House of Commons Public Bill Committee Proceedings

House of Commons

Session 2007 - 08
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Other Bills before Parliament

Public Bill Committee Proceedings: 27th November 2007
30

Crossrail Bill, continued


but this sub-paragraph does not apply if the person making the disposal is

connected with the person making the acquisition.

      (2)
This sub-paragraph applies to a disposal if—

(a)
it is made in accordance with provision contained in a transfer scheme

by virtue of paragraph 5 or 11 of Schedule 12 to this Act,

(b)
the person making the disposal or the person to whom the disposal is

made is a person other than a public body, and

(c)
each of those persons is either the transferor or a transferee under the

scheme.

      (3)
If sub-paragraph (1) applies to the disposal of an asset, the disposal is to be

taken (in relation to the person making the acquisition as well as the person

making the disposal) to be—

(a)
in a case where consideration in money or money’s worth is given by

the person making the acquisition or on his behalf in respect of the

vesting of the asset in him, for a consideration equal to the amount or

value of that consideration, or

(b)
in a case where no such consideration is given, for a consideration of

nil.

Loan relationships

40  (1)
Paragraph 11 of Schedule 9 to FA 1996 (transactions not at arm’s length) is not

to have effect where, as a result of a relevant transfer, the transferee replaces

the transferor as a party to a loan relationship.

      (2)
Expressions used in this paragraph and in Chapter 2 of Part 4 of FA 1996 have

the same meanings in this paragraph as in that Chapter.

Part 7

Other provisions concerning transfers

Chargeable gains: value shifting

41
No transfer scheme is to be regarded as a scheme or arrangement for the

purposes of section 30 of TCGA 1992.

Group relief

42
The power of the Secretary of State to make a transfer scheme is not to be

regarded as constituting—

(a)
arrangements falling within section 410(1) or (2) of ICTA

(arrangements for transfer of company to another group or

consortium), or

(b)
option arrangements for the purposes of paragraph 5B of Schedule 18

to ICTA.

Modification of transfer schemes and determinations under paragraph 9(1)(d) or

27(1)(c): companies

43  (1)
This paragraph applies if—

(a)
a company delivers a company tax return,

(b)
subsequently, an event mentioned in sub-paragraph (2) below occurs,

and

(c)
as a result of that event, the return is incorrect.

      (2)
The events are—

Public Bill Committee Proceedings: 27th November 2007
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Crossrail Bill, continued

(a)
the making of an agreement modifying a transfer scheme under

paragraph 14 of Schedule 12 to this Act;

(b)
a determination or modification of a determination under the provision

mentioned in paragraph 9(1)(d) or 27(1)(c) above.

      (3)
The return may be amended under paragraph 15 of Schedule 18 to FA 1998 so

as to remedy the error, ignoring any time limit which would otherwise prevent

that happening.

      (4)
But an amendment may not be made in reliance on sub-paragraph (3) above

more than 12 months after the end of the accounting period of the company

during which (as the case may be)—

(a)
the agreement is made, or

(b)
the determination or modification of a determination is made.

      (5)
Sub-paragraphs (6) and (7) below apply if the company does not amend the

return so as to remedy the error before the end of that 12 month period.

      (6)
A discovery assessment or a discovery determination may be made in relation

to the error, ignoring any time limit which would otherwise prevent that

happening.

      (7)
But such an assessment or determination may not be made in reliance on sub-

paragraph (6) above more than 24 months after the end of the accounting

period mentioned in sub-paragraph (4) above.

      (8)
Expressions used in this paragraph and in Schedule 18 to FA 1998 have the

same meaning in this paragraph as in that Schedule.

Modification of transfer schemes: other persons and partnerships

44  (1)
This paragraph applies if—

(a)
a person delivers a return under section 8, 8A or 12AA of TMA 1970,

(b)
subsequently, an agreement is made modifying a transfer scheme

under paragraph 14 of Schedule 12 to this Act, and

(c)
as a result of that, the return is incorrect.

      (2)
The return may be amended under section 9ZA or 12ABA of TMA 1970 so as

to remedy the error, ignoring any time limit which would otherwise prevent

that happening.

      (3)
But an amendment may not be made in reliance on sub-paragraph (2) above

more than 12 months after the end of the year of assessment during which the

agreement modifying the transfer scheme is made.

