Finance Bill

House of Commons

Session 2008 - 09
Internet Publications
Other Bills before Parliament

Finance Bill

Finance Bill
Part 8 — Miscellaneous
62

(a)
the United Kingdom, the Channel Islands or the Isle of Man, or
(b)
a state, other than the United Kingdom, which is an EEA state
(within the meaning given by Schedule 1 to the Interpretation
Act 1978) at the time of the transfer of value in question.”
(4)
In section 116 (agricultural property relief: the relief), insert at the end—
5
“(7A)
In its application to property outside the United Kingdom, the Channel
Islands and the Isle of Man, this section has effect as if any reference to
a right or obligation under the law of any part of the United Kingdom
were a reference to an equivalent right or obligation under the law
governing dispositions of that property.”
10
(5)
In section 125 (woodlands relief), in paragraph (a) of subsection (1), omit “in
the United Kingdom”.
(6)
After that subsection insert—
“(1A)
But this section applies only if the land is in the United Kingdom or
another state which is an EEA state (within the meaning given by
15
Schedule 1 to the Interpretation Act 1978) at the time of the person’s
death.”
(7)
The amendments made by this section have effect in relation to transfers of
value where the tax payable but for this section (or, in the case of tax payable
by instalments, the last instalment of that tax)—
20
(a)
would have been due on or after 22 April 2009, or
(b)
was paid or due on or after 23 April 2003.
(8)
Where tax falling within subsection (7) has been paid, Her Majesty’s Revenue
and Customs must repay the tax (together with interest under section 235(1) of
IHTA 1984) if, but only if, a claim for repayment is made on or before—
25
(a)
the date determined under section 241(1) of that Act as the last date on
which the claim may be made, or
(b)
21 April 2010,

whichever is later.
(9)
Where, by virtue of the amendments made by subsections (5) and (6), an
30
election is made under section 125 of IHTA 1984, that election must be made
on or before—
(a)
the date determined under section 125(3) as the last date on which the
election may be made, or
(b)
21 April 2010,
35

whichever is later.
122
Alternative finance investment bonds
Schedule 61 contains provision about the taxation of chargeable gains, stamp
duty land tax and capital allowances for and in connection with arrangements
falling within section 48A of FA 2005 (alternative finance investment bonds).
40
123
Mutual societies: tax consequences of transfers of business etc
(1)
The Treasury may by regulations make provision for and in connection with—
(a)
the tax consequences of a transfer of all or part of the business or
engagements of a mutual society,

Finance Bill
Part 8 — Miscellaneous
63

(b)
the tax consequences of an amalgamation of mutual societies, and
(c)
the tax consequences of the conversion of a mutual society into a
company.
(2)
“Mutual society” means—
(a)
a building society incorporated (or deemed to be incorporated) under
5
the Building Societies Act 1986,
(b)
a friendly society within the meaning of the Friendly Societies Act 1992,
or
(c)
an industrial and provident society registered (or deemed to be
registered) under the Industrial and Provident Societies Act 1965.
10
(3)
Regulations under this section may, in particular, make provision about—
(a)
relief from tax in respect of losses,
(b)
capital allowances,
(c)
the taxation of chargeable gains (including provision conferring relief
for specified transfers and amalgamations),
15
(d)
the treatment of intangible fixed assets and goodwill,
(e)
the treatment of loan relationships (and matters treated as loan
relationships),
(f)
the treatment of derivative contracts (and contracts treated as
derivative contracts),
20
(g)
exemption or other relief from stamp duty, stamp duty reserve tax or
stamp duty land tax, and
(h)
the treatment of arrangements the purpose, or one of the main
purposes, of which is to secure a tax advantage.
(4)
Regulations under this section may, in particular—
25
(a)
modify enactments and instruments relating to tax (whenever passed
or made),
(b)
make different provision for different cases or different purposes, and
(c)
make incidental, consequential or transitional provision (including
provision modifying enactments and instruments, whenever passed or
30
made).
(5)
Regulations under this section may include provision having effect in relation
to any time before they are made if the provision does not increase any
person’s liability to tax.
(6)
Regulations under this section are to be made by statutory instrument.
35
(7)
A statutory instrument containing regulations under this section is subject to
annulment in pursuance of a resolution of the House of Commons.
(8)
In this section—
“arrangements” includes any arrangements, scheme or understanding of
any kind, whether or not legally enforceable and whether involving a
40
single transaction or two or more transactions;
“company” means a company formed and registered under the
Companies Act 2006 (or treated as formed and registered under that
Act);
“derivative contract” has the same meaning as in Part 7 of CTA 2009 (see
45
section 576 of that Act);

