|
| |
|
(d) | the purpose, or one of the main purposes, of the sale is the |
| |
obtaining of a tax advantage by the buyer under this Part. |
| |
(2) | The writing-down allowance to which the buyer is entitled for the |
| |
chargeable period in which the sale takes place is—![equation: cross[over[times[char[D],char[I]],times[char[C],char[P]]],times[char[W],char[D],
char[A]]]](missing.gif) |
| |
| 5 |
| DI is the number of days in the chargeable period for which the |
| |
buyer is entitled to the relevant interest, |
| |
| CP is the number of days in the chargeable period, and |
| |
| WDA is the writing-down allowance to which the buyer would |
| |
be entitled apart from this section.” |
| 10 |
(2) | The amendment made by subsection (1) has effect in relation to the sale of a |
| |
relevant interest on or after 12 March 2008, except for such a sale in pursuance |
| |
of a relevant pre-commencement contract (and for this purpose “sale” has the |
| |
same meaning as for the purposes of Part 3 of CAA 2001). |
| |
(3) | A contract is a relevant pre-commencement contract if— |
| 15 |
(a) | the contract is a contract in writing made before 12 March 2008, |
| |
(b) | the contract is unconditional or its conditions have been satisfied before |
| |
| |
(c) | no terms remain to be agreed on or after that date, and |
| |
(d) | the contract is not varied in a significant way on or after that date. |
| 20 |
| |
85 | Power to make consequential and transitional provision |
| |
(1) | The Treasury may by order make such amendments (including repeals and |
| |
revocations) of enactments or instruments as may appear appropriate in |
| |
consequence of, or otherwise in connection with, sections 68 to 84. |
| 25 |
(2) | The Treasury may by order make such transitional or saving provision as may |
| |
appear appropriate in consequence of, or otherwise in connection with, those |
| |
| |
(3) | An order under subsection (1) may make transitional provision and savings. |
| |
(4) | An order under subsection (1) or (2) may— |
| 30 |
(a) | make different provision for different cases, and |
| |
(b) | include provision having effect in relation to times before the order is |
| |
made if that provision does not increase any person’s liability to tax. |
| |
(5) | An order under subsection (1) or (2) is to be made by statutory instrument. |
| |
(6) | A statutory instrument containing an order under subsection (1) or (2) is |
| 35 |
subject to annulment in pursuance of a resolution of the House of Commons. |
| |
|
| |
|
| |
|
| |
86 | Balancing allowances on transfers of trade |
| |
(1) | After section 343 of ICTA insert— |
| |
“343ZA | Transfers of trade to obtain balancing allowances |
| |
(1) | This section applies where— |
| 5 |
(a) | a company (“the predecessor”) ceases to carry on a trade, |
| |
(b) | another company (“the successor”) begins to carry on the |
| |
activities of that trade as its trade or as part of its trade, |
| |
(c) | in the accounting period in which the predecessor ceases to |
| |
carry on the trade the predecessor would (apart from this |
| 10 |
section) be entitled under Part 2 of the Capital Allowances Act |
| |
to a balancing allowance in respect of the trade, and |
| |
(d) | the predecessor’s ceasing to carry on the trade is part of a |
| |
scheme or arrangement the main purpose, or one of the main |
| |
purposes, of which is to entitle the predecessor to that balancing |
| 15 |
| |
(2) | This section also applies where— |
| |
(a) | a company (“the predecessor”) ceases to carry on part of a trade, |
| |
(b) | another company (“the successor”) begins to carry on the |
| |
activities of that part of the trade as its trade or as part of its |
| 20 |
| |
(c) | the predecessor’s ceasing to carry on the part of the trade |
| |
mentioned in paragraph (a) is part of a scheme or arrangement |
| |
the main purpose, or one of the main purposes, of which is to |
| |
entitle the predecessor, on cessation of the trade, to a balancing |
| 25 |
allowance in respect of the trade under Part 2 of the Capital |
| |
| |
(3) | This section does not apply where section 343 applies. |
| |
(4) | Where this section applies, the Corporation Tax Acts have effect subject |
