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1 This Schedule makes provision about the fiscal effect of transfers under schemes made under sections 53 and 67.
(a) “transfer scheme” means a scheme under section 53 or 67, and
(b) “transfer” means a transfer under a transfer scheme.
(2) In this Schedule “transfer between bodies” means a transfer—
(a) from the Urban Regeneration Agency, the Commission for the New Towns or the Housing Corporation, and
(b) to the HCA or the Regulator of Social Housing.
(3) In this Schedule “transfer to government” means a transfer to—
(a) a Minister of the Crown, or
(a) ICTA means the Income and Corporation Taxes Act 1988 (c. 1),
(b) TCGA means the Taxation of Chargeable Gains Act 1992 (c. 12),
(c) FA 1996 means the Finance Act 1996 (c. 8),
(d) FA 2002 means the Finance Act 2002 (c. 23), and
(e) HMRC means the Commissioners for Her Majesty’s Revenue and Customs.
(2) In this Schedule a reference to a trade includes a reference to part of a trade.
Corporation tax: continuity of trade
4 (1) This paragraph applies if as the result of a transfer scheme—
(a) a transferor ceases a trade, and
(b) a transferee commences it.
(2) In connection with the computation of profits and losses for the purpose of corporation tax in respect of periods wholly
or partly after the commencement of the transfer scheme—
(a) the transferee shall be treated as having always carried on the trade, and
(b) the trade shall be considered separately from any other trade of the transferee (with any necessary apportionment being made).
Corporation tax: capital allowances
5 (1) This paragraph applies in respect of property transferred under a transfer scheme from—
(a) the Urban Regeneration Agency, or
(b) the Commission for the New Towns.
(2) Where the property was used by the transferor, and is to be used by the transferee, in connection with a trade, section 343(2) of ICTA (company reconstructions: capital allowances) shall apply.
6 The following transfers shall be treated as giving rise to neither allowance nor charge for the purposes of capital allowances in respect of a trade (and allowances shall be calculated as if the transferee had always carried on the trade)—
(a) a transfer from the Housing Corporation, and
Corporation tax: capital gains
7 (1) This paragraph applies in respect of property transferred under a transfer scheme from—
(a) the Urban Regeneration Agency,
(b) the Commission for the New Towns, or
(2) Section 17 of TCGA (disposals and acquisitions treated as at market value) shall not apply.
(3) For the purposes of TCGA the transfer (in relation to the transferor and the transferee) is to be taken as being a disposal for a consideration such that neither gain nor loss accrues.
8 A transfer shall be disregarded for the purposes of section 30 of TCGA (value-shifting: tax-free benefits).
9 At the end of section 35(3)(d) of TCGA (re-basing to 1982) add—
“(xviii) Schedule [Transfer schemes: tax] to the Housing and Regeneration Act 2008.”
Corporation tax: intangible assets
10 (1) This paragraph applies for the purposes of Schedule 29 to FA 2002 (intangible assets).
(2) Expressions used in this paragraph have the same meaning as in that Schedule.
(3) A transfer between bodies of a chargeable intangible asset is a tax-neutral transfer.
(4) An intangible fixed asset which is an existing asset of the transferor at the time of a transfer between bodies is to be treated, on and after the transfer, as an existing asset of the transferee.
(5) A transfer to government of a chargeable intangible asset is to be treated as not involving a realisation of the asset by the transferor.
Corporation tax: loan relationships
11 (1) If as a result of a transfer the transferee replaces the transferor as a party to a loan relationship, paragraph 12(2) of Schedule 9 to FA 1996 (transfer within group: continuity of treatment) shall apply (whether or not the transferor and transferee are bodies corporate).
(2) Expressions used in this paragraph have the same meaning as in that Schedule.
12 (1) Stamp duty shall not be chargeable on a transfer scheme.
(2) Stamp duty shall not be chargeable on a document certified by HMRC as connected with a transfer scheme.
(3) A document which is not chargeable by virtue of this paragraph must be stamped in accordance with section 12 of the
Stamp Act 1891 (c. 39) with a stamp denoting that it is not chargeable.’.— [Liz Blackman.]
Brought up, read the First time, and added to the Bill.
New Schedule 2
1 The Housing Act 1985 is amended as follows.
2 (1) Section 82 (security of tenure: date on which secure tenancy comes to an end as a result of a possession order etc.) is amended as follows.
(2) In subsection (1) for “by obtaining an order” substitute “as”.
(3) For subsections (1A) and (2) substitute—
“(1A) The tenancy may be brought to an end by the landlord—
(i) an order of the court for the possession of the dwelling-house, and
(ii) the execution of the order,
(b) obtaining an order under subsection (3), or
(c) obtaining a demotion order under section 82A.
