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| |
| |
|
| | (b) | the difference (or any part of the difference) in the values |
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| | might not have been expected applying the assumption that all |
|
| | relevant connected persons are acting at arm’s length of each |
|
| | |
| | |
| | (a) | the reference to sum or asset S is to sum or asset S so far as |
|
| | sum or asset T is acquired out of it, and |
|
| | (b) | “relevant connected person” means a person with a |
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| | connection (direct or indirect) to the arrangement under which |
|
| | sum or asset T is acquired.’. |
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| |
| | |
| Schedule 2, page 77, line 43, at end insert— |
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| | ‘(2A) | Subsection (3) applies if, on its acquisition, sum or asset T is the |
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| | subject of a relevant step within section 554B taken by P.’. |
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| |
| | |
| Schedule 2, page 77, line 44, leave out ‘mentioned in subsection (1)(d)’. |
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| |
| | |
| Schedule 2, page 78, line 4, at end insert ‘and’. |
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| |
| | |
| Schedule 2, page 78, line 7, leave out from ‘(b)’ to end of line 18. |
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| |
| | |
| Schedule 2, page 78, line 20, leave out from beginning to ‘and’ in line 23 and |
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| |
| | ‘(a) | on its acquisition, sum or asset T— |
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| | (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,’. |
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| |
| | |
| 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).’ |
|
|
|
| |
| |
|
| |
| | |
| Schedule 2, page 88, line 8, after ‘section’ insert ‘or section 554Z6’. |
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| |
| | |
| Schedule 2, page 88, line 9, leave out ‘sections 554Z5 to’ and insert ‘section 554Z5 |
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| |
| |
| | |
| Schedule 2, page 88, line 43, after ‘(10)’ insert ‘or 554LA(4), (6) or (8)’. |
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| |
| | |
| 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’. |
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| |
| | |
| Schedule 2, page 89, line 36, after ‘554L(10)’ insert ‘or 554LA(8)’. |
|
| |
| | |
| 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’. |
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| |
| | |
| Schedule 2, page 90, line 11, after ‘at’ insert ‘the end of’. |
|
| |
| | |
| 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 |
|
| | |
| |
| | |
| Schedule 2, page 96, line 29, at end insert— |
|
| | |
| | Undertakings given by employers etc in relation to retirement |
|
| | |
| | |
| | (1) | This Chapter applies if there is an undertaking (“the relevant |
|
| | undertaking”) that a contribution to which subsection (2) would apply |
|
| | |
| | (2) | This subsection applies to a contribution if— |
|
|
|
| |
| |
|
| | (a) | the contribution is paid to an arrangement which is not a |
|
| | registered pension scheme, |
|
| | (b) | in connection with that arrangement (directly or indirectly), |
|
| | relevant benefits are to be provided (directly or indirectly) out |
|
| | of the contribution by a relevant third person, |
|
| | (c) | the provision of the relevant benefits would be a relevant step, |
|
| | |
| | (d) | the contribution is neither a tax-relieved contribution nor tax- |
|
| | |
| | |
| | “relevant benefits” has the same meaning as in Chapter 2 of Part 6, but |
|
| | ignoring section 393B(2)(a), |
|
| | “relevant third person” means a person within section 554A(7)(a) to (c) |
|
| | (ignoring this Chapter), and |
|
| | “tax-exempt provision” and “tax-relieved contribution” have the |
|
| | meaning given by paragraph 3(3) and (4) of Schedule 34 to FA 2004. |
|
| | (4) | In this Chapter references to an undertaking include references to— |
|
| | (a) | an undertaking which is not legally enforceable, and |
|
| | (b) | an undertaking which is to be performed only on or following |
|
| | the meeting of a condition (including a condition which might |
|
| | |
| | 554Z16 | Employer etc to be treated as relevant third person etc |
|
| | (1) | If B takes a step within section 554Z17 or 554Z18, Chapters 1 and 2 |
|
| | have effect in relation to the step— |
|
| | (a) | as if B were a relevant third person for the purposes of section |
|
| | |
| | (b) | as if the step were a relevant step within section 554B (if it |
|
| | |
| | (2) | For the purpose of determining whether Chapter 2 applies by reason |
|
| | of the step, Chapter 1 has effect— |
|
| | (a) | as if sections 554F to 554N, 554R to 554T, 554V and 554W |
|
| | |
| | (b) | if the step is within section 554Z17, as if sections 554P(2)(d), |
|
