Taxation (International and Other Provisions) Bill

House of Commons

Session 2009 - 10
Internet Publications
Other Bills before Parliament

Taxation (International and Other Provisions) Bill

Taxation (International and Other Provisions) Bill
Part 8 — Offshore funds
189

359
Power to make regulations about exceptions to definition of “mutual fund”
(1)
The Treasury may by regulations amend or repeal any provision of section 357
or 358.
(2)
The Treasury may by regulations provide that arrangements are not a mutual
fund for the purposes of section 355—
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(a)
in specified circumstances, or
(b)
if they are of a specified description.
(3)
Regulations under this section may include provision having effect in relation
to the tax year, or accounting periods, current on the day on which the
regulations are made.
10
(4)
Regulations under subsection (1) may only be made if a draft of the statutory
instrument containing the regulations has been laid before and approved by a
resolution of the House of Commons.
Supplementary
360
Treatment of umbrella arrangements
15
(1)
This section has effect for the purposes of this Part.
(2)
In the case of umbrella arrangements (see section 363)—
(a)
each part of the umbrella arrangements is to be treated as separate
arrangements, and
(b)
the umbrella arrangements are to be disregarded.
20
(3)
Subsection (2)(a) is subject to section 361.
361
Treatment of arrangements comprising more than one class of interest
(1)
This section has effect for the purposes of this Part.
(2)
Where there is more than one class of interest in arrangements (the “main
arrangements”)—
25
(a)
the arrangements relating to each class of interest are to be treated as
separate arrangements, and
(b)
the main arrangements are to be disregarded.
(3)
In relation to umbrella arrangements, “class of interest” does not include a part
of the umbrella arrangements (but there may be more than one class of interest
30
in a part of umbrella arrangements).
362
Meaning of “participant” and “participation”
(1)
In this Part references to “participant”, in relation to arrangements (or a fund),
are to a person taking part in the arrangements (or the arrangements
constituting the fund), whether by becoming the owner of, or of any part of, the
35
property that is the subject of the arrangements or otherwise.
(2)
In this Part references (however expressed) to participation, in relation to
arrangements (or a fund), are to be read in accordance with subsection (1).

Taxation (International and Other Provisions) Bill
Part 9 — Amendments to relocate provisions of tax legislation
190

363
Meaning of “umbrella arrangements” and “part of umbrella arrangements”
(1)
In this Part “umbrella arrangements” means arrangements which provide for
separate pooling of the contributions of the participants and the profits or
income out of which payments are made to them.
(2)
In this Part references to a part of umbrella arrangements are to the
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arrangements relating to a separate pool.
Part 9
Amendments to relocate provisions of tax legislation
364
Oil activities
Schedule 1, which inserts a new Chapter 16A (oil activities) in Part 2 (trading
10
income) of ITTOIA 2005, has effect.
365
Alternative finance arrangements
Schedule 2, which—
(a)
inserts a new Part 10A in ITA 2007 (see Part 1 of the Schedule),
(b)
inserts a new Chapter 4 in Part 4 of TCGA 1992 (see Part 2 of the
15
Schedule), and
(c)
makes other amendments (see Part 3 of the Schedule),
has effect.
366
Power to amend the alternative finance provisions
(1)
The Treasury may by order amend the alternative finance provisions.
20
(2)
The amendments which may be made by such an order include—
(a)
the variation of provision already included in the alternative finance
provisions, and
(b)
the introduction into the alternative finance provisions of new
provision relating to alternative finance arrangements.
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(3)
In subsection (2)(b) “alternative finance arrangements” means arrangements
which in the Treasury’s opinion—
(a)
equate in substance to a loan, deposit or other transaction of a kind that
generally involves the payment of interest, but
(b)
achieve a similar effect without including provision for the payment of
30
interest.
(4)
An order under subsection (1) may, in particular—
(a)
make provision of a kind similar to provision already made by the
alternative finance provisions,
(b)
make other provision about the treatment for the purposes of the Tax
35
Acts of arrangements to which the order applies,
(c)
make provision generally or only in relation to specified cases or
circumstances,
(d)
make different provision for different cases or circumstances, and
(e)
make incidental, supplemental, consequential and transitional
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provision and savings.

