Taxation (International and Other Provisions) Bill

House of Commons

Session 2009 - 10
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Taxation (International and Other Provisions) Bill

Taxation (International and Other Provisions) Bill
Schedule 8 — Minor and consequential amendments
Part 1 — Double taxation relief
349

33
In section 828(4) (orders and regulations not subject to annulment) omit
“791”.
34    (1)
Amend Schedule 19ABA (modification of life assurance provisions of the
Corporation Tax Acts in relation to BLAGAB group reinsurers) as follows.
      (2)
Omit paragraphs 9 to 11 (and their italic headings).
5
      (3)
After paragraph 25 insert—
“Part 4
Modification of Part 2 of TIOPA 2010 (double taxation relief)
26
TIOPA 2010 shall have effect with the following modifications.
Modification of section 102 (interpreting sections 99 to 101 for life assurance or gross
10
roll-up business)
27
Omit section 102.
Modification of section 103 (interpreting sections 99 to 101 for other insurance
business)
28
In section 103(1) omit the words from “if” to the end.”
15
35    (1)
Amend Schedule 26 (reliefs against liability for tax in respect of chargeable
profits of controlled foreign companies) as follows.
      (2)
In paragraph 3(5)(b) for “Part XVIII” substitute “Part 2 of TIOPA 2010”.
      (3)
In paragraph 4(2) for “Part XVIII” substitute “Part 2 of TIOPA 2010 (double
taxation relief)”.
20
      (4)
In paragraph 4(4) for “section 796 or section 797” substitute “section 36, 40,
41 or 42 of TIOPA 2010”.
      (5)
In paragraph 5(1) for paragraphs (a) and (b) substitute—
“(a)
arrangements which have effect under section 2(1) of
TIOPA 2010 (double taxation relief by agreement with
25
territories outside the United Kingdom), or
(b)
unilateral relief arrangements for a territory outside the
United Kingdom (as defined by section 8 of that Act),”.
      (6)
In paragraph 5(1) for “Part XVIII” substitute “Part 2 of TIOPA 2010”.
      (7)
In paragraph 5(2) for “section 795(2)(b)” substitute “section 31(2)(b) and (3)
30
of TIOPA 2010”.
      (8)
In paragraph 6(1)(c) for “Part XVIII” substitute “Part 2 of TIOPA 2010”.
36
Omit Schedule 28AB (prescribed schemes and arrangements for purposes of
section 804ZA).
Finance Act 1989 (c. 26)
35
37
FA 1989 is amended as follows.

Taxation (International and Other Provisions) Bill
Schedule 8 — Minor and consequential amendments
Part 1 — Double taxation relief
350

38
In section 115(1) (tax credits for dividends paid to non-residents by UK
resident companies) for “having effect by virtue of section 788 of the Taxes
Act 1988” substitute “which have effect under section 2(1) of the Taxation
(International and Other Provisions) Act 2010”.
39
In section 182A(6) (double taxation: disclosure of information:
5
interpretation) for “section 815B(4) of the Taxes Act 1988” substitute “section
126 of the Taxation (International and Other Provisions) Act 2010”.
Taxation of Chargeable Gains Act 1992 (c. 12)
40
TCGA 1992 is amended as follows.
41
In section 10(4) (persons exempt under Part 18 of ICTA) for “Part XVIII of the
10
Taxes Act (double taxation relief agreements)” substitute “Part 2 of TIOPA
2010 (double taxation relief)”.
42
In section 10B(3) (companies exempt under Part 18 of ICTA) for “Part 18 of
the Taxes Act (double taxation relief agreements)” substitute “Part 2 of
TIOPA 2010 (double taxation relief)”.
15
43
In section 59(2)(b) (arrangements giving relief for partnership gains) for
“falling within section 788 of the Taxes Act” substitute “that have effect
under section 2(1) of TIOPA 2010”.
44
In sections 140H(3), 140I(3) and 140J(3) (gains on which tax would have been
charged but for the Mergers Directive)—
20
(a)
for “Part 18 of the Taxes Act” substitute “Part 2 of TIOPA 2010”, and
(b)
for “arrangements having effect by virtue of section 788 of that Act
(bilateral relief)” substitute “double taxation relief arrangements”.
45
Omit section 277 (application to capital gains tax of provisions about double
taxation relief).
25
46
Omit section 278 (deduction for foreign gains tax in respect of which double
taxation relief by way of credit against UK tax not allowed).
47
In section 288(1) (interpretation) for the definition of “double taxation relief
arrangements” substitute—
““double taxation relief arrangements”—
30
(a)
in relation to a company means arrangements that
have effect under section 2(1) of TIOPA 2010 except so
far as they have effect in relation to petroleum
revenue tax, and
(b)
in relation to any other person means arrangements
35
that have effect under section 2(1) of TIOPA 2010 but
only so far as they have effect in relation to capital
gains tax;”.
Finance Act 1993 (c. 34)
48
FA 1993 is amended as follows.
40
49
Omit section 194 (application to petroleum revenue tax of provisions about
double taxation relief).
50
In section 195(3) (interpretation of Part 3) omit “, other than section 194,”.

