. |
| |
(7) | In Step Two of paragraph 20(1) (transfer from partnership: how to calculate the |
| |
“sum of the lower proportions”)— |
| |
(a) | in paragraph (b), for “or was connected with the relevant owner” |
| |
substitute “or was an individual connected with the relevant owner”, |
| 20 |
| |
| |
| “(If there is no relevant owner with a corresponding partner, the |
| |
sum of the lower proportions is nil.)” |
| |
(8) | In paragraph 20, after sub-paragraph (2) insert— |
| 25 |
“(3) | For the purpose of paragraph (b) of Step 2 a company is to be treated |
| |
as an individual connected with the relevant owner in so far as it— |
| |
(a) | holds property as trustee, and |
| |
(b) | is connected with the relevant owner only because of section |
| |
839(3) of the Taxes Act 1988.” |
| 30 |
(9) | After paragraph 27 insert— |
| |
“27A (1) | This paragraph applies where in calculating the sum of the lower |
| |
proportions in relation to a transaction (in accordance with |
| |
| |
(a) | a company (“the connected company”) would have been a |
| 35 |
corresponding partner of a relevant owner (“the original |
| |
owner”) but for the fact that paragraph (b) of Step Two |
| |
includes connected persons only if they are individuals, and |
| |
(b) | the connected company and the original owner are members |
| |
| 40 |
(2) | The charge in respect of the transaction shall be reduced to the |
| |
amount that would have been payable had the connected company |
| |
been a corresponding partner of the original owner for the purposes |
| |
of calculating the sum of the lower proportions. |
| |
|
| |
|
| |
|
(3) | The provisions of Part 1 of Schedule 7 apply to group relief under |
| |
sub-paragraph (2) above as to group relief under paragraph 1(1) of |
| |
| |
(a) | with the omission of paragraph 2(2)(a), |
| |
(b) | with the substitution for “the purchaser” in paragraph 3(1)(a) |
| 5 |
of “a partner who was, at the effective date of the transaction, |
| |
a partner and a member of the same group as the transferor |
| |
(“the relevant partner”)”, and |
| |
(c) | with the other modifications specified in paragraph 27(3) to |
| |
| 10 |
(10) | For paragraph 36 substitute— |
| |
“36 | For the purposes of this Part of this Schedule, where a person |
| |
acquires or increases a partnership share there is a transfer of an |
| |
interest in the partnership (to that partner and from the other |
| |
| 15 |
(11) | In paragraph 39 (“connected persons”), insert at the end— |
| |
“(3) | As applied by sub-paragraph (1) for the purposes of paragraph 12 or |
| |
20, that section has effect with the omission of subsection (3)(c) |
| |
(trustee connected with settlement).” |
| |
(12) | In Schedule 16 to FA 2003 (trusts and powers)— |
| 20 |
(a) | in paragraph 3(1) (bare trust), after “a chargeable interest” insert “or an |
| |
interest in a partnership”, and |
| |
(b) | in paragraph 4 (trustees of settlement), after “a chargeable interest” |
| |
insert “or an interest in a partnership”. |
| |
(13) | The amendments made by subsections (1) to (11) have effect in respect of |
| 25 |
transfers occurring on or after the day on which this Act is passed. |
| |
(14) | The amendment made by subsection (12) has effect in respect of acquisitions |
| |
occurring on or after the day on which this Act is passed. |
| |
(15) | An amendment made by this section replaces, to the extent provided for by |
| |
subsections (13) and (14), any variation made by the Stamp Duty Land Tax |
| 30 |
(Variation of the Finance Act 2003) Regulations 2006 (S.I. 2006/3237). |
| |
(16) | Despite subsections (13) to (15), the transitional provisions of sub-paragraphs |
| |
(8) to (10) of paragraph 2 of the Schedule to the Stamp Duty Land Tax |
| |
(Variation of the Finance Act 2003) Regulations 2006 continue to have effect in |
| |
relation to the amendments made by this section as in relation to that |
| 35 |
| |
Reliefs in relation to shares etc |
| |
72 | Exemptions: intermediaries, repurchases etc |
| |
Schedule 21 contains provision in relation to exemptions from stamp duty and |
| |
stamp duty reserve tax in cases involving intermediaries, repurchases, stock |
| 40 |
lending or recognised investment exchanges. |
| |
|
| |
|