|
| |
|
| “dividend additional rate |
| section 8(3) (as applied by |
| | | | | | | |
|
(5) | After the entry relating to “higher rate” insert— |
| |
| | section 10 (as applied by section |
| | | | | | | 5 |
|
| |
| |
| |
10 | Part 4 of FA 2004 (pension schemes etc) is amended as follows. |
| |
11 | In section 192 (relief for pension contributions at source), for subsection (4) |
| 10 |
| |
“(4) | If (apart from this section) income tax at the higher rate or the |
| |
additional rate is chargeable in respect of any part of the individual’s |
| |
total income for the tax year, on the making of a claim the basic rate |
| |
limit and the higher rate limit for the tax year in the individual’s case |
| 15 |
are increased by the amount of the contribution.” |
| |
12 | In section 208 (unauthorised payments charge), for subsection (6) |
| |
| |
“(6) | The Treasury may by order amend subsection (5) so as to vary the |
| |
rate of the unauthorised payments charge. |
| 20 |
(6A) | An order under subsection (6) may make provision for there to be |
| |
different rates in different circumstances.” |
| |
13 | In section 209 (unauthorised payments surcharge), for subsection (7) |
| |
| |
“(7) | The Treasury may by order amend subsection (6) so as to vary the |
| 25 |
rate of the unauthorised payments surcharge. |
| |
(8) | An order under subsection (7) may make provision for there to be |
| |
different rates in different circumstances.” |
| |
14 | In section 215 (amount of lifetime allowance charge), after subsection (2) |
| |
| 30 |
“(2A) | The Treasury may by order amend subsection (2) so as to vary the |
| |
rates of the lifetime allowance charge. |
| |
(2B) | An order under subsection (2A) may make provision for there to be |
| |
different rates in different circumstances.” |
| |
15 | In section 227 (annual allowance charge), after subsection (5) insert— |
| 35 |
“(5A) | The Treasury may by order amend subsection (4) so as to vary the |
| |
rate of the annual allowance charge. |
| |
|
| |
|
| |
|
(5B) | An order under subsection (5A) may make provision for there to be |
| |
different rates in different circumstances.” |
| |
16 | In section 240 (amount of scheme sanction charge), after subsection (3) |
| |
| |
| 5 |
(a) | may by order amend subsection (1) so as to vary the rate of |
| |
the scheme sanction charge, and |
| |
(b) | may by order amend subsection (3)(a) so as to vary the |
| |
percentage mentioned there. |
| |
(3B) | An order under subsection (3A) may make provision for there to be |
| 10 |
different rates or percentages in different circumstances.” |
| |
17 | In section 242 (de-registration charge), insert at the end— |
| |
“(5) | The Treasury may by order amend subsection (4) so as to vary the |
| |
rate of the de-registration charge. |
| |
(6) | An order under subsection (5) may make provision for there to be |
| 15 |
different rates in different circumstances.” |
| |
18 (1) | Section 282 (orders and regulations) is amended as follows. |
| |
(2) | After subsection (1) insert— |
| |
“(1A) | No order may be made under section 208(6), 209(7), 215(2A), |
| |
227(5A), 240(3A) or 242(5) unless a draft of the statutory instrument |
| 20 |
containing it has been laid before, and approved by a resolution of, |
| |
| |
(3) | In subsection (2), after “Part” insert “, if made without a draft having been |
| |
approved by a resolution of the House of Commons,”. |
| |
| 25 |
19 | ITTOIA 2005 is amended as follows. |
| |
20 | In section 640(6)(b) (grossing-up of deemed income)— |
| |
(a) | omit the “and” at the end of sub-paragraph (i), and |
| |
(b) | insert at the end “up to and including the year 2009-2010, and |
| |
(iii) | 50%, if the relevant tax year is the year 2010- |
| 30 |
2011 or any subsequent tax year.” |
| |
21 | In section 669(3) (reduction in residuary income: inheritance tax on accrued |
| |
| |
(a) | in paragraph (a), after “charged at” insert “the additional rate or”, |
| |
| 35 |
(b) | in paragraph (b), after “charged at” insert “the dividend additional |
| |
| |
22 | In section 685A(3) (settlor-interested settlements), for “higher rate” |
| |