| | (3) and (4) and 554Q(1)(c) and (d), (1A) and (1B) were |
|
| | |
| | (c) | if the step is within section 554Z18, as if sections 554P and |
|
| | |
| | (3) | If Chapter 2 applies by reason of the step, Chapter 2 has effect as if |
|
| | sections 554Z6 to 554Z11 were omitted. |
|
| | (4) | If Chapter 2 does not apply by reason of the step by virtue of section |
|
| | 554E(3) or (5A), section 554E(6) and (7) does not apply in relation to |
|
| | |
| | (5) | For further modifications of Chapters 1 and 2, see sections 554Z17(3) |
|
| | and (4), 554Z18(5) and (6), 554Z19 and 554Z20. |
|
| | (6) | Regulations under section 554X may (in particular) make provision |
|
| | covering cases in which Chapters 1 and 2 have effect as provided for |
|
| | |
|
|
| |
| |
|
| | |
| | (a) | references to B do not include references to B acting as a |
|
| | |
| | (b) | if B is a company and is a member of a group of companies, |
|
| | references to B are to be read as including references to any |
|
| | other company which is a member of that group, and |
|
| | (c) | if B is a limited liability partnership, references to B are to be |
|
| | read as including references to any company which is a |
|
| | wholly-owned subsidiary (as defined in section 1159(2) of the |
|
| | Companies Act 2006) of B. |
|
| | |
| | (1) | B takes a step within this section if— |
|
| | (a) | a sum of money or asset held by or on behalf of B is earmarked |
|
| | (however informally) by B with a view to the relevant |
|
| | undertaking being performed at a later time (wholly or partly) |
|
| | |
| | (i) | that sum of money or asset, or |
|
| | (ii) | any sum of money or asset which may arise or derive |
|
| | (directly or indirectly) from it, or |
|
| | (b) | a sum of money or asset otherwise starts being held by or on |
|
| | behalf of B, specifically with a view, so far as B is concerned, |
|
| | to the relevant undertaking being performed at a later time |
|
| | (wholly or partly) out of— |
|
| | (i) | that sum of money or asset, or |
|
| | (ii) | any sum of money or asset which may arise or derive |
|
| | (directly or indirectly) from it. |
|
| | (2) | For the purposes of subsection (1)(b) it does not matter whether or not |
|
| | the sum of money or asset in question has previously been held by or |
|
| | on behalf of B on a basis which is different to that mentioned in |
|
| | |
| | (3) | Subsection (4) applies if, in the application of section 554P or 554Q in |
|
| | any case, the relevant step mentioned in section 554P(2)(a) or |
|
| | 554Q(3)(a) is a step within this section taken by B. |
|
| | (4) | In section 554P(2)(c) or 554Q(3)(c) (as the case may be) the reference |
|
| | to section 554B(1)(a) or (b) is to be read as a reference to subsection |
|
| | |
| | 554Z18 | Provision of security |
|
| | (1) | B takes a step within this section if B provides security for the |
|
| | performance of the relevant undertaking. |
|
| | (2) | For the purposes of this Part, the sum of money or asset which is the |
|
| | subject of the step is to be taken to be— |
|
| | (a) | any sums of money which, as at the time the step is taken, are |
|
| | the subject of the security, and |
|
| | (b) | any assets which, as at that time, are the subject of the |
|
| | |
| | | and references to the sum of money or asset which is the subject of a |
|
| | relevant step are to be read accordingly. |
|
|
|
| |
| |
|
| | (3) | If, when the step is taken, the security covers other undertakings as |
|
| | well as the relevant undertaking, the sums of money and assets within |
|
| | subsection (2)(a) and (b) are to be apportioned between the relevant |
|
| | undertaking and the other undertakings on a just and reasonable basis. |
|
| | (4) | Subsections (2) and (3) are subject to section 554Z19(7). |
|
| | (5) | Section 554P does not apply in any case in which the relevant step |
|
| | mentioned in section 554P(2)(a) would be a step within this section |
|
| | |
| | (6) | Section 554Q(3) does not apply in any case in which the relevant step |
|
| | mentioned in section 554Q(3)(a) would be a step within this section |
|
| | |
| | (7) | In this Chapter references to providing security for the performance of |
|
| | an undertaking are references to providing such security in any way, |
|
| | |
| | 554Z19 | Valuation of step within section 554Z18 |
|
| | (1) | This section applies if, by virtue of section 554Z16, Chapter 2 applies |
|
| | by reason of a step taken by B within section 554Z18. |
|
| | (2) | Section 554Z2 has effect as if subsections (3) and (4) below were |
|
| | substituted for subsections (1) to (6) of that section. |
|
| | (3) | The value of the relevant step is— |
|
| | (a) | the amount to be paid as a contribution under the relevant |
|
| | undertaking determined, as at the time the step is taken, on a |
|
| | just and reasonable basis assuming that any condition to be |
|
| | met before any payment is made will be met, or |
|
| | (b) | if lower, the value of the security. |
|
| | (4) | For the purposes of subsection (3)(b) the value of the security— |
|
