|
|
| |
| |
|
| |
| | |
| Schedule 7, page 188, line 33, leave out ‘those sections’ and insert ‘sections 809K |
|
| to 809Q of ITA 2007 (meaning of “remitted to the United Kingdom” etc)’. |
|
| |
| | |
| Schedule 7, page 188, line 45, at end insert— |
|
| | ‘90A | In section 830(4) of ITTOIA 2005 (meaning of “relevant foreign income”), |
|
| | after paragraph (a) insert— |
|
| | “(aa) | section 762ZB(2) of ICTA (offshore income gains),”. |
|
| | 90B | In section 734 of ITA 2007 (reduction in amount charged: previous capital |
|
| | gains tax charge), after subsection (4) insert— |
|
| | “(5) | References in this section to chargeable gains treated as accruing to an |
|
| | individual include offshore income gains treated as arising to the |
|
| | individual (see section 762 of ICTA).”’. |
|
| |
| | |
| Schedule 7, page 189, line 1, leave out ‘90’ and insert ‘90B’. |
|
| |
| | |
| Schedule 7, page 189, line 2, at end insert— |
|
| | ‘91A | Paragraph 108 or 108A applies in relation to offshore income gains as if— |
|
| | (a) | references to section 2(2) amounts were to OIG amounts, |
|
| | (b) | references to chargeable gains were to offshore income gains, |
|
| | (c) | Step 1 of paragraph 108(2) provided that OIG amounts are to be |
|
| | calculated in accordance with— |
|
| | (i) | section 762(2) of ICTA (the reference in the second sentence |
|
| | of that Step to section 87(4) of TCGA 1992 being read as a |
|
| | reference to section 762(2) of ICTA), or |
|
| | (ii) | section 87(5) of TCGA 1992 as applied by section 762(3) of |
|
| | |
| | 91B(1) | This paragraph applies if— |
|
| | (a) | by virtue of section 87 or 89(2) of, or Schedule 4C to, TCGA 1992 as |
|
| | applied by section 762 of ICTA, income is treated under section 761 |
|
| | of ICTA as arising to an individual in the tax year 2008-09 or any |
|
| | |
| | (b) | the individual is not domiciled in the United Kingdom in that year. |
|
| | (2) | The individual is not charged to income tax on the income if and to the extent |
|
| | that it is treated as arising by reason of— |
|
| | (a) | a capital payment received (or treated as received) by the individual |
|
| | |
| | (b) | the matching of any capital payment with the OIG amount for the tax |
|
| | year 2007-08 or any earlier tax year. |
|
| | 91C(1) | This paragraph applies if— |
|
| | (a) | the trustees of a settlement have made an election under paragraph |
|
| | 112(1) (re-basing election), |
|
| | (b) | income is treated under section 761 of ICTA as arising to an individual |
|
| | in the tax year 2008-09 or any subsequent tax year (“the relevant tax |
|
|
|
| |
| |
|
| | year”) by reason of the matching, under section 87A of TCGA 1992 |
|
| | as applied by section 762 of ICTA, of an OIG amount with a capital |
|
| | payment received by the individual from the trustees, and |
|
| | (c) | the individual is resident or ordinarily resident, but not domiciled, in |
|
| | the United Kingdom in the relevant tax year. |
|
| | (2) | The individual is not charged to income tax on so much of the income as |
|
| | exceeds the relevant proportion of that income. |
|
| | (3) | Sub-paragraphs (7) to (16) of paragraph 112 (meaning of “the relevant |
|
| | proportion”) apply for the purposes of sub-paragraph (2) above as if— |
|
| | (a) | references to section 2(2) amounts were to OIG amounts, |
|
| | (b) | references to chargeable gains were to offshore income gains, |
|
| | (c) | references to allowable losses were omitted, and |
|
| | (d) | references to anything accruing were to it arising (and similar |
|
| | references were read accordingly). |
|
| | 91D(1) | This paragraph applies if— |
|
| | (a) | in the tax year 2008-09 or any subsequent tax year, the trustees of a |
|
| | settlement (“the transferor settlement”) transfer all or part of the |
|
| | settled property to the trustees of another settlement (“the transferee |
|
| | |
| | (b) | section 90 of TCGA 1992 applies in relation to the transfer, |
|
| | (c) | the trustees of the transferor settlement have made an election under |
|
| | |
| | (d) | by virtue of the matching (under section 87A of TCGA 1992 as |
|
| | applied by section 762 of ICTA) of a capital payment with an OIG |
|
| | amount of the transferee settlement, income is treated under section |
