Finance (No.2) Bill

House of Commons

Session 2010 - 11
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Other Bills before Parliament

Finance (No.2) Bill

Finance (No.2) Bill
Part 1 — Income tax, corporation tax and capital gains tax
12

(8)
In relation to those accounting periods the amendments, and corresponding
amendments of paragraphs 6 and 11 of Schedule 5 to FA 2006, are to be treated
as always having had effect.
15
Insurance business transfer schemes: non-profit fund transferred assets
(1)
Chapter 1 of Part 12 of ICTA (insurance companies etc) is amended as follows.
5
(2)
Section 444AB (transfer schemes: charge on transferor in respect of relevant
non-transferred assets and retained assets) is amended as follows.
(3)
In subsection (1)(b), for “or condition” substitute “, AA or”.
(4)
In subsection (2), for the words after “business transfer” substitute “scheme—
(a)
if the transferee is an insurance company or an insurance special
10
purpose vehicle, are not, immediately after their transfer, assets
of the transferee’s long-term insurance fund, or
(b)
if the transferee is not an insurance company, an insurance
special purpose vehicle or a friendly society, would not,
immediately after their transfer, be assets of the transferee’s
15
long-term insurance fund if the transferee were an insurance
company with permission under Part 4 of the Financial Services
and Markets Act 2000 to effect or carry out contracts of
insurance,

(“non long-term fund transferred assets”).”
20
(5)
After that subsection insert—
“(2A)
Condition AA is met if—
(a)
the transferee is not an insurance company, an insurance special
purpose vehicle or a friendly society, and
(b)
any of the assets of the transferor’s long-term insurance fund
25
which are transferred from the transferor to the transferee by
the insurance business transfer scheme would, immediately
after their transfer, be assets of a non-profit fund of the
transferee if the transferee were an insurance company with
permission under Part 4 of the Financial Services and Markets
30
Act 2000 to effect or carry out contracts of insurance (“non-
profit fund transferred assets”).”
(6)
In subsection (4), for “relevant non-transferred assets or retained assets (or
both)” substitute “non long-term fund transferred assets, non-profit fund
transferred assets or retained assets”.
35
(7)
In subsection (5), for “relevant non-transferred assets;” substitute “non long-
term fund transferred assets, section 444ABAA makes provision for its
calculation in relation to non-profit fund transferred assets”.
(8)
In subsection (8), for “paragraph (2)(a)” substitute “subsection (2)(a) and (b)”.
(9)
In subsection (1) of section 444ABA (relevant amount in relation to relevant
40
non-transferred assets), for “relevant non-transferred assets” substitute “non
long-term fund transferred assets”; and for the heading of that section
substitute “Non long-term fund transferred assets”.

Finance (No.2) Bill
Part 1 — Income tax, corporation tax and capital gains tax
13

(10)
After that section insert—
“444ABAA
Non-profit fund transferred assets
(1)
For the purposes of section 444AB the relevant amount in relation to
assets that are non-profit fund transferred assets is—
where—
5
FVA is the fair value of the assets on the transfer date,
ABTO is any amount brought into account in respect of the assets
as a business transfer-out and shown (or treated as shown) in
line 32 of Form 40 in the periodical return of the transferor for
the period of account of the transferor including the transfer
10
date, and
TL is the amount of any non-profit fund transferred liabilities
which are shown (or treated as shown) in any of lines 17, 21 to
23 and 31 to 38, but not in line 61, in Form 14 in the periodical
return for the period of account of the transferor ending (or
15
treated as ending by section 444AA) immediately before the
transfer date or, if there is no period of account of the transferor
so ending (or treated as so ending), the amount of any liabilities
which would be so shown if one did.
(2)
In subsection (1) “non-profit fund transferred liabilities” means such of
20
the liabilities of the transferor’s long-term insurance fund as are
transferred from the transferor to the transferee by the insurance
business transfer scheme and were, immediately before their transfer,
liabilities of a non-profit fund of the transferor.
(3)
See section 444AA for the meaning of “the transfer date” in this
25
section.”
(11)
The amendments made by this section have effect in relation to transfers of
business taking place on or after 22 June 2010.
Chargeable gains
16
Capital gains tax private residence relief: adult placement carers
30
(1)
In section 223(8) of TCGA 1992 (amount of relief), before the “and” at the end
of paragraph (a) insert—
“(aa)
section 225D (private residence of adult placement carer),”.
(2)
In section 224 of that Act (amount of relief: further provisions), insert at the
end—
35
“(4)
This section is subject to section 225D (private residence of adult
placement carer).”
(3)
In that Act, after section 225C insert—
“225D
Private residence of adult placement carer
(1)
This section applies where a gain to which section 222 applies accrues
40
to an individual (“A”) and, at any time during A’s period of ownership,
part of the dwelling-house was occupied by another person (“B”)—

Finance (No.2) Bill
Part 1 — Income tax, corporation tax and capital gains tax
14

