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Finance Bill


Finance Bill
Schedule 59 — Climate change levy: removal of reduced rate
Part 2 — Consequential amendments

433

 

“certification period”, in a case where the certificate referred

to in sub-paragraph (1) has been varied under paragraph

45, means the period for which that certificate has effect as

varied;

“tonne of carbon dioxide equivalent” has the meaning given

5

in the Climate Change Act 2008.”

Part 2

Consequential amendments

2          

Schedule 6 to FA 2000 is amended as follows.

3     (1)  

Paragraph 40 (persons liable to account for levy) is amended as follows.

10

      (2)  

In sub-paragraph (1), after “sub-paragraph (2)” insert “or (3)”.

      (3)  

After sub-paragraph (2) insert—

    “(3)  

In the case of levy charged on a taxable supply under paragraph

45B, the person liable to account for the levy is the operator of the

facility to which the supply was made.”

15

4          

In paragraph 41(2A) (application of Part 7 where person liable to account

otherwise than by reference to accounting period), after “regulations under

sub-paragraph (1)(a)(ii) above” insert “or by virtue of paragraph 45B(8)”.

5          

In paragraph 42 (amount payable by way of levy), after sub-paragraph (1)

insert—

20

   “(1A)  

Sub-paragraph (1) is subject to paragraph 45B.”

6          

In paragraph 44(2) (definition of “reduced-rate supply” to have effect subject

to paragraph 45), for “paragraph 45” substitute “paragraphs 45 and 45B”.

7          

In paragraph 45A (deemed supplies), after sub-paragraph (2) insert—

    “(3)  

This paragraph does not apply where a supply is treated as not

25

being a reduced-rate supply by virtue of paragraph 45B.”

8     (1)  

Paragraph 91 (interpretation etc of Part 7 of the Schedule) is amended as

follows.

      (2)  

In sub-paragraph (5) (modification of references to accounting periods in

case of levy due otherwise than by reference to such periods), after

30

“regulations under paragraph 41(1)(a)(ii)” insert “or by virtue of paragraph

45B(8)”.

9          

In paragraph 147 (interpretation), in the definition of “reduced-rate supply”,

for “paragraph 45” substitute “paragraphs 45 and 45B”.

 
 

Finance Bill
Schedule 60 — Landfill tax: prescribed landfill site activities

434

 

Schedule 60

Section 118

 

Landfill tax: prescribed landfill site activities

Introduction

1          

Part 3 of FA 1996 (landfill tax) is amended as follows.

Prescribed landfill site activities to be treated as disposals

5

2          

After section 65 insert—

“65A    

Prescribed landfill site activities to be treated as disposals

(1)   

An order may prescribe a landfill site activity for the purposes of this

section.

(2)   

If a prescribed landfill site activity is carried out at a landfill site, the

10

activity is to be treated—

(a)   

as a disposal at the landfill site of the material involved in the

activity,

(b)   

as a disposal of that material as waste, and

(c)   

as a disposal of that material made by way of landfill.

15

(3)   

Connected provision may be made by order.

(4)   

Provision may be made under this section in such way as the

Treasury think fit.

(5)   

An order under subsection (1) may prescribe a landfill site activity by

reference to conditions.

20

(6)   

Those conditions may, in particular, relate to either or both of the

following—

(a)   

whether the landfill site activity is carried out in a designated

area of a landfill site, and

(b)   

whether there has been compliance with a requirement to

25

give information relating to—

(i)   

the landfill site activity, or

(ii)   

the material involved in the landfill site activity,

   

including information relating to whether the activity is

carried out in a designated area of a landfill site.

30

(7)   

An order under this section—

(a)   

may amend, or otherwise modify, this Part or any other

enactment relating to landfill tax, but

(b)   

may not alter any rate at which landfill tax is charged.

(8)   

Subsections (5) to (7) do not limit the generality of subsection (4).

35

(9)   

In this section—

“connected provision” means provision which appears to the

Treasury to be necessary or expedient in connection with

provision made under subsection (1);

“designated area” means an area of a landfill site designated in

40

accordance with—

 
 

Finance Bill
Schedule 60 — Landfill tax: prescribed landfill site activities

435

 

(a)   

an order under this section, or

(b)   

regulations under Part 1 of Schedule 5;

“landfill site activity” means any of the following descriptions

of activity, or an activity that falls within any of the following

descriptions—

5

(a)   

using or otherwise dealing with material at a landfill

site;

(b)   

storing or otherwise having material at a landfill site.”

3          

In section 71(7) (orders and regulations), after paragraph (c) insert—

“(ca)   

an order under section 65A above which produces the result

10

that a landfill site activity which would not otherwise be

prescribed for the purposes of section 65A is so prescribed;

(cb)   

an order under section 65A above which amends this Part or

any enactment contained in an Act;”.