| |
to section 343(2), but as if the words “and are subject to section 343A |
| 30 |
(company reconstructions involving business of leasing plant or |
| |
machinery)” were omitted. |
| |
(5) | Where this section applies because of subsection (1), and the successor |
| |
carries on the activities of the trade the predecessor ceased to carry on |
| |
as part of the successor’s trade, for the purposes of section 343(2) that |
| 35 |
part of the successor’s trade is to be treated as a separate trade carried |
| |
| |
(6) | Where this section applies because of subsection (2), for the purposes of |
| |
| |
(a) | that part of the trade which the predecessor ceased to carry on |
| 40 |
is to be treated as a separate trade carried on by the predecessor, |
| |
| |
(b) | where the successor carries on the activities of that part of the |
| |
trade as part of its trade, that part of the successor’s trade is to |
| |
be treated as a separate trade carried on by the successor. |
| 45 |
|
| |
|
| |
|
(7) | Where subsection (5) or (6) applies, such apportionment of receipts, |
| |
expenses, assets and liabilities is to be made as may be just. |
| |
(8) | Section 343(10) applies to an apportionment under subsection (7) as it |
| |
applies to an apportionment under section 343(9).” |
| |
(2) | The amendment made by subsection (1) has effect in relation to the cessation |
| 5 |
of a trade or part of a trade on or after 12 March 2008. |
| |
| |
| |
87 | Spreading of relief on indirect contributions |
| |
(1) | In Part 4 of FA 2004 (pension schemes etc), after section 199 insert— |
| 10 |
“199A | Indirect contributions |
| |
(1) | This section applies where an employer (“E”)— |
| |
(a) | pays contributions under a registered pension scheme (“the |
| |
original scheme”) in a chargeable period, and |
| |
(b) | would (apart from subsection (4)) be entitled in the next |
| 15 |
chargeable period to an amount of relief in respect of a payment |
| |
| |
| and the avoidance condition is met. |
| |
(2) | A payment is within this subsection if all or part of the payment is |
| |
intended to facilitate the payment of pension contributions under the |
| 20 |
original scheme or a substitute scheme by a person other than E. |
| |
(3) | The avoidance condition is that— |
| |
(a) | section 197 would apply if, in the chargeable period mentioned |
| |
in subsection (1)(b), E paid pension contributions under the |
| |
original scheme of the amount of the relevant relief, and |
| 25 |
(b) | the purpose, or one of the purposes, of facilitating the payment |
| |
of pension contributions by a person other than E is to enable |
| |
pension contributions to be paid without that section applying. |
| |
(4) | For the purposes of the spreading provisions, the amount of the |
| |
relevant relief is to be treated as the amount of a pension contribution |
| 30 |
paid by E under the original scheme in the chargeable period |
| |
mentioned in subsection (1)(b). |
| |
(5) | The “relevant relief” is the relief to which the employer would (apart |
| |
from subsection (4)) be entitled in that chargeable period in respect of— |
| |
(a) | the payment within subsection (2), or |
| 35 |
(b) | where only part of the payment is intended to facilitate the |
| |
payment of pension contributions as mentioned in that |
| |
subsection, that part of the payment. |
| |
(6) | A “substitute scheme” is any registered pension scheme— |
| |
(a) | to which there is a relevant transfer in the period of 2 years |
| 40 |
ending with the day on which the payment within subsection |
| |
| |
|
| |
|
| |
|
(b) | to which it is envisaged that a relevant transfer will or may be |
| |
| |
(7) | A relevant transfer is a recognised transfer from the original scheme of |
| |
more than 30% of the aggregate of— |
| |
(a) | in a case within subsection (6)(a), the amount of the sums and |
| 5 |
the market value of the assets held for the purposes of, or |
| |
representing accrued rights under, the original scheme |
| |
immediately before the transfer, and |
| |
(b) | in a case within subsection (6)(b), the amount of those sums and |
| |
the market value of those assets on the day on which the |
