|
| |
| |
48 | Employment-related securities: repeal of obsolete provisions |
| |
(1) | In ICTA, omit sections 138 and 139 (share acquisitions by directors and |
| |
employees: shares acquired before 26 October 1987). |
| |
| |
(a) | in section 418 (other related provisions), omit subsection (4), and |
| 5 |
(b) | in Schedule 7 (transitionals and savings), omit paragraph 57. |
| |
(3) | The amendments made by this section have effect for the tax year 2008-09 and |
| |
| |
49 | Armed forces: the Council Tax Relief |
| |
(1) | In ITEPA 2003, after section 297A insert— |
| 10 |
“297B | Armed forces: the Council Tax Relief |
| |
(1) | No liability to income tax arises in respect of payments of the Council |
| |
Tax Relief to members of the armed forces of the Crown. |
| |
(2) | Payments of the Council Tax Relief are payments designated as such by |
| |
| 15 |
(2) | The amendment made by subsection (1) has effect in relation to payments |
| |
made on or after 1 April 2008. |
| |
50 | Greater London Authority: severance payments |
| |
(1) | Section 291(2) of ITEPA 2003 (termination payments to MPs and others ceasing |
| |
to hold office) is amended as follows. |
| 20 |
(2) | In paragraph (ea), omit “or”. |
| |
(3) | At the end of paragraph (f) insert “, or |
| |
(g) | made under section 26A of the Greater London Authority Act |
| |
1999 (payments on ceasing to hold office as Mayor of London or |
| |
as a member of the London Assembly).” |
| 25 |
(4) | The amendments made by this section have effect in relation to payments |
| |
made on or after 6 April 2008. |
| |
| |
51 | Gift aid: payments to charities |
| |
Schedule 19 contains provision for the Commissioners for Her Majesty’s |
| 30 |
Revenue and Customs to make payments to charities which receive donations |
| |
under the gift aid scheme. |
| |
52 | Community investment tax relief |
| |
(1) | Paragraph 35 of Schedule 16 to FA 2002 (community investment tax relief) is |
| |
| 35 |
| |
| |
|
| |
| |
(2) | After sub-paragraph (1) insert— |
| |
“(1A) | But if the investor is a bank, the investor does not receive value from |
| |
the CDFI when the CDFI makes a deposit with the investor in the |
| |
course of its ordinary banking arrangements.” |
| |
(3) | In subsection (5), after “paragraph—” insert— |
| 5 |
““bank” has the meaning given by section 840A of the Taxes Act |
| |
| |
(4) | The amendments made by this section are treated as always having had effect. |
| |
| |
53 | Leases of plant or machinery |
| 10 |
Schedule 20 contains provision about leases of plant or machinery. |
| |
54 | Sale of lessor companies etc |
| |
(1) | Schedule 10 to FA 2006 (sale etc of lessor companies etc) is amended as follows. |
| |
(2) | In paragraph 23 (leasing business carried on in partnership: change in |
| |
company’s interest in the business), after sub-paragraph (4) insert— |
| 15 |
“(4A) | But if at the end of the relevant day the other company is the only |
| |
person carrying on the business, the expense— |
| |
(a) | is treated as an expense incurred by the other company in its |
| |
carrying on of the business (at a time when it is the only |
| |
person carrying it on), and |
| 20 |
(b) | is allowed as a deduction in calculating for corporation tax |
| |
purposes the profits of the business for the accounting period |
| |
in which it is treated as incurred.” |
| |
(3) | In paragraph 32 (amount of expense)— |
| |
(a) | in sub-paragraph (2), for “The” substitute “Except in a case where sub- |
| 25 |
paragraph (3A) applies, the”, and |
| |
(b) | after sub-paragraph (3) insert— |
| |
“(3A) | If paragraph 23(4A) applies (business carried on by the other |
| |
company alone), the amount of the expense of the other |
| |
company is equal to the amount of the income.” |
| 30 |
(4) | In paragraph 39 (relief for certain expenses otherwise giving rise to carried |
| |
| |
(a) | after sub-paragraph (1) insert— |
| |
“(1A) | This paragraph also applies if— |
| |
(a) | a company is treated under paragraph 23(4A) as |
| 35 |
incurring an expense of a business in an accounting |
| |
| |
(b) | the company makes a loss in that accounting period, |
| |
| |
(c) | some or all of that loss would otherwise be carried |
| 40 |
forward to the next accounting period of the company |
| |
(“the subsequent accounting period”).”, |
| |
| |
| |
|
| |
| |
(b) | in sub-paragraph (2), after “3” insert “, 23(4A)”, and |
| |
(c) | in sub-paragraph (4), after “3” insert “, 23(4A)”, |
| |
| and, accordingly, in the heading before that paragraph, after “3” insert “, |
| |
| |
(5) | The amendments made by this section are treated as always having had effect. |
| 5 |
