|
| |
|
27 | Tainted charity donations |
| |
Schedule 3 contains provision about gifts and other disposals to charities and |
| |
community amateur sports clubs. |
| |
28 | Amounts not fully recognised for accounting purposes |
| |
Schedule 4 contains amendments of Parts 5 and 7 of CTA 2009 (loan |
| 5 |
relationships and derivative contracts) relating to cases where amounts are not |
| |
fully recognised for accounting purposes. |
| |
29 | Loan relationships involving connected debtor and creditor |
| |
(1) | In section 418 of CTA 2009 (loan relationships involving connected debtor and |
| |
creditor where debits exceed credits), in subsection (2), after “creditor |
| 10 |
company” insert “or any company connected with it”. |
| |
(2) | In section 419 of that Act (section 418: supplementary), after subsection (6) |
| |
| |
“(6A) | References in section 418 to a company bringing debits or credits into |
| |
account under or for the purposes of this Part include bringing debits |
| 15 |
or credits into account under or for the purposes of this Part in |
| |
determining the chargeable profits of the company (or in determining |
| |
that there were no such profits) for the purposes of Chapter 4 of Part 17 |
| |
of ICTA (controlled foreign companies).” |
| |
(3) | The amendments made by this section have effect in relation to loan |
| 20 |
relationships to which a company is a party (or to which it is treated as a party |
| |
under section 418(6A) of CTA 2009) on or after 6 December 2010. |
| |
(4) | But amounts are to continue to be brought into account for the purposes of Part |
| |
5 of CTA 2009 disregarding those amendments if the amounts relate to a time |
| |
| 25 |
30 | Group mismatch schemes |
| |
Schedule 5 contains provision about group mismatch schemes. |
| |
31 | Company ceasing to be member of group: availability of relief |
| |
(1) | Section 179 of TCGA 1992 (company ceasing to be member of group: post- |
| |
appointed day cases) is amended as follows. |
| 30 |
| |
(a) | for “Where” substitute “Subsection (2AA) applies where”, and |
| |
(b) | for paragraphs (c) and (d) and the words following those paragraphs |
| |
| |
“(c) | at the time company A ceases to be a member of the first |
| 35 |
group there is a connection between that group and the |
| |
group of companies of which company A becomes a |
| |
member on leaving the first group (“the second group”), |
| |
| |
| 40 |
(i) | company A ceases to be a member of the second |
| |
| |
|
| |
|
| |
|
(ii) | (before sub-paragraph (i) applies) there ceases to |
| |
be a connection between the two groups.” |
| |
(3) | After that subsection insert— |
| |
“(2AA) | Where this subsection applies— |
| |
(a) | in a case within subsection (2A)(d)(ii), for the purposes of this |
| 5 |
section (other than subsection (2A)) as it applies as respects the |
| |
acquisition, company A and any associated company are to be |
| |
treated as having ceased to be members of the second group at |
| |
the time the connection between the two groups ceases, |
| |
(b) | subsection (1) has effect in relation to company A’s ceasing to be |
| 10 |
a member of the second group as if it had been the second group |
| |
of which both companies had been members at the time of the |
| |
| |
(c) | nothing in subsection (2) prevents subsection (1) applying by |
| |
virtue of paragraph (b).” |
| 15 |
(4) | In subsection (2B) for “if, at the time when company A ceases to be a member |
| |
of the second group” substitute “at a particular time if, at that time,”. |
| |
(5) | The amendments made by this section have effect in relation to a company in |
| |
any case in which the time of the company’s ceasing to be a member of the first |
| |
group is on or after 23 March 2011. |
| 20 |
| |
Schedule 6 contains provision about leasing businesses carried on by |
| |
companies alone or in partnership. |
| |
33 | Long funding finance leases |
| |
(1) | Chapter 6 of Part 2 of CAA 2001 (which includes provision about lessees under |
| 25 |
long funding leases) is amended as follows. |
| |
(2) | In section 70C (long funding finance lease: amount of capital expenditure), |
| |
after subsection (4) insert— |
| |
“(4A) | But where the minimum lease payments include a relievable amount, |
| |
the present value of that amount must be excluded in determining the |
| 30 |
| |
(4B) | An amount (“amount X”) is a relievable amount if— |
| |
(a) | an arrangement is in place under which all or part of any |
| |
residual amount (as defined in section 70YE) is guaranteed by |