Taxation (International and Other Provisions) Bill
Schedule 8 — Minor and consequential amendments
Part 1 — Double taxation relief
351

Finance (No. 2) Act 1997 (c. 58)
51
F(No.2) A 1997 is amended as follows.
52    (1)
Amend section 30 (tax credits) as follows.
      (2)
In subsection (9) for “section 788 of the Taxes Act 1988” substitute “section
2(1) of the Taxation (International and Other Provisions) Act 2010”.
5
      (3)
In subsection (10)(a) for “by virtue of section 788 of the Taxes Act 1988”
substitute “under section 2(1) of the Taxation (International and Other
Provisions) Act 2010”.
Finance Act 1998 (c. 36)
53
FA 1998 is amended as follows.
10
54    (1)
Amend Schedule 18 (company tax returns etc) as follows.
      (2)
In paragraph 8(1) (calculation of tax payable)—
(a)
in paragraph 2 of the Second step for “section 788 or 790 of that Act”
substitute “under sections 2 and 6 of TIOPA 2010 or under section
18(1)(b) and (2) of that Act”, and
15
(b)
in paragraph 3 of that step for “that Act” substitute “the Taxes Act
1988”.
      (3)
In paragraph 22(3)(c) (records of foreign tax: not sufficient to preserve the
information in them) for sub-paragraph (ii) substitute—
“(ii)
which would have been payable under the law of a
20
territory outside the United Kingdom (“territory F”)
but for a development relief.”
      (4)
In paragraph 22 after sub-paragraph (3) insert—
    “(4)
In sub-paragraph (3)(c) “development relief” means a relief—
(a)
given under the law of territory F with a view to promoting
25
industrial, commercial, scientific, educational or other
development in a territory outside the United Kingdom,
and
(b)
about which provision is made in arrangements which
have effect under section 2(1) of TIOPA 2010 (double
30
taxation relief by agreement with territories outside the
United Kingdom).”
Finance Act 2000 (c. 17)
55
FA 2000 is amended as follows.
56    (1)
Amend Schedule 22 (tonnage tax) as follows.
35
      (2)
For paragraph 57(2)(a) (“relief” includes double taxation relief) substitute—
“(a)
sections 2 and 6 of the Taxation (International and Other
Provisions) Act 2010 (double taxation relief by agreement
with territories outside the United Kingdom),
(aa)
section 18(1)(b) and (2) of that Act (unilateral relief from
40
double taxation), or”.

Taxation (International and Other Provisions) Bill
Schedule 8 — Minor and consequential amendments
Part 1 — Double taxation relief
352

Capital Allowances Act 2001 (c. 2)
57
CAA 2001 is amended as follows.
58
In section 105(4) (meaning of “double taxation arrangements”) for the words
from “specified” to the end substitute “which have effect under section 2(1)
of the Taxation (International and Other Provisions) Act 2010 (double
5
taxation relief by agreement with territories outside the United Kingdom)”.
Income Tax (Earnings and Pensions) Act 2003 (c. 1)
59
ITEPA 2003 is amended as follows.
60
In section 643(6) in the definition of “double taxation relief arrangements”
for the words from “specified” to the end substitute “which have effect
10
under section 2(1) of TIOPA 2010;”.
Finance Act 2004 (c. 12)
61
FA 2004 is amended as follows.
62
In Chapter 7 of Part 3 (special withholding tax) omit—
(a)
sections 107 to 111,
15
(b)
sections 113 and 114, and
(c)
section 115(4).
63
In section 189(3) (treatment of relevant UK earnings) for “by virtue of section
788 of ICTA” substitute “under section 2(1) of the Taxation (International
and Other Provisions) Act 2010”.
20
64
In Schedule 34 (non-UK pensions schemes: application of certain charges) in
paragraph 20 (meaning of “double tax arrangements”) for “by virtue of
section 788 of ICTA” substitute “under section 2(1) of the Taxation
(International and Other Provisions) Act 2010”.
Income Tax (Trading and Other Income) Act 2005 (c. 5)
25
65
ITTOIA 2005 is amended as follows.
66
In section 397A(7) (interpretation of section) in the definition of “special
withholding tax” for “section 107(3) of FA 2004” substitute “section 136(6) of
TIOPA 2010”.
67
For section 397BA(2)(a) (which refers to arrangements to which section 788
30
of ICTA applies) substitute—
“(a)
arrangements made in relation to the territory have effect
under section 2(1) of TIOPA 2010 (“double taxation relief
arrangements”), and”.
68
In section 763(3) (priority of double taxation arrangements) for “section 788
35
of ICTA” substitute “section 2(1) of TIOPA 2010”.
69
In section 858(1)(b) (resident partners and double taxation agreements) for
“section 788 of ICTA” substitute “section 2(1) of TIOPA 2010”.

