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Notices of Amendments: 10 May 2011                     

35

 

Finance (No. 3) Bill continued

 
 

David Gauke

 

84

 

Schedule  2,  page  78,  line  20,  leave out from beginning to ‘and’ in line 23 and

 

insert—

 

‘(a)    

on its acquisition, sum or asset T—

 

(i)    

is the subject of a relevant step within section 554B

 

taken by P by reason of which Chapter 2 applies or

 

would apply apart from subsection (3) above or any of

 

sections 554H to 554LA, 554P or 554S, or

 

(ii)    

if sub-paragraph (i) does not apply, is held by or on

 

behalf of P on the same basis as that on which sum or

 

asset S was held by or on behalf of P immediately

 

before the acquisition,’.

 

David Gauke

 

85

 

Schedule  2,  page  84,  line  42,  at end insert—

 

‘(5A)    

And for that purpose, section 170(2) to (11) is to be read as if for “75

 

per cent” (wherever occurring) there were substituted “51 per cent”

 

(with section 1154(2) of CTA 2010 applying accordingly).’

 

David Gauke

 

86

 

Schedule  2,  page  88,  line  8,  after ‘section’ insert ‘or section 554Z6’.

 

David Gauke

 

87

 

Schedule  2,  page  88,  line  9,  leave out ‘sections 554Z5 to’ and insert ‘section 554Z5

 

or’.

 

David Gauke

 

88

 

Schedule  2,  page  88,  line  43,  after ‘(10)’ insert ‘or 554LA(4), (6) or (8)’.

 

David Gauke

 

89

 

Schedule  2,  page  89,  line  2,  leave out ‘B may grant A a right (“a relevant share

 

option”)’ and insert ‘a right (“a relevant share option”) may be granted to A’.

 

David Gauke

 

90

 

Schedule  2,  page  89,  line  36,  after ‘554L(10)’ insert ‘or 554LA(8)’.

 

David Gauke

 

91

 

Schedule  2,  page  90,  line  9,  leave out ‘which is three months after’ and insert

 

‘falling immediately after the period of three months starting with’.

 

David Gauke

 

92

 

Schedule  2,  page  90,  line  11,  after ‘at’ insert ‘the end of’.


 
 

Notices of Amendments: 10 May 2011                     

36

 

Finance (No. 3) Bill continued

 
 

David Gauke

 

93

 

Schedule  2,  page  96,  line  20,  at end insert—

 

‘(10)    

In relation to times after the relief is given, the Tax Acts have effect as

 

if this Chapter had never applied by reason of the original relevant

 

step.’.

 

David Gauke

 

94

 

Schedule  2,  page  111,  line  18,  leave out from ‘earnings’ to end of line 28 and insert

 

‘of A from A’s employment with B within Chapter 1 of Part 3 of ITEPA 2003 for the pre-

 

6 April 2011 tax year, or

 

(ii)    

the tax payable by A for the pre-6 April 2011 tax year was

 

otherwise decided on the basis that the pre-6 April 2011 step

 

was to be treated as giving rise to earnings of A from A’s

 

employment with B within Chapter 1 of Part 3 of ITEPA 2003

 

for that tax year,

 

(e)    

before the chargeable step is taken, A or B has paid, or otherwise

 

accounted for, any tax which A or B is required to pay or otherwise

 

account for as a consequence of—

 

(i)    

the agreement mentioned in paragraph (d)(i), or

 

(ii)    

the tax payable by A for the pre-6 April 2011 tax year having

 

otherwise been decided on the basis mentioned in paragraph

 

(d)(ii), and

 

(f)    

after any reductions under sections 554Z3 to 554Z7 of ITEPA 2003, it

 

is determined on a just and reasonable basis that the value of the

 

chargeable step represents (or still represents after any such

 

reductions) to any extent—

 

(i)    

the earnings treated as arising from the pre-6 April 2011 step

 

as mentioned in paragraph (d)(i) or (ii), or

 

(ii)    

any return on those earnings since the taking of the pre-6 April

 

2011 step (whether income or capital, direct or indirect or

 

realised or unrealised).

 

      (2)  

After any reductions under sections 554Z3 to 554Z7 of ITEPA 2003, the value

 

of the chargeable step is to be reduced (but not below nil) by an amount

 

reflecting the extent to which, as determined under sub-paragraph (1)(f), that

 

value represents (or still represents) the earnings mentioned in sub-paragraph

 

(1)(f)(i) or any return on those earnings mentioned in sub-paragraph (1)(f)(ii).

 

      (3)  

In sub-paragraph (1)(f)(ii) “return” does not include any return so far as, it is

 

reasonable to suppose, the return exceeds the return which might have been

 

expected applying the assumption that all relevant connected persons are

 

acting at arm’s length of each other.

 

      (4)  

In sub-paragraph (3) “relevant connected person” means a person with a

 

connection (direct or indirect) to an arrangement (within the meaning of Part

 

7A of ITEPA 2003) by virtue of which the return arises.’.

 


 
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