|
| | 761 of ICTA as arising to an individual in a tax year (“the relevant tax |
|
| | |
| | (e) | the individual is resident or ordinarily resident, but not domiciled, in |
|
| | the United Kingdom in the relevant tax year. |
|
| | (2) | If paragraph 91C applies in relation to the transferee settlement, paragraph |
|
| | 112(7) as applied by paragraph 91C(3) has effect as if the reference there to |
|
| | relevant assets included relevant assets within the meaning of paragraph |
|
| | 113(4) (as modified by sub-paragraph (4)(b) below). |
|
| | (3) | If paragraph 91C does not apply in relation to the transferee settlement, the |
|
| | individual is not charged to income tax on so much of the income mentioned |
|
| | in sub-paragraph (1)(d) above as exceeds the relevant proportion of that |
|
| | |
| | (4) | Sub-paragraphs (3) to (6) of paragraph 113 (meaning of “the relevant |
|
| | proportion”) apply for the purposes of sub-paragraph (3) above as if— |
|
| | (a) | references section 2(2) amounts were to OIG amounts, |
|
| | (b) | references to chargeable gains were to offshore income gains, and |
|
| | (c) | references to anything accruing were to it arising.’. |
|
| |
| |
| |
| |
| | |
| Schedule 7, page 189, line 17, leave out from ‘12’ to end of line 18. |
|
|
|
| |
| |
|
| |
| |
| |
| |
| | |
| Schedule 7, page 189, line 36, at end insert— |
|
| | ‘(5) | In computing gains to which this section applies, those gains shall, if the |
|
| | company so elects, be calculated by reference to the value of the asset |
|
| | concerned at 6 April 2008. |
|
| | (6) | An election under subsection (5) is irrevocable and shall be made within two |
|
| | years of the end of the first accounting period ending after 5 April 2008. |
|
| | (7) | An election under subsection (5) shall be made in the way and form specified |
|
| | by the Commissioners for Her Majesty’s Revenue and Customs.’. |
|
| |
| |
| |
| |
| | |
| Schedule 7, page 189, line 36, at end insert— |
|
| | ‘93A (1) | The following provisions apply to a company if— |
|
| | (a) | section 13 of TCGA 1992 applies to the company for the tax year |
|
| | |
| | (b) | the directors of the company have not opted out from the provisions |
|
| | |
| | (2) | An election to opt out from the provisions within this paragraph may only be |
|
| | made on or before the anniversary of the first 31 January to occur after the end |
|
| | of the first tax year (beginning with the tax year 2008-09) in which chargeable |
|
| | gains are attributed under section 13 of TCGA 1992 to a participant in the |
|
| | |
| | (3) | An election under sub-paragraph (2) is irrevocable and must be made in the |
|
| | way and form specified by the Commissioners for Her Majesty’s Revenue and |
|
| | |
| | (4) | The only information that need be provided in the course of making the |
|
| | election is the name of the offshore company and the name of the director |
|
| | |
| | (5) | Sub-paragraph (7) applies if— |
|
| | (a) | chargeable gains are treated under section 13 of TCGA 1992 as |
|
| | accruing to an individual in a tax year, and |
|
| | (b) | the individual is resident, but not domiciled, in the United Kingdom in |
|
| | |
| | (6) | The individual is not charged to capital gains tax on so much of the aggregate |
|
| | chargeable gains attributed to him in the tax year as exceeds the relevant |
|
| | |
| | (7) | The relevant proportion is A/B where— |
|
| | A is the portion of the gain that would what have been treated as accruing |
|
| | to the participator, if immediately before 6 April 2008 every relevant |
|
| | asset had been sold by the directors and immediately re-acquired by them |
|
| | at the market value at that time; and |
|
| | B is the actual gain attributed to the individual. |
|
| | (8) | 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 |
|
| | the trustees in the relevant tax year, and |
|
|
|
| |
| |
|
| | (b) | the asset has been comprised in the company from the beginning of 6 |
|
| | April 2008 until the time of the event giving rise to the chargeable gain |
|
| | |
| |
| | |
| Schedule 7, page 190, line 18, leave out ‘tax year’ and insert ‘settlement for a tax |
|
| year for which this section applies to the settlement’. |
|
| |
| | |
