House of Commons portcullis
House of Commons
Session 2008 - 09
Internet Publications
Other Bills before Parliament

Finance Bill


Finance Bill
Schedule 26 — Certification of SAYE savings arrangements

250

 

(a)   

in TMA 1970, in section 98, in column 1 of the Table, the entry

relating to section 730(8) of ICTA,

(b)   

in ICTA, in section 774E(1), the second sentence,

(c)   

in FA 1996, in Schedule 7, paragraph 23,

(d)   

in FA 2004, section 135,

5

(e)   

in ITTOIA 2005, in Schedule 1, paragraph 300,

(f)   

in F(No.2)A 2005, in Schedule 7, paragraphs 2 and 4,

(g)   

in FA 2006, in Schedule 6, paragraph 7,

(h)   

in ITA 2007—

(i)   

in section 1016, in Part 3 of the table, the entry relating to

10

section 730(4) of ICTA, and

(ii)   

in Schedule 1, paragraphs 183 and 545.

      (4)  

In section 785ZB(3) of ICTA, for “has the same meaning as in section 785A”

substitute “includes an underlease, sublease, tenancy or licence and an

agreement for any of those things”.

15

      (5)  

In section 2(13) of ITA 2007, omit the “and” at the end of paragraph (d) and

insert at the end “or

(f)   

transfers of income streams (Chapter 5A).”

      (6)  

Schedule 4 to that Act (index of defined expressions) is amended as follows.

      (7)  

After the entry relating to “transfer (in Chapter 2 of Part 13)” insert—

20

 

“transfer (in Chapter 5A of Part

Section 809AZF(3)”.

 
 

13)

  

      (8)  

After the entry relating to “transferor (in Part 12)” insert—

 

“transfer taking place (in Chapter

Section 809AZF(3)”.

 
 

5A of Part 13)

  

25

Part 5

Commencement

10         

This Schedule has effect in relation to transfers on or after 22 April 2009.

Schedule 26

Section 50

 

Certification of SAYE savings arrangements

30

1          

Chapter 4 of Part 6 of ITTOIA 2005 (SAYE interest) is amended as follows.

Transfer of certain functions from Treasury to HMRC

2     (1)  

Section 705 (certification of arrangements) is amended as follows.

 
 

Finance Bill
Schedule 27 — Remittance basis
Part 1 — Amendments of ITA 2007

251

 

      (2)  

In subsections (1) and (2), for “Treasury” (in each place) substitute

“Commissioners”.

      (3)  

After subsection (4) insert—

“(5)   

In this Chapter “the Commissioners” means the Commissioners for

Her Majesty’s Revenue and Customs.”

5

3          

In section 706(1) and (2) (withdrawal and variation of certifications etc), for

“Treasury” substitute “Commissioners”.

4          

In section 707(1) (authorisation of providers), for “Treasury” substitute

“Commissioners”.

5     (1)  

Section 708 (withdrawal and variation of authorisations) is amended as

10

follows.

      (2)  

In subsections (1) and (2), for “Treasury” substitute “Commissioners”.

      (3)  

In subsection (4), for “Treasury of its” substitute “Commissioners of their”.

Removal of requirement that notice be sent by post

6          

In the following provisions omit “by post”—

15

(a)   

section 706(2)(b) (notification of withdrawal and variation of

certifications etc), and

(b)   

section 708(2)(b) (notification of withdrawal and variation of

authorisations).

Reduction of notice period for withdrawals and variations

20

7          

In section 706(2)(b) (notification of withdrawal and variation of certifications

etc), for “28 days” substitute “15 days”.

Power to provide for withdrawals and variations not to affect certain contracts

8          

In section 706(3) (transitional provision for withdrawals and variations of

certifications) for the words from “the operation of” to the end substitute—

25

“(a)   

the operation of the arrangement concerned before that date,

(b)   

contracts made under that arrangement before that date, or

(c)   

where the notice so provides, contracts which are of a

description specified in the notice and are made under that

arrangement after that date.”

30

Schedule 27

Section 51

 

Remittance basis

Part 1

Amendments of ITA 2007

1          

Chapter A1 of Part 14 of ITA 2007 (remittance basis) is amended as follows.

