Finance (No.2) Bill

House of Commons

Session 2010 - 11
Internet Publications
Other Bills before Parliament

Finance (No.2) Bill

Finance (No.2) Bill
Part 1 — Income tax, corporation tax and capital gains tax
1

A
Bill
To
grant certain duties, to alter other duties, and to amend the law relating to the
National Debt and the Public Revenue, and to make further provision in
connection with finance.
Most Gracious Sovereign
WE, Your Majesty’s most dutiful and loyal subjects, the Commons of the
United Kingdom in Parliament assembled, towards raising the necessary
supplies to defray Your Majesty’s public expenses, and making an addition to the
public revenue, have freely and voluntarily resolved to give and to grant unto Your
Majesty the several duties hereinafter mentioned; and do therefore most humbly
beseech Your Majesty that it may be enacted, and be it enacted by the Queen’s most
Excellent Majesty, by and with the advice and consent of the Lords Spiritual and
Temporal, and Commons, in this present Parliament assembled, and by the authority
of the same, as follows:—
Part 1
Income tax, corporation tax and capital gains tax
Income tax and corporation tax
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Shared lives care
Schedule 1 contains provision extending foster-care relief to other forms of
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care.
2
Payments to special guardians and those in receipt of residence orders
(1)
Part 6 of ITTOIA 2005 (exempt income) is amended as follows.
(2)
In section 744 (payments to adopters: England and Wales)—
(a)
the existing provision becomes subsection (1),
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Finance (No.2) Bill
Part 1 — Income tax, corporation tax and capital gains tax
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(b)
in that subsection, omit the “and” before paragraph (e) and after that
paragraph insert—
“(f)
payments made under regulations under section 14F of
the Children Act 1989 (special guardianship support
services) to a person appointed as a child’s special
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guardian,
(g)
payments made to a person under section 17 of that Act
(provision of services for children in need, their families
and others) by reason of that person being a person in
whose favour a residence order with respect to a child is
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in force,
(h)
payments made to a person, in respect of a child, under
paragraph 15 of Schedule 1 to that Act (local authority
contribution to child’s maintenance to recipients in
whose favour residence order is in force), and
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(i)
payments made in accordance with—
(i)
an order under that Schedule (orders for
financial relief against parents etc), or
(ii)
a maintenance agreement,

for the benefit of a child, to a person appointed as the
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child’s special guardian or a person in whose favour a
residence order with respect to the child is in force.”,
(c)
after that subsection insert—
“(2)
But a payment is not within subsection (1)(f), (g), (h) or (i) if—
(a)
it is made to an excluded relative of the child,
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(b)
it is made to a person appointed as the child’s special
guardian and an excluded relative is also appointed as
the child’s special guardian, or
(c)
it is made to a person in whose favour a residence order
is in force with respect to the child and that order is also
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in favour of an excluded relative.
(3)
In this section—
“excluded relative”, in relation to a child, means—
(a)
a parent of the child, or
(b)
a person who is, or has been, the husband or wife
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or civil partner of a parent of the child;
“maintenance agreement” has the meaning given by
paragraph 10(1) of Schedule 1 to the Children Act 1989;
“residence order” has the meaning given by section 8 of
that Act.”, and
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(d)
in the heading, after “adopters” insert “, etc”.
(3)
In section 745 (payments to adopters: Scotland)—
(a)
the existing provision becomes subsection (1),
(b)
in that subsection, omit the “and” before paragraph (d) and after that
paragraph insert—
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“(e)
payments made to a person under section 50 of the
Children Act 1975, or section 22 of the Children
(Scotland) Act 1995, by reason of that person being a
person with whom a child is to live by virtue of a
residence order, and
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Finance (No.2) Bill
Part 1 — Income tax, corporation tax and capital gains tax
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(f)
payments of aliment made—
(i)
in accordance with an award of aliment under
the Family Law (Scotland) Act 1985, or
(ii)
under an agreement (within the meaning of
section 7(5) of that Act),
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for the benefit of a child, to a person in whose favour a
residence order with respect to the child is in force.”,
(c)
after that subsection insert—
“(2)
A payment is not within subsection (1)(e) or (f) if—
(a)
it is made to an excluded relative of the child, or
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(b)
it is made to a person in whose favour a residence order
is in force with respect to the child and that order is also
in favour of an excluded relative.
(3)
In this section—
“excluded relative”, in relation to a child, means—
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(a)
a parent of the child, or
(b)
a person who is, or has been, the husband or wife
or civil partner of a parent of the child;
“residence order” has the meaning given by section
11(2)(c) of the Children (Scotland) Act 1995.”, and
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(d)
in the heading, after “adopters” insert “, etc”.
(4)
In section 746 (payments to adopters: Northern Ireland)—
(a)
the existing provision becomes subsection (1),
(b)
in that subsection, omit the “and” before paragraph (c) and after that
paragraph insert—
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“(d)
payments made to a person under Article 18 of the
Children (Northern Ireland) Order 1995 (S.I. 1995/755
(NI 2)) (general duty of authority to provide personal
social services) by reason of that person being a person
in whose favour a residence order with respect to a child
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is in force,
(e)
payments made to a person, in respect of a child, under
paragraph 17 of Schedule 1 to that Order (local authority
contribution to child’s maintenance to recipients in
whose favour residence order is in force), and
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(f)
payments made in accordance with—
(i)
an order under that Schedule (orders for
financial relief against parents etc), or
(ii)
a maintenance agreement,