| |
the lessee or a person connected with the lessee, |
| 35 |
(b) | amount X is within the minimum lease payments because of |
| |
that arrangement (see subsection (1)(a) of that section), and |
| |
(c) | it is reasonable to assume that, were amount X to be incurred |
| |
under the arrangement, relief would be available as a result |
| |
(beyond relief, by virtue of this section and section 70E, because |
| 40 |
amount X is within those minimum lease payments). |
| |
(4C) | In deciding for the purposes of subsection (4B)(c) whether relief would |
| |
be available as a result, no account is to be taken of— |
| |
|
| |
|
| |
|
(a) | any part of the arrangement other than the part by virtue of |
| |
which all or part of the residual amount is guaranteed, or |
| |
(b) | any other arrangement connected with the arrangement or |
| |
forming part of a set of arrangements that includes the |
| |
| 5 |
(3) | In section 70D (long funding finance lease: additional expenditure: allowances |
| |
for lessee), after subsection (1) insert— |
| |
“(1A) | Any increase attributable to a relievable amount is to be ignored for the |
| |
purposes of subsection (1)(d). |
| |
(1B) | Subsections (4B) and (4C) of section 70C apply (with any necessary |
| 10 |
modifications) for the purposes of this section as for the purposes of |
| |
| |
(4) | In section 70E (disposal events and disposal values), in subsection (2C)(b), after |
| |
“section 70YE)” insert “other than any relievable payment”. |
| |
(5) | In that section, after subsection (2D) insert— |
| 15 |
“(2DA) | A payment (“payment X”) is a relievable payment if— |
| |
(a) | an arrangement is in place under which all or part of any |
| |
residual amount (as defined in section 70YE) is guaranteed by |
| |
the lessee or a person connected with the lessee, |
| |
(b) | payment X is within the minimum lease payments because of |
| 20 |
that arrangement (see subsection (1)(a) of that section), and |
| |
(c) | it is reasonable to assume that relief would be available as a |
| |
result of making payment X (beyond relief, by virtue of section |
| |
70C or 70D and this section, because payment X is within those |
| |
| 25 |
(2DB) | For the purposes of subsection (2DA)(c)— |
| |
(a) | “relief” has the meaning given in section 70C, and |
| |
(b) | subsection (4C) of that section applies as it applies for the |
| |
purposes of subsection (4B)(c) of that section.” |
| |
(6) | The amendments made by subsections (2) and (3) have effect in cases where the |
| 30 |
arrangement is entered into on or after 9 March 2011. |
| |
(7) | The amendments made by subsections (4) and (5) have effect in relation to |
| |
payments made on or after 9 March 2011 (regardless of when the arrangement |
| |
| |
| 35 |
Schedule 7 contains provision about investment companies. |
| |
| |
35 | Reduction in childcare relief for higher earners |
| |
Schedule 8 contains provision for reducing childcare relief for higher earners. |
| |
|
| |
|
| |
|
36 | Childcare: salary sacrifice etc and the national minimum wage |
| |
(1) | In section 270A of ITEPA 2003 (limited exemption for qualifying childcare |
| |
vouchers), after subsection (5) insert— |
| |
“(5A) | Where the scheme under which the vouchers are provided involves— |
| |
(a) | relevant salary sacrifice arrangements, or |
| 5 |
(b) | relevant flexible remuneration arrangements, |
| |
| Condition C is not prevented from being met by reason only that the |
| |
scheme is not open to relevant low-paid employees. |
| |
| |
“relevant salary sacrifice arrangements” means arrangements |
| 10 |
(whenever made) under which the employees for whom the |
| |
vouchers are provided give up the right to receive an amount of |
| |
general earnings or specific employment income in return for |
| |
the provision of the vouchers; |
| |
“relevant flexible remuneration arrangements” means |
| 15 |
arrangements (whenever made) under which the employees for |
| |
whom the vouchers are provided agree with the employer that |
| |
they are to be provided with the vouchers rather than receive |
| |
some other description of employment income; |
| |
“relevant low-paid employees” means any of the employer’s |
| 20 |
employees who are remunerated by the employer at a rate such |
| |
that, if the relevant salary sacrifice arrangements or relevant |
| |
flexible remuneration arrangements applied to them, the rate at |
| |
which they would then be so remunerated would be likely to be |
| |
lower than the national minimum wage.” |
