Finance (No. 3) Bill

Session 2010 - 11
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Other Bills before Parliament

Finance (No. 3) Bill

Finance (No. 3) Bill
Part 3 — Oil
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Index-linked gilt-edged securities
(1)
In section 399 of CTA 2009 (index-linked gilt-edged securities: basic rules), for
subsection (4) substitute—
“(4)
In this section and sections 400 to 400C—
“index-linked gilt-edged securities” means any gilt-edged
5
securities under which the amounts of the payments are
determined wholly or partly by reference to an index of prices
published by the Statistics Board;
“relevant prices index”, in relation to an index-linked gilt-edged
security, means the index of prices by reference to which the
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amounts of the payments under the security are wholly or
partly determined.”
(2)
In the following provisions of that Act, for “retail” substitute “relevant”—
(a)
section 400(1)(b), (2), (3) and (6);
(b)
section 400A(3) and (7)(b).
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(3)
Accordingly, in Schedule 14 to FA 2010, omit paragraph 4(4).
(4)
The amendments made by this section have effect in relation to securities
issued on or after the day on which this Act is passed.
Part 3
Oil
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61
PRT: areas treated as continuing to be oil fields
(1)
In Schedule 1 to OTA 1975 (determination of oil fields), in paragraph 7(4), for
“the relevant area” substitute “those qualifying assets”.
(2)
The amendment made by this section has effect in relation to chargeable
periods that begin after 30 June 2009.
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62
Intangible fixed assets: oil licences
(1)
Section 809 of CTA 2009 (oil licences) is amended as follows.
(2)
After subsection (1) insert—
“(1A)
The reference in subsection (1) to an oil licence or an interest in an oil
licence includes all goodwill, and any intangible asset, which relates to,
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derives from or is connected with an oil licence or an interest in an oil
licence.”
(3)
In subsection (2), for “subsection (1)” substitute “this section”.
(4)
In subsection (4), for “subsection (1)” substitute “this section”.
(5)
The amendments made by this section have effect in relation to accounting
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periods beginning on or after 23 March 2011 (and, in relation to those
accounting periods, are to be treated as always having had effect).
(6)
For the purposes of subsection (5), an accounting period beginning before, and
ending on or after, 23 March 2011 is to be treated as if so much of the period as

Finance (No. 3) Bill
Part 3 — Oil
38

falls before that date, and so much of the period as falls on or after that date,
were separate accounting periods.
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Reduction of supplementary charge for certain new oil fields
(1)
In section 337 of CTA 2010 (initial licensee to hold a field allowance), in
subsection (1), for “authorisation day” substitute “accounting period in which
5
the authorisation day falls”.
(2)
For section 350 of that Act (meaning of “new oil field”) substitute—
“350
“New oil field”
(1)
In this Chapter “new oil field” means an oil field—
(a)
which is a qualifying oil field, and
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(b)
whose development (in whole or in part) is authorised for the
first time on or after 22 April 2009.
(2)
If all assets of an oil field which are relevant assets have been
decommissioned, there is to be ignored for the purposes of subsection
(1)(b) any authorisation in respect of that oil field which occurs before
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that decommissioning.
(3)
Sub-paragraphs (2) to (9) of paragraph 7 of Schedule 1 to OTA 1975
apply for the purpose of determining whether relevant assets of an oil
field are decommissioned as they apply for the purpose of determining
whether qualifying assets of a relevant area are decommissioned.
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(4)
For the purposes of this section, an asset is a relevant asset of an oil field
if—
(a)
it has at any time been a qualifying asset (within the meaning of
the Oil Taxation Act 1983) in relation to any participator in the
field, and
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(b)
it has at any time been used for the purpose of winning oil from
the field.”
(3)
In section 357 of that Act (other definitions), in the definition of “authorisation
day”, after “authorised” insert “as mentioned in section 350(1)(b)”.
(4)
The amendments made by this section have effect in relation to accounting
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periods ending on or after 1 April 2010.
(5)
Corresponding amendments, having effect in relation to accounting periods
ending on or after 22 April 2009, are to be treated as having been made in
Schedule 44 to FA 2009.
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Chargeable gains: oil activities
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Schedule 15 contains provisions about chargeable gains in relation to oil
activities.

