|
| |
|
58C | Relief for new zero-carbon homes: supplemental |
| |
(1) | Regulations under section 58B— |
| |
(a) | shall include provision about the method of claiming relief |
| |
(including documents or information to be provided), and |
| |
(b) | in particular, shall include provision about the evidence to be |
| 5 |
adduced to show that a building satisfies the definition of “zero- |
| |
| |
(2) | Regulations made by virtue of subsection (1)(b) may, in particular— |
| |
(a) | refer to a scheme or process established by or for the purposes |
| |
of an enactment about building; |
| 10 |
(b) | establish or provide for the establishment of a scheme or |
| |
process of certification; |
| |
(c) | specify, or provide for the approval of, one or more schemes or |
| |
processes for certifying energy efficiency. |
| |
(3) | In defining “zero-carbon home” regulations under section 58B may |
| 15 |
include requirements which may be satisfied in relation to a building |
| |
| |
(a) | by features of the building itself, or |
| |
(b) | by other installations or utilities. |
| |
(4) | Regulations under section 58B may modify the effect of section 108, or |
| 20 |
another provision of this Part about linked transactions, in relation to a |
| |
set of transactions of which at least one is the first acquisition of a |
| |
dwelling which is a zero-carbon home. |
| |
(5) | In determining whether section 116(7) applies, and in the application of |
| |
section 116(7), a transaction shall be disregarded if or in so far as it |
| 25 |
involves the first acquisition of a dwelling which is a zero-carbon home. |
| |
(6) | Regulations under section 58B— |
| |
(a) | may provide for relief to be wholly or partly withdrawn if a |
| |
dwelling ceases to be a zero-carbon home, and |
| |
(b) | may provide for the reduction or withholding of relief where a |
| 30 |
person acquires more than one zero-carbon home within a |
| |
| |
(7) | Regulations under section 58B may include provision for relief to be |
| |
granted in respect of acquisitions occurring during a specified period |
| |
before the regulations come into force.” |
| 35 |
(2) | In section 114 of FA 2003 (stamp duty land tax: orders and regulations), insert |
| |
| |
“(5) | An order or regulations under this Part— |
| |
(a) | may make provision having effect generally or only in specified |
| |
| 40 |
(b) | may make different provision for different cases or |
| |
| |
(c) | may include incidental, consequential or transitional provision |
| |
| |
|
| |
|
| |
|
| |
20 | Income tax exemption for domestic microgeneration |
| |
(1) | In ITTOIA 2005, after section 782 insert— |
| |
“782A | Domestic microgeneration |
| |
(1) | No liability to income tax arises in respect of income arising to an |
| 5 |
individual from the sale of electricity generated by a microgeneration |
| |
| |
(a) | the system is installed at or near domestic premises occupied by |
| |
| |
(b) | the individual intends that the amount of electricity generated |
| 10 |
by it will not significantly exceed the amount of electricity |
| |
consumed in those premises. |
| |
| |
“domestic premises” means premises used wholly or mainly as a |
| |
separate private dwelling, and |
| 15 |
“microgeneration system” has the same meaning as in section 4 of |
| |
the Climate Change and Sustainable Energy Act 2006.” |
| |
(2) | The amendment made by subsection (1) has effect for the tax year 2007-08 and |
| |
| |
21 | Renewables obligation certificates for domestic microgeneration |
| 20 |
(1) | In ITTOIA 2005, after section 782A (inserted by section 20) insert— |
| |
“782B | Renewables obligation certificates for domestic microgeneration |
| |
(1) | No liability to income tax arises in respect of the receipt by an |
| |
individual of a renewables obligation certificate if— |
| |
(a) | the individual receives the certificate in connection with the |
| 25 |
generation of electricity by a microgeneration system, |
| |
(b) | the system is installed at or near domestic premises occupied by |
| |
| |
(c) | the individual intends that the amount of electricity generated |
| |
by it will not significantly exceed the amount of electricity |
| 30 |
consumed in those premises. |
| |
| |
“domestic premises” and “microgeneration system” have the |
