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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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| | ‘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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| |
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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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| | ‘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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| |
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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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| 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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| 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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| 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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| | ‘809V | Public access rule: general |
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| | (1) | Property meets the public access rule if conditions A to D are met. |
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| | (2) | Condition A is that the property is— |
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| | (b) | a collectors’ item, or |
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| | | within the meaning of Council Directive 2006/112/EC (see, in |
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| | particular, Annex IX to that Directive). |
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| | (a) | the property is available for public access at an approved |
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| | |
| | (b) | the property is to be available for public access at an approved |
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| | establishment and, in connection with its being so available, is |
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| | in transit to, or in storage at, public access rule premises, or |
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| | (c) | the property has been available for public access at an |
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| | approved establishment and, in connection with its having |
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| | been so available, is in transit from, or in storage at, public |
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| | (4) | Property is “available for public access” at an approved establishment |
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| | (a) | on public display at the establishment, |
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| | (b) | held by the establishment and made available to the public on |
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| | request for viewing or for educational use, or |
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| | (c) | held by the establishment for public exhibition in connection |
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| | with the sale of the property. |
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| | (5) | An “approved establishment” is— |
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| | (a) | an approved museum, gallery or other institution within the |
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| | meaning of Group 9 of Schedule 2 to the Value Added Tax |
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| | (Imported Goods) Relief Order 1984, or |
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| | (b) | any other person, premises or institution designated (or of a |
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| | description designated) by the Commissioners. |
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| | (6) | “Public access rule premises” are— |
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| | (a) | premises in the United Kingdom at which the property is to |
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| | be, or has been, available for public access, or |
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| | (b) | other commercial premises in the United Kingdom used by |
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| | the approved establishment for the storage of property in |
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| | advance of its being, or after its having been, available for |
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| | public access at the approved establishment. |
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| | (7) | Condition C is that, during the relevant period, the property meets |
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| | condition B for no more than— |
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| | |
| | (b) | such longer period as the Commissioners may specify. |
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| | (8) | “The relevant period” means the period— |
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| | (a) | beginning with the importation of the property, and |
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| | (b) | ending when it ceases to be in the United Kingdom after that |
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| | (9) | “Importation” means the property being brought to, or received or |
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| | used in, the United Kingdom in circumstances in which section |
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| | (10) | Condition D is that the property attracts a relevant VAT relief (see |
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| | 809VA | Public access rule: relevant VAT relief |
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| | (1) | Property “attracts a relevant VAT relief” if any of conditions 1 to 4 are |
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| |
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| | (2) | Condition 1 is that article 5(1) of the Value Added Tax (Imported |
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| | Goods) Relief Order 1984 applies in relation to the importation of the |
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| | property by virtue of Group 9 of Schedule 2 to that Order (importation |
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| | of works of art or collectors’ pieces by museums etc). |
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| | (3) | Condition 2 is that article 5(1) would so apply if the following |
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| | requirements were disregarded— |
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| | (a) | the requirement that the importation be from a third country, |
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| | (b) | the requirement that the purpose of the importation be a |
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| | (4) | Condition 3 is that article 576(3)(a) of Commission Regulation (EEC) |
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| | No 2454/93 (relief from import duties for works of art etc imported for |
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| | the purposes of exhibition, with a view to possible sale) applies in |
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| | relation to the importation of the property. |
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| | (5) | Condition 4 is that article 576(3)(a) would so apply if the requirement |
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| | that the importation be from a third country were disregarded. |
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| | (6) | Where the property does not meet condition B in section 809V at the |
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| | time of its importation it is to be assumed for the purposes of this |
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| | section that the property was imported on the day during the relevant |
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| | period when the property first meets that condition. |
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| | (7) | “The relevant period” and “importation” have the same meaning as in |
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| | section 809V and “imported” is to be read accordingly. |
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| | |
| | (1) | Clothing, footwear, jewellery or watches meet the personal use rule if |
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| | (a) | are property of a relevant person, and |
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| | (b) | are for the personal use of a relevant individual. |
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| | (a) | “relevant person” has the meaning given by section 809L, and |
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| | (b) | “relevant individual” means an individual who is a relevant |
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| | person by virtue of section 809L(2)(a), (b), (c) or (d) (the |
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| | individual with income or gains, or a husband, wife, civil |
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| | partner, child or grandchild). |
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| | (1) | Property meets the repair rule for the whole of the relevant period if, |
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| | during the whole of that period, the property meets the repair |
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| | |
| | (2) | Property meets the repair rule for a part of the relevant period if— |
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| | (a) | during the whole of that part of that period, the property meets |
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| | the repair conditions, and |
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| | (b) | during the whole of the other part of that period, or the whole |
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| | of each other part of that period, the property meets the repair |
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| | conditions or the public access rule. |
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| | (3) | Property meets the repair conditions if the property— |
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| | (a) | is under repair or restoration, |
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| |
| |
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| | (b) | is in transit from a place outside the United Kingdom to repair |
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| | rule premises, in transit between such premises, or in storage |
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| | at such premises, in advance of repair or restoration, or |
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| | (c) | is in storage at such premises, in transit between such |
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| | premises, or in transit from such premises to a place outside |
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| | the United Kingdom, following repair or restoration. |
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| | (4) | “Repair rule premises” means— |
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| | (a) | premises in the United Kingdom that are to be used, or have |
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| | been used, for the repair or restoration referred to in |
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| | subsection (3)(b) or (c), or |
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| | (b) | other commercial premises in the United Kingdom used by |
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| | the restorer for the storage of property in advance of, or |
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| | following, repair or restoration of property by the restorer. |
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| | (5) | “Restorer” means the person who is to carry out, or has carried out, the |
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| | repair or restoration referred to in subsection (3)(b) or (c). |
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| | (6) | Property meets the repair conditions, or the public access rule, during |
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| | the whole of a period, or the whole of part of a period, if the property |
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| | meets those conditions or that rule— |
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| | (a) | on the whole of, or on part of, the first day of that period or |
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| | |
| | (b) | on the whole of, or on part of, the last day of that period or part |
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| | |
| | (c) | on the whole of each other day of that period or part period. |
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| | (7) | “The relevant period” has the same meaning as in section 809V. |
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| | 809W | Temporary importation rule |
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| | (1) | Property meets the temporary importation rule if the total number of |
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| | countable days is 275 or fewer. |
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| | (2) | A “countable day” is a day on which, or on part of which, the property |
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| | is in the United Kingdom by virtue of being brought to, or received or |
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| | used in, the United Kingdom in circumstances in which section |
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| | 809K(2)(a) applies (whether the current case, or a past case, when the |
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| | property was so brought, received or used). |
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| | (3) | A day is not a countable day if, on that day or any part of that day— |
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| | (a) | the property meets the personal use rule, |
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| | (b) | the property meets the repair rule, or |
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| | (c) | the notional remitted amount in relation to the property is less |
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| | |
| | (4) | A day on which, or on part of which, the property meets the public |
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| | access rule (the “relevant day”) is not a countable day if any of |
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| | conditions A to C is met. |
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| | (5) | Condition A is that the property meets the public access rule during the |
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| | whole of the period of importation in which the relevant day falls. |
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| | |
| | (a) | the property does not meet the public access rule during the |
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| | whole of the period of importation in which the relevant day |
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| | |
| | (b) | that period of importation— |
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|