|
| |
|
(a) | an umbrella fund (within the meaning of section 756B of ICTA), and |
| |
(b) | an offshore fund which comprises a class of interest in another fund |
| |
(within the meaning of section 756C of ICTA). |
| |
(3) | Regulations under section 38 may include provision consequential on the |
| |
repeals made by that section. |
| 5 |
(4) | Regulations under section 38 may, in particular— |
| |
(a) | provide for Her Majesty’s Revenue and Customs to exercise a |
| |
discretion in dealing with any matter, |
| |
(b) | make provision by reference to standards or other documents issued by |
| |
| 10 |
(c) | modify an enactment (whenever passed or made), |
| |
(d) | make different provision for different cases or different purposes, and |
| |
(e) | make incidental, consequential, supplementary or transitional |
| |
| |
(5) | Regulations under section 38 may, in particular, make provision having |
| 15 |
| |
(a) | in the case of provision relating to income tax or capital gains tax, in |
| |
relation to the tax year current on the day on which the regulations are |
| |
| |
(b) | in the case of provision relating to corporation tax, in relation to |
| 20 |
accounting periods current on that day. |
| |
| |
“enactment” and “offshore fund” have the same meaning as in section 38, |
| |
| |
“modify” includes amend, repeal or revoke. |
| 25 |
Insurance companies and friendly societies |
| |
40 | Insurance companies etc |
| |
Schedule 17 contains provisions relating to insurance companies etc. |
| |
| |
Schedule 18 contains provision relating to friendly societies. |
| 30 |
| |
42 | Homes outside UK owned through company etc |
| |
(1) | In ITEPA 2003, after section 100 insert— |
| |
“100A | Homes outside UK owned through company etc |
| |
(1) | This Chapter does not apply to living accommodation outside the |
| 35 |
United Kingdom provided by a company for a director or other officer |
| |
of the company (“D”) or a member of D’s family or household if— |
| |
(a) | the company is wholly owned by D or D and other individuals |
| |
(and no interest in the company is partnership property), and |
| |
|
| |
|
| |
|
(b) | the company has been the holding company of the property at |
| |
all times after the relevant time. |
| |
(2) | The company is “the holding company of the property” when— |
| |
(a) | it owns a relevant interest in the property, |
| |
(b) | its main or only asset is that interest, and |
| 5 |
(c) | the only activities undertaken by it are ones that are incidental |
| |
to its ownership of that interest. |
| |
(3) | The company is also “the holding company of the property” when— |
| |
(a) | a company (“the subsidiary”) which is wholly owned by the |
| |
company meets the conditions in paragraphs (a) to (c) of |
| 10 |
| |
(b) | the company’s main or only asset is its interest in the |
| |
| |
(c) | the only activities undertaken by the company are ones that are |
| |
incidental to its ownership of that interest. |
| 15 |
(4) | “Relevant interest in the property” means an interest under the law of |
| |
any territory that confers (or would but for any inferior interest confer) |
| |
a right to exclusive possession of the property at all times or at certain |
| |
| |
(5) | “The relevant time” is the time the company first owned a relevant |
| 20 |
interest in the property; but this is subject to subsection (6). |
| |
| |
(a) | none of D’s interest in the company was acquired directly or |
| |
indirectly from a person connected with D, and |
| |
(b) | the company owned a relevant interest in the property at the |
| 25 |
time D first acquired an interest in the company, |
| |
| “the relevant time” is the time D first acquired such an interest. |
| |
100B | Section 100A(1): exceptions |
| |
(1) | Section 100A(1) does not apply if subsection (2), (3) or (4) applies. |
| |
(2) | This subsection applies if— |
| 30 |
(a) | the company’s interest in the property was acquired directly or |
| |
indirectly from a connected company at an undervalue, or |
| |
(b) | the company’s interest in the property derives from an interest |
| |
| |
(3) | This subsection applies if, at any time after the relevant time— |
| 35 |
(a) | expenditure in respect of the property has been incurred |
| |
directly or indirectly by a connected company, or |
| |
(b) | any borrowing of the company directly or indirectly from a |
| |
connected company has been outstanding (but see subsection |