| | |
| | (i) | the total amount of the sums of money included in the |
|
| | subject of the step (see section 554Z18(2)(a)), and |
|
| | (ii) | the total market value, as at the time the step is taken, |
|
| | of the assets included in the subject of the step (see |
|
| | section 554Z18(2)(b)), but |
|
| | (b) | is to be subject to a just and reasonable reduction to take |
|
| | account of any term of the security which limits the total |
|
| | amount which may be made available under the security for |
|
| | the performance of the relevant undertaking to an amount |
|
| | which is lower than the amount determined under paragraph |
|
| | |
| | (5) | The following subsections apply if, as at the end of the day of an |
|
| | anniversary of the taking of the step (“the anniversary day”), B |
|
| | continues to provide the security for the performance of the relevant |
|
| | |
| | (6) | This Part has effect as if B’s continuing to provide the security were a |
|
| | new step (“the anniversary step”) within section 554Z18— |
|
| | (a) | which is taken by B at the end of the anniversary day, and |
|
| | (b) | by reason of which Chapter 2 is to apply by virtue of section |
|
| | 554Z16 (subject only to section 554A(4)). |
|
|
|
| |
| |
|
| | (7) | If the total amount of the sums of money which are the subject of the |
|
| | security (“the security sums”) varies from time to time, for the purpose |
|
| | of determining the sums of money included in the subject of the |
|
| | anniversary step, in section 554Z18(2)(a) the reference to the time the |
|
| | step is taken is to be read as a reference to the time during the |
|
| | preceding year at which the total amount of the security sums is at its |
|
| | |
| | (8) | For the purposes of subsection (4)(a)(ii) the market value of any asset |
|
| | included in the subject of the anniversary step may be determined as |
|
| | at any time during the preceding year (so long as the asset is the subject |
|
| | of the security, or one of the assets which is the subject of the security, |
|
| | |
| | (9) | In subsections (7) and (8) “the preceding year” means the year ending |
|
| | with the anniversary day. |
|
| | 554Z20 | Relief for earmarking or security not followed by contribution or |
|
| | |
| | (1) | This section applies if, by virtue of section 554Z16, Chapter 2 applies |
|
| | by reason of a step taken by B within section 554Z17 or 554Z18. |
|
| | (2) | Section 554Z13 has effect in relation to the step with the following |
|
| | |
| | (3) | Subsection (1)(b) has effect as if for “not a relevant step in relation to |
|
| | a relevant sum or asset” there were substituted “neither the payment of |
|
| | the relevant contribution (or any part of it) nor the provision of any |
|
| | |
| | (4) | Subsection (1)(c) has effect as if for the words from “no further |
|
| | relevant step” to “any relevant sum or asset” there were substituted |
|
| | “the relevant contribution (or any part of it) will not be paid or a |
|
| | relevant benefit will not be provided”. |
|
| | (5) | Subsection (1) has effect as if subsection (6) below were substituted |
|
| | |
| | |
| | (a) | “the relevant contribution” means the contribution to be paid |
|
| | under the relevant undertaking (within the meaning of |
|
| | |
| | (b) | “relevant benefit” means a relevant benefit to be provided out |
|
| | of the relevant contribution as mentioned in section |
|
| | |
| |
| | |
| Schedule 2, page 111, line 5, at end insert— |
|
| | ‘57A (1) | This paragraph applies if— |
|
| | (a) | B takes a step within section 554Z18 of ITEPA 2003 before 6 April |
|
| | 2011 by providing security (“the early security”) for the performance |
|
| | of an undertaking (“the early undertaking”), |
|
| | (b) | on or after 6 April 2011 at a time when B is continuing to provide the |
|
| | early security, there is a change in the terms of the early undertaking |
|
| | which does not amount to the giving of a new undertaking, and |
|
|
|
| |
| |
|
| | (c) | as a result of the change, the amount to be paid as a contribution (“the |
|
| | early contribution”) under the early undertaking increases, or will |
|
| | |
| | (2) | Chapter 3 of Part 7A of ITEPA 2003 has effect— |
|
| | (a) | as if the change in the terms of the early undertaking were a new |
|
| | undertaking to pay a contribution covering the increase in the amount |
|
| | of the early contribution as determined on a just and reasonable basis, |
|
| | |
| | (b) | as if B, in continuing to provide the early security, provides security |
|
| | for the performance of the new undertaking at the time of the change |
|
| | |
| | (3) | Section 554Z16(7) of ITEPA 2003 applies for the purposes of this paragraph |
|
| | as it applies for the purposes of Chapter 3 of Part 7A of that Act.’. |
|
| |
| | |
| 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 |
|
| | |
| | (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 |
|
| | |
| | (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 |
|
| | |
| | (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. |
|
|