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| |
| |
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| | ‘(2) | If property which derives (wholly or in part, and directly or indirectly) |
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| | from an individual’s income or gains within a relevant paragraph (and |
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| | for a tax year) is transferred to a mixed fund, treat the transfer as |
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| | consisting of or containing the income or gains.’. |
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| |
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| Schedule 7, page 163, line 25, leave out ‘has been’ and insert ‘is’. |
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| Schedule 7, page 163, line 26, leave out ‘capital’ and insert ‘gains’. |
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| Schedule 7, page 163, line 29, leave out ‘capital’ and insert ‘gains’. |
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| |
| | |
| Schedule 7, page 163, line 30, leave out from ‘treat’ to end of line 31 and insert ‘the |
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| income or gains as transferred to the fund. |
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| | (3A) | Treat an offshore transfer from a mixed fund as containing the |
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| | appropriate proportion of each kind of income or capital in the fund |
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| | immediately before the transfer. |
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| | | “The appropriate proportion” means the amount (or market value) of |
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| | the transfer divided by the market value of the mixed fund |
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| | immediately before the transfer.’. |
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| |
| | |
| Schedule 7, page 163, line 33, leave out ‘(d)’ and insert ‘(h)’. |
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| |
| | |
| Schedule 7, page 163, line 33, at end insert— |
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| | ‘(4A) | A transfer from a mixed fund is an “offshore transfer” for the purposes |
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| | of subsection (3A) if and to the extent that section 809P does not apply |
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| | |
| | (4B) | Treat a transfer from a mixed fund as an “offshore transfer” (and |
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| | section 809P as not applying in relation to it, if it otherwise would do) |
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| | if and to the extent that, at the end of a tax year in which it is made— |
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| | (a) | section 809P does not apply in relation to it, and |
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| | (b) | on the basis of the best estimate that can reasonably be made |
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| | at that time, section 809P will not apply in relation to it.’. |
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| |
| | |
| Schedule 7, page 163, line 38, at end insert— |
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| |
| |
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| | ‘809QA | Section 809P: anti-avoidance |
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| | (1) | This section applies if, by reason of an arrangement the main purpose |
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| | (or one of the main purposes) of which is to secure an income tax |
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| | advantage or capital gains tax advantage, a mixed fund would |
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| | otherwise be regarded as containing income or capital within any of |
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| | paragraphs (f) to (i) of section 809P(4). |
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| | (2) | Treat the mixed fund as containing so much (if any) of the income or |
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| | capital as is just and reasonable. |
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| | (3) | “Arrangement” includes any scheme, understanding, transaction or |
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| | series or transactions (whether or not enforceable). |
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| | (4) | “Income tax advantage” has the meaning given by section 683. |
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| | (5) | “Capital gains tax advantage” means— |
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| | (a) | a relief from capital gains tax or increased relief from capital |
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| | |
| | (b) | a repayment of capital gains tax or increased repayment of |
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| | |
| | (c) | the avoidance or reduction of a charge to capital gains tax or |
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| | an assessment to capital gains tax, or |
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| | (d) | the avoidance of a possible assessment to capital gains tax.’. |
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| |
| | |
| Schedule 7, page 164, line 2, at end insert— |
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| | ‘(3) | This section shall not have effect with respect to gains accruing to an individual |
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| | on the disposal of an asset if the disposal took place prior to 6 April 2008.’. |
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| |
| | |
| Schedule 7, page 164, line 2, at end insert— |
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| | ‘809RA | Deemed income or gains not to be regarded as remitted before time |
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| | when they are treated as arising or accruing |
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| | |
| | (a) | income or foreign chargeable gains are treated as arising or |
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| | |
| | (b) | by virtue of anything done in relation to anything regarded as |
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| | deriving from the income or chargeable gains, the income or |
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| | chargeable gains would otherwise be regarded as remitted to |
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| | the United Kingdom before the time when they are treated as |
