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Saving Gateway Accounts Bill


Saving Gateway Accounts Bill

1

 

A

Bill

[AS AMENDED IN PUBLIC BILL COMMITTEE]

To

Make provision about Saving Gateway accounts; and for connected purposes.                               

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and

consent of the Lords Spiritual and Temporal, and Commons, in this present

Parliament assembled, and by the authority of the same, as follows:—

Introductory

1       

Saving Gateway accounts

(1)   

In this Act “Saving Gateway account” means an account which—

(a)   

is held by a person who has received a notice of eligibility (see section

2) and who was an eligible person at the relevant date;

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(b)   

satisfies the requirements imposed by and under this Act (see section

4);

(c)   

has been applied for and opened in accordance with the requirements

imposed by and under this Act (see section 6); and

(d)   

has not ceased to be a Saving Gateway account by virtue of regulations

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under section 10.

(2)   

Matters relating to Saving Gateway accounts are to be under the management

of the Commissioners for Her Majesty’s Revenue and Customs (“the

Commissioners”).

(3)   

In subsection (1)(a), “the relevant date” means—

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(a)   

the date when the notice of eligibility was issued, or

(b)   

if by that date the person had ceased to be an eligible person, but the

Commissioners consider that an earlier date determined by them

should be treated as the relevant date, that earlier date.

 

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Saving Gateway Accounts Bill

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Eligibility

2       

Notices of eligibility

(1)   

The Commissioners must issue a notice of eligibility to each eligible person

(within the meaning given by section 3).

(2)   

A notice of eligibility—

5

(a)   

must include an expiry date and such other information as is prescribed

by regulations, and

(b)   

must be issued in the way prescribed by regulations.

(3)   

Regulations may provide that the Commissioners may, in prescribed

circumstances, issue a further notice of eligibility to an eligible person where—

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(a)   

a notice of eligibility has previously been issued to the person, and

(b)   

the expiry date specified in the notice has passed.

3       

Eligible persons

(1)   

A person is an “eligible person” for the purposes of this Act if—

(a)   

the person is entitled to one or more of the benefits or tax credits

15

specified in subsection (2), and

(b)   

the person has a connection with the United Kingdom of a kind

prescribed by regulations.

(2)   

Those benefits and tax credits are—

(a)   

income support;

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(b)   

employment and support allowance;

(c)   

jobseeker’s allowance;

(d)   

incapacity benefit;

(e)   

severe disablement allowance;

(f)   

child tax credit (but this is subject to any regulations made under

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subsection (4));

(g)   

working tax credit (but this is subject to any regulations made under

subsection (4)).

(3)   

For the purposes of subsection (1), a person is “entitled” to a benefit or tax

credit whether the person is entitled to the benefit or tax credit alone or with

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another person.

(4)   

Regulations may provide that a person is an eligible person by reason of

entitlement (alone or with another person) to working tax credit or child tax

credit only if prescribed conditions are satisfied.

(5)   

Regulations under subsection (4) may, in particular—

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(a)   

prescribe conditions by reference to a person’s income;

(b)   

prescribe conditions by reference to a person’s entitlement to social

security benefits;

(c)   

apply, or make provision similar to, any provision of or made under the

Tax Credits Act 2002 (c. 21), with or without modifications.

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(6)   

An order may add a benefit or tax credit to the list in subsection (2), or remove

or amend a paragraph of that subsection.

 
 

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(7)   

An order under subsection (6) may make consequential amendments to this

section and may, in particular, amend subsection (4) or (5) or make provision

corresponding to either or both of those subsections.

Requirements for accounts and account providers

4       

Requirements relating to accounts

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(1)   

A Saving Gateway account may be held only with a person (an “approved

account provider”) who has been approved by the Commissioners in

accordance with regulations.

(2)   

An account is not a Saving Gateway account unless—

(a)   

under its terms, if the account is held for a period prescribed by

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regulations (the “maturity period”), at the end of that period the

account holder becomes entitled to a payment by the account provider

calculated in accordance with section 8 (a “maturity payment”),

(b)   

under its terms, if the account holder dies before the end of the maturity

period, the personal representatives of the account holder become

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entitled to a payment by the account provider calculated in accordance

with regulations and payable within a prescribed period (a “death

payment”), and

(c)   

the account complies with any other requirements imposed by

regulations.

