Finance Bill

House of Commons

Session 2009 - 10
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Other Bills before Parliament

Finance Bill

Finance Bill
Part 3 — Other provisions
31

(2)
This subsection applies if—
(a)
the restricted private use condition is met in relation to the van
for the tax year, or
(b)
the van cannot in any circumstances emit CO2 by being driven
and the tax year is any of the tax years 2010-11 to 2014-15.”
5
(13)
In—
(a)
section 156(1) (reduction for periods when van unavailable), and
(b)
section 158(1) (reduction for payments for private use),

for “155(2)(a) or (b)” substitute “155(1)”.
(14)
In section 160 (van fuel benefit)—
10
(a)
in subsection (1), for “155(2)(b)” substitute “155(1)(b)”, and
(b)
omit subsection (4).
(15)
In section 170(1A) (power to amend section 155(2)(a) and (3)(b))—
(a)
in paragraph (a), for “155(2)(a)” substitute “155(1)(a)” and after
“employee” insert “or a zero-emission van”, and
15
(b)
in paragraph (b), for “155(3)(b)” substitute “155(1)(b)”.
(16)
In FA 2006, in section 59, omit subsection (7).
(17)
In FA 2009, in Schedule 28, omit paragraph 7.
(18)
The amendments made by subsections (2) to (16) have effect for the tax year
2010-11 and subsequent tax years.
20
(19)
The amendment made by subsection (17) is treated as always having had
effect.
(20)
The amendment of section 142 of ITEPA 2003 made by paragraph 8 of Schedule
28 to FA 2009 has effect for the tax year 2010-11 (as well as for the tax year 2011-
12 and subsequent tax years).
25
61
Cars with CO2 emissions figure
(1)
Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars, vans and related
benefits) is further amended as follows.
(2)
For section 139 substitute—
“139
Cars with a CO2 emissions figure: the appropriate percentage
30
(1)
The appropriate percentage for a year for a car with a CO2 emissions
figure depends on the car’s CO2 emissions figure.
(2)
If the car’s CO2 emissions figure is less than the relevant threshold for
the year, the appropriate percentage for the year is—
(a)
if the year is 2012-13, 2013-14 or 2014-15 and the car’s CO2
35
emissions figure for the year does not exceed 75 grams per
kilometre driven, 5%, and
(b)
otherwise, 10%.
(3)
If the car’s CO2 emissions figure is equal to the relevant threshold for
the year, the appropriate percentage for the year is 11% (“the threshold
40
percentage”).

Finance Bill
Part 3 — Other provisions
32

(4)
If the car’s CO2 emissions figure exceeds the relevant threshold for the
year, the appropriate percentage for the year is whichever is the lesser
of—
(a)
the threshold percentage increased by one percentage point for
each 5 grams per kilometre driven by which the CO2 emissions
5
figure exceeds the relevant threshold for the year, and
(b)
35%.
(5)
The relevant threshold is 100 grams per kilometre driven.
(6)
If the car’s CO2 emissions figure is not a multiple of 5, it is to be
rounded down to the nearest multiple of 5 for the purposes of
10
subsections (3) and (4)(a).
(7)
This section is subject to—
(a)
section 141 (diesel cars), and
(b)
any regulations made by the Treasury under section 170(4)
(power to reduce the appropriate percentage).”
15
(3)
In section 170 (Treasury orders and regulations varying various amounts)—
(a)
omit subsection (2A) (power to vary limit in section 139(3A)), and
(b)
in subsection (3)—
(i)
for ““lower” substitute ““relevant”,
(ii)
for “the Table in section 139(4)” substitute “section 139(5)”, and
20
(iii)
for “2006” substitute “2013”.
(4)
In consequence of the amendments made by subsections (2) and (3), omit—
(a)
in FA 2006, section 59,
(b)
in FA 2009, in Schedule 28, paragraphs 6, 9 and 10(1), and
(c)
in this Act, section 60(2) to (5).
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(5)
The amendments made by this section have effect for the tax year 2012-13 and
subsequent tax years.
62
Subsidised meals for employees: salary sacrifice etc
(1)
Section 317 of ITEPA 2003 (exemption from income tax in respect of provision
for employees by employer of free or subsidised meals) is amended as follows.
30
(2)
In subsection (1), for “C” substitute “D”.
(3)
After subsection (4) insert—
“(4A)
Condition D is that the provision is not pursuant to—
(a)
relevant salary sacrifice arrangements, or
(b)
relevant flexible remuneration arrangements.”
35
(4)
After subsection (5) insert—
“(5A)
In this section—
“relevant salary sacrifice arrangements” means arrangements
(whenever made, whether before or after the employment
began) under which the employee gives up the right to receive
40
an amount of general earnings or specific employment income
in return for the provision of free or subsidised meals;

