|
| |
|
(a) | the public access rule, |
| |
(b) | the personal use rule, |
| |
| |
(d) | the temporary importation rule. |
| |
809V | Exempt property: public access rule |
| 5 |
(1) | This section applies for the purposes of sections 809T to 809Y. |
| |
(2) | Property meets the public access rule if the following conditions are |
| |
| |
(3) | Condition A is that, in relation to the importation of the property, |
| |
article 5(1) of the Value Added Tax (Imported Goods) Relief Order |
| 10 |
| |
(a) | applies by virtue of Group 9 of Schedule 2 to that Order |
| |
(importation of works of art or collectors’ pieces by museums |
| |
| |
(b) | would so apply if the following requirements were |
| 15 |
| |
(i) | the requirement for the importation to be from a third |
| |
| |
(ii) | the requirement for the purpose of the importation to |
| |
be a purpose other than sale. |
| 20 |
(4) | Condition B is that the property— |
| |
(a) | is in transit from a place outside the United Kingdom to |
| |
relevant premises, in transit between relevant premises, or in |
| |
storage at relevant premises, in advance of being available for |
| |
public access at an approved establishment, |
| 25 |
(b) | is available for public access at an approved establishment, or |
| |
(c) | is in storage at relevant premises, in transit between relevant |
| |
premises, or in transit from relevant premises to a place |
| |
outside the United Kingdom, after it has been available for |
| |
public access at an approved establishment. |
| 30 |
(5) | Condition C is that, after the importation of the property, it is in the |
| |
United Kingdom for a single period of not more than— |
| |
| |
(b) | such longer duration as the Commissioners may specify. |
| |
(6) | A reference to importation of the property is a reference to— |
| 35 |
(a) | the property being brought to, or received or used in, the |
| |
United Kingdom in circumstances in which section |
| |
| |
(b) | to the property being in the United Kingdom after being so |
| |
brought, received or used. |
| 40 |
(7) | “Relevant premises” are— |
| |
(a) | premises in the United Kingdom at which the property is to |
| |
be, or has been, available for public access, or |
| |
(b) | other premises in the United Kingdom used by the approved |
| |
establishment for the storage of property in advance of it |
| 45 |
being, or after it has been, available for public access. |
| |
|
| |
|
| |
|
(8) | An “approved establishment” is an approved museum, gallery or |
| |
other institution (within the meaning of Group 9 of Schedule 2 to the |
| |
Value Added Tax (Imported Goods) Relief Order 1984 (S.I. 1984/ |
| |
| |
(9) | Property is “available for public access” at an approved |
| 5 |
establishment if the property is— |
| |
(a) | on public display at the establishment, |
| |
(b) | held by the establishment and made available to the public |
| |
on request for viewing or for educational use, or |
| |
(c) | held by the establishment for public exhibition in connection |
| 10 |
with the sale of the property. |
| |
809W | Exempt property: the other rules |
| |
(1) | This section applies for the purposes of sections 809T to 809Y. |
| |
(2) | Clothing, footwear, jewellery and watches meet the personal use rule |
| |
| 15 |
(a) | are property of a relevant person, and |
| |
(b) | are for the personal use of a relevant individual. |
| |
| |
(a) | “relevant person” has the meaning given by section 809L, and |
| |
(b) | “relevant individual” means an individual who is a relevant |
| 20 |
person by virtue of section 809L(2)(a), (b), (c) or (d) (the |
| |
individual with income or gains, or a husband, wife, civil |
| |
partner, child or grandchild). |
| |
(4) | Property meets the repair rule if the property— |
| |
(a) | is in transit from a place outside the United Kingdom to |
| 25 |
relevant premises, in transit between relevant premises, or in |
| |
storage at relevant premises, in advance of repair or |
| |
| |
(b) | is under repair or restoration, or |
| |
(c) | is in storage at relevant premises, in transit between relevant |
| 30 |
premises, or in transit from relevant premises to a place |
| |
outside the United Kingdom, following repair or restoration. |
| |
(5) | For that purpose “relevant premises” means— |
| |