| Schedule 7, page 190, line 19, after ‘trustees’ insert ‘of the settlement’. |
|
| |
| | |
| Schedule 7, page 190, line 25, at end insert— |
|
| | ‘(5) | The section 2(2) amount for a settlement for a tax year for which this |
|
| | section does not apply to the settlement is nil. |
|
| | (6) | For the purposes of this section a settlement arising under a will or |
|
| | intestacy is treated as made by the testator or intestate at the time of |
|
| | |
| |
| | |
| Schedule 7, page 191, line 21, leave out from second ‘year’ to end of line 25 and |
|
| |
| | (a) | which is before the last tax year for which Steps 1 to 4 have |
|
| | |
| | (b) | for which the section 2(2) amount is not nil.’. |
|
| |
| | |
| Schedule 7, page 191, line 31, leave out ‘to which section 87 applies to the |
|
| |
| |
| | |
| Schedule 7, page 191, line 33, leave out from ‘(2)’ to end of line 36 and insert ‘is to |
|
| be taken into account in any subsequent application of this section.’. |
|
| |
| | |
| Schedule 7, page 191, line 38, leave out from ‘applies’ to end of line 39 and insert |
|
| |
| | (a) | chargeable gains are treated under section 87 as accruing to an |
|
| | individual in a tax year, |
|
| | (b) | section 809B, 809C or 809D (remittance basis) applies to the |
|
| | individual for that year, and |
|
| | (c) | the individual is not domiciled in the United Kingdom in that |
|
| | |
|
|
| |
| |
|
| |
| | |
| Schedule 7, page 192, leave out lines 41 to 44. |
|
| |
| | |
| Schedule 7, page 193, line 15, leave out from ‘transfer)’ to ‘as’ in line 16. |
|
| |
| | |
| Schedule 7, page 193, leave out lines 41 to 43 and insert— |
|
| | ‘(9) | When calculating the market value of property for the purposes of this |
|
| | section or section 90A in a case where the property is subject to a debt, |
|
| | reduce the market value by the amount of the debt.’. |
|
| |
| | |
| Schedule 7, page 194, line 2, at end insert— |
|
| | ‘90A | Section 90: transfers made for consideration in money or money’s |
|
| | |
| | (1) | Section 90 does not apply to a transfer of settled property made for |
|
| | consideration in money or money’s worth if the amount (or value) of |
|
| | that consideration is equal to or exceeds the market value of the |
|
| | |
| | (2) | The following provisions apply if— |
|
| | (a) | section 90 applies to a transfer of settled property made for |
|
| | consideration in money or money’s worth, and |
|
| | (b) | the amount (or value) of that consideration is less than the |
|
| | market value of the property transferred. |
|
| | (3) | If the transfer is of all of the settled property, for the purposes of |
|
| | section 90 treat the transfer as being of part only of the settled |
|
| | |
| | (4) | Deduct the amount (or value) of the consideration from the amount of |
|
| | the market value referred to in section 90(4)(a).’. |
|
| |
| | |
| Schedule 7, page 194, line 23, after ‘1998,’ insert ‘section 130(1) and (4), and’. |
|
| |
| | |
| Schedule 7, page 194, line 32, leave out paragraph (a). |
|
| |
| | |
| Schedule 7, page 194, line 40, at end insert— |
|
| | ‘106A (1) | This paragraph applies if— |
|
| | (a) | section 87 of TCGA 1992 applies to a settlement for the tax year 2008- |
|
| | 09 or any subsequent tax year (“the tax year”), |
|
|
|
| |
| |
|
| | (b) | the settlement was made before 17 March 1998, |
|
| | (c) | none of the settlors fulfilled the residence requirements when the |
|
| | |
| | (d) | none of the settlors fulfils the residence requirements in the tax year. |
|
| | (2) | For the purposes of that section as it applies to the settlement for the tax year, |
|
| | no account is to be taken of— |
|
| | (a) | any gains or losses accruing to the trustees of the settlement before 17 |
|
| | |
| | (b) | any capital payments received before that date. |
|
| | (3) | A settlor “fulfils the residence requirements” when the settlor is— |
|
| | (a) | resident or ordinarily resident in the United Kingdom, and |
|
| | (b) | domiciled in any part of the United Kingdom.’. |
|
| |
| | |
| Schedule 7, page 195, leave out lines 1 to 6 and insert ‘section 87 or 89(2) of TCGA |
|
| 1992 applied to it for the tax year 2007-08 or any earlier tax year.’. |
|
| |
| | |
| Schedule 7, page 195, line 8, leave out ‘or any earlier tax year’ and insert ‘and |
|
| |
| |
| | |