Finance Bill
Part 3 — Other provisions
33

“relevant flexible remuneration arrangements” means
arrangements (whenever made, whether before or after the
employment began) under which the employee and employer
agree that the employee is to be provided with free or
subsidised meals rather than receive some other description of
5
employment income.”
(5)
The amendments made by this section have effect for the tax year 2011-12 and
subsequent tax years.
Corporation tax
63
Sale of lessors: election out of charge
10
Schedule 19 contains provision amending Chapter 3 of Part 9 of CTA 2010 (and
corresponding earlier provision) to introduce a system for electing out of the
charge on a qualifying change.
64
Accounting standards: loan relationships and derivative contracts
Schedule 20 contains provision conferring powers on the Treasury to make
15
regulations about cases where, in consequence of a change in accounting
standards in relation to loan relationships or derivative contracts, there is a
change in the way in which a company is permitted or required for accounting
purposes to recognise amounts.
Miscellaneous
20
65
Furnished holiday lettings
Schedule 21 contains provision for ending the special tax treatment of
furnished holiday lettings.
66
Champions League final
Schedule 22 contains provision exempting certain persons from income tax in
25
respect of certain income arising in connection with the 2011 Champions
League final.
67
FSCS intervention in relation to insurance contracts
(1)
The Treasury may by regulations make provision for and in connection with
the application of the relevant taxes in relation to circumstances in which there
30
is relevant intervention under the FSCS.
(2)
“Relevant intervention” means—
(a)
anything done under, or while seeking to make, arrangements for
securing continuity of insurance in connection with protected contracts
of insurance,
35
(b)
anything done as part of measures for safeguarding policyholders in
connection with protected contracts of insurance, or
(c)
the payment of compensation in connection with protected contracts of
insurance.

Finance Bill
Part 3 — Other provisions
34

(3)
In this section—
“the FSCS” means the Financial Services Compensation Scheme
(established under Part 15 of FISMA 2000);
“protected contracts of insurance” has the same meaning as in the
Handbook made by the Financial Services Authority under that Act as
5
it has effect from time to time.
(4)
The provision that may be made by regulations under this section includes
provision imposing any of the relevant taxes (as well as provisions for
exemptions or reliefs).
(5)
The relevant taxes are—
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(a)
income tax,
(b)
capital gains tax,
(c)
corporation tax,
(d)
inheritance tax,
(e)
stamp duty land tax,
15
(f)
stamp duty,
(g)
stamp duty reserve tax, and
(h)
insurance premium tax.
(6)
Regulations under this section may include provision having effect in relation
to any time before they are made if the provision does not increase any
20
person’s liability to tax.
(7)
The provision made by regulations under this section may be framed as
provision modifying, or applying with appropriate modifications, provisions
having effect in relation to protected contracts of insurance.
(8)
Regulations under this section may, in particular—
25
(a)
amend, repeal or revoke or otherwise modify any enactment or
instrument (whenever passed or made),
(b)
make different provision for different cases or otherwise for different
purposes, and
(c)
make incidental, consequential, supplementary or transitional
30
provision.
(9)
Regulations under this section are to be made by statutory instrument.
(10)
A statutory instrument containing regulations under this section is subject to
annulment in pursuance of a resolution of the House of Commons.
68
Stamp duty and SDRT: clearing houses
35
(1)
In sections 116(1)(b) and 117(1)(b) of FA 1991 (investment exchanges and
clearing houses: stamp duty and SDRT), for the words after “description) of
such an exchange” substitute “or clearing house, or a nominee (or nominee of
a prescribed description) of a member of such an exchange or clearing house,
and”.
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(2)
The amendments made by subsection (1) are treated as always having had
effect.