|
| |
|
(3) | After subsection (5) insert— |
| |
| |
“EEA-resident earnings” means section 15 or 27 earnings for a |
| |
| |
(a) | in which the employee is resident for tax purposes in an |
| 5 |
EEA State (other than the United Kingdom), and |
| |
(b) | which falls within a tax year in which the employee is |
| |
not ordinarily UK resident, |
| |
“resident for tax purposes” means liable, under the law of the EEA |
| |
State, to tax there by reason of domicile or residence, |
| 10 |
“section 15 earnings” means general earnings to which section 15 |
| |
| |
“section 27 earnings” means general earnings to which section 27 |
| |
| |
(4) | The amendments made by this section have effect for the tax year 2011-12 and |
| 15 |
subsequent tax years but only in relation to eligible periods beginning on or |
| |
| |
5 | Venture capital schemes |
| |
Schedule 2 contains provision about venture capital schemes. |
| |
6 | Enterprise management incentives |
| 20 |
(1) | Schedule 5 to ITEPA 2003 (enterprise management incentives) is amended as |
| |
| |
(2) | In paragraph 8 (qualifying companies: introduction), omit the “and” at the end |
| |
of the entry relating to “number of employees” and after the entry relating to |
| |
“trading activities” insert “, and |
| 25 |
UK permanent establishment (see paragraph 14A).” |
| |
(3) | After paragraph 14 insert— |
| |
“The UK permanent establishment requirement |
| |
14A (1) | The UK permanent establishment requirement is met if condition A |
| |
| 30 |
(2) | Condition A is that the company has a permanent establishment in |
| |
| |
| |
(a) | the company is a parent company, and |
| |
(b) | any other member of the group— |
| 35 |
(i) | meets the conditions in paragraph 14(1)(a) (trading |
| |
activities requirement), and |
| |
(ii) | has a permanent establishment in the United |
| |
| |
(4) | In paragraph 15(1) (meaning of “qualifying trade”), omit paragraph (a) |
| 40 |
(requirement that trade be carried on wholly or mainly in United Kingdom). |
| |
|
| |
|
| |
|
(5) | The amendments made by this section have effect in relation to options |
| |
granted on or after the day on which this Act is passed. |
| |
7 | Settlor to return excess repayment to trustees etc |
| |
(1) | Section 646 of ITTOIA 2005 (adjustments between settlor and trustees etc) is |
| |
| 5 |
(2) | For subsection (4) substitute— |
| |
“(4) | Subsection (5) applies if a settlor chargeable to tax under section 624 or |
| |
629 obtains a repayment by reason of the payment of the tax by— |
| |
| |
(b) | any other person to whom the income is payable by virtue of or |
| 10 |
as a result of the settlement.” |
| |
(3) | In subsection (5), for “excess” substitute “repayment”. |
| |
(4) | After subsection (6) insert— |
| |
“(6A) | For the purpose of subsection (5), the settlor may require an officer of |
| |
Revenue and Customs to provide the settlor with a certificate |
| 15 |
| |
(a) | that the settlor has obtained a repayment as mentioned in |
| |
| |
(b) | the amount of the repayment. |
| |
(6B) | A certificate provided under subsection (6A) is conclusive evidence of |
| 20 |
| |
(5) | In subsection (7), for “Any” substitute “Subject to subsections (6A) and (6B), |
| |
| |
(6) | The amendments made by this section have effect in relation to repayments of |
| |
tax for the tax year 2010-11 or any subsequent tax year. |
| 25 |
8 | Collection of income tax where sum deducted by payer |
| |
In Chapter 16 of Part 15 of ITA 2007, after section 963 (collection of income tax |
| |
on certain payments by other persons) insert— |
| |
“963A | Power to make regulations modifying section 963 |
| |
(1) | The Commissioners for Her Majesty’s Revenue and Customs may by |
| 30 |
regulations modify, replace or supplement any provision of section |
| |
| |
(2) | Regulations under this section may only be made for the purpose of |
| |
regulating the time at and manner in which persons making payments |
| |
within section 963(1)(a) or (b) are to account for and pay income tax |
| 35 |
which is to be collected from them in respect of those payments. |
| |
(3) | In particular, regulations under this section may, in relation to income |
| |
tax for which a person is liable to account— |
| |
(a) | modify any provision of Parts 2 to 6 of TMA 1970, or |
| |
(b) | apply any such provision with or without modifications. |
| 40 |
(4) | Regulations under this section may— |
| |
|
| |
|
| |
|
(a) | make different provision for different kinds of payer, |
| |
(b) | make different provision for different circumstances, and |
| |
(c) | authorise the Commissioners for Her Majesty’s Revenue and |
| |
Customs, if they think there are special circumstances justifying |