substitute “additional rate”. |
| |
23 (1) | Part 2 of Schedule 4 (index of defined expressions) is amended as follows. |
| 40 |
(2) | After the entry relating to “acquisition expenditure (in Chapter 9 of Part 2)” |
| |
| |
|
| |
|
| |
|
| | section 6(2) of ITA 2007 (as |
| | | | | applied by section 989 of that |
| | | | | | | |
|
(3) | After the entry relating to “distribution” insert— |
| |
| “the dividend additional rate |
| section 8(3) of ITA 2007 (as |
| | 5 | | | applied by section 989 of that |
| | | | | | | |
|
| |
24 | In section 7(5) of F(No.2)A 2005 (charge to income tax on social security |
| |
| 10 |
(a) | in paragraph (d), after “basic rate limit for that year” insert “but does |
| |
not exceed the higher rate limit for that year”, and |
| |
(b) | after that paragraph insert— |
| |
“(e) | if P’s Step 3 income for that year of assessment |
| |
exceeds the higher rate limit for that year, the |
| 15 |
additional rate for that year.” |
| |
| |
| |
25 (1) | The powers conferred by the amendments made by this Schedule may be |
| |
exercised at any time on or after the day on which this Act is passed but not |
| 20 |
so as to make provision having effect before the tax year 2010-11. |
| |
(2) | Subject to that, the amendments made by this Schedule have effect for the |
| |
tax year 2010-11 and subsequent tax years. |
| |
| |
| |
VAT: supplementary charge and orders changing rate |
| 25 |
| |
Supplementary charge to VAT |
| |
| |
1 (1) | There is a supplementary charge on a supply of goods or services that is |
| |
treated as taking place on or after 25 November 2008 if— |
| 30 |
(a) | the supply spans the date of the VAT change, |
| |
(b) | it is subject to VAT at the rate in force under section 2 of VATA 1994, |
| |
(c) | the person to whom the supply is made is not entitled under VATA |
| |
1994 to credit for, or the repayment or refund of, all of the VAT on |
| |
| 35 |
|
| |
|
| |
|
(d) | a relevant condition is met. |
| |
(2) | In this Schedule “the date of the VAT change” means 1 January 2010. |
| |
(3) | For the cases in which a supply, other than the grant of a right to goods or |
| |
services, spans the date of the VAT change and the relevant conditions in |
| |
relation to such a supply, see paragraph 2. |
| 5 |
(4) | For the cases in which a supply consisting of the grant of a right to goods or |
| |
services spans the date of the VAT change and the relevant conditions in |
| |
relation to such a supply, see paragraph 3. |
| |
(5) | Sub-paragraph (1) has effect subject to the exceptions made by or under Part |
| |
| 10 |
| |
Part 3 contains provision about liability for, and the amount of, a |
| |
supplementary charge under this Schedule, |
| |
Part 4 contains special provision about listed supplies, and |
| |
Part 5 contains provision about administration and interpretation. |
| 15 |
(7) | A supplementary charge under this Schedule is to be treated for all purposes |
| |
as if it were value added tax charged in accordance with VATA 1994. |
| |
Supply spanning the date of the VAT change |
| |
2 (1) | For the purposes of this Schedule, a supply of goods or services spans the |
| |
date of the VAT change where— |
| 20 |
(a) | by virtue of the issue of a VAT invoice or the receipt of a payment by |
| |
the person making the supply (“the supplier”), the supply is treated |
| |
as taking place before the date of the VAT change, but |
| |
(b) | the basic time of supply (see paragraph 4) is on or after the date of the |
| |
| 25 |
(2) | The relevant conditions are— |
| |
(a) | in relation to a supply that is within sub-paragraph (1)(a) by virtue |
| |
of the issue of a VAT invoice, conditions A to D, and |
| |
(b) | in relation to a supply that is within sub-paragraph (1)(a) by virtue |
| |
of the receipt of a payment, conditions A to C. |
| 30 |
(3) | Condition A is that the supplier and the person to whom the supply is made |
| |
are connected with each other at any time in the period— |
| |
(a) | beginning with the day on which the supply is treated as taking |
| |
| |
(b) | ending on the date of the VAT change. |
| 35 |