| 25 |
(2) | In section 318A of that Act (exemption for childcare other than employer- |
| |
provided care), after subsection (5) insert— |
| |
“(5A) | Where the scheme under which the care is provided involves— |
| |
(a) | relevant salary sacrifice arrangements, or |
| |
(b) | relevant flexible remuneration arrangements, |
| 30 |
| Condition C is not prevented from being met by reason only that the |
| |
scheme is not open to relevant low-paid employees. |
| |
| |
“relevant salary sacrifice arrangements” means arrangements |
| |
(whenever made) under which the employees for whom the |
| 35 |
care is provided give up the right to receive an amount of |
| |
general earnings or specific employment income in return for |
| |
the provision of the care; |
| |
“relevant flexible remuneration arrangements” means |
| |
arrangements (whenever made) under which the employees for |
| 40 |
whom the care is provided agree with the employer that they |
| |
are to be provided with the care rather than receive some other |
| |
description of employment income; |
| |
“relevant low-paid employees” means any of the employer’s |
| |
employees who are remunerated by the employer at a rate such |
| 45 |
that, if the relevant salary sacrifice arrangements or relevant |
| |
flexible remuneration arrangements applied to them, the rate at |
| |
which they would then be so remunerated would be likely to be |
| |
lower than the national minimum wage.” |
| |
|
| |
|
| |
|
(3) | The amendments made by this section have effect for the tax year 2005-06 and |
| |
| |
37 | Accommodation expenses of MPs |
| |
(1) | In section 292 of ITEPA 2003 (accommodation expenses of MPs), after |
| |
| 5 |
“(5) | The reference in subsection (1) to a payment made to a member of the |
| |
House of Commons under section 5(1) of the Parliamentary Standards |
| |
Act 2009 includes a payment made under that section to another person |
| |
at the direction of a member (see section 6(7) of that Act).” |
| |
(2) | The amendment made by this section has effect in relation to payments made |
| 10 |
under section 5(1) of the Parliamentary Standards Act 2009 on or after 1 |
| |
| |
38 | Experts seconded to European Union bodies |
| |
(1) | In Chapter 8 of Part 4 of ITEPA 2003 (employment income: special kinds of |
| |
employment), after section 304 insert— |
| 15 |
“304A | Experts seconded to other European Union bodies |
| |
(1) | No liability to income tax arises in respect of any subsistence |
| |
allowances paid by a relevant EU body to persons who, because of their |
| |
expertise in matters relating to the subject matter of the functions of the |
| |
relevant EU body, have been seconded to the body by their employers. |
| 20 |
(2) | Each of the following is a “relevant EU body”— |
| |
(a) | the European Medicines Agency, established as the European |
| |
Agency for the Evaluation of Medicinal Products by Council |
| |
Regulation (EEC) No 2309/93 of 22 July 1993, |
| |
(b) | the European Police College, established by Council Decision of |
| 25 |
20 September 2005 (2005/681/JHA), |
| |
(c) | the European Banking Authority, established by Regulation |
| |
(EU) No 1093/2010 of 24 November 2010, and |
| |
(d) | any other body established by an EU instrument which is |
| |
designated as a relevant EU body for the purposes of this |
| 30 |
section by an order made by the Treasury.” |
| |
(2) | The amendment made by this section has effect in relation to subsistence |
| |
allowances paid in respect of periods beginning on or after 1 January 2011. |
| |
39 | Employment income: exemption for fees relating to monitoring schemes |
| |
(1) | In Chapter 11 of Part 4 of ITEPA 2003 (employment income: miscellaneous |
| 35 |
exemptions), after section 326 insert— |
| |
| |
326A | Fees relating to monitoring schemes relating to vulnerable persons |
| |
(1) | No liability to income tax arises by virtue of the payment or |
| |
reimbursement of a fee in respect of an application to join the scheme |
| 40 |
administered under section 44 of the Protection of Vulnerable Groups |
| |
|
| |
|
| |
|
(Scotland) Act 2007 (asp 14) (scheme to collate and disclose information |
| |
about individuals working with vulnerable persons). |
| |
(2) | The Treasury may by order amend subsection (1) so as— |
| |
(a) | to add to the fees covered by that subsection a fee of a specified |
| |
kind payable in connection with a scheme for England and |
| 5 |
Wales or Northern Ireland which corresponds to the scheme |
| |
administered under section 44 of the Protection of Vulnerable |
