|
| |
|
| |
24 | Rates of R&D relief and vaccine research relief |
| |
Schedule 8 contains provision about the rates of research and development |
| |
relief and vaccine research relief. |
| |
25 | Companies in difficulty: SME R&D relief and vaccine research relief |
| 5 |
Schedule 9 contains provision preventing a company from claiming research |
| |
and development relief and vaccine research relief if it is not a going concern. |
| |
| |
(1) | A company is only entitled to R&D relief in respect of expenditure attributable |
| |
to a research and development project if, or to the extent that, at that time, the |
| 10 |
total R&D aid in respect of expenditure by the company attributable to the |
| |
project would not exceed 7.5 million euros. |
| |
| |
“R&D relief” means any relief or tax credit under— |
| |
(a) | Schedule 20 to FA 2000 (tax relief for expenditure by SMEs on |
| 15 |
research and development), or |
| |
(b) | Schedule 13 to FA 2002 (tax relief on expenditure on vaccine |
| |
| |
“total R&D aid” means the total R&D aid calculated— |
| |
(a) | in accordance with Part 1 of Schedule 10, and |
| 20 |
(b) | as if a claim or election had been made for the R&D relief |
| |
mentioned in subsection (1). |
| |
(3) | The Treasury may by regulations— |
| |
(a) | increase the amount specified in subsection (1), and |
| |
(b) | amend Part 1 of Schedule 10. |
| 25 |
(4) | Part 2 of Schedule 10 contains amendments consequential on this section. |
| |
(5) | Subsections (1) to (4) and that Schedule come into force on such day as the |
| |
Treasury may by order appoint. |
| |
27 | Vaccine research relief: declaration about effect of relief |
| |
(1) | In paragraph 21 of Schedule 13 to FA 2002 (tax relief for expenditure by large |
| 30 |
companies on vaccine research etc), after sub-paragraph (3) insert— |
| |
“(3A) | A claim under this paragraph must include a declaration that the |
| |
availability of the relief claimed has resulted in an increase in— |
| |
(a) | the amount, scope or speed of the research and development |
| |
undertaken by the company, or |
| 35 |
(b) | the company’s expenditure on research and development.” |
| |
(2) | The amendment made by subsection (1) has effect in relation to claims made |
| |
on or after such day as the Treasury may by order appoint. |
| |
|
| |
|
| |
|
Venture capital schemes etc |
| |
28 | Enterprise investment scheme: increase in amount of relief |
| |
(1) | In section 158(2)(b) of ITA 2007 (form and amount of EIS relief), for “£400,000” |
| |
| |
(2) | The amendment made by subsection (1) has effect for— |
| 5 |
(a) | such tax year as the Treasury may by order specify, and |
| |
(b) | all tax years subsequent to the specified tax year. |
| |
(3) | An order under subsection (2) may specify the tax year in which it is made. |
| |
(4) | Section 1014(4) of ITA 2007 (orders etc subject to annulment) does not apply in |
| |
relation to an order under subsection (2). |
| 10 |
29 | Venture capital schemes |
| |
Schedule 11 contains provision about venture capital schemes. |
| |
30 | Enterprise management incentives: qualifying companies |
| |
(1) | Part 3 of Schedule 5 to ITEPA 2003 (enterprise management incentives: |
| |
qualifying companies) is amended as follows. |
| 15 |
(2) | In paragraph 8 (qualifying companies: introduction), omit the “and” at the end |
| |
of the entry relating to paragraph 12, and after that entry insert— |
| |
“number of employees (see paragraph 12A), and”. |
| |
(3) | After paragraph 12 insert— |
| |
“The number of employees requirement |
| 20 |
12A (1) | The number of employees requirement in the case of a single |
| |
company is that the full-time equivalent employee number for it is |
| |
| |
(2) | The number of employees requirement in the case of a parent |
| |
company is that the sum of— |
| 25 |
(a) | the full-time equivalent employee number for it, and |
| |
(b) | the full-time equivalent employee numbers for each of its |
| |
| |
| |
(3) | The full-time equivalent employee number for a company is |
| 30 |
| |
| |
| Find the number of full-time employees of the company. |
| |
| |
| Add, for each employee of the company who is not a full-time |
| 35 |
employee, such fraction as is just and reasonable. |