| |
same meaning as in section 782A, and |
| |
“renewables obligation certificate” means a certificate issued |
| 35 |
under section 32B of the Electricity Act 1989 or Article 54 of the |
| |
Energy (Northern Ireland) Order 2003.” |
| |
(2) | In TCGA 1992, after section 263 insert— |
| |
“263AZA | Renewables obligation certificates for domestic microgeneration |
| |
(1) | A gain accruing to an individual on a disposal of a renewables |
| 40 |
obligation certificate is not a chargeable gain if— |
| |
|
| |
|
| |
|
(a) | the individual acquired the certificate in connection with the |
| |
generation of electricity by a microgeneration system, |
| |
(b) | the system is installed at or near domestic premises occupied by |
| |
| |
(c) | the individual intends that the amount of electricity generated |
| 5 |
by it will not significantly exceed the amount of electricity |
| |
consumed in those premises. |
| |
| |
“domestic premises” means premises used wholly or mainly as a |
| |
separate private dwelling, |
| 10 |
“microgeneration system” has the same meaning as in section 4 of |
| |
the Climate Change and Sustainable Energy Act 2006, and |
| |
“renewables obligation certificate” means a certificate issued |
| |
under section 32B of the Electricity Act 1989 or Article 54 of the |
| |
Energy (Northern Ireland) Order 2003.” |
| 15 |
(3) | The amendment made by subsection (1) has effect for the tax year 2007-08 and |
| |
| |
(4) | The amendment made by subsection (2) has effect in relation to disposals on or |
| |
| |
| 20 |
22 | Aggregates levy: exemption for aggregate removed from railways etc |
| |
(1) | Section 17(3) of FA 2001 (exempt aggregate) is amended as follows. |
| |
(2) | Omit “or” at the end of paragraph (d). |
| |
(3) | After that paragraph insert— |
| |
“(da) | it consists wholly of aggregate won by being removed from the |
| 25 |
ground along the line or proposed line of any railway, tramway |
| |
or monorail or proposed railway, tramway or monorail and in |
| |
the course of excavations carried out— |
| |
(i) | for the purpose of improving or maintaining the |
| |
railway, tramway or monorail or of constructing the |
| 30 |
proposed railway, tramway or monorail; and |
| |
(ii) | not for the purpose of extracting that aggregate;”. |
| |
(4) | Insert “or” at the end of paragraph (e). |
| |
(5) | The amendment made by subsection (3) comes into force on such day as the |
| |
Treasury may by order made by statutory instrument appoint. |
| 35 |
23 | Climate change levy: reduced-rate supplies etc |
| |
Schedule 2 contains amendments of Schedule 6 to FA 2000 in relation to |
| |
reduced-rate supplies and other matters. |
| |
24 | Landfill tax: bodies concerned with the environment |
| |
(1) | In section 53(4) of FA 1996 (credit: bodies concerned with the environment), |
| 40 |
|
| |
|
| |
|
after paragraph (c) insert— |
| |
“(ca) | provision for an environmental body to be and remain |
| |
approved only if it complies with conditions imposed from time |
| |
to time by the regulatory body or for the regulatory body to be |
| |
and remain approved only if it complies with conditions |
| 5 |
imposed from time to time by the Commissioners (including |
| |
provision for the variation or revocation of such conditions);”. |
| |
(2) | The amendment made by subsection (1) is deemed to have come into force on |
| |
| |
| 10 |
Income tax, corporation tax and capital gains tax |
| |
| |
25 | Managed service companies |
| |
(1) | Schedule 3 contains provision about managed service companies. |
| |
(2) | That Schedule is deemed to have come into force on 6th April 2007. |
| 15 |
26 | Restrictions on trade loss relief for partners |
| |
Schedule 4 contains provision restricting reliefs for losses made by individuals |
| |
carrying on trades in partnership. |
| |
27 | Extension of restrictions on allowable capital losses |
| |
(1) | TCGA 1992 is amended as follows. |
| 20 |
(2) | In section 8 (company’s total profits to include chargeable gains)— |
| |
(a) | in subsection (2), for the words from “does not include—” to the end |
| |
substitute “does not include a loss accruing to a company in such |
| |
circumstances that if a gain accrued the company would be exempt |
| |
