|
| |
|
| |
| |
| |
[AS AMENDED IN PUBLIC BILL COMMITTEE] |
| |
| |
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:— |
| |
| |
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; |
| 5 |
(b) | satisfies the requirements imposed by and under this Act (see section |
| |
| |
(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 |
| 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 |
| |
| |
(3) | In subsection (1)(a), “the relevant date” means— |
| 15 |
(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. |
| |
|
| |
| |
|
| |
|
| |
| |
(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 |
| |
| |
(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— |
| 10 |
(a) | a notice of eligibility has previously been issued to the person, and |
| |
(b) | the expiry date specified in the notice has passed. |
| |
| |
(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— |
| |
| 20 |
(b) | employment and support allowance; |
| |
(c) | jobseeker’s allowance; |
| |
| |
(e) | severe disablement allowance; |
| |
(f) | child tax credit (but this is subject to any regulations made under |
| 25 |
| |
(g) | working tax credit (but this is subject to any regulations made under |
| |
| |
(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 |
| 30 |
| |
(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— |
| 35 |
(a) | prescribe conditions by reference to a person’s income; |
| |
(b) | prescribe conditions by reference to a person’s entitlement to social |
| |
| |
(c) | apply, or make provision similar to, any provision of or made under the |
| |
Tax Credits Act 2002 (c. 21), with or without modifications. |
| 40 |
(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. |
| |
|
| |
|
| |
|
(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 |
| 5 |
(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 |
| 10 |
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 |
| 15 |
entitled to a payment by the account provider calculated in accordance |
| |
with regulations and payable within a prescribed period (a “death |
| |
| |
(c) | the account complies with any other requirements imposed by |
| |
| 20 |
(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 |
| 25 |
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). |
| |
| |
(1) | Regulations under section 4(1) may include provision enabling the |
| 30 |
| |
(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 |
| 35 |
| |
| |
| |
(1) | A person who receives a notice of eligibility may apply to open a Saving |
| |
Gateway account with an approved account provider. |
| 40 |
(2) | The application must— |
| |
|
| |
|
| |
|
(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 |
| |
| |
(c) | be made in accordance with regulations. |
| 5 |
(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. |
| 10 |
(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 |
| 15 |
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. |
| |
| 20 |
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. |
| |
| 25 |
| |
(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, |
| |
| 30 |
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 |
| |
| 35 |
(a) | interest or other sums paid by the account provider under the terms of |
| |
| |
(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 |
| 40 |
within a period, prescribed by regulations, beginning with the end of the |
| |
| |
|
| |
|
| |
|
(5) | Nothing is payable by virtue of this section where a Saving Gateway account |
| |
is closed before the end of the maturity period. |
| |
| |
| |
(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 |
| 10 |
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 |
| |
| |
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— |
| 20 |
(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 |
| |
| |
(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 |
| |
| |
(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 |
| 35 |
| |
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. |
| 40 |
|
| |
|
| |
|
(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 |
| |
| |
(3) | Regulations may provide that a person ceases to be required to account for an |
| 5 |
amount after the end of a prescribed period. |
| |
| |
(1) | Regulations may provide for interest to be payable, in prescribed |
| |
circumstances, on any amount payable to the Commissioners under or by |
| |
| 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 |
| |
| |
(3) | Regulations under this section may— |
| 15 |
(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 |
| |
| |
| |
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 |
| |
| |
| |
| |
(2) | Provision made by virtue of this section may disapply, or modify the effect of, |
| 30 |
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 |
| |
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 |
| 40 |
| |
|
| |
|
| |
|
(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 |
| |
| |
(3) | In this section “alternative finance arrangement” has the meaning given by |
| |
section 46 of the Finance Act 2005. |
| 5 |
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 |
| |
| |
(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 |
| 20 |
the investment plan to which the funds are to be transferred; |
| |
(e) | require the provider of the plan to produce the certificate in prescribed |
| |
| |
| |
17 | Information to be supplied by relevant persons |
| 25 |
(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 |
| |
| |
(b) | to provide information or documents to Her Majesty’s Revenue and |
| 30 |
| |
(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 |
| 35 |
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. |
| 40 |
|
| |
|