| |
| The result is the full-time equivalent employee number. |
| |
(4) | In this paragraph references to an employee— |
| |
(a) | include a director, but |
| |
|
| |
|
| |
|
| |
(i) | an employee on maternity or paternity leave, or |
| |
(ii) | a student on vocational training.” |
| |
(4) | In paragraph 16 (excluded activities), after paragraph (i) insert— |
| |
“(ia) | shipbuilding (see also paragraph 20A); |
| 5 |
(ib) | producing coal (see also paragraph 20B); |
| |
(ic) | producing steel (see also paragraph 20C);”. |
| |
(5) | After paragraph 20 insert— |
| |
“Excluded activities: shipbuilding |
| |
20A | In paragraph 16(1)(ia) “shipbuilding” has the same meaning as in the |
| 10 |
Framework on state aid to shipbuilding (2003/C 317/06), published |
| |
in the Official Journal on 30 December 2003. |
| |
Excluded activities: producing coal |
| |
20B (1) | This paragraph supplements paragraph 16(1)(ib). |
| |
(2) | “Coal” has the meaning given by Article 2 of Council Regulation (EC) |
| 15 |
No. 1407/2002 (state aid to coal industry). |
| |
(3) | The production of coal includes the extraction of it. |
| |
Excluded activities: producing steel |
| |
20C | In paragraph 16(1)(ic) “steel” means any of the steel products listed |
| |
in Annex 1 to the Guidelines on national regional aid (2006/C 54/ |
| 20 |
08), published in the Official Journal on 4 March 2006.” |
| |
(6) | The amendments made by this section have effect in relation to options |
| |
granted on or after the day on which this Act is passed. |
| |
Other business and investment measures |
| |
31 | Tax credits for certain foreign distributions |
| 25 |
(1) | Schedule 12 contains provision about tax credits for certain foreign |
| |
| |
(2) | The amendments made by that Schedule have effect for the tax year 2008-09 |
| |
and subsequent tax years. |
| |
32 | Small companies’ relief: associated companies |
| 30 |
(1) | Section 13 of ICTA (small companies’ relief) is amended as follows. |
| |
(2) | In the second sentence of subsection (4) (meaning of “control” for purposes of |
| |
definition of “associated company”), insert at the end “except that, in the |
| |
application of subsection (6) of that section in relation to the company (“the |
| |
taxpayer company”) and another company or companies for the purposes of |
| 35 |
this section, the references to an associate of a person (“P”) include a partner of |
| |
the person only if the condition in subsection (4A) below is met.” |
| |
|
| |
|
| |
|
(3) | After that subsection insert— |
| |
“(4A) | The condition referred to in subsection (4) above is that relevant tax |
| |
planning arrangements have at any time had effect in relation to the |
| |
taxpayer company (whether in connection with its formation or |
| |
| 5 |
(4B) | In subsection (4A) above “relevant tax planning arrangements” means |
| |
| |
(a) | involve P and the partner, and |
| |
(b) | secure a relevant tax advantage. |
| |
(4C) | In subsection (4B) above— |
| 10 |
“arrangements” includes any agreement, understanding, scheme, |
| |
transaction or series of transactions (whether or not legally |
| |
enforceable), other than any guarantee, security or charge given |
| |
to or taken by a bank, and |
| |
“relevant tax advantage” means a reduction of the taxpayer |
| 15 |
company’s liability to corporation tax by virtue of an increase in |
| |
relief under this section.” |
| |
(4) | The amendments made by this section are treated as having come into force on |
| |
| |
33 | Company gains from investment life insurance contracts etc |
| 20 |
(1) | Schedule 13 contains provisions about company gains from investment life |
| |
| |
(2) | Schedule 14 contains amendments and repeals consequential on that Schedule |
| |
| |
34 | Trade profits: changes in trading stock |
| 25 |
(1) | Schedule 15 contains provision about the effect of certain changes in trading |
| |
stock on the calculation of profits of trades for the purposes of income tax or |
| |
| |
(2) | The amendments made by that Schedule have effect in relation to changes in |
| |
trading stock occurring on or after 12 March 2008. |
| 30 |
(3) | In subsection (2) “change in trading stock” means— |
| |
(a) | in relation to new section 172B of ITTOIA 2005, or paragraph 6 of |