(a) | premises in the United Kingdom that are to be used, or have |
| |
been used, for the repair or restoration referred to in |
| 35 |
subsection (4)(a) or (c), or |
| |
(b) | other premises in the United Kingdom used by the restorer |
| |
for the storage of property in advance of, or following, repair |
| |
or restoration of property; |
| |
| and “restorer” means the person who is to carry out, or has carried |
| 40 |
out, the repair or restoration referred to in subsection (4)(a) or (c). |
| |
(6) | Property meets the temporary importation rule if the total number of |
| |
qualifying days is 275 or less. |
| |
(7) | For that purpose a “qualifying day” is a day on which, or on part of |
| |
which, the property is in the United Kingdom by virtue of being |
| 45 |
brought to, or received or used in, the United Kingdom in |
| |
circumstances in which section 809K(2)(a) applies (whether the |
| |
|
| |
|
| |
|
current case, or a past case, when the property was so brought, |
| |
| |
| |
(a) | the public access rule, |
| |
(b) | the personal use rule, or |
| 5 |
| |
| the period during which it meets that rule must be taken into account |
| |
in determining whether or not it meets the temporary importation |
| |
| |
809X | Exempt property: the notional remitted amount |
| 10 |
(1) | This section applies for the purposes of sections 809T to 809Y. |
| |
(2) | The “notional remitted amount”, in relation to property, is the |
| |
amount of income that would be taken to be remitted to the United |
| |
Kingdom in relation to the property (if section 809T did not apply in |
| |
relation to the property). |
| 15 |
| |
(a) | property forms part of a set, and |
| |
(b) | only part of the set is in the United Kingdom, |
| |
| the notional remitted amount is such part of the amount specified in |
| |
subsection (4) as is just and reasonable having regard to the part of |
| 20 |
the set that actually is in the United Kingdom. |
| |
(4) | That amount is the amount that would be taken to be remitted to the |
| |
United Kingdom if the complete set had been brought to, or received |
| |
or used in, the United Kingdom, at the same time as the part in |
| |
| 25 |
809Y | Exempt property: other interpretation |
| |
(1) | This section applies for the purposes of sections 809T to 809X. |
| |
(2) | “Property” does not include money. |
| |
(3) | References to property being in the United Kingdom are references |
| |
| 30 |
(a) | being in the United Kingdom after being brought to, or |
| |
received in, the United Kingdom in circumstances in which |
| |
section 809K(2)(a) applies, or |
| |
(b) | being used in the United Kingdom in circumstances in which |
| |
section 809K(2)(a) applies. |
| 35 |
Interpretation of Chapter |
| |
809Z | Interpretation of Chapter |
| |
(1) | This section applies for the purposes of this Chapter. |
| |
(2) | An individual’s “foreign income and gains” for a tax year are— |
| |
(a) | the individual’s relevant foreign earnings for that year, |
| 40 |
(b) | the individual’s foreign specific employment income for that |
| |
| |
(c) | the individual’s relevant foreign income for that year, and |
| |
|
| |
|
| |
|
(d) | if the individual is not domiciled in the United Kingdom in |
| |
that year, the individual’s foreign chargeable gains for that |
| |
| |
(3) | An individual’s “relevant foreign earnings” for a tax year are— |
| |
(a) | if the individual is ordinarily UK resident in that year, the |
| 5 |
individual’s chargeable overseas earnings for that year, and |
| |
(b) | otherwise, the individual’s general earnings within section |
| |
26(1) of ITEPA 2003 for that year (non-UK earnings). |
| |
(4) | An individual’s “foreign specific employment income” for a tax year |
| |
is so much of the amounts within subsection (5) as are regarded as |
| 10 |
foreign securities income for the purposes of section 41A of ITEPA |
| |
| |
(5) | An amount is within this subsection if it counts as employment |
| |
income of the individual for the tax year by virtue of any provision |
| |
of Chapters 2, 3 and 3C to 5 of Part 7 of ITEPA 2003 (employment- |
| 15 |
related securities etc) except section 446UA. |
| |
(6) | An individual’s “foreign chargeable gains” for a tax year are the |
| |
foreign chargeable gains (within the meaning of section 12(4) of |
| |
