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| |
| |
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| | (7) | “Money” has the same meaning as in section 809U of ITA 2007.’. |
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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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| |
| |
| |
| |
| | |
| 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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| |
| |
| |
| | |
| 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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| |
| |
| |
| |
| | |
| Schedule 7, page 187, line 10, leave out ‘Relevant foreign income’ and insert |
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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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| |
| |
| |
| |
| | |
| 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 17, at end insert ‘or |
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| | (d) | the interest ceases to be owned by the individual,’. |
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| |
| | |
| Schedule 7, page 187, line 19, at end insert— |
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| | |
| | (a) | before 12 March 2008, money was lent to the individual outside the |
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| | United Kingdom (“the subsequent loan”), |
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| | (b) | the subsequent loan was made for the purpose of enabling the |
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| | |
| | (i) | the loan mentioned in sub-paragraph (1), or |
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| | (ii) | another loan in relation to which sub-paragraphs (2) and (3) |
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| | apply (by virtue of this sub-paragraph), |
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| | | and for no other purpose, and |
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| | |
| | (i) | the money was received in the United Kingdom, |
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| | (ii) | the individual used the money to repay the loan referred to in |
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| | paragraph (b)(i) or (ii), and |
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| | (iii) | repayment of the subsequent loan was secured on the interest |
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| | referred to in sub-paragraph (1)(c), |
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| | | sub-paragraphs (2) and (3) apply in relation to the subsequent loan (and for this |
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| | purpose references there to the debt or the loan are to be read as references to |
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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 |
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| | 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 |
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| | 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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| |
| | |
| Schedule 7, page 187, line 31, at end insert— |
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| | ‘(1A) | In subsection (1), after paragraph (a) insert— |
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| |
| |
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| | “(aa) | any reference to anything accruing is to be read as a reference |
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| | to it arising (and similar references are to be read |
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| | |
| |
| | |
| Schedule 7, page 187, line 32, leave out ‘(4)’ and insert ‘(5)’. |
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| |
| | |
| Schedule 7, page 187, line 33, leave out from beginning to end of line 17 on page |
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| |
| | |
| | (a) | offshore income gains arise to the trustees of a settlement in a |
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| | |
| | (b) | section 87 of the 1992 Act (gains of non-resident settlements) |
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| | applies to the settlement for that year, |
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| | | the OIG amount for the settlement for that year is the amount of the |
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| | |
| | (3) | Sections 87, 87A, 87C to 90 and 96 to 98 of, and Schedule 4C to, the |
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| | 1992 Act apply in relation to OIG amounts as if— |
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| | (a) | references to section 2(2) amounts (except those in paragraph |
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| | 7B(2)(b) and (4) of Schedule 4C) were to OIG amounts, |
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| | (b) | references to chargeable gains (except the one in paragraph |
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| | 1(5) of Schedule 4C) were to offshore income gains, |
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| | (c) | references to anything accruing were to it arising (and similar |
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| | references, except the one in paragraph 1(5) of Schedule 4C, |
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| | were read accordingly), and |
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| | (d) | sections 87(4), 88(2) to (5), 89(4) and 97(6) and paragraphs |
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| | 1(3A), 3 to 7, 8AA, 12 and 13 of Schedule 4C were omitted. |
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| | (4) | Section 87A of the 1992 Act applies for a tax year by virtue of |
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| | subsection (3) before it applies for that year otherwise than by virtue |
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| | |
| | (5) | If, by virtue of subsection (1) or (3), offshore income gains are treated |
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| | as arising to a person, for the purposes of section 761 as it applies in |
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| | relation to the offshore income gains treat the person as having made |
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| | the disposal in question.’. |
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| |
| | |
| Schedule 7, page 188, line 18, leave out from ‘(6)’ to end and insert ‘— |
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| | (a) | for “subsection (2) above” substitute “(3)”, |
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| | (b) | for “accrued” substitute “arisen”, and |
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| | (c) | omit “Chapter 2 of Part 13 of ITA 2007 or”.’. |
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| |
| | |
| Schedule 7, page 188, leave out line 20 and insert— |
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|
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| |
| |
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| | ‘“762ZA | Offshore income gains: application of transfer of assets abroad |
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| | |
| | (1) | Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad) applies in |
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| | relation to an offshore income gain arising to a person resident or |
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| | domiciled outside the United Kingdom (and not resident or ordinarily |
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| | resident in the United Kingdom) as if the offshore income gain were |
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| | income becoming payable to the person. |