(a)
in England and Wales, pursuant to an adult placement scheme,
(b)
in Scotland, pursuant to arrangements which constitute or form
part of an adult placement service involving the provision of
accommodation for B, or
(c)
in Northern Ireland, pursuant to arrangements made with an
5
adult placement agency for the provision of accommodation for
B.
(2)
For the purposes of this Part, in determining the periods during which
the dwelling-house, or any part of the dwelling-house, was A’s only or
main residence, B’s occupation of part of the dwelling-house pursuant
10
to the scheme or arrangement is to be disregarded.
(3)
For the purposes of section 224, the occupation of the part of the
dwelling-house by B pursuant to the scheme or arrangement does not
amount to the use of that part of the dwelling-house by A exclusively
for the purpose of a trade, business, profession or vocation.
15
(4)
In this section—
“adult placement agency” means an organisation or
undertaking—
(a)
that arranges for the provision of care and support
(including accommodation) for persons in need, and
20
(b)
in respect of which a requirement to register arises
under Article 12 of the Health and Personal Social
Services (Quality, Improvement and Regulation)
(Northern Ireland) Order 2003,
“adult placement scheme” means a scheme—
25
(a)
under which an individual agrees with the person
carrying on the scheme to provide care and support
(including accommodation) to an adult who is in need of
it, and
(b)
in respect of which a requirement to register arises
30
under section 11 of the Care Standards Act 2000, and
“adult placement service” has the meaning given by paragraph 11
of schedule 12 to the Public Services Reform (Scotland) Act
2010.”
(4)
The amendments made by this section have effect in relation to disposals made
35
on or after 9 December 2009.
(5)
Until the coming into force of paragraph 11 of schedule 12 to the Public
Services Reform (Scotland) Act 2010, the reference to that provision in section
225D(4) of TCGA 1992 is to section 2(16) of the Regulation of Care (Scotland)
Act 2001.
40
17
Reinvestment of ring fence assets: acquisition by member of group
(1)
After section 198G of TCGA 1992 insert—
“198H
Acquisition by member of same group
Section 198A or 198B is to apply where—
(a)
the disposal is by a company which, at the time of the disposal,
45
is a member of a group of companies (within the meaning given
in section 170),

Finance (No.2) Bill
Part 2 — Other taxes and duties
15

(b)
the acquisition is by another company which, at the time of the
acquisition, is a member of the same group, and
(c)
the claim under that section is made by both companies,
as if both companies were the same person.”
(2)
The amendment made by this section has effect in relation to disposals made
5
on or after 22 April 2009 (whether the acquisition takes place before, on or after
that date).
Capital allowances
18
First-year allowances on zero-emission goods vehicles
Schedule 7 contains provision about first-year allowances on zero-emission
10
goods vehicles.
Part 2
Other taxes and duties
Value added tax
19 Non-business use of business assets etc
15
20 Supplies of gas, heat or cooling
21 Supplies of aircraft etc
22 Postal services etc
Tobacco products duty
19
Long cigarettes
20
(1)
In section 4 of TPDA 1979 (calculation of duty on long cigarettes)—
(a)
for “than 9 cm.” substitute “than 8 cm.”, and
(b)
for “each 9 cm. or part thereof” substitute “the first 8 cm. of it, each 3 cm.
portion of the remainder of it (if any) and the remaining portion of it (if
any)”,
25

and, in the heading, for “9 cm.” substitute “8 cm.”.
(2)
The amendments made by this section come into force on 1 January 2011.
Landfill tax
20
Landfill tax: criteria for determining material to be subject to lower rate
(1)
In section 42 of FA 1996 (amount of landfill tax), for subsection (4) substitute—
30
“(4)
The Treasury must—
(a)
set criteria to be considered in determining from time to time
what material is to be listed,
(b)
keep those criteria under review, and
(c)
revise them whenever they consider they should be revised.
35

Finance (No.2) Bill
Part 3 — Administration
16

(5)
The Commissioners must publish the criteria (and any revised criteria)
set by the Treasury.
(6)
In determining from time to time what material is to be listed, the
Treasury must have regard to—
(a)
the criteria (or revised criteria) published under subsection (5),
5
and
(b)
any other factors they consider relevant.”
(2)
The amendment made by this section has effect in relation to disposals made,
or treated as made, on or after 1 April 2011.
Part 3
10
Administration
21
Interest: corporation tax and petroleum revenue tax
(1)
Schedule 9 contains amendments of FA 2009 relating to late payment interest
and repayment interest on amounts of corporation tax and petroleum revenue
tax.
15
(2)
That Schedule comes into force on such day as the Treasury may by order
appoint.
(3)
An order under subsection (2)—
(a)
may commence a provision generally or only for specified purposes,
and
20
(b)
may appoint different days for different provisions or for different
purposes.
(4)
The Treasury may by order make any incidental, supplemental, consequential,
transitional, transitory or saving provision which appears appropriate in
consequence of, or otherwise in connection with, that Schedule.
25
(5)
An order under subsection (4) may—
(a)
make different provision for different purposes, and
(b)
make provision amending, repealing or revoking any Act or
subordinate legislation whenever passed or made (including this Act
and any Act amended by it).
30
(6)
An order under this section is to be made by statutory instrument.
(7)
A statutory instrument containing an order under subsection (4) which
includes provision amending or repealing any provision of an Act is subject to
annulment in pursuance of a resolution of the House of Commons.
22
Penalties for failure to make returns etc
35
(1)
Schedule 10 contains provision amending Schedule 55 to FA 2009 (penalties in
respect of failures to make returns and other documents relating to liabilities
for tax).
(2)
Schedule 10 comes into force on such day as the Treasury may by order
appoint.
40
(3)
An order under subsection (2)—

