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| |
| |
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| | (a) | treat the section 2(2) amount for the year of transfer or any earlier tax |
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| | year as the amount calculated by taking Steps 1 and 5 above, and |
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| | (b) | reduce the total deemed gains by the amount of the total deemed gains |
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| | calculated by taking Step 1 above. |
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| | |
| | | Take the steps in paragraph 108(2) for the purpose of calculating the section |
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| | 2(2) amount for the transferee settlement for the tax year 2007-08 and earlier |
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| | |
| | |
| | (a) | treat the section 2(2) amount for the year of transfer or any earlier tax |
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| | year as the amount calculated by taking Steps 2 to 4 above, and |
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| | (b) | reduce the total deemed gains by the amount of the total deemed gains |
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| | calculated by taking Step 2 above. |
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| | (4) | This paragraph applies with any necessary modifications in relation to a |
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| | settlement as respects which more than one relevant transfer was made. |
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| | (5) | In sub-paragraph (4) “relevant transfer” means a transfer— |
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| | (a) | made before 6 April 2008, and |
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| | (b) | to which section 90 of TCGA 1992 applied. |
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| | (6) | If, before 6 April 2008, the trustees of the transferor or transferee settlement |
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| | made a transfer of value to which Schedule 4B to TCGA 1992 applied, this |
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| | paragraph has effect subject to such modifications as are just and reasonable |
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| | on account of Schedule 4C to that Act having applied in relation to the |
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| | |
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| | |
| Schedule 7, page 195, line 32, leave out sub-paragraph (1). |
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| | |
| Schedule 7, page 195, line 41, after ‘of’ insert ‘, or paragraph 8 of Schedule 4C to,’. |
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| |
| | |
| Schedule 7, page 196, line 3, at end insert— |
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| | ‘(5) | References in this paragraph to section 87(6) of TCGA 1992 include that |
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| | provision as it would (but for the amendments made by this Schedule) have |
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| | applied by virtue of section 762(3) of ICTA (offshore income gains). |
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| | (6) | References in this paragraph to chargeable gains include offshore income |
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| | |
| | 109A | Section 89(2) of TCGA 1992 as substituted applies to a settlement for the tax |
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| | year 2008-09 (and subsequent tax years) if section 89(2) of that Act as |
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| | originally enacted would (but for the amendments made by this Schedule) have |
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| | applied to the settlement for the tax year 2008-09. |
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| | 109B | In section 90(1)(a) of TCGA 1992, the reference to section 87 of TCGA 1992 |
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| | includes that section as originally enacted.’. |
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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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| |
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| paragraph’ and insert ‘have not opted out from the provisions within this paragraph’. |
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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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| |
| |
| |
| | |
| Schedule 7, page 196, line 30, after ‘the’, insert ‘anniversary of the’. |
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| |
| | |
| Schedule 7, page 196, line 37, leave out ‘part (but not all)’ and insert ‘all or part’. |
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| |
| | |
| Schedule 7, page 196, line 39, at end insert— |
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| | ‘(2A) | For a tax year as respects which the settlement has a Schedule 4C pool, the |
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| | reference in sub-paragraph (2)(a) above to a capital payment received (or |
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| | treated as received) by a beneficiary of the settlement is to be read as a capital |
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| | payment received (or treated as received) by a beneficiary of a relevant |
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| | settlement from the trustees of a relevant settlement. |
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| | (2B) | Paragraph 8A of that Schedule (relevant settlements) applies for the purposes |
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| | of sub-paragraph (2A) above.’. |
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| | |
| Schedule 7, page 196, line 40, leave out ‘(1)’ and insert ‘(2)’. |
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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 |
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| | election is the name of the trust and the name of the trustee making the |
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| | |
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| | |
| Schedule 7, page 197, line 1, after ‘of’ insert ‘, or paragraph 8 of Schedule 4C to,’. |
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| | |
| Schedule 7, page 197, line 24, at end insert ‘and’. |
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| | |
| Schedule 7, page 197, line 27, leave out from ‘gains’ to end of line 34. |
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| |
| | |
| Schedule 7, page 197, line 29, leave out ‘the same part (or a larger part)’ and insert |
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| |
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| | |
| Schedule 7, page 197, line 34, at end insert— |
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| | |
| | (a) | by reason of an asset which would not otherwise be a relevant asset |
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| | (“the new asset”), chargeable gains or allowable losses accrue, or are |
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| | treated under section 13 as accruing, to the trustees in the relevant tax |
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| | |
| | (b) | the value of the new asset derives wholly or in part from another asset |
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| | (“the original asset”), and |
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| | (c) | section 43 of TCGA 1992 applies in relation to the calculation of the |
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| | chargeable gains or allowable losses, |
