|
| |
|
22 | After section 1178 insert— |
| |
“1178A | “Major interest in land” |
| |
(1) | References in this Part to the acquisition of a major interest in land |
| |
are to the acquisition of a freehold interest in the land or of a relevant |
| |
leasehold interest in the land. |
| 5 |
(2) | The reference in subsection (1) to the acquisition of a freehold interest |
| |
| |
(a) | in relation to land in England and Wales, to the acquisition of |
| |
an estate in fee simple absolute (whether subsisting at law or |
| |
| 10 |
(b) | in relation to land in Scotland, to the acquisition of the |
| |
interest of an owner of land, and |
| |
(c) | in relation to land in Northern Ireland, to the acquisition of |
| |
any freehold estate (whether subsisting at law or in equity). |
| |
(3) | The reference in subsection (1) to the acquisition of a relevant |
| 15 |
leasehold interest in land is to the acquisition by grant or assignment |
| |
| |
(a) | in relation to land in England and Wales, a term of years |
| |
absolute (whether subsisting at law or in equity), |
| |
(b) | in relation to land in Scotland, the tenant’s right over or |
| 20 |
interest in a property subject to a lease, or |
| |
(c) | in relation to land in Northern Ireland, any leasehold estate |
| |
(whether subsisting at law or in equity), |
| |
| in relation to which the condition in subsection (4) is met. |
| |
(4) | That condition is that— |
| 25 |
(a) | in the case of a grant, the term of years or period of the lease |
| |
| |
(b) | in the case of an assignment (or assignation) the unexpired |
| |
portion of the term or period is at least 7 years.” |
| |
23 | In section 1179 (definitions), omit the definitions of “harm” and “land” and |
| 30 |
the definition of “substance” (apart from the “and” at the end). |
| |
| |
Amendments of other enactments |
| |
| |
24 | In section 76(7) of ICTA (expenses of insurance companies), in step 3— |
| 35 |
(a) | for “1161” substitute “1162”, |
| |
(b) | for “150%” substitute “50% additional”, and |
| |
(c) | after “contaminated” insert “or derelict”. |
| |
| |
25 | In Schedule 18 to FA 1998 (company tax returns etc), in the heading of Part |
| 40 |
9B, after “contaminated” insert “or derelict”. |
| |
|
| |
|
| |
|
| |
26 (1) | Schedule 4 to CTA 2009 (index of expressions) is amended as follows. |
| |
(2) | After the entry relating to “deposit back arrangements” insert— |
| |
| “derelict state (in relation to land) |
| | | | | | | | 5 |
|
(3) | Omit the entries relating to “harm (in Part 14)” and “land (in Part 14)”. |
| |
(4) | After the entry relating to “major interest (in Chapter 12 of Part 8)” insert— |
| |
| “major interest in land (in Part 14) |
| | | |
|
(5) | After the entry relating to “relevant consortium creditor relationship (in |
| |
Chapter 7 of Part 5)” insert— |
| 10 |
| “relevant contaminated land |
| | | | | | | | |
|
(6) | After the entry relating to “relevant debits (in Part 8)” insert— |
| |
|
(7) | Omit the references relating to “relevant land remediation (in Part 14)”, |
| |
“sub-contractor payment (and sub-contractor) (in Chapter 6 of Part 14)” and |
| |
“substance (in Part 14)”. |
| |
| |
| 20 |
27 | Any power to make orders which is conferred on the Treasury by virtue of |
| |
an amendment of CTA 2009 made by this Schedule may be exercised at any |
| |
time after this Act is passed; and any order made by virtue of any such |
| |
amendment before 6 April 2010 may make provision having effect in |
| |
relation to expenditure incurred on or after 1 April 2009. |
| 25 |
28 | Subject to that, the amendments made by this Schedule have effect in |
| |
relation to expenditure incurred on or after 1 April 2009; and for this |
| |
purpose no account is to be taken of section 61 of CTA 2009 (earlier |
| |
expenditure treated as incurred when trade started). |
| |
|
| |
|
| |
|
| |
| |
| |
Enterprise investment scheme |
| |
1 | Schedule 5B to TCGA 1992 (enterprise investment scheme: re-investment) is |
| |
| 5 |
2 (1) | Paragraph 1(2) (application of Schedule) is amended as follows. |
| |
(2) | For paragraphs (g) and (h) substitute “and |
| |
(g) | all of the money raised by the issue of the shares (other than any of |
| |
them which are bonus shares) is, no later than the time mentioned in |
| |
section 175(3) of ITA 2007, employed wholly for the purpose of that |
| 10 |
| |
(3) | In the words following the paragraphs, for “conditions in paragraphs (g) |
| |
and (h) above do” substitute “condition in paragraph (g) above does”. |
| |
3 (1) | Paragraph 1A (failure of conditions of application) is amended as follows. |
| |
(2) | In sub-paragraph (4)— |
| 15 |
| |
(b) | for “sub-paragraph (4A) below” substitute “section 175(3) of ITA |
| |
| |
(3) | Omit sub-paragraph (4A). |
| |