TCGA 1992) accruing to the individual in that year. |
| |
(7) | In subsection (3)(a) “chargeable overseas earnings” has the same |
| 20 |
meaning as in section 22 of ITEPA 2003 (see section 23 of that Act).” |
| |
| |
2 | ITEPA 2003 is amended as follows. |
| |
3 (1) | Section 6 (nature of charge to tax on employment income) is amended as |
| |
| 25 |
(2) | In subsection (3), omit the “and” at the end of paragraph (a), and after that |
| |
| |
“(aa) | whether section 809B, 809C or 809D of ITA 2007 (remittance |
| |
basis) applies to an employee for a tax year, and”. |
| |
(3) | After that subsection insert— |
| 30 |
“(3A) | The rules in Chapter 5A, which are concerned with the matters |
| |
mentioned in subsection (3)(a) to (b), apply for the purposes of the |
| |
charge to tax on certain specific employment income arising under |
| |
Part 7 (securities etc).” |
| |
4 (1) | Section 10 (meaning of “taxable earnings” etc) is amended as follows. |
| 35 |
(2) | In subsection (2), for the words after “with” substitute “Chapters 4 and 5 of |
| |
| |
(3) | After subsection (3) insert— |
| |
“(4) | Subsection (3) is subject to Chapter 5A of this Part (certain specific |
| |
employment income under Part 7: individuals to whom to |
| 40 |
remittance basis applies).” |
| |
5 (1) | Section 13 (person liable to tax) is amended as follows. |
| |
|
| |
|
| |
|
(2) | After subsection (4) insert— |
| |
“(4A) | If the tax is on specific employment income received, or remitted to |
| |
the United Kingdom, after the death of the person in relation to |
| |
whom the income is, by virtue of Part 7, to count as employment |
| |
income, the person’s personal representatives are liable for the tax.” |
| 5 |
(3) | In subsection (5), for “In that event” substitute “If subsection (4) or (4A) |
| |
| |
6 | For the heading of Chapter 4 of Part 2 substitute “Taxable earnings: UK |
| |
| |
7 | In section 14(1) (taxable earnings under Chapter 4: introduction), for |
| 10 |
“resident, ordinarily resident and domiciled in UK” substitute “UK |
| |
| |
8 | For the heading before section 15 substitute “UK resident employees”. |
| |
9 (1) | Section 15 (earnings for year when employee resident, ordinarily resident |
| |
and domiciled in UK) is amended as follows. |
| 15 |
(2) | In subsection (1), for the words from the first “resident” to the end substitute |
| |
| |
(3) | For subsection (3) substitute— |
| |
“(3) | Subsection (2) applies whether or not the employment is held when |
| |
the earnings are received.” |
| 20 |
(4) | Accordingly, in the heading for “resident, ordinarily resident and |
| |
domiciled in UK” substitute “UK resident”. |
| |
10 | For the title to Chapter 5 of Part 2 substitute “Taxable earnings: |
| |
remittance basis rules and rules for non-uk resident employees“. |
| |
11 (1) | Section 20 (taxable earnings under Chapter 5: introduction) is amended as |
| 25 |
| |
(2) | For subsection (1) substitute— |
| |
| |
(a) | contains provision for calculating what are taxable earnings |
| |
from certain kinds of employment in a tax year for which |
| 30 |
section 809B, 809C or 809D of ITA 2007 (remittance basis) |
| |
applies to the employee, and |
| |
(b) | sets out what are taxable earnings from an employment in a |
| |
tax year in which the employee is non-UK resident.” |
| |
(3) | In subsection (2), omit paragraphs (b) and (c). |
| 35 |
(4) | In subsection (3) for “the sections listed in subsection (1)” substitute |
| |
“sections 22, 26 and 27”. |
| |
12 | For the heading before section 21 substitute “Remittance basis rules for UK |
| |
ordinarily resident employees”. |
| |
13 | Omit section 21 (earnings for year when employee resident and ordinarily |
| 40 |
resident, but not domiciled, in UK, except chargeable overseas earnings). |
| |
|
| |
|
| |
|
14 (1) | Section 22 (chargeable overseas earnings for year when employee resident |
| |
and ordinarily resident, but not domiciled, in UK) is amended as follows. |
| |
(2) | In subsection (1), for the words from “in which” to the end substitute “, to the |
| |
extent that they are chargeable overseas earnings for that year, if— |
| |
(a) | section 809B, 809C or 809D of ITA 2007 (remittance basis) |
| 5 |
applies to the employee for that year, and |
| |
(b) | the employee is ordinarily UK resident in that year.” |