from corporation tax in respect of it.”, and |
| 25 |
(b) | omit subsections (2A) to (2C). |
| |
(3) | After section 16 insert— |
| |
“16A | Restrictions on allowable losses |
| |
(1) | For the purposes of this Act, “allowable loss” does not include a loss |
| |
| 30 |
(a) | it accrues to the person directly or indirectly in consequence of, |
| |
or otherwise in connection with, any arrangements, and |
| |
(b) | the main purpose, or one of the main purposes, of the |
| |
arrangements is to secure a tax advantage. |
| |
(2) | For the purposes of subsection (1)— |
| 35 |
“arrangements” includes any agreement, understanding, scheme, |
| |
transaction or series of transactions (whether or not legally |
| |
| |
| |
|
| |
|
| |
|
(a) | relief or increased relief from tax, |
| |
(b) | repayment or increased repayment of tax, |
| |
(c) | the avoidance or reduction of a charge to tax or an |
| |
| |
(d) | the avoidance of a possible assessment to tax, |
| 5 |
and for the purposes of this definition “tax” means capital gains |
| |
tax, corporation tax or income tax. |
| |
(3) | For the purposes of subsection (1) it does not matter— |
| |
(a) | whether the loss accrues at a time when there are no chargeable |
| |
gains from which it could otherwise have been deducted, or |
| 10 |
(b) | whether the tax advantage is secured for the person to whom |
| |
the loss accrues or for any other person.” |
| |
(4) | In section 288(1) (interpretation), in the definition of “allowable loss”, after “16” |
| |
| |
(5) | In section 834(1) of ICTA (interpretation of the Corporation Tax Acts), in the |
| 15 |
definition of “allowable loss”, for the words from “or a loss” to the end |
| |
substitute “or a loss accruing to a company in the circumstances mentioned in |
| |
section 16A of the 1992 Act”. |
| |
(6) | The amendments made by this section have effect in relation to losses accruing |
| |
on disposals made on or after 6th December 2006. |
| 20 |
28 | Life policies etc: effect of rebated or reinvested commission |
| |
(1) | In ICTA, after section 548 insert— |
| |
“548A | Effect of rebated or reinvested commission in certain cases |
| |
(1) | This section applies if— |
| |
(a) | a relevant chargeable event occurs in respect of a policy or |
| 25 |
| |
(b) | commission in respect of the policy or contract has at any time |
| |
been rebated or reinvested, and |
| |
(c) | condition A or B is met. |
| |
(2) | For the purposes of performing the calculation under section 541(1)(b) |
| 30 |
or (c) or 543(1)(a) or (b) for the chargeable event, the total amount paid |
| |
under the policy or contract by way of premiums in any period is to be |
| |
reduced by the total amount of commission attributable to those |
| |
premiums that has been rebated or reinvested. |
| |
(3) | Condition A is that the total amount paid under the policy or contract |
| 35 |
by way of premiums in a relevant period exceeds £100,000. |
| |
| |
(a) | at a time when the policy or contract was the taxable person’s, |
| |
the taxable person’s policies and contracts exceeded the |
| |
relevant threshold as respects a relevant period, and |
| 40 |
(b) | payments under the policy or contract by way of premiums |
| |
were made in that relevant period. |
| |
|
| |
|
| |
|
(5) | In subsection (4)(a) “taxable person” means the person whose policy or |
| |
contract the policy or contract is, immediately before the chargeable |
| |
| |
(6) | For the purposes of subsection (4)(a) a person’s policies and contracts |
| |
“exceed the relevant threshold” as respects a relevant period if the total |
| 5 |
amount of payments under them by way of premiums in that relevant |
| |
period exceeds the sum specified in subsection (3). |
| |
(7) | In this section “relevant chargeable event” means a chargeable event |
| |
| |
(a) | any of sub-paragraphs (ii) to (iv) of section 540(1)(a) (including |
| 10 |
those sub-paragraphs as they apply in relation to a qualifying |
| |
| |
(b) | section 542(1)(a) or (b), or |
| |
(c) | section 545(1)(a) to (c). |
| |
(8) | In this section “relevant period” means— |
| 15 |
(a) | the period beginning with the beginning of the year of |
| |
assessment in which the chargeable event occurs and ending |
| |
with the chargeable event, or |
| |