4 (1) | Paragraph 9 (other reconstructions and amalgamations) is amended as |
| 20 |
| |
(2) | For sub-paragraph (1) substitute— |
| |
“(1) | This paragraph applies if section 135 or 136 (company |
| |
reconstructions) applies in relation to shares to which deferral |
| |
relief, but not relief under Part 5 of ITA 2007 (or Chapter 3 of Part |
| 25 |
7 of the Taxes Act), is attributable. |
| |
(1A) | Paragraphs 3 and 4 of this Schedule have effect as if section 135 or |
| |
136 did not apply in relation to the shares.” |
| |
(3) | In sub-paragraph (2), for “Sub-paragraph (1) above shall not have effect to |
| |
disapply section 135 or 136 where” substitute “Sub-paragraph (1A) does not |
| 30 |
| |
(4) | For sub-paragraph (3) substitute— |
| |
“(3) | Sub-paragraph (1A) does not apply if paragraph 8 applies in |
| |
| |
5 | In paragraph 16 (information), omit sub-paragraph (4A). |
| 35 |
6 (1) | Section 158 of ITA 2007 (form and amount of EIS relief) is amended as |
| |
| |
(2) | In subsection (4), omit— |
| |
(a) | “Subject to subsection (5),”, and |
| |
| 40 |
|
| |
|
| |
|
| |
7 (1) | Section 175 of that Act (use of money raised requirement) is amended as |
| |
| |
(2) | For subsection (1) substitute— |
| |
“(1) | The requirement of this section is that all of the money raised by the |
| 5 |
issue of the relevant shares (other than any of them which are bonus |
| |
shares) is, no later than the time mentioned in subsection (3), |
| |
employed wholly for the purpose of the qualifying business activity |
| |
for which it was raised.” |
| |
(3) | In subsection (2), for “requirements in subsection (1)(a) and (b) do” |
| 10 |
substitute “requirement in subsection (1) does”. |
| |
| |
(a) | for “subsection (1)(a)” substitute “subsection (1)”, and |
| |
(b) | for “12 months” (in both places) substitute “two years”. |
| |
Corporate venturing scheme |
| 15 |
8 (1) | Paragraph 36 of Schedule 15 to FA 2000 (corporate venturing scheme: |
| |
requirement as to money raised) is amended as follows. |
| |
(2) | In sub-paragraph (1), for “At least 80%” substitute “All”. |
| |
(3) | Omit sub-paragraph (1A). |
| |
(4) | In sub-paragraph (1B), for “12 months” (in both places) substitute “two |
| 20 |
| |
(5) | In sub-paragraph (1C), for “Sub-paragraphs (1) and (1A) are” substitute |
| |
| |
(6) | In sub-paragraph (5) omit “does not apply and the requirement of sub- |
| |
| 25 |
| |
9 (1) | Section 293 of ITA 2007 (use of money raised requirement) is amended as |
| |
| |
(2) | For subsection (1) substitute— |
| |
“(1) | The requirement of this section is that— |
| 30 |
(a) | less than two years has passed since the trading time, or |
| |
(b) | at least two years has passed since the trading time and all of |
| |
the money raised by the issue of the relevant holding has |
| |
been employed wholly for the purposes of a relevant |
| |
| 35 |
(3) | Omit subsections (2) to (4). |
| |
| |
10 | In consequence of the amendments made by paragraphs 2, 3 and 5, omit— |
| |
(a) | in FA 2001, in Schedule 15, paragraphs 26 to 28, |
| |
|
| |
|
| |
|
(b) | in FA 2004, in Schedule 18, paragraph 13(1)(f), and |
| |
(c) | in ITA 2007, in Schedule 1, paragraph 345(2)(b), (3)(a) and (13)(b). |
| |
| |
11 | The amendments made by paragraphs 2, 3, 5, 7, 8 and 10 have effect in |
| |
relation to shares issued on or after 22 April 2009. |
| 5 |
12 | The amendments made by paragraph 4 have effect in relation to— |
| |
(a) | any exchange of shares to which section 135 of TCGA 1992 applies, |
| |
where the new holding is issued on or after 22 April 2009, and |
| |
(b) | any arrangement within section 136(1) of that Act entered into on or |
| |
| 10 |
13 (1) | The amendments made by paragraph 6 have effect as follows. |
| |
(2) | The amendments made by sub-paragraph (2) have effect in relation to shares |
| |
issued in the tax year 2009-10 or a subsequent tax year. |
| |
(3) | The amendment made by sub-paragraph (3) has effect in relation to claims |
| |
made under section 158(4) of ITA 2007 in respect of shares issued in the tax |
| 15 |
year 2009-10 or a subsequent tax year. |
| |
14 | The amendments made by paragraph 9 have effect in relation to shares or |
| |
securities issued on or after 22 April 2009. |
| |
| |
| |
Group relief: preference shares |
| 20 |
Amendments of Schedule 18 to ICTA |
| |
1 | Schedule 18 to ICTA (definitions relating to group relief) is amended as |
| |
| |
2 (1) | Paragraph 1 is amended as follows. |
| |
(2) | In sub-paragraph (2), for “fixed-rate” substitute “relevant”. |
| 25 |
(3) | In sub-paragraph (3)— |
| |
(a) | for “fixed-rate” substitute “relevant”, |
| |
(b) | for paragraph (c) substitute— |
| |
| |
(i) | do not carry a right to dividends, or |
| 30 |
(ii) | carry a right to dividends to which |
| |
paragraph 1A applies; and”, and |
| |
