Taxation (International and Other Provisions) Bill

House of Commons

Session 2009 - 10
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Other Bills before Parliament

Taxation (International and Other Provisions) Bill

Taxation (International and Other Provisions) Bill
Schedule 8 — Minor and consequential amendments
Part 11 — UK representatives of non-UK residents
377

“disposal of an asset (in Chapter 5B of
section 809BZS(3)”

Part 13)

“payments in respect of an asset (in
section 809BZS(4)”

Chapter 5B of Part 13)

“person involved in a relevant change
section 809BZG(5)”

5

(in Chapter 5B of Part 13)

“person receiving an asset (in Chapter
section 809BZS(2)”

5B of Part 13)

“relevant change in relation to a
section 809BZG”

partnership (in Chapter 5B of Part 13)

10

“type 1 finance arrangement (in
section 809BZA”

Chapter 5B of Part 13)

“type 2 finance arrangement (in
section 809BZF”

Chapter 5B of Part 13)

“type 3 finance arrangement (in
section 809BZJ”.

15

Chapter 5B of Part 13)

Part 11
UK representatives of non-UK residents
Finance Act 1995 (c. 4)
274
FA 1995 is amended as follows.
20
275
Omit section 126 (UK representatives of non-residents).
276
Omit section 127 (persons not treated as UK representatives).
277
Omit Schedule 23 (obligations etc imposed on UK representatives).
Income Tax Act 2007 (c. 3)
278
ITA 2007 is amended as follows.
25
279
In section 2(14) (overview of Act)—
(a)
omit the “and” immediately after paragraph (b), and
(b)
after paragraph (b) insert—
“(ba)
rules about UK representatives of non-UK residents
(Chapters 2B and 2C),”.
30
280
In section 813(2) (meaning of “disregarded income”) for “section 126 of, and
Schedule 23 to, FA 1995 (UK representatives of non-UK residents)”
substitute “Chapter 2B”.
281   (1)
Amend section 817 (independent broker conditions) as follows.
      (2)
In subsection (3) omit “by the broker”.
35
      (3)
In subsection (5) for “section 126 of, and Schedule 23 to, FA 1995” substitute
“Chapter 2B of this Part, or of Chapter 1 of Part 7A of TCGA 1992,”.

Taxation (International and Other Provisions) Bill
Schedule 8 — Minor and consequential amendments
Part 12 — Amendments for purposes connected with other tax law rewrite Acts
378

282
In section 824 (application of 20% rule to collective investment schemes) at
the end of subsection (2) insert “(so far as the transaction is one in respect of
which such amounts so arise or accrue)”.
283   (1)
Amend section 1014(2) (orders and regulations to which section does not
apply) as follows.
5
      (2)
Omit paragraph (ba).
      (3)
In paragraph (g)—
(a)
omit the word “and” at the end of sub-paragraph (iib), and
(b)
after that sub-paragraph insert—
“(iic)
section 835S(4) (meaning of “investment
10
transaction”), and”.
284
In Schedule 4 (index of defined expressions) at the appropriate places
insert—

“beneficial entitlement (in Chapter 2B
section 835O(4)”

of Part 14)

15

“branch or agency (in Chapter 2B of
section 835S(2)”

Part 14)

“independent agent (in Chapter 2C of
section 835Y”

Part 14)

“the independent broker conditions (in
section 835L”

20

Chapter 2B of Part 14)

“the independent investment manager
section 835M”

conditions (in Chapter 2B of Part 14)

“investment manager (in Chapter 2B of
section 835S(3)”

Part 14)

25

“investment transaction (in Chapter 2B
section 835S(4)”

of Part 14)

“qualifying period (in Chapter 2B of
section 835O(2)”

Part 14)

“relevant disregarded income (in
section 835O(3)”

30

Chapter 2B of Part 14)

Part 12
Amendments for purposes connected with other tax law rewrite Acts
Income and Corporation Taxes Act 1988 (c. 1)
285
ICTA is amended as follows.
35
286
Omit section 59(3) and (4) (person answerable for tax charged in accordance
with section 12 of ITTOIA 2005 on profits of markets or fairs, or on tolls,
fisheries or other profits not distrainable).

Taxation (International and Other Provisions) Bill
Schedule 8 — Minor and consequential amendments
Part 12 — Amendments for purposes connected with other tax law rewrite Acts
379