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(3)   

Regulations may, in particular, impose a limit on the amount which may be

paid into a Saving Gateway account in a month (excluding any interest or other

sums paid by the account provider under the terms of the account).

(4)   

In subsection (3), “month” means a calendar month beginning with the 1st of

the month and ending with the last day of the month (and when a person opens

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an account, the period beginning with the day on which the account is opened

and ending with the last day of the month is treated for the purposes of this Act

as the first month of the account’s operation).

5       

Approvals

(1)   

Regulations under section 4(1) may include provision enabling the

30

Commissioners—

(a)   

to impose conditions on an approved account provider, and

(b)   

to withdraw approval of an account provider.

(2)   

Regulations may require an account provider whose approval has been or is to

be withdrawn to provide prescribed information to prescribed account

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holders.

Opening and transfers

6       

Account opening

(1)   

A person who receives a notice of eligibility may apply to open a Saving

Gateway account with an approved account provider.

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(2)   

The application must—

 
 

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(a)   

be made, and accepted by the account provider, no later than the expiry

date specified in the notice of eligibility,

(b)   

include a true declaration of such matters as may be prescribed by

regulations, and

(c)   

be made in accordance with regulations.

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(3)   

When an application is made in accordance with this section, the account

provider must open a Saving Gateway account for the person, unless the

circumstances are as specified by regulations under subsection (4).

(4)   

Regulations may specify circumstances in which an account provider may or

must refuse to open a Saving Gateway account for a person.

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(5)   

Regulations may make provision—

(a)   

preventing a person from holding more than one Saving Gateway

account at the same time;

(b)   

specifying a period, after the end of the maturity period of a Saving

Gateway account held by a person, during which the person may not

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open another Saving Gateway account;

(c)   

preventing a person from holding more than a specified number of

Saving Gateway accounts, or Saving Gateway accounts which are held

until the end of the maturity period, during the person’s lifetime.

7       

Transfers

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Regulations may make provision about—

(a)   

the circumstances in which a Saving Gateway account held with one

account provider may be transferred to another, and

(b)   

the procedure to be followed on a transfer.

Operation of accounts

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8       

Maturity payments

(1)   

The maturity payment in relation to a Saving Gateway account is to be

calculated by multiplying A by B where—

A is the number of whole pounds in the qualifying balance of the account,

and

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B is an amount of money (in pence) specified in regulations.

(2)   

The “qualifying balance” of a Saving Gateway account is the highest balance

achieved during the maturity period.

(3)   

In finding any balance for the purposes of subsection (2), the following are to

be disregarded—

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(a)   

interest or other sums paid by the account provider under the terms of

the account, and

(b)   

any sums paid into the account in breach of the limit specified in

regulations under section 4(3).

(4)   

The account provider must pay the maturity payment to the account holder

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within a period, prescribed by regulations, beginning with the end of the

maturity period.

 
 

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(5)   

Nothing is payable by virtue of this section where a Saving Gateway account

is closed before the end of the maturity period.

9       

Statements etc.

(1)   

Regulations may —

(a)   

make provision requiring an account provider to send statements of

5

account to the holder of a Saving Gateway account;

(b)   

specify the form and content of a statement;

(c)   

specify how often a statement is to be sent.

(2)   

Section 234A of the Income and Corporation Taxes Act 1988 (c. 1) (duty to

provide statement of distribution) does not apply to an account provider in

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relation to a Saving Gateway account.

10      

Account ceasing to be Saving Gateway account

Regulations may specify when an account ceases to be a Saving Gateway

account.

Returns, claims, repayments and interest

15

11      

Returns of information to HMRC

(1)   

Regulations may require a person who is or was an approved account provider

to submit returns of information relating to Saving Gateway accounts, or

former Saving Gateway accounts, to the Commissioners.

(2)   

The regulations may make provision about—

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(a)   

the information to be included in a return;

(b)   

the form of a return;

(c)   

the period to which a return is to relate;

(d)   

the period within which a return is to be submitted;

(e)   

the way in which a return is to be submitted (which may include

25

provision applying any provision of regulations made under section

135 of the Finance Act 2002 (c. 23) (mandatory electronic filing) with or

without modifications).

(3)   

Regulations may, in particular, provide for a return to include—

(a)   

a claim by the person, in the form prescribed by the regulations, for

30

payment of an amount equal to prescribed maturity payments and

death payments;

(b)   

information about the calculation of such payments.