(4) | Paragraph 5 modifies condition A in cases involving a series of supplies. |
| |
(5) | Condition B is that the aggregate of the following is more than £100,000— |
| |
(a) | the relevant consideration for the supply, and |
| |
(b) | the relevant consideration for every related supply of goods or |
| |
services (including every related grant of a right to goods or services) |
| 40 |
that spans the date of the VAT change (see paragraph 6). |
| |
(6) | Condition C is that a prepayment in respect of the supply is financed by the |
| |
supplier or a person connected with the supplier (see paragraph 7). |
| |
|
| |
|
| |
|
(7) | In sub-paragraph (6) “prepayment”, in respect of a supply, means a payment |
| |
that is received by the supplier before the basic time of supply. |
| |
(8) | Condition D is that full payment of the amount shown on the VAT invoice |
| |
referred to in sub-paragraph (1)(a) is not due before the end of the period of |
| |
6 months beginning with the date on which the invoice is issued. |
| 5 |
(9) | This paragraph does not apply in relation to a supply consisting of the grant |
| |
of a right to goods or services (see paragraph 3). |
| |
Grant of right spanning the date of the VAT change |
| |
3 (1) | For the purposes of this Schedule, a supply consisting of the grant by a |
| |
person (“the grantor”) of a right to goods or services spans the date of the |
| 10 |
| |
(a) | that supply is treated as taking place before the date of the VAT |
| |
| |
(b) | the goods or services are to be supplied at a discount or free of |
| |
| 15 |
(c) | the basic time of supply for the supply of some or all of the goods or |
| |
services (see paragraph 4) is on or after the date of the VAT change. |
| |
(2) | In relation to the grant of the right, the relevant conditions are conditions A |
| |
| |
(3) | Condition A is that the grantor and the person to whom the right is granted |
| 20 |
are connected with each other at any time in the period— |
| |
(a) | beginning with the day on which the supply consisting of the grant |
| |
of the right is treated as taking place, and |
| |
(b) | ending on the date of the VAT change or, if the right is exercised |
| |
(entirely or partly) on a later date, that date (or, if more than one, the |
| 25 |
| |
(4) | Paragraph 5 modifies condition A in cases involving a series of supplies. |
| |
(5) | Condition B is that the aggregate of the following is more than £100,000— |
| |
(a) | the relevant consideration for the grant of the right, and |
| |
(b) | the relevant consideration for every related supply of goods or |
| 30 |
services (including every related grant of a right to goods or services) |
| |
that spans the date of the VAT change (see paragraph 6). |
| |
(6) | Condition C is that the payment made in respect of the grant of the right is |
| |
financed by the grantor or a person connected with the grantor (see |
| |
| 35 |
(7) | In this Schedule references to a right to goods or services include— |
| |
(a) | any right or option with respect to such goods or services, and |
| |
(b) | any interest deriving from such a right or option. |
| |
| |
4 (1) | In this Schedule the “basic time of supply” is the time given by subsection (2) |
| 40 |
or (3) of section 6 of VATA 1994 (disregarding subsections (4) to (14) of that |
| |
| |
(2) | Sub-paragraph (1) does not apply in relation to listed supplies (see Part 4 of |
| |
| |
|
| |
|
| |
|
| |
5 (1) | This paragraph applies where— |
| |
(a) | the supply or grant of a right referred to in paragraph 2 or 3 (“the |
| |
affected supply or grant”) is one of a series of supplies of, or grants |
| |
of a right to, the same or substantially the same goods or services, |
| 5 |
| |
(b) | each of the supplies, and the grants of a right, in the series was or will |
| |
be made in the expectation that the affected supply or grant would |
| |
| |
(2) | In condition A in paragraphs 2 and 3, the references to the supplier and the |
| 10 |
grantor include any person who makes one of the supplies or grants one of |
| |
the rights in the series. |
| |
“Relevant consideration” and “related” supplies |
| |