Finance (No.2) Bill
Part 3 — Administration
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(a)
may commence a provision generally or only for specified purposes,
and
(b)
may appoint different days for different provisions or for different
purposes.
(4)
The Treasury may by order make any incidental, supplemental, consequential,
5
transitional, transitory or saving provision which appears appropriate in
consequence of, or otherwise in connection with, that Schedule.
(5)
An order under subsection (4) may—
(a)
make different provision for different purposes, and
(b)
make provision amending, repealing or revoking any Act or
10
subordinate legislation whenever passed or made (including this Act
and any Act amended by it).
(6)
An order under this section is to be made by statutory instrument.
(7)
A statutory instrument containing an order under subsection (4) which
includes provision amending or repealing any provision of an Act is subject to
15
annulment in pursuance of a resolution of the House of Commons.
23
Penalties for failure to pay tax
(1)
Schedule 11 contains provision amending Schedule 56 to FA 2009 (penalties in
respect of failures to comply with obligations to pay tax).
(2)
Schedule 11 comes into force on such day as the Treasury may by order
20
appoint.
(3)
An order under subsection (2)—
(a)
may commence a provision generally or only for specified purposes,
and
(b)
may appoint different days for different provisions or for different
25
purposes.
(4)
The Treasury may by order make any incidental, supplemental, consequential,
transitional, transitory or saving provision which appears appropriate in
consequence of, or otherwise in connection with, that Schedule.
(5)
An order under subsection (4) may—
30
(a)
make different provision for different purposes, and
(b)
make provision amending, repealing or revoking any Act or
subordinate legislation whenever passed or made (including this Act
and any Act amended by it).
(6)
An order under this section is to be made by statutory instrument.
35
(7)
A statutory instrument containing an order under subsection (4) which
includes provision amending or repealing any provision of an Act is subject to
annulment in pursuance of a resolution of the House of Commons.
24
Recovery of overpaid stamp duty land tax and petroleum revenue tax etc
(1)
Schedule 12 contains—
40
(a)
provision amending Part 4 of FA 2003 (stamp duty land tax) in respect
of the recovery of overpaid tax etc, and

Finance (No.2) Bill
Part 4 — Miscellaneous provisions
18

(b)
provision amending Schedule 2 to OTA 1975 (management and
collection of petroleum revenue tax) in respect of the recovery of
overpaid tax etc.
(2)
The amendments made by Schedule 12 have effect in relation to claims made
on or after 1 April 2011.
5
(3)
The Treasury may by order make any incidental, supplemental, consequential,
transitional, transitory or saving provision which appears appropriate in
consequence of, or otherwise in connection with, that Schedule.
(4)
An order under this section may—
(a)
make different provision for different purposes, and
10
(b)
make provision amending, repealing or revoking any Act or
subordinate legislation whenever passed or made (including this Act
and any Act amended by it).
(5)
An order under this section is to be made by statutory instrument.
(6)
A statutory instrument containing an order under this section which includes
15
provision amending or repealing any provision of an Act is subject to
annulment in pursuance of a resolution of the House of Commons.
25
Excise duties: compliance checks
(1)
Schedule 13 contains provision about information and inspection powers,
record-keeping and time limits for assessments and claims involving excise
20
duties.
(2)
The amendments made by that Schedule come into force on such day as the
Treasury may by order made by statutory instrument appoint.
(3)
An order under subsection (2)—
(a)
may appoint different days for different provisions or for different
25
purposes, and
(b)
may include transitional provision and savings.
Part 4
Miscellaneous provisions
26
Pension scheme under section 67 of Pensions Act 2008
30
(1)
A pension scheme established under section 67 of the Pensions Act 2008 is to
be regarded as an occupational pension scheme for the purposes of Part 4 of FA
2004.
(2)
In section 67 of the Pensions Act 2008 (duty to establish pension scheme) —
(a)
omit subsection (3), and
35
(b)
in subsection (4), for “that Chapter” substitute “Chapter 2 of Part 4 of
the Finance Act 2004”.