Broadcasting Act 1996 (c. 55)
287
The Broadcasting Act 1996 is amended as follows.
288   (1)
Amend paragraph 19 of Schedule 7 (no profit or loss by reason of a direct
disposal transfer) as follows.
      (2)
For the words from the beginning of the paragraph to “accrue to the BBC”
5
substitute “In determining for the purposes of Part 3 of the Corporation Tax
Act 2009 the profits or losses of a trade or part of a trade carried on by the
BBC wholly or partly in the United Kingdom, it is to be assumed that no
profits or losses arise to the BBC”.
      (3)
In sub-paragraph (a) for “section 100 of the Taxes Act 1988” substitute
10
“section 163 of the Corporation Tax Act 2009”.
      (4)
In the italic heading preceding the paragraph for “Case I of Schedule D”
substitute “Part 3 of the Corporation Tax Act 2009”.
Greater London Authority Act 1999 (c. 29)
289
The Greater London Authority Act 1999 is amended as follows.
15
290
In paragraph 7 of Schedule 33 (taxation provisions: revenue nature of
payments under public-private partnership agreements)—
(a)
in sub-paragraph (a) for “Case I of Schedule D” substitute “Part 3 of
the Corporation Tax Act 2009”, and
(b)
in sub-paragraph (b) for “Case I of Schedule D” substitute “Part 3 of
20
the Corporation Tax Act 2009”.
Income Tax (Earnings and Pensions) Act 2003 (c. 1)
291
ITEPA 2003 is amended as follows.
292
In section 211(2) (which refers to section 215, which in turn now refers to
section 776(1) of ITTOIA 2005 in place of section 331(1) of ICTA) for “section
25
331 of ICTA” substitute “section 776(1) of ITTOIA 2005”.
293
In section 215 (which now refers to section 776(1) of ITTOIA 2005 in place of
section 331(1) of ICTA) in the title for “section 331 of ICTA” substitute
“section 776(1) of ITTOIA 2005”.
294
In section 331(1) (Part 5 is to be read with section 835(3) and (4) of ICTA) for
30
“section 835(3) and (4) of ICTA” substitute “section 25(1) to (3) of ITA 2007”.
Finance Act 2004 (c. 12)
295
FA 2004 is amended as follows.
296   (1)
Amend section 318 (interpretation of Part 7) as follows.
      (2)
In subsection (1)—
35
(a)
after the definition of “arrangements” insert—
““company” has the meaning given by section 1121 of
the Corporation Tax Act 2010;”, and
(b)
after the definition of “tax” insert—
““trade” includes every venture in the nature of trade.”
40

Taxation (International and Other Provisions) Bill
Schedule 8 — Minor and consequential amendments
Part 12 — Amendments for purposes connected with other tax law rewrite Acts
380

      (3)
Omit subsection (2).
Finance Act 2005 (c. 7)
297
FA 2005 is amended as follows.
298
Omit section 48B(6) to (8) (alternative finance arrangements: alternative
finance investment bonds).
5
299
In Schedule 2 (alternative finance arrangements: further provisions) omit
paragraph 9.
Income Tax Act 2007 (c. 3)
300
ITA 2007 is amended as follows.
301
In section 887(4) (industrial and provident society payments) for “section
10
486(7) of ICTA” substitute “section 500(2) of CTA 2009”.
Corporation Tax Act 2009 (c. 4)
302
CTA 2009 is amended as follows.
303
Before section 1 insert—
“A1
Overview of the Corporation Tax Acts
15
(1)
The main Acts relating to corporation tax are—
(a)
this Act (which covers the ground described in section 1),
(b)
CTA 2010 (which covers the ground described in section 1 of
that Act), and
(c)
TCGA 1992 (so far as relating to chargeable gains accruing to
20
a company in respect of which the company is chargeable to
corporation tax).
(2)
Enactments relating to corporation tax are also contained in other
Acts: see in particular—
(a)
Chapter 1 of Part 12 of ICTA (insurance companies),
25
(b)
Chapter 4 of Part 17 of that Act (controlled foreign
companies),
(c)
Schedule 18 to FA 1998 (company tax returns, assessments
and related matters),
(d)
Schedule 22 to FA 2000 (tonnage tax),
30
(e)
CAA 2001 (allowances for capital expenditure),
(f)
Part 2 of TIOPA 2010 (double taxation relief),
(g)
Parts 4 and 5 of that Act (transfer pricing and advance pricing
agreements),
(h)
Part 6 of that Act (tax arbitrage),
35
(i)
Part 7 of that Act (tax treatment of financing costs and
income), and
(j)
Part 8 of that Act (offshore funds).
(3)
Schedule 1 to the Interpretation Act 1978 defines “the Corporation
Tax Acts” as the enactments relating to the taxation of the income
40
and chargeable gains of companies and of company distributions
(including provisions relating to income tax).”

Taxation (International and Other Provisions) Bill
Schedule 8 — Minor and consequential amendments
Part 13 — General
381