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| | (2) | Income treated as arising under that Chapter by virtue of subsection |
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| | (1) is regarded as “foreign” for the purposes of section 726, 730 or 735 |
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| | |
| | (3) | Subsection (1) does not apply in relation to an offshore income gain if |
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| | (and to the extent that) it is treated, by virtue of section 762(1), as |
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| | arising to a person resident or ordinarily resident in the United |
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| | |
| | (4) | The following provisions apply if section 762(2) applies in relation to |
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| | an offshore income gain (“the relevant offshore income gain”). |
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| | |
| | (a) | by virtue of section 762(3) an offshore income gain is treated |
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| | as arising in a tax year to a person resident or ordinarily |
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| | resident in the United Kingdom, and |
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| | (b) | it is so treated by reason of the relevant offshore income gain |
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| | |
| | | for that and subsequent tax years subsection (1) does not apply in |
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| | relation to the relevant offshore income gain (or that part). |
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| | (6) | If, by virtue of subsection (1) as it applies in relation to the relevant |
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| | offshore income gain, income is treated under Chapter 2 of Part 13 of |
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| | ITA 2007 as arising in a tax year, reduce (with effect from the |
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| | following tax year) the OIG amount in question by the amount of the |
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| | |
| | 762ZB | Income treated as arising under section 761(1): remittance basis’. |
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| | |
| |
| | |
| Schedule 7, page 188, leave out lines 27 to 32 and insert— |
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| | ‘(2) | Treat the income as relevant foreign income of the individual.’. |
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| |
| | |
| Schedule 7, page 188, line 33, leave out ‘those sections’ and insert ‘sections 809K |
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| to 809Q of ITA 2007 (meaning of “remitted to the United Kingdom” etc)’. |
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| |
| | |
| Schedule 7, page 188, line 45, at end insert— |
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| | ‘90A | In section 830(4) of ITTOIA 2005 (meaning of “relevant foreign income”), |
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| | after paragraph (a) insert— |
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| | “(aa) | section 762ZB(2) of ICTA (offshore income gains),”. |
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|
|
| |
| |
|
| | 90B | In section 734 of ITA 2007 (reduction in amount charged: previous capital |
|
| | gains tax charge), after subsection (4) insert— |
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| | “(5) | References in this section to chargeable gains treated as accruing to an |
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| | individual include offshore income gains treated as arising to the |
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| | individual (see section 762 of ICTA).”’. |
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| |
| | |
| Schedule 7, page 189, line 1, leave out ‘90’ and insert ‘90B’. |
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| |
| | |
| Schedule 7, page 189, line 2, at end insert— |
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| | ‘91A | Paragraph 108 or 108A applies in relation to offshore income gains as if— |
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| | (a) | references to section 2(2) amounts were to OIG amounts, |
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| | (b) | references to chargeable gains were to offshore income gains, |
|
| | (c) | Step 1 of paragraph 108(2) provided that OIG amounts are to be |
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| | calculated in accordance with— |
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| | (i) | section 762(2) of ICTA (the reference in the second sentence |
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| | of that Step to section 87(4) of TCGA 1992 being read as a |
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| | reference to section 762(2) of ICTA), or |
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| | (ii) | section 87(5) of TCGA 1992 as applied by section 762(3) of |
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| | |
| | 91B(1) | This paragraph applies if— |
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| | (a) | by virtue of section 87 or 89(2) of, or Schedule 4C to, TCGA 1992 as |
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| | applied by section 762 of ICTA, income is treated under section 761 |
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| | of ICTA as arising to an individual in the tax year 2008-09 or any |
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| | |
| | (b) | the individual is not domiciled in the United Kingdom in that year. |
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| | (2) | The individual is not charged to income tax on the income if and to the extent |
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| | that it is treated as arising by reason of— |
|
| | (a) | a capital payment received (or treated as received) by the individual |
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| | |
| | (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), |
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| | (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 |
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| | year”) by reason of the matching, under section 87A of TCGA 1992 |
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| | as applied by section 762 of ICTA, of an OIG amount with a capital |
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| | payment received by the individual from the trustees, and |
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| | (c) | the individual is resident or ordinarily resident, but not domiciled, in |
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| | the United Kingdom in the relevant tax year. |
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| | (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 |
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| | 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, |
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|
|
| |
| |
|
| | (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 |
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| | 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 |
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| | |
| | (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. |
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| |
| |
| |
| |
| | |
| 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.’. |
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|
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| |
| |
|
| |
| |
| |
| |
| | |
| 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’. |
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| |
| | |
| Schedule 7, page 190, line 19, after ‘trustees’ insert ‘of the settlement’. |
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|