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| |
| |
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| | (2) | In the case of section 832B(1)(a) the same deductions are allowed as are allowed |
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| | under the Income Taxes Acts where the trade, profession or vocation is carried |
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| | out in the United Kingdom. |
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| | (3) | In the case of section 832B(1)(b) the same deductions are allowed as are allowed |
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| | under the Income Taxes Acts where the property business is carried on overseas |
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| | and taxed on the arising basis.”’. |
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| |
| | |
| Schedule 7, page 180, line 25, at end insert— |
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| | ‘(3A) | Sections 42 and 43 of the Management Act (procedure and time limit |
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| | for making claims), except section 42(1A) of that Act, apply in |
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| | relation to an election under this section as they apply in relation to a |
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| | |
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| | |
| Schedule 7, page 182, line 40, at end insert— |
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| | ‘58A | In section 119A (increase in expenditure by reference to tax charged in relation |
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| | to employment-related securities), after subsection (5) insert— |
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| | “(5A) | See also section 119B (unremitted foreign securities income).” |
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| | 58B | After that section insert— |
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| | “119B | Section 119A: unremitted foreign securities income |
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| | (1) | For the purposes of section 119A reduce the amount that counts as |
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| | employment income by so much of that amount (if any) as is |
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| | unremitted foreign securities income. |
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| | (2) | In this section “unremitted foreign securities income” means income |
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| | |
| | (a) | is foreign securities income for the purposes of section 41A of |
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| | ITEPA 2003 (employment income from ERS charged on |
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| | |
| | (b) | has not been remitted to the United Kingdom by the end of the |
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| | tax year in which the disposal mentioned in section 119A(1) |
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| | |
| | (3) | The following provisions apply if any of the unremitted foreign |
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| | securities income is remitted to the United Kingdom after the end of |
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| | the tax year referred to in subsection (2)(b). |
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| | (4) | The person liable for the capital gains tax on any chargeable gains |
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| | arising on the disposal may make a claim for section 119A(2) to have |
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| | effect as if the remitted income had been remitted before the end of |
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| | |
| | (5) | All adjustments (by way of repayment of tax, assessment or otherwise) |
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| | are to be made which are necessary to give effect to a claim under |
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| | |
| | (6) | Those adjustments may be made at any time, despite anything to the |
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| | contrary in any enactment relating to capital gains tax.”’. |
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| |
| | |
| Schedule 7, page 184, line 6, leave out paragraph 70. |
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| |
| | |
| Schedule 7, page 184, line 20, leave out paragraph 73. |
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| |
| | |
| Schedule 7, page 184, line 35, leave out ‘and 32’ and insert ‘to 32, 34C and 58B’. |
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| | |
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| Schedule 7, page 184, line 37, leave out ‘2008’ and insert ‘2009’. |
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| |
| | |
| Schedule 7, page 184, line 37, at end insert ‘(except employment-related securities |
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| acquired pursuant to a securities option acquired before 6 April 2008).’. |
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| |
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| | |
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| Schedule 7, page 184, line 39, leave out ‘2008-09’ and insert ‘2009-10’. |
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| | |
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| Schedule 7, page 184, line 39, at end insert ‘, except for the amendment made by |
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| paragraph 1 to insert a new section 809G in Part 14 of ITA 2007, which has effect for the |
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| tax year 2008-09 and subsequent tax years.’. |
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| |
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| | |
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| Schedule 7, page 187, leave out lines 1 to 9 and insert ‘, and |
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| | (b) | before 6 April 2008 the money was received in the United Kingdom.’. |
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| | |
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| Schedule 7, page 187, leave out lines 1 to 3 and insert— |
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| | ‘(b) | the loan was made for the purpose of enabling the individual to— |
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| | (i) | acquire an interest in residential property in the United Kingdom, |