(2) In the case mentioned in subsection (1A)(a), the tenancy ends when the order is executed.”
3 (1) Section 85 (extended discretion of court in certain proceedings for possession) is amended as follows.
(2) In subsection (3)(a) omit the words from “or payments” to “profits),”.
(3) For subsection (4) substitute—
“(4) The court may discharge or rescind the order for possession if it thinks it appropriate to do so having had regard to—
(a) any conditions imposed under subsection (3), and
(b) the conduct of the tenant in connection with those conditions.”
4 In Schedule 3 (grounds for withholding consent to assignment by way of exchange) for Ground 1 substitute—
The tenant or the proposed assignee is subject to an order of the court for the possession of the dwelling-house of which he is the secure tenant.”
5 The Housing Act 1988 is amended as follows.
6 (1) Section 5 (security of tenure) is amended as follows.
(2) For subsection (1) substitute—
“(1) An assured tenancy cannot be brought to an end by the landlord except by—
(i) an order of the court for possession of the dwelling-house under section 7 or 21, and
(ii) the execution of the order,
(b) obtaining an order of the court under section 6A (demotion order), or
(c) in the case of a fixed term tenancy which contains power for the landlord to determine the tenancy in certain circumstances, by the exercise of that power,
and, accordingly, the service by the landlord of a notice to quit is of no effect in relation to a periodic assured tenancy.
(1A) Where an order of the court for possession of the dwelling-house is obtained, the tenancy ends when the order is executed.”
(3) In subsection (2)(a) after “court” insert “of the kind mentioned in subsection (1)(a) or (b) or any other order of the court”.
7 In section 7(7) (possession orders in cases of fixed term tenancies which have come to an end) for “on the day on which the order takes effect” substitute “in accordance with section 5(1A)”.
8 (1) Section 9 (extended discretion of court in possession claims) is amended as follows.
(2) In subsection (3) omit the words from “or payments” to “profits)”.
(3) For subsection (4) substitute—
“(4) The court may discharge or rescind any such order as is referred to in subsection (2) if it thinks it appropriate to do so having had regard to—
(a) any conditions imposed under subsection (3), and
(b) the conduct of the tenant in connection with those conditions.”
9 (1) Section 21 (recovery of possession on expiry or termination of assured shorthold tenancies) is amended as follows.
(2) In subsection (3) for “on the day on which the order takes effect” substitute “in accordance with section 5(1A)”.
(3) After subsection (4) insert—
“(4A) Where a court makes an order for possession of a dwelling-house by virtue of subsection (4) above, the assured shorthold tenancy shall end in accordance with section 5(1A).”
10 The Housing Act 1996 is amended as follows.
11 (1) Section 127 (introductory tenancies: proceedings for possession) is amended as follows.
(2) In subsection (1) for the words from “an order” to the end substitute “—
(a) an order of the court for the possession of the dwelling-house, and
(b) the execution of the order.”
(3) After subsection (1) insert—
“(1A) In such a case, the tenancy ends when the order is executed.”
(4) In subsection (2) for “such an order” substitute “an order of the kind mentioned in subsection (1)(a)”.
12 (1) Section 130 (introductory tenancies: effect of beginning proceedings for possession) is amended as follows.
(2) In subsection (2)(a) for the words from “in pursuance of”, where they first appear, to “of the court)” substitute “in accordance with section 127(1A)”.
(3) In subsection (3)(b) for “127(2) and (3)” substitute “127(1A) and (2)”.
13 (1) Section 143D (demoted tenancies: proceedings for possession) is amended as follows.
(2) In subsection (1) for the words from “an order” to the end substitute “—
(a) an order of the court for the possession of the dwelling-house, and
(b) the execution of the order.”
(3) After subsection (1) insert—
“(1A) In such a case, the tenancy ends when the order is executed.”
14 (1) Subject as follows, this Part of this Schedule does not
apply to any possession order made before the commencement date.
(2) This Part of this Schedule does apply to a possession order made before the commencement date if the order applies to—
(a) a new tenancy by virtue of paragraph 20, or
(b) a tenancy which has not ended pursuant to the order before that date.
(3) Paragraphs 3(3) and 8(3) apply to any possession order regardless of when it was made.
(4) In determining for the purposes of sub-paragraph (2) whether a tenancy has ended, any ending which was temporary because the tenancy was restored in consequence of a court order is to be ignored.
(5) In this paragraph “the commencement date” means the day on which section (Possession orders relating to certain tenancies) comes into force.
Circumstances in which replacement tenancies arise
15 In this Part of this Schedule “an original tenancy” means any secure tenancy, assured tenancy, introductory tenancy or demoted tenancy—
(a) in respect of which a possession order was made before the commencement date, and
(b) which ended before that date pursuant to the order but not on the execution of the order.