| |
it, to make special arrangements in relation to income tax for |
| 5 |
which a person is liable to account. |
| |
(5) | Regulations under this section may contain incidental, supplemental, |
| |
consequential and transitional provision and savings. |
| |
(6) | The Commissioners for Her Majesty’s Revenue and Customs must not |
| |
make any regulations under this section unless a draft of them has been |
| 10 |
laid before and approved by a resolution of the House of Commons. |
| |
(7) | References in this Act and in any other enactment to any of the |
| |
provisions of section 963(2) to (4) are to be read as references to those |
| |
provisions as modified, replaced or supplemented by provision made |
| |
by regulations under this section.” |
| 15 |
| |
Schedule 3 contains provision about company distributions. |
| |
10 | REITs: stock dividends |
| |
Schedule 4 contains provision about the issue of stock dividends by a company |
| |
UK REIT or the principal company of a group UK REIT. |
| 20 |
11 | Financing costs and income of group companies |
| |
| |
(a) | amendments of Part 7 of TIOPA 2010 (tax treatment of financing costs |
| |
and income of companies that are members of a group) and |
| |
consequential amendments of other provisions of that Act, and |
| 25 |
(b) | provision enabling a group, by election, to defer the application in |
| |
relation to it of certain amendments contained in the Schedule. |
| |
12 | Consortium claims for group relief |
| |
Schedule 6 contains provision about claims for group relief from corporation |
| |
tax made by companies which are members of, or owned by, a consortium. |
| 30 |
13 | R&D relief for SMEs: removal of intellectual property condition |
| |
(1) | Part 13 of CTA 2009 (additional relief for expenditure on research and |
| |
development) is amended as follows. |
| |
(2) | In section 1052 (qualifying expenditure on in-house direct R&D)— |
| |
(a) | in subsection (1), for “conditions A to E” substitute “conditions A, B, D |
| 35 |
| |
(b) | omit subsection (4) (condition C: intellectual property created as result |
| |
of research and development to which expenditure is attributable to be |
| |
| |
(3) | In section 1053 (qualifying expenditure on contracted out R&D)— |
| 40 |
|
| |
|
| |
|
(a) | in subsection (1)(b), for “conditions A to D” substitute “conditions A, C |
| |
| |
(b) | omit subsection (3) (condition B: same intellectual property condition). |
| |
(4) | In section 1071 (subsidised qualifying expenditure on in-house direct R&D)— |
| |
(a) | in subsection (1), for “conditions A to E” substitute “conditions A to C |
| 5 |
| |
(b) | omit subsection (5) (condition D: same intellectual property condition). |
| |
(5) | In section 1072 (subsidised qualifying expenditure on contracted out R&D)— |
| |
(a) | in subsection (1)(b), for “conditions A to F” substitute “conditions A to |
| |
| 10 |
(b) | omit subsection (6) (condition E: same intellectual property condition). |
| |
(6) | Omit section 1139 (meaning of “intellectual property”). |
| |
(7) | In Schedule 4 to CTA 2009 (index of defined expressions), omit the entry |
| |
relating to “intellectual property (in Part 13)”. |
| |
(8) | The amendments made by this section have effect in relation to expenditure |
| 15 |
incurred by a company in an accounting period ending on or after 9 December |
| |
| |
14 | Film tax credit: unused losses |
| |
(1) | Section 1201 of CTA 2009 (film tax credit claimable where company has |
| |
surrenderable loss) is amended as follows. |
| 20 |
| |
(a) | for “any period” substitute “an accounting period”, and |
| |
(b) | in paragraph (a), for “the company’s loss” substitute “the company’s |
| |
| |
(3) | After that subsection insert— |
| 25 |
“(2A) | The company’s available loss for an accounting period is given by—![equation: plus[char[L],times[char[(*i1i*)R],char[U],char[L]]]](missing.gif) |
| |
| |
L is the amount of the company’s loss for the period in the |
| |
| |
RUL is the amount of any relevant unused loss of the company. |
| 30 |
(2B) | The “relevant unused loss” of a company is so much of any available |
| |
loss of the company for the previous accounting period as has not |
| |
| |
(a) | surrendered under section 1202(1), or |
| |
(b) | carried forward under section 45 of CTA 2010 and set against |
| 35 |
profits of the separate film trade.” |
| |
(4) | In subsection (4), in the definition of “S”, for “surrendered in previous periods” |
| |
substitute “previously surrendered”. |
| |
(5) | After that subsection insert— |
| |
“(5) | If a period of account of the separate film trade does not coincide with |
| 40 |