| |
| 40 |
(4) | This subsection applies if the living accommodation is provided in |
| |
pursuance of an arrangement the main purpose, or one of the main |
| |
purposes, of which is the avoidance of tax or national insurance |
| |
| |
(5) | In subsection (2) references to the acquisition of an interest include the |
| 45 |
| |
|
| |
|
| |
|
(6) | For the purposes of that subsection, an interest is acquired at an |
| |
undervalue if the total consideration for it is less than that which might |
| |
reasonably have been expected to be obtained on a disposal of the |
| |
interest on the open market; and “consideration” here means |
| |
consideration provided at any time (and, for example, includes |
| 5 |
payments by way of rent). |
| |
(7) | For the purposes of subsection (3)(b), no account is to be taken of— |
| |
(a) | any borrowing at a commercial rate, or |
| |
(b) | any borrowing which results in D being treated under Chapter |
| |
7 (taxable benefits: loans) as receiving earnings. |
| 10 |
(8) | In subsection (4) “arrangement” includes any scheme, agreement or |
| |
understanding, whether or not enforceable. |
| |
(9) | In this section “connected company” means— |
| |
(a) | a company connected with D, with a member of D’s family or |
| |
with an employer of D, or |
| 15 |
(b) | a company connected with such a company.” |
| |
(2) | The amendment made by subsection (1) is treated as always having had effect. |
| |
(3) | Section 145 of ICTA (living accommodation provided for employee) is to be |
| |
treated as never having applied to living accommodation outside the United |
| |
Kingdom provided in circumstances in which, had it been provided on or after |
| 20 |
6 April 2003, section 100A(1) of ITEPA 2003 would cause Chapter 5 of Part 3 of |
| |
ITEPA 2003 (taxable benefits: living accommodation) not to apply. |
| |
43 | In-work and return to work credits and payments |
| |
(1) | In section 677(1) of ITEPA 2003 (UK social security benefits wholly exempt |
| |
from tax), in Part 1 of Table B (benefits payable under primary legislation), |
| 25 |
insert at the appropriate places— |
| |
| | | | | | | | | | | | | | | | | | | 30 | | | ETA(NI) 1950 Section 1”, and |
| | | | | | | |
|
|
(2) | In Part 1 of Schedule 1 to that Act (abbreviations of Acts etc), insert at the |
| 35 |
|
| |
|
| |
|
| |
| | The Employment and Training Act |
| | | | | (Northern Ireland) 1950 (c. 29 (N.I.))”, |
| | | | | | | |
|
| | The Employment and Training Act |
| | 5 | | | | | |
|
(3) | The amendments made by this section have effect for the tax year 2008-09 and |
| |
| |
44 | Company cars: lower threshold for CO2 emissions figure |
| |
(1) | In section 139(4) of ITEPA 2003 (car with a CO2 emissions figure: the |
| 10 |
appropriate percentage), for the table substitute— |
| |
| | Lower threshold (in g/km) |
| | | | | | | | | 2010-11 and subsequent tax years |
| | | |
|
(2) | In consequence of the amendment made by subsection (1), omit— |
| 15 |
(a) | in FA 2003, section 138(3), and |
| |
(b) | in FA 2006, section 59(6). |
| |
(3) | The amendments made by this section have effect for the tax year 2008-09 and |
| |
| |
| 20 |
(1) | In section 239(3) of ITEPA 2003 (exemption in respect of payments and benefits |
| |
connected with taxable cars and vans subject to section 149), insert at the end |
| |
“or section 160 (benefit of van fuel treated as earnings).” |
| |
(2) | In section 269(2) of that Act (exemption in respect of non-cash vouchers and |
| |
credit-tokens where benefits or money obtained in connection with taxable car |
| 25 |
or subject to section 149)— |
| |
(a) | for “, but see section 149(3)” substitute “or van, but see section 149(3) or |
| |
| |
(b) | after “earnings)” insert “or section 160 (benefit of van fuel treated as |
| |
| 30 |
46 | Employment-related securities etc: deductible amounts etc |
| |
(1) | In section 149AA of TCGA 1992 (restricted and convertible employment- |
| |
|
| |
|
| |
|
related securities), after subsection (6) insert— |
| |
“(7) | In subsection (1) the reference to any amount that constituted earnings |
| |
under Chapter 1 of Part 3 of ITEPA 2003 does not include any amount |
| |
of exempt income (within the meaning of section 8 of that Act).” |
| |
(2) | ITEPA 2003 is amended as follows. |
| 5 |
(3) | In section 428(2)(b) as originally enacted (conditional interests in shares: |
| |