35

2          

In section 809C (claim for remittance basis by long-term UK resident:

 
 

Finance Bill
Schedule 27 — Remittance basis
Part 1 — Amendments of ITA 2007

252

 

nomination of foreign income and gains to which section 809H(2) is to

apply), after subsection (5) insert—

“(5A)   

The references to income tax in subsection (5) do not include income

tax under section 424 (gift aid).”

3     (1)  

Section 809D (application of remittance basis without claim where

5

unremitted foreign income and gains under £2,000) is amended as follows.

      (2)  

In subsection (1), insert at the end (not as part of paragraph (c))—

   

“unless condition A or condition B is met.”

      (3)  

After that subsection insert—

“(1A)   

Condition A is that the individual is not domiciled in the United

10

Kingdom in that year and conditions A to F in section 828B are met.

(1B)   

Condition B is that the individual gives notice in a return under

section 8 of TMA 1970 that this section is not to apply in relation to

the individual for that year.”

4     (1)  

Section 809E (application of remittance basis without claim: other cases) is

15

amended as follows.

      (2)  

In subsection (1), for paragraph (c) substitute—

“(c)   

for that year the individual either has no UK income or gains

or has no UK income and gains other than taxed investment

income not exceeding £100.”

20

      (3)  

In that subsection, insert at the end (not as part of paragraph (e))—

   

“unless the individual gives notice in a return under section 8 of

TMA 1970 that this section is not to apply in relation to the individual

for that year.”

      (4)  

After subsection (2) insert—

25

“(2A)   

For the purposes of subsection (1)(c) “taxed investment income”

means UK income or gains consisting of payments within section 946

from which a sum representing income tax has been deducted.”

5          

In section 809H (claim for remittance basis by long-term UK resident:

charge), after subsection (5) insert—

30

“(5A)   

The references to income tax in subsection (5) do not include income

tax under section 424 (gift aid).”

6     (1)  

Section 809L (meaning of “remitted to the United Kingdom”) is amended as

follows.

      (2)  

Omit subsection (8).

35

      (3)  

In subsection (9), for “income or chargeable gains are used in respect of a

debt include cases where income or chargeable gains are” substitute

“property (including income or chargeable gains) is used in respect of a debt

include cases where the property is”.

7     (1)  

Section 809M (meaning of “relevant person” for purposes of sections 809L,

40

809N and 809O) is amended as follows.

 
 

Finance Bill
Schedule 27 — Remittance basis
Part 2 — Amendments of other Acts

253

 

      (2)  

In subsection (2)(e), insert at the end “or a company which is a 51%

subsidiary of such a close company”.

      (3)  

In subsection (3), after paragraph (c) insert—

“(ca)   

“participator”, in relation to a close company, means a person

who is a participator in relation to the company for the

5

purposes of section 419 of ICTA (see sections 417(1) and

419(7) of that Act),

(cb)   

“51% subsidiary” has the same meaning as in the Corporation

Tax Acts (see section 838 of ICTA),”.

8          

In section 809P (amount remitted), insert at the end—

10

“(13)   

If the property forms part of a set only part of which is in the United

Kingdom, the amount remitted is such portion of what it would have

been had the complete set been brought to, or received or used in, the

United Kingdom when the part was as is just and reasonable (having

regard to the part of the set which is there).”

15

9     (1)  

Section 809T (foreign chargeable gains accruing on disposals made other

than for full consideration) is amended as follows.

      (2)  

In subsection (1)(b), after “amount” insert “at least”.

      (3)  

In the heading, for “other” substitute “otherwise”.

10    (1)  

Section 809X (property which is exempt property) is amended as follows.

20

      (2)  

In subsection (4), omit “that derive from relevant foreign income”.

      (3)  

In subsection (5), omit “of any description that derives from relevant foreign

income”.

11    (1)  

Section 809Z5 (notional remitted amount) is amended as follows.

      (2)  

In subsection (1), omit “of income”.

25

      (3)  

Omit subsections (2) and (3).

Part 2

Amendments of other Acts

TCGA 1992

12         

In section 14A(3)(b) of TCGA 1992 (section 13: non-UK domiciled

30

individuals), after “amount” insert “at least”.