Material temporarily held

15

4          

Omit section 62 (taxable disposals: regulations about material temporarily

held at a landfill site).

Material at landfill sites

5          

Part 1 of Schedule 5 (information) is amended as follows.

6          

For the heading before paragraph 1 substitute—

20

“Information: general”

7          

After paragraph 1 insert—

Information: material at landfill sites

1A    (1)  

Regulations may make provision about giving the Commissioners

information relating to material at a landfill site or a part of a

25

landfill site.

      (2)  

Regulations under this paragraph may require a person to give

information.

      (3)  

Regulations under this paragraph may—

(a)   

require a person, or authorise an officer of Revenue and

30

Customs to require a person, to designate a part of a

landfill site (an “information area”), and

(b)   

require material, or prescribed descriptions of material, to

be deposited in an information area.

      (4)  

Regulations under this paragraph may make provision about

35

information relating to what is done with material.

      (5)  

Sub-paragraphs (2) to (4) do not prejudice the generality of sub-

paragraph (1).”

8          

For the heading before paragraph 2 substitute—

 
 

Finance Bill
Schedule 60 — Landfill tax: prescribed landfill site activities

436

 

“Records: registrable persons”

9          

After paragraph 2 insert—

Records: material at landfill sites

2A    (1)  

Regulations may require a person to make records relating to

material at a landfill site or a part of a landfill site.

5

      (2)  

Regulations under this paragraph may make provision about

records relating to what is done with material.

      (3)  

Sub-paragraphs (2) to (7) of paragraph 2 apply in relation to

regulations under this paragraph as they apply in relation to

regulations under paragraph 2.

10

      (4)  

But, in the application of paragraph 2(3)(a) in relation to

regulations under this paragraph, the reference to registrable

persons has effect as a reference to persons.”

Site restoration

10         

Omit section 43C (site restoration).

15

11         

In Part 1 of Schedule 5 (information), after paragraph 1A (inserted by

paragraph 7) insert—

Information: site restoration

1B    (1)  

Before commencing restoration of all or part of a landfill site, the

operator of the site must—

20

(a)   

notify the Commissioners in writing that the restoration is

to commence, and

(b)   

provide such other written information as the

Commissioners may require generally or in the particular

case.

25

      (2)  

In this paragraph “restoration” means work, other than capping

waste, which is required by a relevant instrument to be carried out

to restore a landfill site to use on completion of waste disposal

operations.

      (3)  

The following are relevant instruments—

30

(a)   

a planning consent,

(b)   

a waste management licence, and

(c)   

a permit authorising the disposal of waste on or in land.”

Landfill tax returns

12         

In section 49(b) (accounting for tax and time for payment), omit “as may be

35

prescribed”.

Commencement and savings

13    (1)  

The repeal made by paragraph 10 comes into force on 1 September 2009.

 
 

Finance Bill
Schedule 61 — Alternative finance investment bonds
Part 2 — Issue, transfer and redemption of rights under arrangements

437

 

      (2)  

The amendment made by paragraph 11 (information about site restoration)

has effect in relation to restoration of landfill sites commencing on or after 1

September 2009.

      (3)  

The repeal of section 62 made by paragraph 4, and the repeal in section 49

made by paragraph 12—

5

(a)   

do not affect any regulations made under the repealed provisions

before the passing of this Act, and

(b)   

do not prevent the powers conferred by the repealed provisions from

being used after the passing of this Act to revoke any regulations

made under the powers before that time.

10

Schedule 61

Section 122

 

Alternative finance investment bonds

Part 1

Introductory

Interpretation

15

1     (1)  

In this Schedule—

“alternative finance investment bond” means arrangements within

section 48A of FA 2005 (alternative finance investment bond:

introduction);

“bond assets”, “bond-holder”, “bond-issuer” and “capital” have the

20

meaning given by that section;

“HMRC” means Her Majesty’s Revenue and Customs;

“prescribed” means prescribed in regulations made by HMRC;

“qualifying interest” means a major interest in land (within the

meaning given by section 117 of FA 2003) except that it does not

25

include a lease if the lease is for—

(a)   

a term of years of 21 years or less, or

(b)   

in Scotland, a period of 21 years or less.

      (2)  

Except where the context otherwise requires, any expression which is used

in this Schedule and in Part 4 of FA 2003 has the meaning which it has in that

30

Part.

Part 2

Issue, transfer and redemption of rights under arrangements

Issue, transfer and redemption of rights under bond not be treated as chargeable transaction

2          

Section 48B(2) of FA 2005 (effect of bond for purposes of tax) applies for the

35

purposes of stamp duty land tax as it applies for the purposes of income tax

and capital gains tax.

