Finance Bill

House of Commons

Session 2009 - 10
Internet Publications
Other Bills before Parliament

Finance Bill

Finance Bill
Schedule 21 — Furnished holiday lettings
Part 4 — Chargeable gains
164

Roll-over relief: furnished holiday letting becomes private residence
17
Where a pre-commencement acquisition of (or of an interest in) FHL assets
falls within section 241(6)(b) of TCGA 1992 (gain rolled-over into the
acquisition of a FHL asset), this Part does not prevent section 241(6) of TCGA
1992 (disposal of the asset after it has become a private residence) from
5
applying to a post-commencement disposal of (or of an interest in) the
assets.
Relief for gifts of business assets
18
In so far as section 241 of TCGA 1992 applies for the purposes of section 165
of that Act (relief for gifts of business assets), the chargeable gains repeals
10
have effect in relation to post-commencement disposals of assets (and
interests in assets).
Entrepreneurs’ relief
19    (1)
In so far as section 241 of TCGA 1992 applies for the purposes of section
169S(1) of that Act (entrepreneurs’ relief), the chargeable gains repeals come
15
into force immediately before the start of the commencement day.
      (2)
Accordingly, from that time, each FHL business is to cease to be a business
for the purposes of Chapter 3 of Part 5 of TCGA 1992 (entrepreneurs’ relief).
20    (1)
Paragraph 19 does not prevent a post-commencement disposal from being a
disposal of business assets—
20
(a)
under subsection (2)(b) of section 169I of TCGA 1992 if—
(i)
the disposal is of (or of interests in) assets,
(ii)
the business which ceased to be carried on was a FHL
business, and
(iii)
that business ceased to be carried on before the
25
commencement day (whether by virtue of paragraph 19 or
otherwise), or
(b)
under subsection (2)(c) of section 169I of TCGA 1992 by virtue of
condition B in subsection (7) of that section being met if the disposal
is of (or of interests in) shares in or securities of a company which—
30
(i)
ceased to be a trading company without continuing to be or
becoming a member of a trading group (as mentioned in
paragraph (a) of subsection (7) of that section), or
(ii)
ceased to be a member of a trading group without continuing
to be or becoming a trading company (as mentioned in
35
paragraph (b) of subsection (7) of that section),

because a FHL business ceased to be carried on before the
commencement day (whether by virtue of paragraph 19 or
otherwise).
      (2)
Paragraph 19 does not prevent a post-commencement disposal from being a
40
disposal of trust business assets under section 169J of TCGA 1992—
(a)
by virtue of the relevant condition in subsection (4) of that section
being met if the period of 1 year mentioned in that subsection ended
before the commencement day, or
(b)
by virtue of the relevant condition in subsection (5) of that section
45
being met if—

Finance Bill
Schedule 21 — Furnished holiday lettings
Part 4 — Chargeable gains
165

(i)
the business which the beneficiary ceased to carry on was a
FHL business, and
(ii)
that business ceased to be carried on before the
commencement day (whether by virtue of paragraph 19 or
otherwise).
5
      (3)
Paragraph 19 does not prevent a post-commencement disposal from being a
disposal associated with a relevant material disposal under section 169K of
TCGA 1992 if—
(a)
the business of the partnership or company which has ceased (as
mentioned in subsection (4)(b) of that section) was a FHL business,
10
and
(b)
the cessation of that FHL business occurred before the
commencement day (whether by virtue of paragraph 19 or
otherwise).
Relief for loans to traders
15
21
In so far as section 241 of TCGA 1992 applies for the purposes of section 253
of that Act (relief for loans to traders), the chargeable gains repeals have
effect in relation to post-commencement loans for the purposes of FHL
businesses.
Substantial shareholdings exemption
20
22
In so far as section 241 of TCGA 1992 applies for the purposes of Schedule
7AC to that Act (exemption for disposals by companies with substantial
shareholding), the chargeable gains repeals have effect in relation to post-
commencement disposals.
Other commencement
25
23
To the extent that the chargeable gains repeals do not have effect in
accordance with paragraphs 15 to 22, the chargeable gains repeals come into
force on the commencement day.
Interpretation
24
In this Part—
30
“chargeable gains repeals” means—
(a)
paragraph 14, and
(b)
Part 5 of this Schedule so far as it relates to chargeable gains;
“commencement day” means—
(a)
1 April 2010 (in the case of corporation tax), or
35
(b)
6 April 2010 (in the case of capital gains tax);
“FHL assets” means assets used for the purposes of a FHL business;
“FHL business” means a business which is treated as a trade by virtue
of section 241 of TCGA 1992 (furnished holiday lettings businesses);
“post-commencement”, in relation to an acquisition, disposal or loan,
40
means one that is made on or after the commencement day;
“pre-commencement”, in relation to an acquisition or disposal, means
one that is made before the commencement day.

