House of Commons Amendments

House of Commons

Session 2007 - 08
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Other Bills before Parliament

Notices of Amendments: 6th June 2008
241

Finance Bill, continued

‘41E
Foreign securities income: just and reasonable apportionment

(1)
This section applies if the proportion of the securities income that

would otherwise be regarded as “foreign” is not, having regard to all

the circumstances, one that is just and reasonable.

(2)
The amount of the securities income that is “foreign” is such amount

as is just and reasonable (rather than the amount calculated in

accordance with section 41C).’.

Jane Kennedy

333

Schedule  7,  page  176,  line  19,  at end insert—

‘31A
In section 446N (securities subject to restriction during relevant period), after

subsection (6) insert—

“(7)
If any of the employment income arising under section 426 by virtue

of the chargeable event is foreign securities income within the

meaning of section 41C, reduce the taxable amount mentioned in

subsection (5) by the amount of the foreign securities income.

(8)
If any of the employment income that would have arisen (if the non-

commercial interests mentioned in subsection (6) had been

disregarded) under section 426 by virtue of the chargeable event

would have been foreign securities income (within that meaning),

reduce the taxable amount mentioned in subsection (6) by the amount

of the foreign securities income.”’.

Jane Kennedy

334

Schedule  7,  page  176,  line  31,  at end insert—

‘34A
In section 698 (PAYE: special charges on employment-related securities),

after subsection (7) insert—

“(8)
This section is subject to section 700A (employment-related securities

etc: remittance basis).”

34B
In section 700 (PAYE: gains from securities options), after subsection (6)

insert—

“(7)
This section is subject to section 700A (employment-related securities

etc: remittance basis).”

34C
After that section insert—

“700A
Employment-related securities etc: remittance basis

(1)
This section applies if—

(a)
section 698 or 700 applies, and

(b)
part or all of the amount that counts as employment income is

foreign securities income or is likely to be foreign securities

income.

(2)
The amount of the payment treated under section 696 as made is

limited to—

(a)
the amount that, on the basis of the best estimate that can

reasonably be made, is likely to count as employment income,

minus

Notices of Amendments: 6th June 2008
242

Finance Bill, continued

(b)
the amount that, on the basis of such an estimate, is likely to

be foreign securities income.

(3)
References in this section to “foreign securities income” are to income

that is foreign securities income for the purposes of section 41A.”

Jane Kennedy

335

Schedule  7,  page  182,  line  40,  at end insert—

‘58A
In section 119A (increase in expenditure by reference to tax charged in relation

to employment-related securities), after subsection (5) insert—

“(5A)
See also section 119B (unremitted foreign securities income).”

58B
After that section insert—

“119B
Section 119A: unremitted foreign securities income

(1)
For the purposes of section 119A reduce the amount that counts as

employment income by so much of that amount (if any) as is

unremitted foreign securities income.

(2)
In this section “unremitted foreign securities income” means income

that—

(a)
is foreign securities income for the purposes of section 41A of

ITEPA 2003 (employment income from ERS charged on

remittance basis), and

(b)
has not been remitted to the United Kingdom by the end of the

tax year in which the disposal mentioned in section 119A(1)

occurs.

(3)
The following provisions apply if any of the unremitted foreign

securities income is remitted to the United Kingdom after the end of

the tax year referred to in subsection (2)(b).

(4)
The person liable for the capital gains tax on any chargeable gains

arising on the disposal may make a claim for section 119A(2) to have

effect as if the remitted income had been remitted before the end of

that tax year.

(5)
All adjustments (by way of repayment of tax, assessment or otherwise)

are to be made which are necessary to give effect to a claim under

subsection (4).

(6)
Those adjustments may be made at any time, despite anything to the

contrary in any enactment relating to capital gains tax.’.

Jane Kennedy

336

Schedule  7,  page  184,  line  35,  leave out ‘and 32’ and insert ‘to 32, 34C and 58B’.

Jane Kennedy

337

Schedule  7,  page  184,  line  37,  at end insert ‘(except employment-related securities

acquired pursuant to a securities option acquired before 6 April 2008).’.