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| | |
| | treat the income or chargeable gains as remitted to the United |
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| | |
| |
| | |
| Schedule 7, page 164, line 12, at end insert— |
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| |
| |
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| | ‘809SA | Consideration for certain services |
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| | (1) | This section applies to income or chargeable gains if— |
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| | (a) | the income or gains would (but for subsection (2)) be taken to |
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| | be remitted to the United Kingdom because conditions A and |
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| | B in section 809K are met, |
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| | (b) | condition A in section 809K is met because a service is |
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| | provided in the United Kingdom (“the relevant UK service”), |
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| | |
| | (c) | condition B in section 809K is met because section |
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| | 809K(3)(a) or (b) applies to the consideration for the relevant |
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| | UK service (“the relevant consideration”). |
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| | (2) | The income or chargeable gains are to be treated as not remitted to the |
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| | United Kingdom if the following conditions are met. |
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| | (3) | Condition A is that the relevant UK service relates wholly or mainly |
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| | to property situated outside the United Kingdom. |
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| | (4) | Condition B is that the whole of the relevant consideration is given by |
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| | way of one or more payments to one or more bank accounts held |
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| | outside the United Kingdom by or on behalf of the person who |
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| | provides the relevant UK service. |
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| | (5) | Sections 275 to 275C of TCGA 1992 (location of assets) apply for the |
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| | purposes of subsection (3) as they apply for the purposes of TCGA |
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| | |
| |
| | |
| Schedule 7, page 164, line 19, leave out from ‘rule’ to end of line 28 and insert |
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| ‘(see sections 809V and 809VA). |
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| | (4) | Clothing, footwear, jewellery and watches that derive from relevant |
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| | foreign income are exempt property if they meet the personal use rule |
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| | |
| | (5) | Property of any description that derives from relevant foreign income |
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| | |
| | (a) | the property meets the repair rule (see section 809VC), |
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| | (b) | the property meets the temporary importation rule (see section |
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| | |
| | (c) | the notional remitted amount (see section 809X) is less than |
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| | |
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| |
| | |
| Schedule 7, page 164, line 21, leave out ‘that derive from relevant foreign income’. |
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| | |
| Schedule 7, page 164, line 24, leave out ‘that derives from relevant foreign |
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| |
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| | |
| Schedule 7, page 164, line 35, after ‘where’ insert ‘the whole or part of’. |
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| |
| | |
| Schedule 7, page 164, line 35, after ‘sold’ insert ‘, or otherwise converted into |
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| |
| |
| | |
| Schedule 7, page 164, line 43, leave out ‘“relevant rule” means—’ and insert ‘— |
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| | |
| | (a) | a traveller’s cheque, |
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| | |
| | (c) | a bill of exchange, and |
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| | |
| | (i) | instrument that is evidence of a debt, or |
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| | (ii) | voucher, stamp or similar token or document |
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| | which is capable of being exchanged for money, |
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| | |
| | |
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| |
| |
| |
| | |
| Schedule 7, page 165, line 4, at end insert— |
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| | ‘(6) | For the purpose of subsection (4) property is to be treated as not ceasing to meet |
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| | a relevant rule if it is lost, stolen, destroyed, scrapped or otherwise ceases to exist |
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| | or it is disposed of by way of gift other than to a relevant person; and property |
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| | gifted to a relevant person that is exempt property in the hands of that person |
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| | immediately after the gift shall not be treated as ceasing to be exempt property |
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| | solely by reason of that person subsequently ceasing to be a relevant person. |
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| | (7) | If exempt property ceases to meet one of the relevant rules because it is sold to |
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| | someone other than a connected person, the amount chargeable to tax shall be the |
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| | sale proceeds received and not the amount referred to in section 809O above.’. |
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| |
| | |
| Schedule 7, page 165, line 5, leave out from beginning to end of line 11 on page |
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| |
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