Finance Bill
Schedule 22 — Champions League final
166

Part 5
Minor repeals
25
Omit—
(a)
in FA 1996, in Schedule 20, paragraph 62,
(b)
in FA 1998—
5
(i)
in Schedule 5, paragraph 42, and
(ii)
in Schedule 21, paragraph 8,
(c)
in FA 2002, in Schedule 8, paragraph 3,
(d)
in ITTOIA 2005, in Schedule 1, paragraphs 195, 196, 441, 527, 528 and
574(3),
10
(e)
in ITA 2007, in Schedule 1, paragraphs 325, 473(2), 508, 509 and 510,
(f)
in FA 2008—
(i)
in Schedule 2, paragraph 37, and
(ii)
in Schedule 3, paragraph 3,
(g)
in CTA 2009, in Schedule 1, paragraphs 172, 173, 477 and 478, and
15
(h)
in CTA 2010, in Schedule 1, paragraph 347.
Schedule 22
Section 66

Champions League final
Exemption from income tax
1     (1)
This paragraph applies if an employee or contractor of an overseas team
20
which competes in the 2011 Champions League final (“the final”) is neither
UK resident nor ordinarily UK resident at the time of the final.
      (2)
That person is not liable to income tax in respect of any income arising to the
person which is related to duties or services performed by the person in the
United Kingdom in connection with the final.
25
      (3)
This paragraph is subject to paragraphs 2 and 3.
      (4)
For the meaning of some expressions used in this paragraph, see paragraphs
5 and 6.
Exclusion of certain income
2
Paragraph 1(2) does not apply to income which arises as a result of—
30
(a)
a contract entered into after the final, or
(b)
any amendment, after the final, of a contract entered into before the
end of the final.
Tax avoidance
3     (1)
This paragraph applies if conditions A and B are met.
35
      (2)
Condition A is that arrangements have been made which, but for this
paragraph, would result in a person obtaining exemption under paragraph
1 in respect of particular income.

Finance Bill
Schedule 22 — Champions League final
167

      (3)
Condition B is that those arrangements have, or form part of arrangements
which have, as their main purpose, or one of their main purposes, the
obtaining of that exemption.
      (4)
Paragraph 1(2) does not apply to that income.
Disapplication of section 966 of ITA 2007
5
4
Section 966 of ITA 2007 (duty to deduct and account for sums representing
income tax) does not apply to any payment or transfer which gives rise to
income within paragraph 1(2).
Interpretation
5
References in this Schedule to income are to be read as references to—
10
(a)
income that would be employment income but for the provisions of
paragraph 1, and
(b)
profits of a trade, profession or vocation (including profits treated as
arising as a result of provision made by or under sections 13 and 14
of ITTOIA 2005).
15
6
In this Schedule—
“the 2011 Champions League final” means the final of the UEFA
Champions League 2010/2011 competition held in England in 2011;
“contractor”, in relation to an overseas team, means an individual who
is not an employee of the team but who performs services for the
20
team—
(a)
under the terms of a contract with the team, or
(b)
under the terms of a contract, or that individual’s
employment, with a company which is a member of the same
group of companies as the team (within the meaning given
25
by section 152 of CTA 2010);
“employee” and “employment” are to be read in accordance with
section 4 of ITEPA 2003;
“overseas team” means a football club which is not a member of the
Football Association, the Scottish Football Association, the Football
30
Association of Wales or the Irish Football Association.