6 (1) | This paragraph applies for the purposes of condition B in paragraphs 2 and |
| |
| 15 |
(2) | “Relevant consideration” means— |
| |
(a) | in relation to a supply that is within paragraph 2(1) by virtue of the |
| |
issue of a VAT invoice, the amount shown on that invoice, |
| |
(b) | in relation to a supply that is within paragraph 2(1) by virtue of the |
| |
receipt of a payment, the amount of that payment, and |
| 20 |
(c) | in relation to a grant of a right to goods or services within paragraph |
| |
3(1), the consideration for the grant of the right, |
| |
| but does not include any amount in respect of VAT. |
| |
(3) | A supply within paragraph 2(1), or a grant of a right within paragraph 3(1), |
| |
is related to another such supply or grant if they are both made as part of the |
| 25 |
| |
(4) | “Scheme” includes any arrangements, transaction or series of transactions. |
| |
| |
7 (1) | This paragraph applies for the purposes of condition C in paragraphs 2 and |
| |
| 30 |
(2) | A payment is financed by a person if, directly or indirectly, the person— |
| |
(a) | provides funds to enable the person to whom the supply is made to |
| |
make the whole or part of the payment (whether the funds are |
| |
provided before or after the payment is made), |
| |
(b) | procures the provision of such funds by another person, |
| 35 |
(c) | provides funds for discharging (in whole or in part) any liability that |
| |
has been or may be incurred by any person for or in connection with |
| |
raising funds to enable the person to whom the supply is made to |
| |
| |
(d) | procures that any such liability is or will be discharged (in whole or |
| 40 |
in part) by another person. |
| |
(3) | In sub-paragraph (2) the references to providing funds for a purpose are to— |
| |
(a) | making a loan of funds that are or are to be used for that purpose, |
| |
(b) | providing a guarantee or other security in relation to such a loan, |
| |
|
| |
|
| |
|
(c) | providing consideration for the issue of shares or other securities |
| |
issued wholly or partly for raising those funds, |
| |
(d) | providing consideration for the acquisition by any person of any |
| |
such shares or securities, or |
| |
(e) | any other transfer of assets or value as a consequence of which any |
| 5 |
of those funds are made available for that purpose. |
| |
| |
8 | Section 839 of ICTA (connected persons) applies for the purposes of this |
| |
| |
| 10 |
9 | In this Schedule a reference to receipt of a payment by the person making a |
| |
supply or granting a right (however expressed) includes a reference to |
| |
receipt by a person to whom a right to receive it has been assigned. |
| |
Power to change relevant conditions |
| |
10 (1) | The Treasury may by order amend this Part of this Schedule by adding, |
| 15 |
modifying or omitting relevant conditions. |
| |
(2) | An order under this paragraph— |
| |
(a) | may make different provision for different cases, and |
| |
(b) | may make incidental or consequential amendments of this Schedule. |
| |
Supplies treated as taking place before 31 March 2009 |
| 20 |
11 | In relation to supplies treated as taking place before 31 March 2009, this |
| |
Schedule has effect as if— |
| |
(a) | paragraphs 2(5), 3(5) and 6 (condition B) and all references to |
| |
condition B were omitted, |
| |
(b) | in paragraph 2(6) (condition C), the words “or a person connected |
| 25 |
with the supplier” were omitted, and |
| |
(c) | in paragraph 3(6) (condition C), the words “or a person connected |
| |
with the grantor” were omitted. |
| |
| |
| 30 |
| |
12 (1) | This paragraph applies in relation to a supply within paragraph 2 which |
| |
arises from the letting, hiring or rental of assets. |
| |
(2) | There is no supplementary charge under this Schedule if— |
| |
(a) | the period to which the VAT invoice or payment referred to in |
| 35 |
paragraph 2(1) relates does not exceed 12 months, and |
| |
(b) | the VAT invoice is issued, or the payment is received, in accordance |
| |
with normal commercial practice in relation to the letting, hiring or |
| |
| |
|
| |
|