Crossrail Bill

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Crossrail Bill

Crossrail Bill
Schedule 13 — Transfer schemes: tax provisions
Part 7 — Other provisions concerning transfers
217

Chargeable gains: disposals not to be treated as made at market value
39    (1)
Section 17 of TCGA 1992 (disposals and acquisitions treated as made at
market value) is not to have effect in relation to—
(a)
a disposal constituted by a relevant transfer,
(b)
a disposal to which sub-paragraph (2) applies, or
5
(c)
the acquisition made by the person to whom the disposal is made;

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
10
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.
15
      (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
20
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
25
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.
30
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.
35
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
40
consortium), or

Crossrail Bill
Schedule 13 — Transfer schemes: tax provisions
Part 7 — Other provisions concerning transfers
218

(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—
5
(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—
10
(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
15
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)—
20
(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
25
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.
30
      (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,
35
(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
40
prevent that happening.

Crossrail Bill
Schedule 13 — Transfer schemes: tax provisions
Part 7 — Other provisions concerning transfers
219

      (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
5
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.
10
      (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
15
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—
20
(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.
25
      (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
30
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
35
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
40
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
45
the Treasury, to determine, or to specify the method for determining,
anything which needs to be determined for the purposes of any tax

Crossrail Bill
Schedule 14 — Disapplication and modification of miscellaneous controls
220

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—
5
(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
10
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.
15
      (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—
20
“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.
25
     (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—
30
“(xviii)
paragraph 11 or 22 of Schedule 13 to the Crossrail Act
2008.”
Schedule 14
Section 49

Disapplication and modification of miscellaneous controls
Ecclesiastical law
35
1     (1)
No obligation or restriction imposed under ecclesiastical law or otherwise in
relation to consecrated land shall have effect to prohibit, restrict or impose
any condition on the exercise of the powers conferred by this Act with
respect to works.

Crossrail Bill
Schedule 14 — Disapplication and modification of miscellaneous controls
221

      (2)
Sub-paragraph (1) shall not apply in relation to the use of land comprised in
a burial ground for the purpose of constructing any of the works authorised
by this Act.
Overground wires
2
Nothing in the London Overground Wires &c. Act 1933 (c. xliv), or in any
5
bye-law made under that Act, shall extend or apply to any wires or part of a
wire erected or placed, proposed to be erected or placed, or for the time
being maintained, by the nominated undertaker in exercise of the powers
conferred by this Act.
London Squares Preservation Act 1931
10
3     (1)
Nothing in section 3 of the London Squares Preservation Act 1931 (c. xciii)
(protection of squares) shall have effect in relation to anything done for the
purposes of or in connection with the exercise of any of the powers conferred
by this Act with respect to works.
      (2)
Nothing in any agreement under section 9 of that Act (agreements between
15
local authority and owner of a protected square) shall have effect to prohibit,
restrict or impose any condition on the exercise of the powers conferred by
this Act with respect to works.
London Building Acts (Amendment) Act 1939
4     (1)
The following provisions of the London Building Acts (Amendment) Act
20
1939 (c. xcvii) shall not apply to anything held by the Secretary of State or the
nominated undertaker and used, or intended for use, by the nominated
undertaker for the purposes of its undertaking under this Act—
(a)
Part 3 (construction of buildings and structures generally),
(b)
Part 4 (construction of special and temporary buildings and
25
structures), and
(c)
Part 5 (means of escape in case of fire).
      (2)
Sub-paragraph (1) shall not apply in relation to a building which is a house
or a hotel or which is used as offices or showrooms and does not form part
of a railway station.
30
Coast works
5
Section 34(1) of the Coast Protection Act 1949 (c. 74) (consent of Secretary of
State required for works detrimental to navigation) shall not apply in
relation to anything done within the limits of deviation for the scheduled
works in exercise of the powers conferred by this Act in relation to those
35
works, or any work in connection with them.
Port of London Act 1968
6
The following provisions of the Port of London Act 1968 (c. xxxii) shall not
apply in relation to anything done for the purposes of or in connection with
the exercise of any of the powers conferred by this Act with respect to
40
works—
(a)
section 70 (prohibition of various activities in relation to works
without a licence under section 66 of that Act), and

Crossrail Bill
Schedule 14 — Disapplication and modification of miscellaneous controls
222