(4)   

The Commissioners must pay to the person, within the period specified in

regulations, any amount claimed under regulations made under subsection

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(3)(a).

12      

Recovery of payments by HMRC

(1)   

Regulations may make provision requiring, in prescribed circumstances, a

person of a prescribed description to account to the Commissioners for an

amount paid by the Commissioners in pursuance of this Act.

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(2)   

Regulations may also provide that an amount to be accounted for under this

section is to be treated for the purposes of Part 6 of the Taxes Management Act

1970 (c. 9) (collection and recovery) as if it were tax charged in an assessment

and due and payable.

(3)   

Regulations may provide that a person ceases to be required to account for an

5

amount after the end of a prescribed period.

13      

Interest

(1)   

Regulations may provide for interest to be payable, in prescribed

circumstances, on any amount payable to the Commissioners under or by

virtue of this Act.

10

(2)   

Regulations may also provide for the payment of interest by the

Commissioners where an amount claimed under regulations made under

section 11(3)(a) is not paid within the period specified in regulations made

under section 11(4).

(3)   

Regulations under this section may—

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(a)   

prescribe the rate at which interest is to be paid, or the way in which the

rate of interest is to be determined;

(b)   

prescribe the period in respect of which interest is to be paid;

(c)   

provide that interest payable to the Commissioners is to be treated for

the purposes of Part 6 of the Taxes Management Act 1970 (collection

20

and recovery) as if it were tax charged in an assessment and due and

payable.

Tax

14      

Relief from income tax and capital gains tax

(1)   

Regulations may make provision for and in connection with giving relief, in

25

respect of a payment made by an account provider to or in relation to a Saving

Gateway account, from—

(a)   

income tax, and

(b)   

capital gains tax.

(2)   

Provision made by virtue of this section may disapply, or modify the effect of,

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any enactment relating to income tax or capital gains tax.

(3)   

Regulations under this section may require a prescribed person, in prescribed

circumstances, to account to the Commissioners—

(a)   

for tax from which relief has been given under the regulations, or

(b)   

for an amount determined in accordance with the regulations in respect

35

of such tax.

15      

Alternative finance arrangements

(1)   

This section applies to a Saving Gateway account which would be treated, by

virtue of section 49 or 49A of the Finance Act 2005 (c. 7), as an alternative

finance arrangement but for the payment of a maturity payment or a death

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payment.

 
 

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(2)   

A Saving Gateway account to which this section applies is to be treated, for the

purposes of Chapter 5 of Part 2 of the Finance Act 2005 (c. 7), as an alternative

finance arrangement.

(3)   

In this section “alternative finance arrangement” has the meaning given by

section 46 of the Finance Act 2005.

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Transfer of funds on account ceasing to be Saving Gateway Account

16      

Transfer of funds on account ceasing to be Saving Gateway account

(1)   

This section applies to an account which ceases to be a Saving Gateway account

by virtue of regulations under section 10.

(2)   

Regulations may make provision about—

10

(a)   

the circumstances in which the funds in the account may be transferred

to an investment plan of a kind prescribed by regulations, and

(b)   

the procedure to be followed on a transfer.

(3)   

Regulations may, in particular—

(a)   

require a person who is or was an approved account provider, on a

15

request by the account holder, to issue a certificate to the account

holder;

(b)   

prescribe the period within which the certificate is to be issued;

(c)   

prescribe the information to be included in the certificate;

(d)   

require the account holder to present the certificate to the provider of

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the investment plan to which the funds are to be transferred;

(e)   

require the provider of the plan to produce the certificate in prescribed

circumstances.

Information

17      

Information to be supplied by relevant persons

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(1)   

Regulations may require, or authorise officers of Revenue and Customs to

require, a relevant person—

(a)   

to make documents available for inspection by Her Majesty’s Revenue

and Customs, or

(b)   

to provide information or documents to Her Majesty’s Revenue and

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Customs.

(2)   

The following are relevant persons—

(a)   

a person who is or was an approved account provider;

(b)   

a person who has applied to open a Saving Gateway account;

(c)   

a person who is or was the holder of a Saving Gateway account or a

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purported Saving Gateway account.

(3)   

Regulations may include provision requiring documents to be made available

or information or documents to be provided—

(a)   

in the form and way prescribed by the regulations;

(b)   

by the time and at the place so prescribed.

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