an accounting period, any necessary apportionments are to be made by |
| |
reference to the number of days in the periods concerned.” |
| |
|
| |
|
| |
|
(6) | In section 1202(4) of that Act (company’s loss reduced by amount |
| |
surrendered), for “loss in the separate film trade” substitute “available loss”. |
| |
(7) | The amendments made by this section have effect in relation to accounting |
| |
periods ending on or after 9 December 2009. |
| |
(8) | In relation to those accounting periods the amendments, and corresponding |
| 5 |
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. |
| |
(2) | Section 444AB (transfer schemes: charge on transferor in respect of relevant |
| 10 |
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 |
| |
purpose vehicle, are not, immediately after their transfer, assets |
| 15 |
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 |
| |
long-term insurance fund if the transferee were an insurance |
| 20 |
company with permission under Part 4 of the Financial Services |
| |
and Markets Act 2000 to effect or carry out contracts of |
| |
| |
| (“non long-term fund transferred assets”).” |
| |
(5) | After that subsection insert— |
| 25 |
“(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 |
| |
which are transferred from the transferor to the transferee by |
| 30 |
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 |
| |
Act 2000 to effect or carry out contracts of insurance (“non- |
| 35 |
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”. |
| |
(7) | In subsection (5), for “relevant non-transferred assets;” substitute “non long- |
| 40 |
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 |
| |
non-transferred assets), for “relevant non-transferred assets” substitute “non |
| 45 |
|
| |
|
| |
|
long-term fund transferred assets”; and for the heading of that section |
| |
substitute “Non long-term fund transferred assets”. |
| |
(10) | After that section insert— |
| |
“444ABAA | Non-profit fund transferred assets |
| |
(1) | For the purposes of section 444AB the relevant amount in relation to |
| 5 |
assets that are non-profit fund transferred assets is—![equation: plus[times[char[F],char[V],char[A]],minus[id[plus[times[char[A],char[B],char[T],
char[O]],times[char[T],char[L]]]]]]](missing.gif) |
| |
| |
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 |
| 10 |
line 32 of Form 40 in the periodical return of the transferor for |
| |
the period of account of the transferor including the transfer |
| |
| |
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 |
| 15 |
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 |
| |
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 |
| 20 |
which would be so shown if one did. |
| |
(2) | In subsection (1) “non-profit fund transferred liabilities” means such of |
| |
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, |
| 25 |
liabilities of a non-profit fund of the transferor. |
| |
(3) | See section 444AA for the meaning of “the transfer date” in this |
| |
| |
(11) | The amendments made by this section have effect in relation to transfers of |
| |
business taking place on or after 22 June 2010. |
| 30 |
| |
16 | Capital gains tax private residence relief: adult placement carers |
| |
(1) | In section 223(8) of TCGA 1992 (amount of relief), before the “and” at the end |
| |
| |
“(aa) | section 225D (private residence of adult placement carer),”. |
| 35 |
(2) | In section 224 of that Act (amount of relief: further provisions), insert at the |
| |
| |
“(4) | This section is subject to section 225D (private residence of adult |
| |
| |
|
| |
|
| |
|
(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 |
| |
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”)— |
| 5 |
(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 |
| |
| |
(c) | in Northern Ireland, pursuant to arrangements made with an |
| 10 |
adult placement agency for the provision of accommodation for |
| |
| |
(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 |
| 15 |
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. |
| 20 |
| |
“adult placement agency” means an organisation or |
| |
| |
(a) | that arranges for the provision of care and support |
| |
(including accommodation) for persons in need, and |
| 25 |
(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— |
| 30 |
(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 |
| |
| |
(b) | in respect of which a requirement to register arises |
| 35 |
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 |
| |
| |
(4) | The amendments made by this section have effect in relation to disposals made |
| 40 |
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) |
| |
| 45 |
|
| |
|