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43 | Homes outside UK owned through company etc |
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(1) | In ITEPA 2003, after section 100 insert— |
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“100A | Homes outside UK owned through company etc |
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(1) | This Chapter does not apply to living accommodation outside the |
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United Kingdom provided by a company for a director or other officer |
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of the company (“D”) or a member of D’s family or household if— |
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(a) | the company is wholly owned by D or D and other individuals |
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(and no interest in the company is partnership property), and |
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(b) | the company has been the holding company of the property at |
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all times after the relevant time. |
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(2) | The company is “the holding company of the property” when— |
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(a) | it owns a relevant interest in the property, |
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(b) | its main or only asset is that interest, and |
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(c) | the only activities undertaken by it are ones that are incidental |
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to its ownership of that interest. |
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(3) | The company is also “the holding company of the property” when— |
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(a) | a company (“the subsidiary”) which is wholly owned by the |
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company meets the conditions in paragraphs (a) to (c) of |
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(b) | the company’s main or only asset is its interest in the |
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(c) | the only activities undertaken by the company are ones that are |
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incidental to its ownership of that interest. |
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(4) | “Relevant interest in the property” means an interest under the law of |
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any territory that confers (or would but for any inferior interest confer) |
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a right to exclusive possession of the property at all times or at certain |
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(5) | “The relevant time” is the time the company first owned a relevant |
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interest in the property; but this is subject to subsection (6). |
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(a) | none of D’s interest in the company was acquired directly or |
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indirectly from a person connected with D, and |
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(b) | the company owned a relevant interest in the property at the |
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time D first acquired an interest in the company, |
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| “the relevant time” is the time D first acquired such an interest. |
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100B | Section 100A(1): exceptions |
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(1) | Section 100A(1) does not apply if subsection (2), (3) or (4) applies. |
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(2) | This subsection applies if— |
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(a) | the company’s interest in the property was acquired directly or |
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indirectly from a connected company at an undervalue, or |
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(b) | the company’s interest in the property derives from an interest |
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(3) | This subsection applies if, at any time after the relevant time— |
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(a) | expenditure in respect of the property has been incurred |
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directly or indirectly by a connected company, or |
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(b) | any borrowing of the company directly or indirectly from a |
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connected company has been outstanding (but see subsection |
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(4) | This subsection applies if the living accommodation is provided in |
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pursuance of an arrangement the main purpose, or one of the main |
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purposes, of which is the avoidance of tax or national insurance |
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(5) | In subsection (2) references to the acquisition of an interest include the |
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(6) | For the purposes of that subsection, an interest is acquired at an |
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undervalue if the total consideration for it is less than that which might |
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reasonably have been expected to be obtained on a disposal of the |
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interest on the open market; and “consideration” here means |
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consideration provided at any time (and, for example, includes |
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payments by way of rent). |
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(7) | For the purposes of subsection (3)(b), no account is to be taken of— |
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(a) | any borrowing at a commercial rate, or |
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(b) | any borrowing which results in D being treated under Chapter |
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7 (taxable benefits: loans) as receiving earnings. |
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(8) | In subsection (4) “arrangement” includes any scheme, agreement or |
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understanding, whether or not enforceable. |
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(9) | In this section “connected company” means— |
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(a) | a company connected with D, with a member of D’s family or |
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with an employer of D, or |
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(b) | a company connected with such a company.” |
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(2) | The amendment made by subsection (1) is treated as always having had effect. |
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(3) | Section 145 of ICTA (living accommodation provided for employee) is to be |
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treated as never having applied to living accommodation outside the United |