(c) | in paragraph (d), for “that new consideration” substitute “the new |
| |
consideration received by the company in respect of the issue of the |
| |
| 35 |
3 | After paragraph 1 insert— |
| |
“1A (1) | This paragraph applies to a right to dividends carried by shares in |
| |
| |
|
| |
|
| |
|
(a) | the dividends represent no more than a reasonable |
| |
commercial return on the new consideration received by |
| |
the company in respect of the issue of the shares, and |
| |
(b) | condition A, B or C is met. |
| |
| 5 |
(a) | the dividends are of a fixed amount or at a fixed rate per |
| |
cent of the nominal value of the shares, and |
| |
(b) | the company is not entitled by virtue of any term subject to |
| |
which the shares are issued or held to reduce the amount |
| |
of, or not to pay, any of the dividends. |
| 10 |
| |
(a) | the dividends are of a rate per cent of the nominal value of |
| |
the shares and the rate fluctuates in accordance with— |
| |
(i) | a standard published rate of interest, or |
| |
(ii) | the retail prices index, or any similar general index |
| 15 |
of prices which is published by the government, or |
| |
by an agent of the government, of the country or |
| |
territory in whose currency the shares are |
| |
| |
(b) | the company is not entitled by virtue of any term subject to |
| 20 |
which the shares are issued or held to reduce the amount |
| |
of, or not to pay, any of the dividends. |
| |
(4) | Condition C is that condition A or B would be met but for sub- |
| |
paragraph (2)(b) or (3)(b), and— |
| |
(a) | the company is only entitled to reduce the amount of, or |
| 25 |
not to pay, any of the dividends in relevant circumstances, |
| |
| |
(b) | having regard to all the circumstances, it is reasonable to |
| |
assume that the company is only likely to reduce the |
| |
amount of, or not to pay, any of the dividends in relevant |
| 30 |
| |
(5) | For the purposes of sub-paragraph (4) a company reduces the |
| |
amount of, or does not pay, dividends “in relevant circumstances” |
| |
| |
(a) | at the time the dividend is or would be payable, the |
| 35 |
company is in severe financial difficulties, or |
| |
(b) | it does so for the purpose of following a recommendation |
| |
of a relevant regulatory body. |
| |
(6) | The Treasury may by order specify circumstances in which a |
| |
company is to be treated as in severe financial difficulties for the |
| 40 |
purposes of sub-paragraph (5)(a). |
| |
(7) | In sub-paragraph (5)(b) “relevant regulatory body” means— |
| |
(a) | in relation to a dividend paid by a company that is |
| |
authorised for the purposes of the Financial Services and |
| |
Markets Act 2000, the Financial Services Authority, and |
| 45 |
(b) | in relation to a dividend paid by any other company, a |
| |
body discharging functions in relation to the company |
| |
under the law of a country or territory outside the United |
| |
Kingdom that correspond to functions discharged by the |
| |
|
| |
|
| |
|
Financial Services Authority in relation to a company |
| |
authorised as mentioned in paragraph (a). |
| |
(8) | In this paragraph “new consideration” has the same meaning as in |
| |
| |
4 | In paragraph 5B(4)(b), for “fixed-rate” substitute “relevant”. |
| 5 |
| |
5 | The amendments made by this Schedule have effect for accounting periods |
| |
beginning on or after 1 January 2008. |
| |
Election to opt out of changes in relation to pre-existing etc shares |
| |
6 | If a company so elects, the amendments made by this Schedule do not have |
| 10 |
effect in relation to shares issued by the company— |
| |
(a) | before 18 December 2008, or |
| |
(b) | on or after that date under an agreement entered into before that |
| |
| |
7 | An election under paragraph 6— |
| 15 |
(a) | must be made by the company by being included in its company tax |
| |
return for the first accounting period of the company beginning on |
| |
or after 1 January 2008 (and may be included in the return originally |
| |
made or by amendment), and |
| |
| 20 |
Paragraph 2(7) of Schedule 25 to ICTA |
| |
8 | The amendments made by this Schedule do not have effect for the purposes |
| |
of paragraph 2(7) of Schedule 25 to ICTA (controlled foreign companies: |
| |
definition of non-voting fixed-rate preference shares). |
| |
| 25 |
| |
Sale of lessor companies etc: reforms |
| |
| |
1 | Schedule 10 to FA 2006 (sale etc of lessor companies etc) is amended as |
| |
| |
| 30 |
2 (1) | Paragraph 7 (provision for purposes of condition A in paragraph 6) is |
| |
| |
(2) | In sub-paragraph (8)(b), for “acquires any plant or machinery directly or |
| |
indirectly from a person who is connected with the company” substitute |
| |
“acquired any plant or machinery in circumstances in which this paragraph |
| 35 |
| |
|
| |
|