304
In section 39(2) (profits of mines, quarries and other concerns) for “clause”
substitute “section”.
305
In section 1269 (interpretation of sections 1267 and 1268) in the title for
“clauses” substitute “sections”.
306
In paragraph 75 of Schedule 2 (transitional provision and savings:
5
investment bond arrangements) at the end insert—
    “(5)
So far as section 519(2) has effect for income tax or capital gains tax
purposes in relation to the disposal after 6 April 2007 of
investment bond arrangements (whenever entered into), it is
treated as always having had effect.”
10
Part 13
General
Taxes Management Act 1970 (c. 9)
307
TMA 1970 is amended as follows.
308
In section 118(1) after the definition of “the 1992 Act” insert—
15
““TIOPA 2010” means the Taxation (International and Other
Provisions) Act 2010,”.
Income and Corporation Taxes Act 1988 (c. 1)
309
ICTA is amended as follows.
310
In section 831(3) (interpretation of ICTA) after the definition of “the
20
Management Act” insert—
““TIOPA 2010” means the Taxation (International and Other
Provisions) Act 2010;”.
Taxation of Chargeable Gains Act 1992 (c. 12)
311
TCGA 1992 is amended as follows.
25
312   (1)
Amend section 287 (powers to make orders or regulations under enactments
relating to the taxation of chargeable gains) as follows.
      (2)
In subsection (1) (powers to be exercisable by statutory instrument) for
“subsection (2)” substitute “subsections (2) and (2A)”.
      (3)
After subsection (2) insert—
30
“(2A)
Subsection (1) above shall not apply in relation to any power
conferred by TIOPA 2010 (see instead section 372 of that Act).”
313
In section 288(1) (interpretation) after the definition of “the Taxes Act”
insert—
““TIOPA 2010” means the Taxation (International and Other
35
Provisions) Act 2010;”.
Finance Act 1998 (c. 36)
314
FA 1998 is amended as follows.

Taxation (International and Other Provisions) Bill
Schedule 8 — Minor and consequential amendments
Part 13 — General
382

315   (1)
Amend Schedule 18 (company tax returns etc) as follows.
      (2)
In paragraph 25(1) (scope of enquiries) for the words from “a transfer pricing
notice” to “arbitrage)” substitute “a notice within sub-paragraph (3)”.
      (3)
In paragraph 25 after sub-paragraph (2) insert—
    “(3)
A notice is within this sub-paragraph if it is—
5
(a)
a notice under section 184G or 184H of the Taxation of
Chargeable Gains Act 1992 (avoidance involving capital
losses),
(b)
a notice under section 81(2) of TIOPA 2010 (schemes and
arrangements designed to increase relief),
10
(c)
a transfer pricing notice under section 168(1) of TIOPA
2010 (provision not at arm’s length: medium-sized
enterprise), or
(d)
a notice under section 232 or 249 of TIOPA 2010 (avoidance
involving tax arbitrage).”
15
      (4)
In paragraph 42(2A) (disapplication of restrictions on power to make
discovery assessment or determination) for the words after “return, a notice”
substitute “within sub-paragraph (4).”
      (5)
In paragraph 42 after sub-paragraph (3) insert—
    “(4)
A notice is within this sub-paragraph if it is—
20
(a)
a notice under section 184G or 184H of the Taxation of
Chargeable Gains Act 1992 (avoidance involving capital
losses),
(b)
a notice under section 81(2) of TIOPA 2010 (schemes and
arrangements designed to increase relief), or
25
(c)
a notice under section 232 or 249 of TIOPA 2010 (avoidance
involving tax arbitrage).”
      (6)
After paragraph 97 insert—
“Meaning of TIOPA 2010
97A
In this Schedule “TIOPA 2010” means the Taxation (International
30
and Other Provisions) Act 2010.”
      (7)
In the list in paragraph 98 after the entry for “tax payable” insert—

“TIOPA 2010
paragraph 97A”.

Income Tax (Earnings and Pensions) Act 2003 (c. 1)
316
ITEPA 2003 is amended as follows.
35
317
In Part 1 of Schedule 1 (abbreviations of Acts etc) after the entry for CTA
2010 (which is inserted by CTA 2010) insert—

“TIOPA 2010
The Taxation (International and Other

Provisions) Act 2010”.

Taxation (International and Other Provisions) Bill
Schedule 9 — Transitionals and savings etc
Part 1 — General provisions
383

Income Tax (Trading and Other Income) Act 2005 (c. 5)
318
ITTOIA 2005 is amended as follows.
319
In Part 1 of Schedule 4 (abbreviations of Acts) after the entry for CTA 2010
(which is inserted by CTA 2010) insert—

“TIOPA 2010
The Taxation (International and Other

5

Provisions) Act 2010”.

Income Tax Act 2007 (c. 3)
320
ITA 2007 is amended as follows.
321
In section 1014(2) (orders and regulations under the Income Tax Acts to
which the section does not apply) for “and” after paragraph (f) substitute—
10
“(fa)
TIOPA 2010 (see instead section 372 of that Act), and”.
322
In section 1017 (abbreviated references to Acts) for the “and” at the end of
the definition of “TCGA 1992” substitute—
““TIOPA 2010” means the Taxation (International and Other
Provisions) Act 2010, and”.
15
Corporation Tax Act 2009 (c. 4)
323
CTA 2009 is amended as follows.
324
In section 1312 (abbreviated references to Acts) after the definition of “TCGA
1992” insert—
““TIOPA 2010” means the Taxation (International and Other
20
Provisions) Act 2010,”.
Finance Act 2009 (c. 10)
325
FA 2009 is amended as follows.
326
In section 126(1) (abbreviated references to Acts) after the entry for TCGA
1992 insert—
25
““TIOPA 2010” means the Taxation (International and Other
Provisions) Act 2010,”.
Schedule 9
Section 377

Transitionals and savings etc
Part 1
30
General provisions
Continuity of the law: general
1
The repeal of provisions and their enactment in a rewritten form by this Act
does not affect the continuity of the law.