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| | (ii) | carry out a remortgaging exercise with respect to residential |
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| | property in the United Kingdom, or |
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| | (iii) | furnish, decorate, repair or enhance a residential property in the |
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| | |
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| | |
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| Schedule 7, page 187, line 6, leave out from ‘money’ to ‘and’ in line 7 and insert |
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| ‘for any of the purposes referred to in subsection (1)(b),’. |
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| |
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| | |
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| Schedule 7, page 187, line 10, leave out ‘Relevant foreign income’ and insert |
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| |
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| | |
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| Schedule 7, page 187, line 10, leave out ‘Relevant foreign income’ and insert |
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| ‘Foreign income and gains’. |
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| |
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| | |
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| Schedule 7, page 187, leave out lines 13 to 21. |
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| Schedule 7, page 187, leave out lines 13 to 19. |
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| | |
| Schedule 7, page 187, line 21, at end insert— |
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| | ‘86A (1) | This paragraph applies in relation to employment-related securities if— |
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| | (a) | the date of the acquisition is on or after 6 April 2008 and on or before |
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| | |
| | (b) | Chapter 2 of Part 7 of ITEPA 2003 (restricted securities) applies in |
|
| | relation to the securities by virtue only of amendments made by this |
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| | |
| | (2) | Section 431 of ITEPA 2003 (election for full or partial disapplication of |
|
| | Chapter) has effect in relation to the employment-related securities as if in |
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| | subsection (5)(b) for “more than 14 days after the acquisition” there were |
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| | substituted “after 14 August 2008”.’. |
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| |
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| Schedule 7, page 189, line 17, leave out from ‘12’ to end of line 18. |
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| |
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| | |
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| Schedule 7, page 189, line 36, at end insert— |
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| | ‘93A (3) | The following provisions apply to a company if— |
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| | (a) | section 13 of TCGA 1992 applies to the company for the tax year |
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| | |
| | (b) | the directors of the company have not opted out from the provisions |
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| | |
| | (4) | An election to opt out from the provisions within this paragraph may only be |
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| | made on or before the anniversary of the first 31 January to occur after the end |
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| | of the first tax year (beginning with the tax year 2008-09) in which chargeable |
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| | gains are attributed under section 13 of TCGA 1992 to a participant in the |
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| | |
| | (5) | An election under sub-paragraph (2) is irrevocable and must be made in the |
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| | way and form specified by the Commissioners for Her Majesty’s Revenue and |
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| | |
| | (6) | The only information that need be provided in the course of making the |
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| | election is the name of the offshore company and the name of the director |
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| | |
| | (7) | Sub-paragraph (7) applies if— |
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| | (a) | chargeable gains are treated under section 13 of TCGA 1992 as |
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| | accruing to an individual in a tax year, and |
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| | (b) | the individual is resident, but not domiciled, in the United Kingdom in |
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| | |
| | (8) | The individual is not charged to capital gains tax on so much of the aggregate |
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| | chargeable gains attributed to him in the tax year as exceeds the relevant |
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| | |
| | (9) | The relevant proportion is A/B where— |
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|
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| |
| |
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| | A is the portion of the gain that would what have been treated as accruing |
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| | to the participator, if immediately before 6 April 2008 every relevant |
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| | asset had been sold by the directors and immediately re-acquired by them |
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| | at the market value at that time; and |
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| | B is the actual gain attributed to the individual. |
|
| | (10) | For the purposes of sub-paragraph (7) an asset is a “relevant asset” if— |
|
| | (a) | by reason of the asset, a chargeable gain or allowable loss accrues to |
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| | the trustees in the relevant tax year, and |
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| | (b) | the asset has been comprised in the company from the beginning of 6 |