(b) | any of the 3 preceding years of assessment. |
| |
(9) | References in this section to a premium include, in relation to a contract |
| 20 |
for a life annuity, lump sum consideration. |
| |
(10) | The Treasury may by order— |
| |
(a) | substitute another sum for the sum for the time being specified |
| |
| |
(b) | amend the definition of “relevant period”. |
| 25 |
548B | Section 548A: further definitions |
| |
(1) | This section supplements section 548A. |
| |
(2) | “Commission”, in relation to a policy or contract, includes any passing |
| |
of value to or for the benefit of an intermediary, or a person connected |
| |
with an intermediary, that can reasonably be taken to represent a |
| 30 |
reward in respect of the policy or contract. |
| |
(3) | Commission in respect of a policy or contract is “reinvested” if, as a |
| |
result of a waiver of an entitlement to it, there is an increase in the total |
| |
value of a relevant person’s policies and contracts. |
| |
(4) | The amount of commission reinvested is the amount of the increase. |
| 35 |
(5) | Commission in respect of a policy or contract is “rebated” if— |
| |
(a) | value passes (directly or indirectly) from an intermediary, or a |
| |
person connected with an intermediary, to or for the benefit of |
| |
a relevant person (and the passing of value does not amount to |
| |
the reinvestment of the commission), and |
| 40 |
(b) | the passing of value can reasonably be taken to be in respect of |
| |
| |
(6) | The amount of commission rebated is the amount of value passed. |
| |
(7) | A policy or contract is a person’s policy or contract if a gain arising in |
| |
connection with it would be— |
| 45 |
|
| |
|
| |
|
(a) | a gain for which the person, or (if the person is an individual) |
| |
the person’s spouse or civil partner, would be liable to tax |
| |
under Chapter 9 of Part 4 of ITTOIA 2005, or |
| |
(b) | treated by virtue of section 547(1) above as forming part of the |
| |
| 5 |
(8) | Any necessary apportionment is to be made (on a just and reasonable |
| |
| |
(a) | commission which is attributable to two or more premiums, |
| |
| |
(b) | any part of such commission that has been rebated or |
| 10 |
| |
(9) | Commission which is in respect of one or more policies or contracts |
| |
(but is not attributable to particular premiums) is to be attributed to |
| |
such premiums as is just and reasonable. |
| |
(10) | In subsections (3) and (5), “relevant person” means— |
| 15 |
(a) | any of the policyholders (including any of the persons who hold |
| |
| |
(b) | a person who beneficially owns the rights under the policy or |
| |
| |
(c) | if those rights are held on trust, any of the trustees, or |
| 20 |
(d) | a person connected (within the meaning of section 839) with a |
| |
person within any of paragraphs (a) to (c). |
| |
(11) | In subsections (8) and (9), references to a premium include, in relation |
| |
to a contract for a life annuity, lump sum consideration.” |
| |
(2) | In section 552 of that Act (information: duty of insurers), after subsection (12) |
| 25 |
| |
“(13) | For the purposes of this section, no account is to be taken of the effect |
| |
of section 548A above or section 541A of ITTOIA 2005.” |
| |
(3) | In ITTOIA 2005, after section 541 insert— |
| |
“Rebated or reinvested commission |
| 30 |
541A | Effect of rebated or reinvested commission in certain cases |
| |
(1) | This section applies if— |
| |
(a) | a chargeable event within section 484(1)(a)(i) to (iii), (c) or (e) |
| |
occurs in respect of a policy or contract, |
| |
(b) | commission in respect of the policy or contract has at any time |
| 35 |
been rebated or reinvested, and |
| |
(c) | condition A or B is met. |
| |
(2) | For the purposes of performing the calculation in section 494 (total |
| |
allowable deductions) for the chargeable event, the total amount of |
| |
premiums under the policy or contract paid in the period mentioned in |
| 40 |
section 494(1) or (2)(b) is to be reduced by the total amount of |
| |
commission attributable to those premiums that has been rebated or |
| |
| |
(3) | Condition A is that the total amount of premiums under the policy or |
| |
contract paid in a relevant period exceeds £100,000. |
| 45 |
|
| |
|