| 10 |
| |
(8) | If there is a transfer from a substitute scheme to another registered |
| |
pension scheme which would have been a relevant transfer had it been |
| |
a transfer from the original scheme at the time the relevant transfer was |
| |
made, that other scheme is also a substitute scheme. |
| 15 |
(9) | In subsection (1)(b), the reference to relief in respect of a payment |
| |
within subsection (2) includes relief for a liability in respect of the |
| |
making of the payment by a person other than E. |
| |
(10) | In this section references to E being entitled to an amount of relief are |
| |
| 20 |
(a) | being deductible in computing the amount of the profits of E for |
| |
the purposes of Part 2 of ITTOIA 2005 (trading income) or Case |
| |
| |
(b) | being expenses of management of E for the purposes of section |
| |
75 of ICTA (expenses of management: companies with |
| 25 |
| |
(c) | being brought into account at Step 1 in section 76(7) of ICTA |
| |
(expenses of insurance companies) in respect of E. |
| |
| |
“the spreading provisions” means sections 197 and 198 and this |
| 30 |
| |
“chargeable period” has the meaning given by section 197.” |
| |
(2) | The amendment made by this section has effect in relation to payments within |
| |
section 199A(2) of FA 2004 made on or after 10 October 2007, except for such |
| |
payments made pursuant to a contract entered into before 9 October 2007. |
| 35 |
88 | Inheritance etc of tax-relieved pension savings |
| |
Schedule 28 contains provision about the inheritance etc of tax-relieved |
| |
| |
89 | Pension schemes: further provision |
| |
Schedule 29 contains further provision about pension schemes. |
| 40 |
|
| |
|
| |
|
| |
| |
| |
| |
(1) | Sections 58B and 58C of FA 2003 (relief from SDLT on first acquisition of zero- |
| 5 |
carbon homes) are amended as follows. |
| |
(2) | In section 58B, for subsection (2) substitute— |
| |
“(2) | For the purposes of this section— |
| |
(a) | a building, or a part of a building, is a dwelling if it is |
| |
constructed for use as a single dwelling, and |
| 10 |
(b) | “first acquisition”, in relation to a dwelling, means its |
| |
acquisition when it has not previously been occupied.” |
| |
(3) | Section 58C is amended as follows. |
| |
(4) | In subsection (1), for “building” substitute “dwelling”. |
| |
(5) | In subsection (2), after paragraph (c) insert— |
| 15 |
“(d) | provide for the charging of fees of a reasonable amount in |
| |
respect of services provided as part of a scheme or process of |
| |
| |
| |
(a) | for “a building” substitute “a dwelling”, and |
| 20 |
(b) | for “building itself” substitute “building which, or part of which, |
| |
constitutes the dwelling”. |
| |
(7) | The amendments made by subsections (2), (4) and (6) are treated as always |
| |
having had effect; and provision included in regulations by virtue of those |
| |
amendments may be made so as to have effect in relation to acquisitions on or |
| 25 |
| |
91 | Notification and registration of transactions |
| |
(1) | Part 4 of FA 2003 (stamp duty land tax) is amended as follows. |
| |
(2) | For section 77 substitute— |
| |
“77 | Notifiable transactions |
| 30 |
(1) | A land transaction is notifiable if it is— |
| |
(a) | an acquisition of a major interest in land that does not fall |
| |
within one or more of the exceptions in section 77A, |
| |
(b) | an acquisition of a chargeable interest other than a major |
| |
interest in land where there is chargeable consideration in |
| 35 |
respect of which tax is chargeable at a rate of 1% or higher or |
| |
would be so chargeable but for a relief, |
| |
(c) | a land transaction that a person is treated as entering into by |
| |
virtue of section 44A(3), or |
| |
(d) | a notional land transaction under section 75A. |
| 40 |
|
| |
|
| |
|
(2) | This section has effect subject to— |
| |
(a) | sections 71A(7) and 72A(7), and |
| |
(b) | paragraph 30 of Schedule 15. |
| |
(3) | In this section “relief” does not include an exemption from charge |
| |
| 5 |
77A | Exceptions for certain acquisitions of major interests in land |
| |
(1) | The exceptions referred to in section 77(1)(a) are as follows. |