Taxation (International and Other Provisions) Bill
Part 9 — Amendments to relocate provisions of tax legislation
191

(5)
An order making consequential provision under subsection (4)(e) may, in
particular, include provision amending a provision of the Tax Acts.
(6)
In this section “the alternative finance provisions” means—
(a)
section 367A of ICTA,
(b)
Chapter 4 of Part 4 of TCGA 1992,
5
(c)
sections 372A to 372D, Part 10A and section 1005(2A) of ITA 2007,
(d)
Chapter 6 of Part 6 of CTA 2009,
(e)
sections 110, 256 to 259 and 1019 of CTA 2010.
(7)
An order under this section that—
(a)
includes such amendments as are mentioned in subsection (2)(b), or
10
(b)
amends an enactment not contained in the alternative finance
provisions but contained in an Act,

may only be made if a draft of the statutory instrument containing the order
has been laid before and approved by a resolution of the House of Commons.
367
Leasing arrangements: finance leases and loans
15
Schedule 3, which inserts—
(a)
a new Part 11A in ITA 2007 (leasing arrangements: finance leases and
loans), and
(b)
a new section 37A in TCGA 1992 (consideration on disposal of certain
leases),
20
has effect.
368
Sale and lease-back etc
Schedule 4, which inserts a new Part 12A in ITA 2007 (sale and lease‑back etc),
has effect.
369
Factoring of income etc
25
Schedule 5, which inserts new Chapters 5B and 5C (finance arrangements, and
loan or credit transactions) in Part 13 of ITA 2007 (anti-avoidance), has effect.
370
UK representatives of non-UK residents
Schedule 6, which inserts—
(a)
new Chapters 2B and 2C in Part 14 of ITA 2007 (income tax: UK
30
representatives of non-UK residents), and
(b)
a new Part 7A in TCGA 1992 (capital gains tax: UK representatives of
non-UK residents),
has effect.
371
Miscellaneous relocations
35
Schedule 7 (amendments to relocate some miscellaneous tax enactments) has
effect.

Taxation (International and Other Provisions) Bill
Part 10 — General provisions
192

Part 10
General provisions
Subordinate legislation
372
Orders and regulations
(1)
Any power of the Treasury or the Commissioners for Her Majesty’s Revenue
5
and Customs to make any order or regulations under this Act is exercisable by
statutory instrument.
(2)
Any statutory instrument containing any order or regulations made by the
Treasury or the Commissioners for Her Majesty’s Revenue and Customs under
this Act is subject to annulment in pursuance of a resolution of the House of
10
Commons.
(3)
Subsection (2) does not apply—
(a)
in relation to regulations under section 7 (double taxation relief: general
regulations),
(b)
in relation to regulations under section 354(1) or 359(2) (offshore funds)
15
if a draft of the statutory instrument containing the regulations has
been laid before and approved by a resolution of the House of
Commons,
(c)
in relation to an order under section 377(2) (transitional or saving
provision in connection with coming into force of this Act), or
20
(d)
if any other Parliamentary procedure is expressly provided to apply in
relation to the order or regulations.
(4)
Section 828 of ICTA (which includes provision about orders made before 1
April 2010 under provisions of the Corporation Tax Acts not contained in
ICTA) does not apply in relation to an order made by the Treasury under this
25
Act before 1 April 2010.
Interpretation
373
Abbreviated references to Acts
In this Act—
“CAA 2001” means the Capital Allowances Act 2001,
30
“CTA 2009” means the Corporation Tax Act 2009,
“CTA 2010” means the Corporation Tax Act 2010,
“FA”, followed by a year, means the Finance Act of that year,
“F(No.2)A”, followed by a year, means the Finance (No. 2) Act of that
year,
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“ICTA” means the Income and Corporation Taxes Act 1988,
“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,
40
“TCGA 1992” means the Taxation of Chargeable Gains Act 1992, and
“TMA 1970” means the Taxes Management Act 1970.