(b)
section 73(3) (prohibition of dredging etc. of Thames without a
licence).
Highways, etc.
7     (1)
The following enactments (which control obstructions of the highway in
connection with works relating to buildings) shall not apply to anything
5
erected, placed or retained in, upon or over a highway for the purposes of or
in connection with the exercise of any of the powers conferred by this Act
with respect to works—
(a)
section 15(1) of the Greater London Council (General Powers) Act
1970 (c. lxxvi), and
10
(b)
section 169(1) of the Highways Act 1980 (c. 66).
      (2)
Section 141 of the Highways Act 1980 (restriction on planting trees or shrubs
in or near carriageway) shall not apply to any tree or shrub planted for the
purposes of or in connection with the exercise of any of the powers conferred
by this Act with respect to works.
15
      (3)
Section 167 of the Highways Act 1980 (powers relating to retaining walls
near streets) shall not apply to any length of a retaining wall erected on land
held by the Secretary of State or nominated undertaker and used, or
intended for use, by the nominated undertaker for the purposes of its
undertaking under this Act.
20
      (4)
Nothing in section 8(2) to (5) of the Greater London Council (General
Powers) Act 1986 (c. iv) (power of borough councils in relation to retaining
walls supporting the carriageway or footway of certain highways) shall
apply with respect to any retaining wall erected in exercise of the powers
conferred by this Act.
25
Building regulations
8     (1)
Nothing in Part 1 of the Building Act 1984 (c. 55) with respect to building
regulations, and nothing in any building regulations, shall apply in relation
to a building held by the Secretary of State or the nominated undertaker and
used, or intended for use, by the nominated undertaker for the purposes of
30
its undertaking under this Act.
      (2)
Sub-paragraph (1) shall not apply in relation to a building which is a house
or a hotel or which is used as offices or showrooms and does not form part
of a railway station.
      (3)
Any building to which sub-paragraph (2) applies shall be disregarded for
35
the purposes of section 4(1)(b) of the Building Act 1984 (exception for certain
buildings belonging to statutory undertakers).
Deposits in the sea
9     (1)
Section 5 of the Food and Environment Protection Act 1985 (c. 48)
(requirement for licences for deposit of substances and articles in the sea etc.)
40
shall not apply to the deposit of substances and articles within the limits of
deviation for Work No. 1/4A, 1/4B, 1/6A, 1/6B, 1/29, 1/38A or 1/38B in
exercise of the powers conferred by this Act in relation to that work, or any
work in connection with it.

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Schedule 14 — Disapplication and modification of miscellaneous controls
223

      (2)
In the case of substances and articles which have been excavated or dredged,
sub-paragraph (1) shall only apply to deposit in the course of use as a
construction material.
London lorries: general
10    (1)
This paragraph applies where an application for the issue of a permit under
5
the London Lorry Ban Order is made under paragraph 11 or is otherwise
expressed to be made in connection with the carrying out of authorised
works.
      (2)
The application shall be granted if the issue of a permit is reasonably
required—
10
(a)
for the purpose of enabling authorised works to be carried out in a
timely and efficient manner, or
(b)
for the purpose of enabling authorised works to be carried out in
accordance with approved arrangements.
      (3)
If the application is granted, no condition may be imposed which is likely to
15
obstruct the carrying out of authorised works—
(a)
in a timely and efficient manner, or
(b)
in accordance with approved arrangements.
      (4)
If the applicant is aggrieved by a decision under sub-paragraph (2) or (3), he
may appeal to the Secretary of State by giving notice in writing of the appeal
20
to him, and to the authority whose decision is appealed against, within 28
days of notification of the decision.
      (5)
On an appeal under sub-paragraph (4), the Secretary of State may allow or
dismiss the appeal or vary the decision of the authority whose decision is
appealed against.
25
      (6)
If on an appeal under sub-paragraph (4) against a decision under sub-
paragraph (3) the Secretary of State varies the decision, the variation shall
have effect from and including the date on which the appeal was constituted
or such later date as the Secretary of State may specify.
      (7)
The applicant may not challenge a decision under sub-paragraph (3)
30
otherwise than by an appeal under sub-paragraph (4).
      (8)
In this paragraph—
“approved arrangements” means arrangements approved for the
purposes of—
(a)
paragraph 7 of Schedule 7, so far as relating to item 1 in the
35
table in that paragraph, or
(b)
paragraph 24 of that Schedule;
“authorised works” means works authorised by this Act;
“the London Lorry Ban Order” means the Greater London (Restriction
of Goods Vehicles) Traffic Order 1985.
40
London lorries: emergency permit
11    (1)
This paragraph applies where a person proposes to undertake a journey
before the end of the next complete eight working days, being a journey—
(a)
proposed to be undertaken in connection with the carrying out of
authorised works, and
45