Finance (No. 3) Bill
Part 4 — Pensions
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Part 4
Pensions
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Benefits under pension schemes
Schedule 16 contains provision about the benefits available under pension
schemes and related matters.
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66
Annual allowance charge
Schedule 17 contains provision about the annual allowance charge.
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Lifetime allowance charge
Schedule 18 contains provision about the lifetime allowance charge.
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Borrowing by section 67 pension scheme
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(1)
Section 182 of FA 2004 (unauthorised borrowing) does not cause a section 67
pension scheme to be not authorised to borrow an amount for the purposes of
meeting costs of establishing, administering or managing the pension scheme.
(2)
Accordingly, in the case of a section 67 pension scheme, references in sections
182 and 183 of FA 2004 to amounts previously borrowed do not include any
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amount previously borrowed for those purposes.
(3)
For the purposes of this section neither—
(a)
borrowing an amount for making investments for the purposes of a
pension scheme, nor
(b)
borrowing an amount for making deposits with a view to deriving
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income for the purposes of a pension scheme (otherwise than prior to
applying the amount for meeting costs of establishing, administering or
managing the pension scheme),

is to be taken to be borrowing the amount for the purposes of meeting costs of
establishing, administering or managing the pension scheme.
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(4)
In this section “section 67 pension scheme” means a pension scheme which is
established under section 67 of the Pensions Act 2008.
(5)
Section 163(2) of FA 2004 (meaning of “borrowing”) applies for the
interpretation of this section.
(6)
This section is treated as having come into force on 6 April 2011.
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69
Exemption from tax on interest on unpaid relevant contributions
(1)
ITTOIA 2005 is amended as follows.
(2)
In section 369(3)(e) (exemptions from income tax charge on income), after
“loans,” insert “unpaid relevant contributions,”.

Finance (No. 3) Bill
Part 4 — Pensions
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(3)
After section 753 insert—
“753A
Interest on unpaid relevant contributions
(1)
No liability to income tax arises in respect of interest paid in compliance
with a requirement in a compliance notice or an unpaid contributions
notice to pay interest in respect of unpaid relevant contributions.
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(2)
In this section—
“compliance notice” means a notice under section 35 of the
Pensions Act;
“the Pensions Act” means the Pensions Act 2008 or the Pensions
(No.2) Act (Northern Ireland) 2008;
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“unpaid contributions notice” means a notice under section 37 of
the Pensions Act;
“unpaid relevant contributions” has the same meaning as in
section 38(2)(a) of the Pensions Act.”
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Power to make further provision about section 67 pension scheme
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(1)
The Treasury may by regulations make provision for and in connection with—
(a)
the application of the relevant taxes in relation to a pension scheme
established under section 67 of the Pensions Act 2008, and
(b)
the application of the relevant taxes in relation to any person in
connection with such a pension scheme.
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(2)
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).
(3)
The relevant taxes are—
(a)
income tax,
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(b)
capital gains tax,
(c)
corporation tax, and
(d)
inheritance tax.
(4)
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
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person’s liability to tax.
(5)
Regulations under this section may include—
(a)
provision amending any enactment or instrument, and
(b)
consequential, supplementary and transitional provision.
(6)
Regulations under this section are to be made by statutory instrument.
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(7)
A statutory instrument containing regulations under this section is subject to
annulment in pursuance of a resolution of the House of Commons.
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Tax provision consequential on Part 1 of Pensions Act 2008 etc
(1)
The Treasury may by regulations make provision in relation to any of the
relevant taxes in consequence of Part 1 of the Pensions Act 2008 or Part 1 of the
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Pensions (No.2) Act (Northern Ireland) 2008.

Finance (No. 3) Bill
Part 6 — Other taxes
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(2)
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).
(3)
The relevant taxes are—
(a)
income tax,
5
(b)
capital gains tax,
(c)
corporation tax,
(d)
inheritance tax,
(e)
value added tax,
(f)
stamp duty land tax,
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(g)
stamp duty, and
(h)
stamp duty reserve tax.
(4)
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
person’s liability to tax.
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(5)
Regulations under this section may make different provision for different
cases.
(6)
Regulations under this section may include—
(a)
provision amending any enactment or instrument, and
(b)
consequential, supplementary and transitional provision.
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(7)
Regulations under this section are to be made by statutory instrument.
(8)
A statutory instrument containing regulations under this section is subject to
annulment in pursuance of a resolution of the House of Commons.
Part 5
Bank levy
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72
The bank levy
Schedule 19 contains provision for and in connection with the bank levy.
Part 6
Other taxes
Value added tax
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73
Business samples
(1)
In Schedule 4 to VATA 1994 (matters to be treated as supply of goods or
services), paragraph 5 (transfer or disposal of goods forming part of the assets
of a business) is amended as follows.
(2)
For sub-paragraph (2)(b) substitute—
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“(b)
the provision to a person, otherwise than for a consideration,
of a sample of goods.”
(3)
Omit sub-paragraph (3).