Taxation (International and Other Provisions) Bill
Schedule 8 — Minor and consequential amendments
Part 1 — Double taxation relief
353

Income Tax Act 2007 (c. 3)
70
ITA 2007 is amended as follows.
71
In section 1(2)(a) (example of income tax provisions located outside ITA
2007) for “Part 18 of ICTA” substitute “Part 2 of TIOPA 2010”.
72    (1)
Amend section 26(1)(b) (provisions referred to at Step 6 of the calculation in
5
section 23) as follows.
      (2)
Omit the entries for sections 788 and 790 of ICTA.
      (3)
Omit “and” before the entry for sections 677 and 678 of ITTOIA 2005.
      (4)
After that entry insert—
“sections 2 and 6 of TIOPA 2010 (double taxation relief: relief by
10
agreement), and
section 18(1)(b) and (2) of TIOPA 2010 (relief for foreign tax
where no double taxation arrangements).”
73
In section 27(6) (tax reductions for individuals by way of double taxation
relief)—
15
(a)
in paragraph (a) for “section 788 of ICTA” substitute “sections 2 and
6 of TIOPA 2010”, and
(b)
in paragraph (b) for “section 790(1) of ICTA” substitute “section
18(1)(b) and (2) of TIOPA 2010”.
74
In section 28(4) (tax reductions for non-individuals by way of double
20
taxation relief)—
(a)
in paragraph (a) for “section 788 of ICTA” substitute “sections 2 and
6 of TIOPA 2010”, and
(b)
in paragraph (b) for “section 790(1) of ICTA” substitute “section
18(1)(b) and (2) of TIOPA 2010”.
25
75    (1)
Amend section 29 (tax reductions: supplementary) as follows.
      (2)
In subsection (4)(a) for “section 796(1), (2) and (3) of ICTA” substitute
“sections 36(1) to (5) and (7) and 41 of TIOPA 2010”.
      (3)
In subsection (5) for “section 788 of ICTA” substitute “sections 2 and 6 of
TIOPA 2010”.
30
76    (1)
Amend section 32 (liabilities not dealt with in calculation under section 23)
as follows.
      (2)
Omit the entry for section 804(5B)(a) of ICTA.
      (3)
Omit the word “and” before the entry for section 682(4) of ITTOIA 2005.
      (4)
After that entry insert “, and
35
under section 24(4) of TIOPA 2010 (recovery of excess credit for
overseas tax).”
77    (1)
Amend section 53 (transfer of unused relief: general) as follows.
      (2)
In subsection (2) (tax reductions by way of double taxation relief)—
(a)
in paragraph (a) for “section 788 of ICTA” substitute “sections 2 and
40
6 of TIOPA 2010”, and

Taxation (International and Other Provisions) Bill
Schedule 8 — Minor and consequential amendments
Part 1 — Double taxation relief
354