| Schedule 7, page 195, line 11, leave out from ‘for’ to end of line 12 and insert ‘the |
|
| settlement for the tax year 2007-08 and earlier tax years.’. |
|
| |
| | |
| Schedule 7, page 195, line 12, at end insert— |
|
| | | ‘For this purpose, references in section 87(4) and (5) of TCGA 1992 (as |
|
| | substituted) to section 87 of that Act applying to a settlement for a tax year are |
|
| | to be read as references to section 87 of that Act (as it had effect before that |
|
| | substitution) applying to a settlement for a tax year.’. |
|
| |
| | |
| Schedule 7, page 195, leave out lines 18 to 20 and insert— |
|
| | | ‘Find the earliest tax year for which the section 2(2) amount is not nil. |
|
| | | If the section 2(2) amount for that year is less than or equal to the total deemed |
|
| | gains, reduce that section 2(2) amount to nil.’. |
|
| |
| | |
| Schedule 7, page 195, leave out lines 28 to 31 and insert— |
|
| | | ‘For this purpose, read references to the earliest tax year for which the section |
|
| | 2(2) amount is not nil as references to the earliest tax year— |
|
| | (a) | which is after the last tax year for which Steps 3 and 4 have been |
|
| | |
| | (b) | for which the section 2(2) amount is not nil.’. |
|
|
|
| |
| |
|
| |
| | |
| Schedule 7, page 195, line 31, at end insert— |
|
| | ‘(3) | If, before 6 April 2008, the trustees of the settlement made a transfer of value |
|
| | to which Schedule 4B to TCGA 1992 applied, sub-paragraph (2) has effect |
|
| | subject to such modifications as are just and reasonable on account of Schedule |
|
| | 4C to that Act having applied in relation to the settlement. |
|
| | (4) | This paragraph does not apply if section 90 of TCGA 1992 applied to a transfer |
|
| | of settled property by or to the trustees of the settlement that was made before |
|
| | 6 April 2008 (see paragraph 108A). |
|
| | 108A (1) | If section 90 of TCGA 1992 (as originally enacted) applied to a transfer of |
|
| | settled property made before 6 April 2008, this paragraph applies in relation to |
|
| | the transferor settlement and the transferee settlement. |
|
| | (2) | In this paragraph “the year of transfer” means the tax year in which the transfer |
|
| | |
| | (3) | The following steps are to be taken for the purpose of calculating the section |
|
| | 2(2) amount for the transferor and transferee settlements for the tax year 2007- |
|
| | 08 and earlier tax years. |
|
| | |
| | | Take the steps in paragraph 108(2) for the purpose of calculating the section |
|
| | 2(2) amount (at the end of the year of transfer) for the transferor settlement for |
|
| | the year of transfer and earlier tax years. |
|
| | | For this purpose, read references there to the tax year 2007-08 as references to |
|
| | |
| | |
| | | Take the steps in paragraph 108(2) for the purpose of calculating the section |
|
| | 2(2) amount (before the year of transfer) for the transferee settlement for the |
|
| | tax year before the year of transfer and earlier tax years. |
|
| | | For this purpose, read references there to the tax year 2007-08 as references to |
|
| | the tax year before the year of transfer. |
|
| | |
| | | Calculate the section 2(2) amount for the transferee settlement for the year of |
|
| | |
| | |
| | | Treat the section 2(2) amount for the transferee settlement for the year of |
|
| | transfer or any earlier tax year (as calculated under Step 2 or 3) as increased |
|
| | |
| | (a) | the section 2(2) amount for the transferor settlement for that year (as |
|
| | calculated under Step 1), or |
|
| | (b) | if part only of the settled property was transferred, the relevant |
|
| | proportion of the amount mentioned in paragraph (a). |
|
| | | “The relevant proportion” here has the same meaning as in section 90(4) of |
|
| | TCGA 1992 (as substituted by this Schedule). |
|
| | |
| | | Treat the section 2(2) amount for the transferor settlement for any tax year as |
|
| | reduced by the amount by which the section 2(2) amount for the transferee |
|
| | settlement for that year is increased under Step 4. |
|
| | |
| | | Take the steps in paragraph 108(2) for the purpose of calculating the section |
|
| | 2(2) amount for the transferor settlement for the tax year 2007-08 and earlier |
|
| | |
| | |
|