16 (1) A new tenancy of the dwelling-house which was let under the original tenancy is treated as arising on the commencement date between the ex-landlord and the ex-tenant if—
(i) the home condition is met, and
(ii) the ex-landlord is entitled to let the dwelling-house, and
(b) the ex-landlord and the ex-tenant have not entered into another tenancy after the date on which the original tenancy ended but before the commencement date.
(2) The home condition is that the dwelling-house which was let under the original tenancy—
(a) is, on the commencement date, the only or principal home of the ex-tenant, and
(b) has been the only or principal home of the ex-tenant throughout the termination period.
(3) In this Part of this Schedule “the termination period” means the period—
(a) beginning with the end of the original tenancy, and
(b) ending with the commencement date.
(4) For the purposes of sub-paragraph (2)(a) the dwelling-house is the only or principal home of the ex-tenant on the commencement date even though the ex-tenant is then absent from the dwelling-house as a result of having been evicted in pursuance of a warrant if the warrant is subsequently set aside but the possession order under which it was granted remains in force.
(5) In that case, the new tenancy is treated as arising on the first day (if any) on which the ex-tenant resumes occupation of the dwelling-house as that person’s only or principal home.
(6) For the purposes of sub-paragraph (2)(b) any period of time within the termination period is to be ignored if—
(a) it is a period in which the ex-tenant was absent from the dwelling-house as a result of having been evicted in pursuance of a warrant which was then set aside although the possession order under which it was granted remained in force, and
(b) the ex-tenant subsequently resumes occupation of the dwelling-house as the ex-tenant’s only or principal home.
(7) The appropriate national authority may by order provide for particular cases or descriptions of case, or particular circumstances, where the home condition is met where it would not otherwise be met.
Nature of replacement tenancies
(i) the original tenancy was a secure tenancy, or
(ii) the original tenancy was an introductory tenancy but no election by the ex-landlord under section 124 of the Housing Act 1996 (c. 52) is in force on the day on which the new tenancy arises,
(b) an assured shorthold tenancy if the original tenancy was an assured shorthold tenancy,
(c) an assured tenancy which is not an assured shorthold tenancy if the original tenancy was a tenancy of that kind,
(d) an introductory tenancy if the original tenancy was an introductory tenancy and an election by the ex-landlord under section 124 of the Housing Act 1996 (c. 52) is in force on the day on which the new tenancy arises,
(e) a demoted tenancy to which section 20B of the Housing Act 1988 (c. 50) applies if the original tenancy was a demoted tenancy of that kind, and
(f) a demoted tenancy to which section 143A of the Housing Act 1996 (c. 52) applies if the original tenancy was a demoted tenancy of that kind.
18 (1) The new tenancy is, subject as follows, to have effect on the same terms and conditions as those applicable to the original tenancy immediately before it ended.
(2) The terms and conditions of the new tenancy are to be treated as modified so as to reflect, so far as applicable, any changes made during the termination period to the level of payments for the ex-tenant’s occupation of the dwelling-house or to the other terms and conditions of the occupation.
(3) The terms and conditions of the new tenancy are to be treated as modified so that any outstanding liabilities owed by the ex-tenant to the ex-landlord in respect of payments for the ex-tenant’s occupation of the dwelling-house during the termination period are liabilities in respect of rent under the new tenancy.
(4) The appropriate national authority may by order provide for other modifications of the terms and conditions of the new tenancy.
(5) Nothing in sub-paragraphs (2) to (4) is to be read as permitting modifications of the new tenancy which would not have been possible if the original tenancy had remained a tenancy throughout the termination period.
(6) The terms and conditions of a new secure tenancy which arises by virtue of paragraph 17(a)(ii) are to be treated as modified so far as necessary to reflect the fact that the new tenancy is a secure tenancy and not an introductory tenancy.
19 (1) Any provision which is made by or under an enactment and relates to a secure tenancy, assured tenancy, introductory tenancy or demoted tenancy applies, subject as follows, to a new tenancy of a corresponding kind.
(2) Any such provision which relates to an introductory tenancy applies to a new tenancy which is an introductory tenancy as if the trial period mentioned in section 125(2) of the Housing Act 1996 (c. 52) were the period of one year beginning with the day on which the new tenancy arises.
(3) Any such provision which relates to a demoted tenancy applies to a new tenancy which is a demoted tenancy as if the demotion period mentioned in section 20B(2) of the Housing Act 1988 (c. 50) or section 143B(1) of the Housing Act 1996 (c. 52) were the period of one year beginning with the day on which the new tenancy arises.
(4) The appropriate national authority may by order modify any provision made by or under an enactment in its application to a new tenancy.
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