Double taxation arrangements |
| |
55 | Double taxation relief |
| |
(1) | Section 798 of ICTA (limits on foreign tax credit: trade income) is amended as |
| |
| |
(2) | After subsection (1) insert— |
| 10 |
“(1A) | The references in section 796 and this section to income in respect of |
| |
which a credit for foreign tax is to be allowed are to be treated as |
| |
referring only to income arising out of the transaction, arrangement or |
| |
asset in connection with which the credit for foreign tax arises.” |
| |
(3) | In subsection (3), after “income” insert “in respect of which the credit is to be |
| 15 |
| |
(4) | The amendments made by this section have effect in relation to a credit for |
| |
foreign tax which relates to— |
| |
(a) | a payment of foreign tax on or after 6 April 2008, or |
| |
(b) | income received on or after that date in respect of which foreign tax has |
| 20 |
| |
56 | UK residents and foreign partnerships |
| |
(1) | In section 115 of ICTA (partnerships involving companies: supplementary), |
| |
after subsection (5B) insert— |
| |
“(5C) | For the purposes of subsections (5) to (5B) the members of a partnership |
| 25 |
include any company which is entitled to a share of income or capital |
| |
gains of the partnership.” |
| |
(2) | In section 59 of TCGA 1992 (partnerships), insert at the end— |
| |
“(4) | For the purposes of subsections (2) and (3) the members of a |
| |
partnership include any person entitled to a share of capital gains of the |
| 30 |
| |
(3) | In section 858 of ITTOIA 2005 (resident partners and double taxation |
| |
agreements), insert at the end— |
| |
“(4) | For the purposes of this section the members of a firm include any |
| |
person entitled to a share of income of the firm.” |
| 35 |
(4) | The amendments made by subsections (1) to (3) are treated as always having |
| |
| |
(5) | For the purposes of the predecessor provisions, the members of a partnership |
| |
are to be treated as having included, at all times to which those provisions |
| |
applied, a person entitled to a share of income or capital gains of the |
| 40 |
| |
| |
| |
|
| |
| |
(6) | “The predecessor provisions” means— |
| |
(a) | section 153(4) and (5) of the Income and Corporation Taxes Act 1970 |
| |
(c. 10) (as it had effect under section 62(2) of F(No.2)A 1987), and |
| |
(b) | sections 112(4) to (6) and 115(5) of ICTA. |
| |
57 | UK residents and foreign enterprises |
| 5 |
(1) | In ICTA, after section 815A insert— |
| |
“815AZA | UK residents and foreign enterprises |
| |
(1) | Where arrangements having effect under section 788 make the |
| |
provision mentioned in subsection (2) (however expressed), that |
| |
provision does not prevent income of a person resident in the United |
| 10 |
Kingdom being chargeable to income tax or corporation tax. |
| |
(2) | The provision is that the profits of an enterprise which is resident |
| |
outside the United Kingdom, or carries on a trade, profession or |
| |
business the control or management of which is situated outside the |
| |
United Kingdom, are not to be subject to United Kingdom tax except in |
| 15 |
so far as they are attributable to a permanent establishment of the |
| |
enterprise in the United Kingdom. |
| |
(3) | A person is resident in the United Kingdom for the purposes of this |
| |
section if the person is so resident for the purposes of the arrangements |
| |
having effect under section 788. |
| 20 |
(4) | This section does not apply in relation to— |
| |
(a) | income of a company resident in the United Kingdom to which |
| |
section 115(5A) applies, or |
| |
(b) | income of a person resident in the United Kingdom to which |
| |
section 858 of ITTOIA 2005 applies.” |
| 25 |
(2) | The amendment made by subsection (1) has effect in relation to income arising |
| |
on or after 12 March 2008. |
| |
Other anti-avoidance provisions |
| |
58 | Restrictions on trade loss relief for individuals |
| |
Schedule 21 contains provision restricting relief for losses made by individuals |
| 30 |
who, otherwise than in partnership, carry on trades in a non-active capacity. |
| |
| |
(1) | In section 103B(2) of ITA 2007 (meaning of “non-active partner” for purposes |
| |
of provisions restricting trade loss relief), for “carried on for the purposes of the |
| |
trade” substitute “of the trade and those activities are carried on— |
| 35 |
(a) | on a commercial basis, and |
| |
(b) | with a view to the realisation of profits as a result of the |
| |
| |
(2) | The amendment made by subsection (1) has effect in relation to relevant |
| |
periods ending on or after 12 March 2008. |
| 40 |
| |
| |
|