for the benefit of a child, to a person in whose favour a
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residence order with respect to the child is in force.”,
(c)
after that subsection insert—
“(2)
But a payment is not within subsection (1)(d), (e) or (f) if—
(a)
it is made to an excluded relative of the child, or
(b)
it is made to a person in whose favour a residence order
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is in force with respect to the child and that order is also
in favour of an excluded relative.
(3)
In this section—

Finance (No.2) Bill
Part 1 — Income tax, corporation tax and capital gains tax
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“excluded relative”, in relation to a child, means—
(a)
a parent of the child, or
(b)
a person who is, or has been, the husband or wife
or civil partner of a parent of the child;
“maintenance agreement” has the meaning given by
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paragraph 12 of Schedule 1 to the Children (Northern
Ireland) Order 1995;
“residence order” has the meaning given by Article 8 of
that Order.”, and
(d)
in the heading, after “adopters” insert “, etc”.
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(5)
The amendments made by this section have effect in relation to the tax year
2010-11 and subsequent tax years.
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Qualifying care relief: capital allowances
(1)
Chapter 2 of Part 7 of ITTOIA 2005 (qualifying care relief) is amended as
follows.
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(2)
In section 824 (capital allowances: introduction), after subsection (2) insert—
“(2A)
In this group of sections, in relation to a relevant individual—
(a)
“the care business” means the provision of qualifying care by
the individual,
(b)
“care business expenditure” means qualifying expenditure
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incurred on the provision of plant or machinery wholly or
partly for the care business,
(c)
“care business pool” means a pool of care business expenditure
(even if the balance for the time being is nil), and
(d)
a reference to “another activity” is to a qualifying activity
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carried on by the individual other than the care business.
(2B)
In this group of sections, plant or machinery is referred to as being “in”
a pool if qualifying expenditure incurred on its provision has been
allocated at any time to that pool.”
(3)
For section 825 substitute—
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“825
Unallocated capital expenditure
(1)
This section applies if—
(a)
at the beginning of a relevant chargeable period of a relevant
individual, there is care business expenditure which has not
been allocated to a care business pool,
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(b)
the individual is entitled under CAA 2001 to allocate the
expenditure, or a part of it, to a care business pool for that
period, and
(c)
the previous chargeable period was not a relevant chargeable
period.
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(2)
So much of the expenditure as the individual is entitled to allocate to a
care business pool for that period is to be treated for the purposes of
CAA 2001 as allocated to the appropriate kind of care business pool for
that period (whether or not any of it is actually so allocated).
(3)
For the different kinds of pool, see section 54 of CAA 2001.
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