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Kingdom provided in circumstances in which, had it been provided on or after |
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6 April 2003, section 100A(1) of ITEPA 2003 would cause Chapter 5 of Part 3 of |
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ITEPA 2003 (taxable benefits: living accommodation) not to apply. |
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44 | In-work and return to work credits and payments |
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(1) | In section 677(1) of ITEPA 2003 (UK social security benefits wholly exempt |
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from tax), in Part 1 of Table B (benefits payable under primary legislation), |
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insert at the appropriate places— |
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| | ETA(NI) 1950 Section 1”, and |
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(2) | In Part 1 of Schedule 1 to that Act (abbreviations of Acts etc), insert at the |
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| | The Employment and Training Act |
| | | | | (Northern Ireland) 1950 (c. 29 (N.I.))”, |
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| | The Employment and Training Act |
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(3) | The amendments made by this section have effect for the tax year 2008-09 and |
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45 | Company cars: lower threshold for CO2 emissions figure |
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(1) | In section 139(4) of ITEPA 2003 (car with a CO2 emissions figure: the |
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appropriate percentage), for the table substitute— |
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| | Lower threshold (in g/km) |
| | | | | | | | | 2010-11 and subsequent tax years |
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(2) | In consequence of the amendment made by subsection (1), omit— |
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(a) | in FA 2003, section 138(3), and |
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(b) | in FA 2006, section 59(6). |
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(3) | The amendments made by this section have effect for the tax year 2008-09 and |
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(1) | In section 239(3) of ITEPA 2003 (exemption in respect of payments and benefits |
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connected with taxable cars and vans subject to section 149), insert at the end |
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“or section 160 (benefit of van fuel treated as earnings).” |
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(2) | In section 269(2) of that Act (exemption in respect of non-cash vouchers and |
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credit-tokens where benefits or money obtained in connection with taxable car |
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or subject to section 149)— |
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(a) | for “, but see section 149(3)” substitute “or van, but see section 149(3) or |
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(b) | after “earnings)” insert “or section 160 (benefit of van fuel treated as |
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47 | Employment-related securities etc: deductible amounts etc |
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(1) | In section 149AA of TCGA 1992 (restricted and convertible employment- |
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related securities), after subsection (6) insert— |
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“(7) | In subsection (1) the reference to any amount that constituted earnings |
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under Chapter 1 of Part 3 of ITEPA 2003 does not include any amount |
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of exempt income (within the meaning of section 8 of that Act).” |
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(2) | ITEPA 2003 is amended as follows. |
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(3) | In section 428(2)(b) as originally enacted (conditional interests in shares: |
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amount of charge), insert at the end “(other than an amount of exempt |
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(4) | In section 428(7)(b) (restricted securities: amount of charge), insert at the end |
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“(other than an amount of exempt income)”. |
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(5) | In section 446T(3)(b) (securities acquired for less than market value: amount of |
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charge), insert at the end “(other than an amount of exempt income)”. |
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(6) | In section 480(5)(a) (securities options: deductible amounts), insert at the end |
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“(other than an amount of exempt income)”. |
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(7) | In paragraph 21(3) of Schedule 23 to FA 2003 (corporation tax relief for |
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employee share acquisition: amount of relief in case of restricted shares), insert |
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| “For this purpose the amount that constitutes such earnings does not |
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include any amount of exempt income (within the meaning of section 8 |
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(8) | In paragraph 22C(3) of that Schedule (corporation tax relief for employee share |
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acquisition: amount of relief in case of convertible shares), insert at the end— |
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| “For this purpose the amount that constitutes such earnings does not |
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include any amount of exempt income (within the meaning of section 8 |
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(9) | The amendment made by subsection (1) has effect in relation to disposals made |
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on or after 12 March 2008. |
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(10) | The amendment made by subsection (3) has effect in relation to events within |
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section 427(1)(a) or (b) of ITEPA 2003 (as originally enacted) occurring on or |
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(11) | The amendments made by subsections (4) and (6) have effect in relation to |
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chargeable events occurring on or after that date. |
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(12) | The amendment made by subsection (5) has effect in relation to employment- |
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related securities acquired (or treated as acquired) on or after that date. |
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(13) | The amendments made by subsections (7) and (8) have effect in relation to |
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awards of shares made on or after that date. |
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