amount of charge), insert at the end “(other than an amount of exempt |
| |
| |
(4) | In section 428(7)(b) (restricted securities: amount of charge), insert at the end |
| |
“(other than an amount of exempt income)”. |
| 10 |
(5) | In section 446T(3)(b) (securities acquired for less than market value: amount of |
| |
charge), insert at the end “(other than an amount of exempt income)”. |
| |
(6) | In section 480(5)(a) (securities options: deductible amounts), insert at the end |
| |
“(other than an amount of exempt income)”. |
| |
(7) | In paragraph 21(3) of Schedule 23 to FA 2003 (corporation tax relief for |
| 15 |
employee share acquisition: amount of relief in case of restricted shares), insert |
| |
| |
| “For this purpose the amount that constitutes such earnings does not |
| |
include any amount of exempt income (within the meaning of section 8 |
| |
| 20 |
(8) | In paragraph 22C(3) of that Schedule (corporation tax relief for employee share |
| |
acquisition: amount of relief in case of convertible shares), insert at the end— |
| |
| “For this purpose the amount that constitutes such earnings does not |
| |
include any amount of exempt income (within the meaning of section 8 |
| |
| 25 |
(9) | The amendment made by subsection (1) has effect in relation to disposals made |
| |
on or after 12 March 2008. |
| |
(10) | The amendment made by subsection (3) has effect in relation to events within |
| |
section 427(1)(a) or (b) of ITEPA 2003 (as originally enacted) occurring on or |
| |
| 30 |
(11) | The amendments made by subsections (4) and (6) have effect in relation to |
| |
chargeable events occurring on or after that date. |
| |
(12) | The amendment made by subsection (5) has effect in relation to employment- |
| |
related securities acquired (or treated as acquired) on or after that date. |
| |
(13) | The amendments made by subsections (7) and (8) have effect in relation to |
| 35 |
awards of shares made on or after that date. |
| |
47 | Employment-related securities: repeal of obsolete provisions |
| |
(1) | In ICTA, omit sections 138 and 139 (share acquisitions by directors and |
| |
employees: shares acquired before 26 October 1987). |
| |
| 40 |
(a) | in section 418 (other related provisions), omit subsection (4), and |
| |
(b) | in Schedule 7 (transitionals and savings), omit paragraph 57. |
| |
|
| |
|
| |
|
(3) | The amendments made by this section have effect for the tax year 2008-09 and |
| |
| |
48 | Armed forces: the Council Tax Relief |
| |
(1) | In ITEPA 2003, after section 297A insert— |
| |
“297B | Armed forces: the Council Tax Relief |
| 5 |
(1) | No liability to income tax arises in respect of payments of the Council |
| |
Tax Relief to members of the armed forces of the Crown. |
| |
(2) | Payments of the Council Tax Relief are payments designated as such by |
| |
| |
(2) | The amendment made by subsection (1) has effect in relation to payments |
| 10 |
made on or after 1 April 2008. |
| |
49 | Greater London Authority: severance payments |
| |
(1) | Section 291(2) of ITEPA 2003 (termination payments to MPs and others ceasing |
| |
to hold office) is amended as follows. |
| |
(2) | In paragraph (ea), omit “or”. |
| 15 |
(3) | At the end of paragraph (f) insert “, or |
| |
(g) | made under section 26A of the Greater London Authority Act |
| |
1999 (payments on ceasing to hold office as Mayor of London or |
| |
as a member of the Greater London Assembly).” |
| |
(4) | The amendments made by this section have effect in relation to payments |
| 20 |
made on or after 6 April 2008. |
| |
| |
50 | Gift aid: payments to charities |
| |
Schedule 19 contains provision for the Commissioners for Her Majesty’s |
| |
Revenue and Customs to make payments to charities which receive donations |
| 25 |
under the gift aid scheme. |
| |
51 | Community investment tax relief |
| |
(1) | Paragraph 35 of Schedule 16 to FA 2002 (community investment tax relief) is |
| |
| |
(2) | After sub-paragraph (1) insert— |
| 30 |
“(1A) | But if the investor is a bank, the investor does not receive value from |
| |
the CDFI when the CDFI makes a deposit with the investor in the |
| |
course of its ordinary banking arrangements.” |
| |
(3) | In subsection (5), after “paragraph—” insert— |
| |
““bank” has the meaning given by section 840A of the Taxes Act |
| 35 |
| |
(4) | The amendments made by this section are treated as always having had effect. |
| |
|
| |
|