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Finance Bill
Schedule 61 — Alternative finance investment bonds
Part 4 — Supplementary

447

 

      (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—

5

“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.

Relief not available if purpose of arrangements is improper

10

22    (1)  

The reliefs provided by paragraphs 6 to 12 (and paragraph 18 so far as it

relates to those paragraphs) are not available if the arrangements mentioned

in paragraph 5(2)—

(a)   

are not effected for genuine commercial reasons, or

(b)   

form part of arrangements of which the main purpose, or one of the

15

main purposes, is the avoidance of liability to tax.

      (2)  

In sub-paragraph (1) “tax” means income tax, corporation tax, capital gains

tax, stamp duty or stamp duty land tax.

Regulations

23    (1)  

Regulations under any paragraph of this Schedule—

20

(a)   

may make provision generally or only for specified purposes, or

different provision for different purposes, and

(b)   

may make consequential, supplementary or incidental provision

(including amendments of any enactment).

      (2)  

Regulations under any paragraph of this Schedule are to be made by

25

statutory instrument.

      (3)  

A statutory instrument containing regulations under any paragraph of this

Schedule is subject to annulment in pursuance of a resolution of the House

of Commons.

Part 4

30

Supplementary

Consequential amendments of FA 2003

24         

FA 2003 is amended as follows.

25         

After section 73B insert—

“73C    

Alternative finance investment bonds

35

Schedule 61 to the Finance Act 2009 makes provision for relief from

charge in the case of arrangements falling within section 48A of the

Finance Act 2005 (alternative finance investment bonds).”

 
 

Finance Bill
Schedule 61 — Alternative finance investment bonds
Part 4 — Supplementary

448

 

26         

In section 86 (payment of tax), after subsection (5) insert—

“(5A)   

The above provisions are also subject to paragraph 7 of Schedule 61

to the Finance Act 2009 (payment of tax where land ceases to qualify

for relief in respect of alternative finance investment bonds).”

Consequential amendments of FA 2005   

5

27    (1)  

Section 48B of FA 2005 (alternative finance investment bond: effects) is

amended as follows.

      (2)  

In subsections (2) and (3) for “any tax other than the Corporation Tax Acts”

substitute “income tax or capital gains tax”.

      (3)  

After subsection (8) insert—

10

“(9)   

Schedule 61 to the Finance Act 2009 makes—

(a)   

further provision about the treatment for the purposes of

TCGA 1992 of arrangements falling within section 48A, and

(b)   

provision about their treatment for the purposes of stamp

duty land tax and capital allowances.”

15

Consequential amendment of CTA 2009

28         

In CTA 2009, in Schedule 1, omit paragraph 651(a).

Commencement

29    (1)  

The following provisions of this Schedule come into force on the day on

which this Act is passed—

20

(a)   

Part 2,

(b)   

Part 1 so far as relating to that Part, and

(c)   

paragraphs 24, 25, 27 and 28.

      (2)  

The following provisions of this Schedule have effect where the effective

date of the first transaction (within the meaning given by paragraph 5(2)) is

25

on or after the day on which this Act is passed—

(a)   

Part 3,

(b)   

Part 1 so far as relating to that Part, and

(c)   

paragraph 26.

 
 

 
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