| |
Groups (Scotland) Act 2007, or |
| |
(b) | to amend or remove a reference to a fee added under paragraph |
| |
| 10 |
(2) | The amendment made by this section has effect for the tax year 2010-11 and |
| |
| |
40 | Individual investment plans for children |
| |
(1) | Chapter 3 of Part 6 of ITTOIA 2005 (income from individual investment plans) |
| |
is amended in accordance with subsections (2) to (5). |
| 15 |
(2) | In section 694 (income from individual investment plans), after subsection (1) |
| |
| |
“(1A) | In subsection (1) “income of an individual from investments under a |
| |
plan” includes income from investments which is treated as the |
| |
individual’s income by virtue of section 629 (income paid to relevant |
| 20 |
| |
(3) | After section 695 insert— |
| |
“695A | Investment plans for children |
| |
(1) | This section applies where investment plan regulations provide that |
| |
income of a child from investments under a plan (a “child plan”) is |
| 25 |
exempt from income tax (either wholly or to such extent as is specified |
| |
| |
(2) | In addition to any provision which may be made by virtue of any other |
| |
provision of this Chapter, investment plan regulations may— |
| |
(a) | specify descriptions of persons by whom investments may be |
| 30 |
| |
(b) | provide that withdrawals may be made only in the |
| |
circumstances specified in the regulations, and |
| |
(c) | provide that, in the case of a child who is under 16, the plan |
| |
managers may act only on the direction of a person of a |
| 35 |
description specified in the regulations. |
| |
(3) | They may also provide— |
| |
(a) | that any assignment of, or agreement to assign, investments |
| |
under a child plan, and any charge on or agreement to charge |
| |
any such investments, is void, |
| 40 |
(b) | that, on the bankruptcy of a child with investments under a |
| |
child plan, the entitlement to those investments does not pass to |
| |
any trustee or other person acting on behalf of the child’s |
| |
| |
|
| |
|
| |
|
(c) | that, where a contract is entered into by or on behalf of a child |
| |
who is 16 or over in connection with a child plan under which |
| |
| |
| |
(ii) | by another child in relation to whom the child has |
| 5 |
| |
| the contract has effect as if the child had been 18 or over when |
| |
| |
(4) | Where, by virtue of provision made in investment plan regulations |
| |
under subsection (2)(a), investments are made for a child under a child |
| 10 |
plan, for the purposes of this Chapter the child is treated as having |
| |
| |
| |
“assignment” includes assignation, and “assign” is to be construed |
| |
| 15 |
“bankruptcy”, in relation to a child, includes the sequestration of |
| |
| |
“charge on or agreement to charge” includes a right in security |
| |
over or an agreement to create a right in security over; |
| |
“child” means an individual under 18; |
| 20 |
“parental responsibility” means— |
| |
(a) | parental responsibility within the meaning of the |
| |
Children Act 1989 or the Children (Northern Ireland) |
| |
| |
(b) | parental responsibilities within the meaning of the |
| 25 |
Children (Scotland) Act 1995; |
| |
| and any reference to investments being held by a child includes a |
| |
reference to investments being held by plan managers on behalf of the |
| |
child by virtue of section 696(1).” |
| |
(4) | In section 699 (non-entitlement to exemption), at the end insert— |
| 30 |
“(9) | In this section references to an investor include an individual entitled |
| |
to an exemption given by investment plan regulations by virtue of |
| |
| |
(5) | In section 701 (general and supplementary powers), at the end insert— |
| |
“(6) | In this section references to an investor include an individual entitled |
| 35 |
to an exemption given by investment plan regulations by virtue of |
| |
| |
(6) | In section 151 of TCGA 1992 (personal equity plans), in subsection (2)— |
| |
(a) | for “section 694(1) and (2)” substitute “section 694(1) to (2)”, and |
| |
(b) | for the words from “but with” to the end substitute “but with the |
| 40 |
| |
(a) | any reference to income tax is to be read as a reference to |
| |
| |
(b) | the reference in section 695A(1) to the case where |
| |
regulations provide that income of a child from |
| 45 |
investments under a plan is exempt from income tax is |
| |
to be read as a reference to the case where regulations |
| |
provide that a child who invests under a plan is entitled |
| |
|
| |
|