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

282

 

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

283

 

(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

284

 

      (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          

In paragraph 4(2C)(b) of Schedule 26 to FA 2002 (derivative contracts:

contracts excluded by virtue of their underlying subject matter), for

“quoted” substitute “listed”.

20

10    (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

stock exchange” substitute “on a recognised stock exchange or dealt

in on any designated market in the United Kingdom”, and

25

(b)   

after that subsection insert—

“(7)   

In subsection (6)(b) “designated” means designated by an

order made by the Commissioners for Her Majesty’s

Revenue and Customs for the purposes of that provision.

(8)   

An order under subsection (7) may—

30

(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.”

      (3)  

In section 717(2) (orders and regulations made by Treasury or

35

Commissioners), insert at the end “or section 421L(7) (persons to whom

section 421J applies: order in relation to excluded securities).”

11    (1)  

ITTOIA 2005 is amended as follows.

      (2)  

In section 443(2) (application of Chapter 8 of Part 4 to strips of government

securities)—

40

(a)   

at the end of paragraph (e) insert “and”, and

(b)   

omit paragraph (g).

 

 

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

285

 

      (3)  

In section 460(3) (minor definitions in Chapter 8 of Part 4), omit “or 451”.

12    (1)  

ITA 2007 is amended as follows.

      (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

5

Exchange” substitute “a recognised stock exchange”.

      (4)  

In section 184 (EIS: the unquoted status requirement)—

(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)”.

10

      (5)  

In section 257(5) (minor definitions in Part 5), for “the Stock Exchange”

substitute “a recognised stock exchange”.

      (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”.

15

      (7)  

In section 295(3) (VCTs: the unquoted status requirement)—

(a)   

in paragraph (a), for the words from “the Stock Exchange” to the end

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”

20

substitute “a recognised stock exchange”.

      (9)  

In section 397(6) (eligibility requirements for interest on loans within section

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:

25

meaning of “qualifying investment”)—

(a)   

in subsection (1)(a), 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”,

(b)   

in subsection (2), after “In this section—” insert—

30

““designated” means designated by an order made by

the Commissioners for Her Majesty’s Revenue and

Customs for the purposes of subsection (1)(a),”, and

(c)   

after that subsection insert—

“(3)   

An order under subsection (2) may—

35

(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.”

     (11)  

In section 691(1)(b) (meaning of “relevant company” in sections 689 and

40

690), for sub-paragraphs (i) and (ii) substitute—

“(i)   

included in the official UK list, and

(ii)   

dealt in on a recognised stock exchange in the United

Kingdom regularly or from time to time.”

 

 

Finance Bill
Schedule 27 — Repeals
Part 1 — Environment

286

 

     (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

list” is to be read in accordance with section 1005,

“shares, stock or other securities listed on a recognised stock

5

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)—

(a)   

after sub-paragraph (ii) (but before the “and”) insert—

10

“(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)”.

     (15)  

In Schedule 4 (index of defined expressions), after the entry relating to

15

“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”.

 
 

listed on a recognised stock

  

20

 

exchange

  

Schedule 27

Section 112

 

Repeals

Part 1

Environment

25

(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).

 
 

 

Finance Bill
Schedule 27 — Repeals
Part 2 — Income tax, corporation tax and capital gains tax

287

 

(2) Climate change levy: reduced-rate supplies etc

 

Short title and chapter

Extent of repeal

 
 

Finance Act 2000 (c. 17)

In Schedule 6—

 
  

(a)   

in paragraph 11, in sub-paragraph (1),

 
  

the words “has, before the supply is

 

5

  

made, notified the supplier” and “that

 
  

he” (in both places), and, in sub-

 
  

paragraph (3), the words “has, before the

 
  

supply is made, notified the supplier

 
  

that” and “he”,

 

10

  

(b)   

paragraph 45(2) to (4), and

 
  

(c)   

in paragraph 101, sub-paragraph (1),

 
  

and, in sub-paragraph (3), the words

 
  

“notification or”.

 

           

The repeal of paragraph 45(2) to (4) of Schedule 6 to FA 2000 has effect in

15

accordance with Schedule 2 to this Act.

Part 2

Income tax, corporation tax and capital gains tax

(1) Restrictions on trade loss relief for partners

 

Short title and chapter

Extent of repeal

 

20

 

Income Tax Act 2007 (c. 3)

In section 104(5), the words “(see section 112)”.

 
  

Section 106.

 
  

In section 107(2), the words “(see section 112)”.

 
  

In section 110(1)(a), the words “(see section

 
  

112)”.

 

25

  

Section 112(1) to (5).

 
  

In section 115(1)(d), the words “(see section

 
  

112)”.

 
  

Section 116.

 

           

These repeals have effect in accordance with Schedule 4 to this Act.

30

(2) Extension of restrictions on allowable capital losses

 

Short title and chapter

Extent of repeal

 
 

Taxation of Chargeable Gains

Section 8(2A) to (2C).

 
 

Act 1992 (c. 12)

  
 

Finance Act 2006 (c. 25)

Section 69.

 

35

           

These repeals have effect in accordance with section 27 of this Act.

 

 

Finance Bill
Schedule 27 — Repeals
Part 2 — Income tax, corporation tax and capital gains tax

288

 

(3) Avoidance involving financial arrangements

 

Short title and chapter

Extent of repeal

 
 

Income and Corporation Taxes

Section 347A.

 
 

Act 1988 (c. 1)

Section 660C(4).

 
 

Finance Act 1988 (c. 39)

Section 36(1).

 

5

 

Capital Allowances Act 2001

In section 228F—

 
 

(c. 2)

(a)   

subsection (4), and

 
  

(b)   

in subsection (8), paragraph (b) (together

 
  

with the word “and” before it).

 
 

Income Tax (Trading and Other

In Schedule 1, paragraph 272(4).

 

10

 

Income) Act 2005 (c. 5)

  
 

Income Tax Act 2007 (c. 3)

In Schedule 1, paragraph 52.

 

           

These repeals have effect in accordance with Schedule 5 to this Act.

(4) Restrictions on companies buying losses or gains: tax avoidance schemes

 

Short title and chapter

Extent of repeal

 

15

 

Taxation of Chargeable Gains

In section 184A(2), the words “unless the gains

 
 

Act 1992 (c. 12)

accrue to the company on a disposal of a pre-

 
  

change asset”.

 
  

In section 184B(2), the words “unless the loss

 
  

accrues to the company on a disposal of a pre-

 

20

  

change asset”.

 
 

Finance Act 2006 (c. 25)

In section 70(9)—

 
  

(a)   

in paragraph (a), the words “or 184B”,

 
  

(b)   

paragraph (d) (together with the word

 
  

“and” following it), and

 

25

  

(c)   

in paragraph (e), the words “, or a

 
  

qualifying gain for the purposes of

 
  

section 184B of that Act,”.

 

           

These repeals have effect in accordance with section 31 of this Act.

(5) Employee benefit contributions

30

 

Short title and chapter

Extent of repeal

 
 

Finance Act 2003 (c. 14)

In Schedule 24, in paragraph 9(1), the definition

 
  

of “the third party”.

 
 

Finance Act 2004 (c. 12)

Section 245(2).

 
 

Income Tax (Trading and Other

In Schedule 1, paragraph 624(2).

 

35

 

Income) Act 2005 (c. 5)

  

           

These repeals have effect in accordance with section 33 of this Act.

 

 

 
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