(b)
in paragraph (b) for “section 790(1) of ICTA” substitute “section
18(1)(b) and (2) of TIOPA 2010”.
      (3)
In subsection (5) for “section 788 of ICTA” substitute “sections 2 and 6 of
TIOPA 2010”.
78    (1)
In section 424(2) (gift aid: charge to tax: interpretation) amend paragraph (b)
5
of the definition of “amount C” as follows.
      (2)
In sub-paragraph (i) for “section 788 of ICTA” substitute “sections 2 and 6 of
TIOPA 2010”.
      (3)
In sub-paragraph (ii) for “section 790(1) of ICTA” substitute “section 18(1)(b)
and (2) of TIOPA 2010”.
10
79    (1)
Amend section 425 (“total amount of income tax” in sections 423 and 424) as
follows.
      (2)
In subsection (4) (tax reductions to be ignored)—
(a)
in paragraph (b) for “section 788 of ICTA” substitute “sections 2 and
6 of TIOPA 2010”, and
15
(b)
in paragraph (c) for “section 790(1) of ICTA” substitute “section
18(1)(b) and (2) of TIOPA 2010”.
      (3)
In subsection (6) for “section 788 of ICTA” substitute “sections 2 and 6 of
TIOPA 2010”.
80
In section 527(2) omit paragraph (b) (subsection (1) does not apply to income
20
chargeable to tax under section 804 of ICTA).
81
In section 582(2) (regulations may remove or reduce rights to claim double
taxation relief) for “Part 18 of ICTA” substitute “Part 2 of TIOPA 2010”.
82
In section 828C(4) (entitlement to double taxation relief)—
(a)
in paragraph (a) for “section 788 of ICTA” substitute “sections 2 and
25
6 of TIOPA 2010”, and
(b)
in paragraph (b) for “section 790(1)” substitute “section 18(1)(b) and
(2)”.
83
In section 849(1) (interaction between Part 15 of ITA 2007 and regulations
under section 791 of ICTA) for “section 791 of ICTA (double taxation relief:
30
power to make regulations for carrying out section 788)” substitute “section
7 of TIOPA 2010 (double taxation arrangements: general regulations)”.
84
In section 1023 (meaning in Act of “double taxation arrangements”) for
“section 788 of ICTA” substitute “section 2(1) of TIOPA 2010”.
85
In section 1026—
35
(a)
after paragraph (e) insert “or”, and
(b)
omit paragraph (g) (“non-qualifying income” in section 1025
includes deemed receipts under section 804(5B) of ICTA) and the
“or” preceding it.
Finance Act 2008 (c. 9)
40
86
FA 2008 is amended as follows.
87
In Schedule 17 in paragraph 10(3) after paragraph (c) insert “and”.

Taxation (International and Other Provisions) Bill
Schedule 8 — Minor and consequential amendments
Part 1 — Double taxation relief
355

Corporation Tax Act 2009 (c. 4)
88
CTA 2009 is amended as follows.
89
In section 464(3)—
(a)
in paragraph (f) for “section 795(4) of ICTA” substitute “section 31(5)
of TIOPA 2010”, and
5
(b)
in paragraph (g) for “section 811(3) of ICTA” substitute “section
112(5) of TIOPA 2010”.
90
In section 486(2) for “section 811 of ICTA” substitute “section 112 of TIOPA
2010”.
91
In section 550(7) (meaning of “double taxation relief”) for “Part 18 of ICTA”
10
substitute “Part 2 of TIOPA 2010”.
92
In section 697(3)(a) (exceptions to section 696) for “because of section 788 of
ICTA” substitute “under section 2(1) of TIOPA 2010”.
93
In section 793(3)(b) (when election under section 792 may be made) for
“arrangements under Part 18 of ICTA” substitute “arrangements that have
15
effect under section 2(1) of TIOPA 2010”.
94
In section 827(7) (no claim under section if claim made under section 807B(6)
of ICTA)—
(a)
for “section 807B(6) of ICTA” substitute “section 116(6) of TIOPA
2010”, and
20
(b)
for “section 807C” substitute “section 117”.
95
In section 906(3)—
(a)
omit “and” after paragraph (a), and
(b)
after paragraph (b) insert “, and
(c)
section 112(5) of TIOPA 2010 (deduction for foreign
25
tax where no credit available).”
96
For section 931C(1)(a) (which refers to arrangements to which section 788 of
ICTA applies) substitute—
“(a)
arrangements made in relation to the territory have effect
under section 2(1) of TIOPA 2010 (“double taxation relief
30
arrangements”), and”.
97
In section 931H(5) for “Part 18 of ICTA” substitute “Part 2 of TIOPA 2010”.
98
In section 931J(7) for “Part 18 of ICTA” substitute “Part 2 of TIOPA 2010”.
99
In section 1266(1)(b) (resident partners and double taxation agreements) for
“section 788 of ICTA” substitute “section 2(1) of TIOPA 2010”.
35
Finance Act 2009 (c. 10)
100
FA 2009 is amended as follows.
101
In section 56(1) (tax in respect of MEPs’ pay) for “Part 18 of ICTA (double
tax” substitute “Part 2 of TIOPA 2010 (double taxation”.
102
In Schedule 16 in paragraph 7(2)(a) (purposes for which straddling
40
accounting periods are split) after “Chapter 4 of Part 17, and Part 18, of
ICTA” insert “and Part 2 of TIOPA 2010”.