| |
| | An acquisition which is exempt from charge |
| | | | | | | | | | An acquisition (other than the grant, assignment |
| | 10 | | | or surrender of a lease) where the chargeable |
| | | | | consideration for that acquisition, together with |
| | | | | the chargeable consideration for any linked |
| | | | | transactions, is less than £40,000. |
| | | | | The grant of a lease for a term of 7 years or more |
| | 15 | | | | | | | | (a) | any chargeable consideration other than |
| | | | | rent is less than £40,000, and |
| | | | | (b) | the relevant rent is less than £1,000. |
| | | | | The assignment or surrender of a lease where— |
| | 20 | | | (a) | the lease was originally granted for a term |
| | | | | | | | | | (b) | the chargeable consideration for the |
| | | | | assignment or surrender, other than any |
| | | | | rent, is less than £40,000, and |
| | 25 | | | (c) | the relevant rent is less than £1,000. |
| | | | | The grant of a lease for a term of less than 7 years |
| | | | | where the chargeable consideration does not |
| | | | | exceed the zero rate threshold. |
| | | | | The assignment or surrender of a lease where— |
| | 30 | | | (a) | the lease was originally granted for a term |
| | | | | of less than 7 years, and |
| | | | | (b) | the chargeable consideration does not |
| | | | | exceed the zero rate threshold. |
| | |
|
(2) | Chargeable consideration for an acquisition does not exceed the zero |
| 35 |
rate threshold if it does not consist of or include— |
| |
(a) | any amount in respect of which tax is chargeable at a rate of 1% |
| |
| |
(b) | any amount in respect of which tax would be so chargeable but |
| |
| 40 |
| |
“annual rent” has the meaning given in paragraph 9A of Schedule |
| |
| |
| |
|
| |
|
| |
|
| |
(b) | in the case of the grant of a lease to which paragraph 11 |
| |
or 19 of Schedule 15 applies, the relevant chargeable |
| |
proportion of the annual rent (as calculated in |
| |
accordance with that paragraph), and |
| 5 |
“relief” does not include an exemption from charge under |
| |
| |
(3) | In section 79(2) (registration of land transactions), after “every” insert |
| |
| |
(4) | Schedule 30 contains consequential provision. |
| 10 |
(5) | The amendments made by this section and that Schedule have effect in relation |
| |
to transactions with an effective date on or after 12 March 2008. |
| |
92 | Charge where consideration includes rent: 0% band |
| |
(1) | Schedule 5 to FA 2003 (amount of SDLT chargeable: rent) is amended as |
| |
| 15 |
(2) | In paragraph 9 (SDLT chargeable in respect of consideration other than rent)— |
| |
(a) | in sub-paragraph (1), insert at the end “(but see paragraph 9A)”, and |
| |
(b) | omit sub-paragraphs (2), (2A) and (3), |
| |
| and, accordingly, in the heading before that paragraph, insert at the end “: |
| |
| 20 |
(3) | After that paragraph insert— |
| |
“Tax chargeable in respect of consideration other than rent: 0% band |
| |
9A (1) | This paragraph applies in the case of a transaction to which this |
| |
Schedule applies where there is chargeable consideration other than |
| |
| 25 |
| |
(a) | the relevant land consists entirely of land that is non- |
| |
residential property, and |
| |
(b) | the relevant rent is at least £1,000, |
| |
| the 0% band in Table B in section 55(2) does not apply in relation to |
| 30 |
the consideration other than rent and any case that would have fallen |
| |
within that band is treated as falling within the 1% band. |
| |
(3) | Sub-paragraphs (4) and (5) apply if— |
| |
(a) | the relevant land is partly residential property and partly |
| |
non-residential property, and |
| 35 |
(b) | the relevant rent attributable, on a just and reasonable |
| |
apportionment, to the land that is non-residential property is |
| |
| |
(4) | For the purpose of determining the amount of tax chargeable under |
| |
section 55 in relation to the consideration other than rent, the |
| 40 |
transaction (or, where it is one of a number of linked transactions, |
| |
that set of transactions) is treated as if it were two separate |
| |
transactions (or sets of linked transactions), namely— |
| |
|
| |
|