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| | | the new asset (or part of that asset) is a “relevant asset” if the condition in sub- |
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| | paragraph (8)(b) or the conditions in sub-paragraph (9)(b) and (c) would be |
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| | met were the references there to the asset to be read as references to the new |
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| | asset or the original asset. |
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| | |
| | (a) | on or after 6 April 2008, a company (“company A”) disposes of an |
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| | asset to another company (“company B”), and |
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| | (b) | section 171 of TCGA (transfers within groups) (as applied by section |
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| | 14(2) of that Act) applies in relation to the disposal, |
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| | | for the purposes of sub-paragraph (9) (and this sub-paragraph) treat company |
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| | B as having owned the asset throughout the period when company A owned it. |
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| | (13) | If an asset is a relevant asset by virtue of sub-paragraph (12), for the purposes |
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| | |
| | (a) | treat the chargeable gains as having accrued to the company which |
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| | owned the asset at the beginning of 6 April 2008, and |
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| | (b) | treat the proportion of those chargeable gains attributable under |
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| | section 13 of TCGA 1992 to the trustees as being the proportion of the |
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| | chargeable gains actually accruing that are so attributable. |
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| | |
| | (a) | an asset would otherwise be a “relevant asset” within sub-paragraph |
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| | |
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| |
| |
|
| | (b) | the proportion of chargeable gains treated under section 13 of TCGA |
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| | 1992 as accruing to the trustees by reason of the asset (“the relevant |
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| | proportion”) is greater than the minimum proportion, |
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| | | for the purposes of sub-paragraph (7) treat the appropriate proportion of the |
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| | asset as a relevant asset and the rest of the asset as if it were not a relevant asset. |
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| | (15) | “The minimum proportion” is the smallest proportion of chargeable gains (if |
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| | any) that would have been attributable to the trustees on a disposal of the asset |
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| | at any time in the relevant period (as defined by sub-paragraph (10)). |
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| | (16) | “The appropriate proportion” is the minimum proportion divided by the |
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| | |
| |
| | |
| Schedule 7, page 197, line 46, after ‘of’ insert ‘, or paragraph 8 of Schedule 4C to,’. |
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| |
| | |
| Schedule 7, page 198, line 2, at end insert— |
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| | ‘(1A) | If the trustees of the transferee settlement have made an election under |
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| | paragraph 112(1), paragraph 112(5) to (7) have effect in relation to the |
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| | transferee settlement for that year as if the reference in paragraph 112(7) to |
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| | relevant assets included relevant assets within the meaning of this paragraph.’. |
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| |
| | |
| Schedule 7, page 198, line 3, at beginning insert ‘If the trustees of the transferee |
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| settlement have not made an election under paragraph 112(1),’. |
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| |
| | |
| Schedule 7, page 198, line 4, after first ‘gains’ insert ‘mentioned in sub-paragraph |
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| |
| |
| | |
| Schedule 7, page 198, line 15, leave out ‘sub-paragraph (3)’ and insert ‘this |
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| |
| |
| | |
| Schedule 7, page 198, line 23, leave out ‘the same part (or a larger part)’ and insert |
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| |
| |
| | |
| Schedule 7, page 198, line 31, at end insert— |
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| | ‘(6) | Sub-paragraphs (11) to (16) of paragraph 112 apply for the purposes of this |
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| | paragraph (with such modifications as are necessary) as they apply for the |
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| | purposes of that paragraph.’. |
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| |
| | |
| Schedule 7, page 198, line 35, after ‘losses)’ insert ‘— |
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|
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| |
| |
|
| | (a) | after subsection (2) insert— |
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| | “(2A) | For the purposes of sections 87 to 89, no account is to be taken |
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| | of any section 2(2) amount in a Schedule 4C pool (see |
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| | paragraph 1 of Schedule 4C).”, and |
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| | |
| |
| | |
| Schedule 7, page 199, line 4, at end insert— |
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| | ‘(5) | The reference in subsection (4)(b) to chargeable gains treated as |
|
| | accruing includes offshore income gains treated as arising.”’. |
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| |
| | |
| Schedule 7, page 199, line 12, after ‘the’ insert ‘original’. |
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| |
| | |
| Schedule 7, page 199, line 26, leave out from second ‘for’ to first ‘as’ in line 28 and |
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| insert ‘the relevant tax year and earlier tax years,’. |
|
| |
| | |
| Schedule 7, page 199, line 37, at end insert— |
|
| | ‘(1A) | For the purposes of Step 1 of sub-paragraph (1) take into account |
|
| | the effect of section 90 in relation to any transfer of settled property |
|
| | from or to the trustees of the settlement made in or before the |
|
| | |
| |
| | |
| Schedule 7, page 199, line 40, at end insert— |
|
| | ‘119A | In paragraph 4(2) (chargeable amount: non-resident settlement), at the end |
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| | insert “(and had made the disposals which Schedule 4B treats them as having |
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| | |
| | 119B | In paragraph 5(2)(a) (chargeable amount: dual resident settlement), after |
|
| | “apply” insert “(and the disposals which Schedule 4B treats them as having |
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| | |
| |
| | |
| Schedule 7, page 200, leave out lines 41 and 42. |
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| |
| | |
| Schedule 7, page 200, leave out lines 46 and 47. |
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| |
| | |
| Schedule 7, page 201, line 3, after ‘paragraph’ insert ‘; but this is subject to sub- |
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| |
|