      (4)
If the return is amended under section 12ABA in reliance on sub-paragraph (2)

above, subsection (3) of that section applies, ignoring any time limit which

would otherwise prevent the officer from proceeding under that subsection.

      (5)
Sub-paragraphs (6) and (7) below apply if the return is not amended under

section 9ZA or 12ABA so as to remedy the error before the end of the 12

month period mentioned in sub-paragraph (3) above.

      (6)
An officer of Revenue and Customs may proceed under section 29(1) or

30B(1) and (2) of TMA 1970 in relation to the error, ignoring any time limit

which would otherwise prevent the officer from so proceeding.

      (7)
But an assessment or an amendment may not be made in reliance on sub-

paragraph (6) above more than 24 months after the end of the year of

assessment mentioned in sub-paragraph (3) above.

Power to make further provision in relation to transfer schemes

45  (1)
The Treasury may by regulations make provision for varying the way in which

a relevant tax has effect from time to time (including by virtue of this

Schedule) in relation to—

Public Bill Committee Proceedings: 27th November 2007
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Crossrail Bill, continued

(a)
any property, rights or liabilities transferred in accordance with a

transfer scheme, or

(b)
anything done for the purposes of, or in relation to, or in consequence

of, the transfer of any property, rights or liabilities in accordance with

a transfer scheme.

      (2)
The provision that may be made under sub-paragraph (1)(a) includes, in

particular, provision for—

(a)
a tax provision not to apply, or to apply with modifications, in relation

to any property, rights or liabilities transferred;

(b)
any property, rights or liabilities transferred to be treated in a specified

way for the purposes of a tax provision;

(c)
the Secretary of State to be required or permitted, with the consent of

the Treasury, to determine, or to specify the method for determining,

anything which needs to be determined for the purposes of any tax

provision so far as relating to any property, rights or liabilities

transferred.

      (3)
The provision that may be made under sub-paragraph (1)(b) includes, in

particular, provision for—

(a)
a tax provision not to apply, or to apply with modifications, in relation

to anything done for the purposes of, or in relation to, or in

consequence of, the transfer;

(b)
anything done for the purposes of, or in relation to, or in consequence

of, the transfer to have or not to have a specified consequence or to be

treated in a specified way;

(c)
the Secretary of State to be required or permitted, with the consent of

the Treasury, to determine, or to specify the method for determining,

anything which needs to be determined for the purposes of any tax

provision so far as relating to anything done for the purposes of, or in

relation to, or in consequence of, the transfer.

      (4)
Regulations under sub-paragraph (1) may amend this Schedule (apart from this

paragraph).

      (5)
Regulations under sub-paragraph (1) may—

(a)
make such supplementary, incidental or consequential provision as the

Treasury think fit, and

(b)
make different provision for different cases.

      (6)
The power to make regulations under sub-paragraph (1) shall be exercisable by

statutory instrument which shall be subject to annulment in pursuance of a

resolution of the House of Commons.

      (7)
In this paragraph references to any property, rights or liabilities transferred in

accordance with a transfer scheme include references to any property, rights or

liabilities transferred, or any interests, rights or liabilities created, by virtue of

paragraph 5 or 11 of Schedule 12 to this Act.

      (8)
In this paragraph references to the transfer of any property, rights or liabilities

in accordance with a transfer scheme include references to the transfer of any

property, rights or liabilities, or the creation of any interests, rights or

liabilities, by virtue of paragraph 5 or 11 of Schedule 12 to this Act.

      (9)
In this paragraph—

“relevant tax” means income tax, corporation tax, capital gains tax, stamp

duty, stamp duty land tax or stamp duty reserve tax, and

“tax provision” means a provision of an enactment about a relevant tax.

    (10)
In sub-paragraph (9) “enactment” includes an enactment contained in an

instrument made under an Act.

Public Bill Committee Proceedings: 27th November 2007
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Crossrail Bill, continued

    (11)
Paragraph 18(3) of Schedule 12 to this Act applies for the purposes of this

paragraph as it applies for the purposes of that Schedule.

Consequential amendment

46
In section 35(3)(d) of TCGA 1992 (no gain no loss disposals), after sub-

paragraph (xvii) insert—

“(xviii)
paragraph 11 or 22 of Schedule (Transfer schemes:

tax provisions) to the Crossrail Act 2008.”’.

Bill, as amended, to be reported.