| |
(3) | For subsection (3) substitute— |
| |
“(3) | Subsection (2) applies whether or not the employment is held when |
| |
the earnings are remitted.” |
| 10 |
(4) | In subsection (4), omit the words after “year”. |
| |
(5) | In subsection (5)(b), for “section 21” substitute “section 15”. |
| |
(6) | After subsection (5) insert— |
| |
“(6) | See sections 809K to 809Q of ITA 2007 for the meaning of “remitted |
| |
to the United Kingdom” etc. |
| 15 |
(7) | General earnings for the employee for the tax year fall within section |
| |
15(1) to the extent that they do not fall within subsection (1).” |
| |
(7) | Accordingly, in the heading, for the words from “employee” to the end |
| |
substitute “remittance basis applies and employee ordinarily UK |
| |
| 20 |
15 (1) | Section 23 (calculation of chargeable overseas earnings) is amended as |
| |
| |
(2) | In subsection (1), for “sections 21 and” substitute “section”. |
| |
(3) | In subsection (2), for paragraph (a) substitute— |
| |
“(a) | section 809B, 809C or 809D of ITA 2007 (remittance basis) |
| 25 |
applies to the employee for that year, |
| |
(aa) | the employee is ordinarily UK resident in that year,”. |
| |
16 (1) | Section 24 (limit on chargeable overseas earnings where duties of associated |
| |
employment performed in UK) is amended as follows. |
| |
(2) | In subsection (7), for “section 21(1)” substitute “section 15(1)”. |
| 30 |
(3) | After that subsection insert— |
| |
“(8) | For the purposes of this section, no account is to be taken of the effect |
| |
of section 41D (limit on foreign securities income where duties of |
| |
associated employment performed in UK).” |
| |
17 | For the heading before section 25 substitute “Remittance basis rules: employees |
| 35 |
not UK ordinarily resident”. |
| |
18 | Omit section 25 (UK-based earnings for year when employee resident, but |
| |
not ordinarily resident, in UK). |
| |
19 (1) | Section 26 (foreign earnings for year when employee resident, but not |
| |
ordinarily resident, in UK) is amended as follows. |
| 40 |
|
| |
|
| |
|
(2) | In subsection (1), for the words from “in which” to “they” substitute “where |
| |
section 809B, 809C or 809D of ITA 2007 (remittance basis) applies to the |
| |
employee for that year and the employee is not ordinarily UK resident in |
| |
that year, if the general earnings”. |
| |
(3) | For subsection (3) substitute— |
| 5 |
“(3) | Subsection (2) applies whether or not the employment is held when |
| |
the earnings are remitted.” |
| |
(4) | After subsection (4) insert— |
| |
“(5) | See sections 809K to 809Q of ITA 2007 for the meaning of “remitted |
| |
to the United Kingdom” etc. |
| 10 |
(6) | General earnings for the employee for the tax year fall within section |
| |
15(1) if they do not fall within subsection (1).” |
| |
(5) | Accordingly, in the heading for the words from “employee” to the end |
| |
substitute “remittance basis applies and employee not ordinarily UK |
| |
| 15 |
20 (1) | Section 27 (UK-based earnings for year when employee non-UK resident) is |
| |
| |
(2) | For subsection (3) substitute— |
| |
“(3) | Subsection (2) applies whether or not the employment is held when |
| |
the earnings are received.” |
| 20 |
(3) | After subsection (4) insert— |
| |
“(5) | Sections 18 and 19 (time when earnings are received) apply for the |
| |
purposes of this section.” |
| |
21 | Omit sections 31 to 37 (and the heading before section 31). |
| |
22 | After section 41 insert— |
| 25 |
| |
Taxable specific income: effect of remittance basis |
| |
| |
41A | Taxable specific income from employment-related securities: effect of |
| |
| 30 |
(1) | This section applies if— |
| |
(a) | an amount within subsection (2) counts as employment |
| |
income of an individual for a tax year in respect of an |
| |
employment (“the securities income”), and |
| |
(b) | any part of the relevant period (see section 41B) is within a tax |
| 35 |
year for which section 809B, 809C or 809D of ITA 2007 |
| |
(remittance basis) applies to the individual. |
| |
(2) | An amount is within this subsection if it counts as employment |
| |
income under any provision of any of Chapters 2, 3 and 3C to 5 of |
| |
Part 7 (employment-related securities etc) except section 446UA. |
| 40 |
|
| |
|