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| | April 2008 until the time of the event giving rise to the chargeable gain |
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| | |
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| | |
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| Schedule 7, page 196, line 28, leave out ‘made an election under this sub- |
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| paragraph’ and insert ‘have not opted out from the provisions within this paragraph’. |
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| |
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| | |
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| Schedule 7, page 196, line 30, leave out ‘An election under sub-paragraph (1)’ and |
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| insert ‘An election to opt out from the provisions within this paragraph’. |
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| |
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| | |
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| Schedule 7, page 196, line 30, after ‘the’, insert ‘anniversary of the’. |
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| |
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| Schedule 7, page 196, line 40, leave out ‘(1)’ and insert ‘(2)’. |
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| |
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| | |
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| Schedule 7, page 196, line 42, at end insert— |
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| | ‘(4A) | The only information that need be provided in the course of making the |
|
| | election is the name of the trust and the name of the trustee making the |
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| | |
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| |
| |
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| | |
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| Schedule 7, page 197, line 24, at end insert ‘and’. |
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| |
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| | |
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| Schedule 7, page 197, line 27, leave out from ‘gains’ to end of line 34. |
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| |
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| | |
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| | |
| To move the following Clause:— |
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| | ‘(1) | Omit section 82(5) and (9) of FA 1985 (adjudication of certain gifts inter vivos). |
|
| | (2) | Accordingly, omit paragraph 9 of Schedule 14 to FA 1999. |
|
| | (3) | The amendments made by this section have effect in relation to instruments |
|
| | executed on or after 13 March 2008, other than instruments effecting a land |
|
| | transaction (within the meaning of paragraph 22 of Schedule 32). |
|
| | (4) | For the purposes of section 14(4) of the Stamp Act 1891 (instruments not to be |
|
| | given in evidence etc unless stamped in accordance with the law in force at the |
|
| | time of first execution), the law in force at the time of execution of such an |
|
| | instrument shall be deemed to be the law as varied in accordance with this |
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| | |
| |
| | Abandonment expenditure: deductions from ring fence income |
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| |
| | |
| To move the following Clause:— |
|
| | ‘(1) | FA 1991 is amended as follows. |
|
| | (2) | Section 64 (relief for expenditure incurred by a participator in meeting defaulter’s |
|
| | abandonment expenditure) is amended as follows. |
|
| | (3) | In subsection (1)(a)— |
|
| | (a) | omit “(as set out in section 107 of this Act)”, and |
|
| | (b) | for “sub-paragraph (1)(a)” substitute “sub-paragraph (2)”. |
|
| | (4) | In subsection (1)(b)— |
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|
|
| |
| |
|
| | (a) | for “sub-paragraph (4)” substitute “sub-paragraph (2)”, and |
|
| | (b) | for “qualifying” substitute “contributing”. |
|
| | (5) | In subsections (2), (3), (4) and (5) (in each place), for “qualifying” substitute |
|
| | |
| | (6) | Section 65 (reimbursement by defaulter in respect of certain abandonment |
|
| | expenditure) is amended as follows. |
|
| | (7) | In subsection (1)(a)— |
|
| | (a) | omit “(as set out in section 107 of this Act)”, and |
|
| | (b) | for “sub-paragraph (1)(a)” substitute “sub-paragraph (2)”. |
|
| | (8) | In subsection (1)(b), for “sub-paragraph (4)” substitute “sub-paragraph (2)”. |
|
| | (9) | In subsections (1) (in each place), (4), (5) (in each place), (6), (7) (in each place) |
|
| | and (8), for “qualifying” substitute “contributing”. |
|
| | (10) | The amendments made by this section have effect in relation to expenditure |
|
| | incurred after 30 June 2008.’. |
|
| |
| | Qualifying expenditure: R&D relief and vaccine research relief |
|
| |
| | |
| To move the following Clause:— |
|
| | ‘(1) | Paragraph 5 of Schedule 20 to FA 2000 (R&D tax relief: staffing costs) is |
|
| | |
| | (2) | In sub-paragraph (1)(b), after “company;” insert— |
|
| | “(ba) | the compulsory contributions paid by the company in respect |
|
| | of benefits for directors or employees of the company under |
|
| | the social security legislation of an EEA State (other than the |
|
| | United Kingdom) or Switzerland;”. |
|
| | (3) | Before sub-paragraph (1A) insert— |
|
| | “(1ZB) | In sub-paragraph (1)(ba) “social security legislation” means |
|
| | legislation relating to any of the branches of social security listed in |
|
| | Article 3(1) of Regulation (EC) No 883/2004 of the European |
|
| | Parliament and of the Council of 29 April 2004 on the co-ordination |
|
| | of social security systems (as amended from time to time).” |
|
| | (4) | Schedule 13 to FA 2002 (vaccine research relief) is amended as follows. |
|
| | (5) | In paragraph 2 (qualifying expenditure)— |
|
| | (a) | in sub-paragraph (1)(a), at the end insert “or”, |
|
| | (b) | omit sub-paragraph (1)(c) (and the “or” before it), and |
|
| | (c) | omit sub-paragraph (4). |
|
| | (6) | In paragraph 6 (qualifying expenditure on sub-contracted research and |
|
| | |
| | (a) | in sub-paragraph (1), the second sentence, and |
|
| | (b) | sub-paragraph (3) (expenditure on research sub-contracted to a charity, a |
|
| | university or a scientific research organisation). |
|
| | (7) | Omit paragraph 12 (qualifying expenditure on contributions to independent |
|
| | research and development). |
|
|