 
 

Finance Bill
Schedule 61 — Alternative finance investment bonds
Part 3 — Transactions relating to underlying assets consisting of land

438

 

Relief not available where bond-holder acquires control of underlying asset

3     (1)  

Paragraph 2 does not apply if control of the underlying asset is acquired

by—

(a)   

a bond-holder, or

(b)   

a group of connected bond-holders.

5

      (2)  

A bond-holder (“BH”), or a group of connected bond-holders, acquires

control of the underlying asset if—

(a)   

the rights of bond-holders under an alternative finance investment

bond include the right of management and control of the bond

assets, and

10

(b)   

BH, or the group, acquires sufficient rights to enable BH, or the

members of the group acting jointly, to exercise the right of

management and control of the bond assets to the exclusion of any

other bond-holders.

4     (1)  

But paragraph 3(1) does not apply (and, accordingly, section 48B(2) of FA

15

2005 applies by virtue of paragraph 2) in either of the following cases.

      (2)  

The first case is where—

(a)   

at the time that the rights were acquired BH (or all of the connected

bond-holders) did not know and had no reason to suspect that the

acquisition enabled the exercise of the right of management and

20

control of the bond assets to the exclusion of other bond-holders, and

(b)   

as soon as reasonably practicable after BH (or any of the bond-

holders) becomes aware that the acquisition enables that exercise,

BH transfers (or some or all of the bond-holders transfer) sufficient

rights for that exercise no longer to be possible.

25

      (3)  

The second case is where BH—

(a)   

underwrites a public offer of rights under the bond, and

(b)   

does not exercise the right of management and control of the bond

assets.

      (4)  

In this paragraph—

30

“connected” is to be read in accordance with section 839 of ICTA, and

“underwrite”, in relation to an offer of rights under a bond, means to

agree to make payments of capital under the bond in the event that

other persons do not make those payments.

Part 3

35

Transactions relating to underlying assets consisting of land

Introductory

General conditions for operation of reliefs etc

5     (1)  

This paragraph defines conditions A to G for the purposes of paragraphs 6

to 18.

40

           

Paragraphs 20 and 22 set out circumstances in which the reliefs provided by

paragraphs 6 to 18 are not available even if conditions A to G are met.

 
 

Finance Bill
Schedule 61 — Alternative finance investment bonds
Part 3 — Transactions relating to underlying assets consisting of land

439

 

      (2)  

Condition A is that one person (“P”) and another (“Q”) enter into

arrangements under which—

(a)   

P transfers to Q a qualifying interest in land (“the first transaction”),

and

(b)   

P and Q agree that when the interest ceases to be held by Q as

5

mentioned in sub-paragraph (3)(b), Q will transfer the interest to P.

      (3)  

Condition B is that—

(a)   

Q, as bond-issuer, enters into an alternative finance investment bond

(whether before or after entering into the arrangements mentioned in

sub-paragraph (2)), and

10

(b)   

the interest in land to which those arrangements relate is held by Q

as a bond asset.

      (4)  

Condition C is that, for the purpose of generating income or gains for the

alternative finance investment bond—

(a)   

Q and P enter into a leaseback agreement, or

15

(b)   

such other condition or conditions as may be specified in regulations

made by the Treasury is or are met.

      (5)  

For the purposes of condition C, Q and P enter into a leaseback agreement if

Q grants to P, out of the interest transferred to Q,—

(a)   

a lease (if the interest transferred is freehold or, in Scotland, the

20

interest of the owner), or

(b)   

a sub-lease (if the interest transferred is leasehold or, in Scotland, the

tenant’s right over or interest in a property subject to a lease).

      (6)  

Condition D is that, before the end of the period of 120 days beginning with

the effective date of the first transaction, Q provides HMRC with the

25

prescribed evidence that—

(a)   

in England and Wales, a satisfactory legal charge has been entered in

the register of title kept under section 1 of the Land Registration Act

2002,

(b)   

in Scotland, a satisfactory standard security has been registered in

30

the Land Register of Scotland, or

(c)   

in Northern Ireland, a satisfactory charge has been entered in the

register of titles kept under section 10 of the Land Registration Act

(Northern Ireland) 1970.

      (7)  

A charge or security is satisfactory for the purposes of condition D if it—

35

(a)   

is a first charge on, or a security ranking first granted over, the

interest transferred to Q,

(b)   

is in favour of the Commissioners for Her Majesty’s Revenue and

Customs, and

(c)   

is for the amount mentioned in sub-paragraph (8).

40

      (8)  

That amount is the total of—

(a)   

the amount of stamp duty land tax which would (apart from

paragraph 6(2)) be chargeable on the first transaction if the

chargeable consideration for that transaction had been the market

value of the interest at that time, and

45

(b)   

any interest and any penalties which would for the time being be

payable on or in respect of that amount of tax, if the tax had been due

and payable (but not paid) in respect of the first transaction.

 
 

 
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