ITTOIA 2005

13         

In section 648 of ITTOIA 2005 (income arising under a settlement), for

subsections (2) to (5) substitute—

“(2)   

But if, in a tax year, the settlor is not UK resident, references in this

35

Chapter to income arising under a settlement do not include income

arising under the settlement in that tax year in respect of which the

settlor, if actually entitled to it, would not be chargeable to income

tax by deduction or otherwise because of not being UK resident.

 
 

Finance Bill
Schedule 28 — Taxable benefits: cars

254

 

(3)   

And if, for a tax year, section 809B, 809D or 809E of ITA 2007

(remittance basis) applies to the settlor, references in this Chapter to

income arising under a settlement include in relation to any relevant

foreign income arising under the settlement in that tax year only

such of it as is remitted to the United Kingdom (in that tax year or

5

any subsequent tax year) in circumstances such that, if the settlor

remitted it, the settlor would be chargeable to income tax.

(4)   

See Chapter A1 of Part 14 of ITA 2007 for the meaning of “remitted

to the United Kingdom” etc.

(5)   

Where subsection (3) applies the remitted income is treated for the

10

purposes of this Chapter as arising under the settlement in the tax

year in which it is remitted.”

FA 2008

14         

In paragraph 86 of Schedule 7 to FA 2008 (remittance basis: transitional

provisions), after sub-paragraph (4) insert—

15

   “(4A)  

For the purposes of sub-paragraph (4), section 648(2) to (5) of

ITTOIA 2005 (and corresponding earlier enactments) do not apply

(so that relevant foreign income which arose under a settlement in

the tax year 2007-08 or any earlier tax year is to be treated as

income for the tax year in which it arose).”

20

Part 3

Commencement

15    (1)  

The amendments made by paragraphs 2 to 5, 10, 11(2) and 14 have effect for

the tax year 2008-09 and subsequent tax years.

      (2)  

The other amendments made by this Schedule come into force on 22 April

25

2009.

Schedule 28

Section 53

 

Taxable benefits: cars

Introduction

1          

Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars) is amended as

30

follows.

Abolition of “price cap”

2     (1)  

Section 121(1) (method of calculating cash equivalent of benefit of car) is

amended as follows.

      (2)  

In step 3, insert at the end—

35

   

“The resulting amount is the interim sum.”

      (3)  

Omit step 4 (interim sum to be £80,000 if step 3 amount exceeds £80,000).

 
 

Finance Bill
Schedule 28 — Taxable benefits: cars

255

 

3          

In section 145(5) (modifications of provisions where car temporarily

replaced), for “step 4” substitute “step 3”.

4          

In section 147(1) and (2), for “amount carried forward from” substitute

“interim sum calculated under”.

5          

In section 170(1) (Treasury orders increasing various amounts), omit

5

paragraph (a) (amount in step 4 of section 121(1)).

Cars with CO2 emissions figures: the appropriate percentage

6          

In section 139(4) (car with a CO2 emissions figure: the appropriate

percentage), for the table substitute—

“Table

10

 

Tax year

Lower threshold (in g/km)

 
 

2009-10

135

 
 

2010-11

130

 
 

2011-12 and subsequent tax years

125”.

 

Electrically propelled cars: the appropriate percentage

15

7          

In section 140(3)(a) (appropriate percentage for electrically propelled cars),

for “15%” substitute “9%”.

8          

In section 142 (special provision for cars registered before 1998)—

(a)   

in subsection (3) (cars without internal combustion engine with

reciprocating pistons), for the words after “year is” substitute “32%”,

20

and

(b)   

omit subsection (4) (definition of electrically propelled car).

Consequential repeal

9          

In consequence of the amendment made by paragraph 6, in FA 2008, omit

section 47(1).

25

Commencement

10    (1)  

The amendments made by paragraphs 6 and 9 have effect for the tax year

2009-10 and subsequent tax years.

      (2)  

The other amendments made by this Schedule have effect for the tax year

2011-12 and subsequent tax years.

30

 
 

 
previous section contents continue
 
House of Commons home page Houses of Parliament home page House of Lords home page search page enquiries

© Parliamentary copyright 2009
Revised 30 April 2009