| |
Schedule 15, an appropriation of trading stock, |
| |
(b) | in relation to new section 172C of ITTOIA 2005, or paragraph 7 of |
| |
Schedule 15, a thing becoming trading stock, |
| 35 |
(c) | in relation to new section 172D of ITTOIA 2005, or paragraph 8 of |
| |
Schedule 15, a disposal of trading stock, and |
| |
(d) | in relation to new section 172E of ITTOIA 2005, or paragraph 9 of |
| |
Schedule 15, an acquisition of trading stock. |
| |
35 | Non-residents: investment managers |
| 40 |
Schedule 16 contains provision about— |
| |
|
| |
|
| |
|
(a) | the eligibility of an investment manager to be the UK representative of |
| |
a non-resident, or an agent of independent status in relation to a non- |
| |
| |
(b) | profits or income of non-residents to be disregarded if derived from |
| |
certain investment transactions carried out by investment managers. |
| 5 |
36 | Dormant bank and building society accounts |
| |
(1) | The Commissioners for Her Majesty’s Revenue and Customs may by |
| |
| |
(a) | modify section 17 of TMA 1970 (banks etc required to report interest |
| |
payments) in relation to interest paid or credited in respect of a relevant |
| 10 |
| |
(b) | modify Chapters 2 and 3 of Part 15 of ITA 2007 (deduction of income |
| |
tax on interest payments at source) in relation to such interest, and |
| |
(c) | provide that, for the purposes of Chapter 2 of Part 4 of ITTOIA 2005 |
| |
(charge to income tax on interest), such interest is to be treated as not |
| 15 |
being paid until the time (if any) at which the balance of the dormant |
| |
account is paid out following a claim made by virtue of section 1(2)(b) |
| |
or 2(2)(b) of the 2008 Act. |
| |
(2) | A relevant dormant account is a dormant account the balance of which is to be, |
| |
or has been, transferred— |
| 20 |
(a) | to an authorised reclaim fund, with the result that section 1 of the 2008 |
| |
Act will apply, or applies, in relation to the account, or |
| |
(b) | to an authorised reclaim fund and one or more charities, with the result |
| |
that section 2 of the 2008 Act will apply, or applies, in relation to the |
| |
| 25 |
(3) | Interest paid or credited in respect of a relevant dormant account includes |
| |
interest paid or credited by a person who administers the account on behalf of |
| |
an authorised reclaim fund after the balance has been transferred. |
| |
(4) | “The 2008 Act” means the Dormant Bank and Building Society Accounts Act |
| |
2008; and terms used in this section and in that Act have the same meaning in |
| 30 |
this section as in that Act. |
| |
(5) | Regulations under subsection (1) are to be made by statutory instrument. |
| |
(6) | A statutory instrument containing regulations under that subsection is subject |
| |
to annulment in pursuance of a resolution of the House of Commons. |
| |
(7) | In TCGA 1992, after section 26 insert— |
| 35 |
“26A | Transfer of dormant bank or building society account |
| |
(1) | This section applies where the balance of a dormant account held by a |
| |
person with a bank or building society is transferred— |
| |
(a) | to an authorised reclaim fund, with the result that section 1 of |
| |
the Dormant Bank and Building Society Accounts Act 2008 |
| 40 |
applies in relation to the account, or |
| |
(b) | to an authorised reclaim fund and one or more charities, with |
| |
the result that section 2 of that Act applies in relation to the |
| |
| |
(2) | For the purposes of this Act— |
| 45 |
|
| |
|
| |
|
(a) | the transfer is not to be treated as involving any acquisition or |
| |
disposal of an asset, and |
| |
(b) | the person’s rights under Part 1 of that Act are to be treated as |
| |
the same asset as the original rights, acquired as the original |
| |
rights were acquired and having the same characteristics as |
| 5 |
| |
(3) | “The original rights” are the person’s rights against the bank or |
| |
building society immediately before the transfer. |
| |
(4) | Terms used in this section and in the Dormant Bank and Building |
| |
Society Accounts Act 2008 have the same meaning in this section as in |
| 10 |
| |
(8) | Subsection (7) comes into force in accordance with provision made by order |
| |
| |
37 | Individual investment plan regulations |
