Finance Bill

House of Commons

Session 2008 - 09
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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