Notices of Amendments: 6th June 2008
243

Finance Bill, continued

Jane Kennedy

338

Schedule  7,  page  187,  line  21,  at end insert—

‘86A (1)
This paragraph applies in relation to employment-related securities if—

(a)
the date of the acquisition is on or after 6 April 2008 and on or before

31 July 2008, and

(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

Schedule.

      (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

subsection (5)(b) for “more than 14 days after the acquisition” there were

substituted “after 14 August 2008”.’.

Jane Kennedy

339

Schedule  7,  page  151,  leave out lines 20 to 28 and insert—

‘(3)
Sections 42 and 43 of TMA 1970 (procedure and time limit for making

claims), except section 42(1A) of that Act, apply in relation to a claim

under this section as they apply in relation to a claim for relief.

809BA
Claim for remittance basis by long-term UK resident: nomination of

foreign income and gains to which section 809G(2) is to apply

(1)
This section applies to an individual for a tax year if the individual—

(a)
is aged 18 or over in that year, and

(b)
has been UK resident in at least 7 of the 9 tax years

immediately preceding that year.

(2)
A claim under section 809B by the individual for that year must

contain a nomination of the income or chargeable gains of the

individual for that year to which section 809G(2) is to apply.

(3)
The income or chargeable gains nominated must be part (or all) of the

individual’s foreign income and gains for that year.

(4)
The income and chargeable gains nominated must be such that the

relevant tax increase does not exceed £30,000.

(5)
“The relevant tax increase” is—

(a)
the total amount of income tax and capital gains tax payable

by the individual for that year, minus

(b)
the total amount of income tax and capital gains tax that would

be payable by the individual for that year apart from section

809G(2).

(6)
See section 809Z for the meaning of an individual’s foreign income

and gains for a tax year.’.

Jane Kennedy

340

Schedule  7,  page  152,  leave out lines 1 and 2.

Notices of Amendments: 6th June 2008
244

Finance Bill, continued

Jane Kennedy

341

Schedule  7,  page  153,  line  25,  leave out ‘809B(3)’ and insert ‘809BA’.

Jane Kennedy

342

Schedule  7,  page  153,  leave out lines 27 to 31 and insert—

‘(4)
If the relevant tax increase would otherwise be less than £30,000, subsection (2)

has effect as if—

(a)
in addition to the income and gains actually nominated under section

809BA in the individual’s claim under section 809B for the relevant tax

year, an amount of income had been nominated so as to make the relevant

tax increase equal to £30,000, and

(b)
the individual’s income for that year were such that such a nomination

could have been made (if that is not the case).’.

Jane Kennedy

343

Schedule  7,  page  153,  line  37,  at end insert—

‘(6)
Nothing in subsection (4) affects what is regarded, for the purposes of

section 809H or 809I, as nominated under section 809BA.’.

Jane Kennedy

344

Schedule  7,  page  154,  line  9,  leave out ‘809B(3)’ and insert ‘809BA’.

Jane Kennedy

345

Schedule  7,  page  154,  line  17,  at beginning insert ‘If section 809H applies,’.

Jane Kennedy

346

Schedule  7,  page  154,  line  29,  after ‘year’ insert ‘(other than income or chargeable

gains nominated under section 809BA)’.

Jane Kennedy

347

Schedule  7,  page  155,  line  34,  leave out ‘809B(3)’ and insert ‘809BA’.

Jane Kennedy

348

Schedule  7,  page  180,  line  25,  at end insert—

‘(3A)
Sections 42 and 43 of the Management Act (procedure and time limit

for making claims), except section 42(1A) of that Act, apply in

relation to an election under this section as they apply in relation to a

claim for relief.’.

Jane Kennedy

349

Schedule  7,  page  184,  line  6,  leave out paragraph 70.

Notices of Amendments: 6th June 2008
245

Finance Bill, continued

Jane Kennedy

350

Schedule  7,  page  184,  line  20,  leave out paragraph 73.