| |
In section 701 of ITTOIA 2005 (investment plan regulations: general and |
| 15 |
supplementary), insert at the end— |
| |
“(4) | They may include provision having effect in relation to times before |
| |
they are made if the provision does not impose or increase any liability |
| |
| |
(5) | They may make different provision for different cases or |
| 20 |
| |
| |
38 | Tax treatment of participants in offshore funds |
| |
(1) | The Treasury may by regulations make provision about the treatment of |
| |
participants in an offshore fund for the purposes of enactments relating to |
| 25 |
income tax, capital gains tax or corporation tax. |
| |
| |
(a) | “enactment” includes subordinate legislation (within the meaning of |
| |
the Interpretation Act 1978 (c. 30)), and |
| |
(b) | “offshore fund” has the same meaning as in Chapter 5 of Part 17 of |
| 30 |
ICTA (see sections 756A to 756C of that Act). |
| |
(3) | Regulations under subsection (1) are to be made by statutory instrument. |
| |
(4) | A statutory instrument containing the first regulations under subsection (1) |
| |
may not be made unless a draft of the instrument has been laid before, and |
| |
approved by a resolution of, the House of Commons. |
| 35 |
(5) | Any other statutory instrument containing regulations under subsection (1) is |
| |
subject to annulment in pursuance of a resolution of the House of Commons. |
| |
(6) | In Chapter 5 of Part 17 of ICTA (offshore funds)— |
| |
(a) | in section 756A (general definition of offshore fund), omit subsection |
| |
| 40 |
(b) | in section 756B (treatment of umbrella funds)— |
| |
(i) | in subsection (1), omit the words following paragraph (b), and |
| |
|
| |
|
| |
|
(ii) | omit subsection (3), |
| |
(c) | in section 756C (treatment of funds comprising more than one class of |
| |
| |
(i) | in subsection (2), omit paragraph (b) (and the “or” before it), and |
| |
(ii) | omit subsection (3), |
| 5 |
(d) | omit sections 757 to 763 (further provision about offshore funds), and |
| |
(e) | omit Schedules 27 and 28 (distributing funds and computation of |
| |
| |
(7) | In consequence of subsection (6), omit— |
| |
(a) | paragraph 12 of Schedule 13 to FA 1988, |
| 10 |
(b) | paragraphs 10 and 11 of Schedule 14 to FA 1990, |
| |
(c) | paragraph 14(43) to (45), (47) to (49) and (63) of Schedule 10 to TCGA |
| |
| |
(d) | section 134(4) of FA 1995, |
| |
(e) | in paragraph 6 of Schedule 28 to FA 1996, “and in paragraph 5(5) of |
| 15 |
Schedule 27 to that Act”, |
| |
(f) | paragraph 4(5) and (6) of Schedule 9 to FA 2002, |
| |
(g) | paragraphs 1(1), 2(1), 4, 5, 6(3) to (6), 7 to 9, 14(2), (3), (5)(b) and (7), 15 |
| |
and 16(1) of Schedule 26 to FA 2004, |
| |
(h) | paragraphs 308, 309 and 350(4) of Schedule 1 to ITTOIA 2005, |
| 20 |
(i) | section 23 of F(No.2)A 2005, |
| |
(j) | paragraph 47(1) of Schedule 12 to FA 2006, |
| |
(k) | paragraphs 179(2)(a) and (b), 180 and 181 of Schedule 1 to ITA 2007, and |
| |
(l) | in this Act, paragraphs 87 to 89 of Schedule 7 and paragraph 28 of |
| |
| 25 |
(8) | Subsections (6) and (7) come into force on such day as the Treasury may |
| |
appoint by order made by statutory instrument. |
| |
(9) | An order under subsection (8)— |
| |
(a) | may appoint different days for different purposes, and |
| |
| 30 |
39 | Regulations under section 38: supplementary |
| |
(1) | Regulations under section 38 may, in particular— |
| |
(a) | make provision for an offshore fund, or a trustee or officer of an |
| |
offshore fund, to make elections relating to the treatment of |
| |
participants in the offshore fund for the purposes of income tax, capital |
| 35 |
gains tax or corporation tax, |
| |
(b) | make provision about— |
| |
(i) | the provision of information to Her Majesty’s Revenue and |
| |
| |
(ii) | the provision of information to participants, |
| 40 |
(iii) | the preparation of accounts, and |
| |
(iv) | the keeping of records, |
| |
| by offshore funds or trustees or officers of offshore funds, and |
| |
(c) | make other provision about the administration of offshore funds. |
| |
(2) | Regulations under section 38 may, in particular, make special provision about |
| 45 |
the treatment of participants in— |
| |
|
| |
|