Finance Bill
Part 8 — Miscellaneous
64

“goodwill” and “intangible fixed asset” have the same meaning as in Part
8 of CTA 2009 (see sections 713 and 715 of that Act);
“loan relationship” has the same meaning as in the Corporation Tax Acts
(see section 302(1) and (2) of CTA 2009);
“modify” includes amend, repeal or revoke;
5
“tax” includes stamp duty;
“tax advantage” means—
(a)
a relief from tax (including a tax credit) or increased relief from
tax,
(b)
a repayment of tax or increased repayment of tax,
10
(c)
the avoidance, reduction or delay of a charge to tax or an
assessment to tax, or
(d)
the avoidance of a possible assessment to tax.
124
National Savings ordinary accounts: surplus funds
(1)
As soon as practicable after the passing of this Act—
15
(a)
the Director of Savings and the Commissioners must prepare a
statement showing the relevant surplus, and
(b)
the Commissioners must pay the relevant surplus into the
Consolidated Fund.
(2)
The relevant surplus is the amount held by the Commissioners by virtue of
20
section 17 of the 1971 Act (including any such amount held in investments),
less the aggregate of—
(a)
such sums as the Treasury may determine to be equal to those
expended by the Director of Savings in connection with ordinary
accounts,
25
(b)
such sums as are necessary to defray the expenses incurred by the
Commissioners in connection with ordinary accounts, and
(c)
such sums as are required to be paid into the Consolidated Fund by
virtue of section 20 of the 1971 Act.
(3)
The Commissioners—
30
(a)
must pay into the Consolidated Fund the sums determined in
accordance with subsection (2)(a), and
(b)
may retain the sums determined in accordance with subsection (2)(b).
(4)
As soon as practicable after preparing a statement under subsection (1), the
Director of Savings and the Commissioners must transmit the statement to the
35
Comptroller and Auditor General who must—
(a)
examine, certify and make a report on it, and
(b)
lay copies of the statement, together with copies of that report, before
Parliament.
(5)
The Treasury may by order repeal or otherwise amend any enactment if the
40
repeal or amendment appears to the Treasury to be necessary or expedient in
consequence of—
(a)
the closure of ordinary accounts and the transfer of their balances to
other accounts (see, in particular, regulations 2B to 2BB of the National
Savings Bank Regulations 1972), or
45
(b)
this section.

Finance Bill
Part 9 — Final provisions
65

(6)
An order under subsection (5) is to be made by statutory instrument.
(7)
No order may be made under subsection (5) unless a draft of the statutory
instrument containing it has been laid before, and approved by a resolution of,
the House of Commons.
(8)
In this section—
5
(a)
a reference to sums expended or expenses incurred in connection with
ordinary accounts includes a reference to sums expended or expenses
incurred in connection with the holding of amounts by virtue of section
17 of the 1971 Act (including their holding in investments), and
(b)
expressions used in this section and in the 1971 Act have the same
10
meaning in this section as in that Act.
(9)
In this section—
“the 1971 Act” means the National Savings Bank Act 1971;
“enactment” includes—
(a)
an enactment contained in the 1971 Act, and
15
(b)
subordinate legislation (which has the same meaning as in the
Interpretation Act 1978).
Part 9
Final provisions
125
Interpretation
20
(1)
In this Act—
“ALDA 1979” means the Alcoholic Liquor Duties Act 1979,
“BGDA 1981” means the Betting and Gaming Duties Act 1981,
“CAA 2001” means the Capital Allowances Act 2001,
“CRCA 2005” means the Commissioners for Revenue and Customs Act
25
2005,
“CTA 2009” means the Corporation Tax Act 2009,
“FISMA 2000” means the Financial Services and Markets Act 2000,
“HODA 1979” means the Hydrocarbon Oil Duties Act 1979,
“ICTA” means the Income and Corporation Taxes Act 1988,
30
“IHTA 1984” means the Inheritance Tax Act 1984,
“ITA 2007” means the Income Tax Act 2007,
“ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003,
“ITTOIA 2005” means the Income Tax (Trading and Other Income) Act
2005,
35
“OTA 1975” means the Oil Taxation Act 1975,
“OTA 1983” means the Oil Taxation Act 1983,
“PRTA 1980” means the Petroleum Revenue Tax Act 1980,
“TCGA 1992” means the Taxation of Chargeable Gains Act 1992,
“TMA 1970” means the Taxes Management Act 1970,
40
“TPDA 1979” means the Tobacco Products Duty Act 1979,
“VATA 1994” means the Value Added Tax Act 1994, and
“VERA 1994” means the Vehicle Excise and Registration Act 1994.
(2)
In this Act—

Finance Bill
Part 9 — Final provisions
66

“FA”, followed by a year, means the Finance Act of that year, and
“F(No.2)A”, followed by a year, means the Finance (No.2) Act of that year.
(3)
In the tables in Part 1 of Schedule 1 to CAA 2001, Part 1 of Schedule 1 to ITEPA
2003 and Part 1 of Schedule 4 to ITTOIA 2005, at the beginning insert—

“FA followed by a year
The Finance Act of that

5

year

F(No.2)A followed by a
The Finance (No.2) Act of

year
that year”.

(4)
Omit all of the entries in those tables relating to a Finance Act or a Finance
(No.2) Act.
10
(5)
In the following provisions, for “the Finance Act” substitute “FA”—
(a)
in CAA 2001, sections 70G(5), 70H(3) (in both places), 70O(4)(b),
105(2A), 186(3) and (5) (as amended by paragraph 5 of Schedule 27 to
FA 2008), 257(2)(a), 360B(2)(a) and 360C(2)(b) and paragraph 105(2) of
Schedule 3, and
15
(b)
in ITEPA 2003, sections 420(1)(h) and 702(5B), paragraph 78(2)(b) of
Schedule 2 and paragraph 54 of Schedule 7.
(6)
Accordingly, omit—
(a)
in FA 2004, in Schedule 35, paragraphs 49 and 65(2),
(b)
in F(No.2)A 2005, section 10(7),
20
(c)
in FA 2006, section 84(4), and
(d)
in FA 2008, in Schedule 25, paragraph 6.
126
Short title
This Act may be cited as the Finance Act 2009.