Finance Act 2011
2011 c. 11
An Act to grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with finance.
[19th July 2011]
Most Gracious Sovereign
WE, Your Majesty's most dutiful and loyal subjects, the Commons of the United Kingdom in Parliament assembled, towards raising the necessary supplies to defray Your Majesty's public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and to grant unto Your Majesty the several duties hereinafter mentioned; and do therefore most humbly beseech Your Majesty that it may be enacted, and be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
(1) Income tax is charged for the tax year 2011-12.
(2) For that tax year—
(a) the basic rate is 20%,
(b) the higher rate is 40%, and
(c) the additional rate is 50%.
(1) For the tax year 2011-12 the amount specified in section 10(5) of ITA 2007 (basic rate limit) is replaced with “ £35,000 ”.
(2) Accordingly section 21 of that Act (indexation of limits), so far as relating to the basic rate limit, does not apply for that tax year.
3 Personal allowance for 2011-12 for those aged under 65
(1) For the tax year 2011-12 the amount specified in section 35(1) of ITA 2007 (personal allowance for those aged under 65) is replaced with “ £ 7,475 ”.
(2) Accordingly section 57 of that Act (indexation of allowances), so far as relating to the amount specified in section 35(1) of that Act, does not apply for that tax year.
(1) In section 2(2)(a) of FA 2010 (main corporation tax rate for financial year 2011 on profits other than ring fence profits), for “27%” substitute “ 26% ”.
(2) The amendment made by this section is treated as having come into force on 1 April 2011.
(1) Corporation tax is charged for the financial year 2012.
(2) For that year the rate of corporation tax is—
(a) 24% on profits of companies other than ring fence profits, and
(b) 30% on ring fence profits of companies.
(3) In subsection (2) “ring fence profits” has the same meaning as in Part 8 of CTA 2010 (see section 276 of that Act).
6 Small profits rate and fractions for financial year 2011
(1) For the financial year 2011 the small profits rate is—
(a) 20% on profits of companies other than ring fence profits, and
(b) 19% on ring fence profits of companies.
(2) For the purposes of Part 3 of CTA 2010, for that year—
(a) the standard fraction is 3/200ths, and
(b) the ring fence fraction is 11/400ths.
(3) In subsection (1) “ring fence profits” has the same meaning as in Part 8 of that Act (see section 276 of that Act).
(1) In section 330 of CTA 2010 (supplementary charge in respect of ring fence trades), in subsection (1), for “20%” substitute “ 32% ”.
(2) The amendment made by subsection (1) has effect in relation to accounting periods beginning on or after 24 March 2011 (but see also subsection (3)).
(3) Subsections (4) to (10) apply where a company has an accounting period beginning before 24 March 2011 and ending on or after that date (“the straddling period”).
(4) For the purpose of calculating the amount of the supplementary charge on the company for the straddling period—
(a) so much of that period as falls before 24 March 2011, and so much of that period as falls on or after that date, are treated as separate accounting periods, and
(b) the company's adjusted ring fence profits for the straddling period are apportioned to the two separate accounting periods in proportion to the number of days in those periods.
(5) But if the basis of apportionment in subsection (4)(b) would work unjustly or unreasonably in the company's case, the company may elect for its profits to be apportioned on another basis that is just and reasonable and specified in the election.
(6) The amount of the supplementary charge on the company for the straddling period is the sum of the amounts of supplementary charge that would, in accordance with subsections (4) and (5), be chargeable on the company for those separate accounting periods.
See also sections 330A and 330B of CTA 2010 (which have effect in relation to the separate accounting period consisting of so much of the straddling period as falls on or after 24 March 2011).
(7) In relation to the straddling period—
(a) the Instalment Payments Regulations apply as if the amendment made by subsection (1) had not been made, but
(b) those Regulations also apply separately, in accordance with subsection (8), in relation to the increase in the amount of any supplementary charge on the company for that period that arises as a result of that amendment.
(8) In the separate application of those Regulations under subsection (7)(b), those Regulations have effect as if, for the purposes of those Regulations—
(a) the straddling period were an accounting period beginning on 24 March 2011,
(b) supplementary charge were chargeable on the company for that period, and
(c) the amount of that charge were equal to the increase in the amount of the supplementary charge for the straddling period that arises as a result of the amendment made by subsection (1).
(9) Any reference in the Instalment Payment Regulations to the total liability of a company is, accordingly, to be read—
(a) in their application as a result of subsection (7)(a), as a reference to the amount that would be the company's total liability for the straddling period if the amendment made by subsection (1) had not been made, and
(b) in their application as a result of subsection (7)(b), as a reference to the amount of the supplementary charge on the company for the deemed accounting period under subsection (8)(a).
(10) For the purposes of the Instalment Payment Regulations—
(a) a company is to be regarded as a large company as respects the deemed accounting period under subsection (8)(a) if (and only if) it is a large company for those purposes as respects the straddling period, and
(b) any question whether a company is a large company as respects the straddling period is to be determined as it would have been determined if the amendment made by subsection (1) had not been made.
(11) In this section—
“adjusted ring fence profits” has the same meaning as in section 330 of CTA 2010;
“the Instalment Payments Regulations” means the Corporation Tax (Instalment Payments) Regulations 1998 (S.I. 1998/3175);
“supplementary charge” means any sum chargeable under section 330(1) of CTA 2010 as if it were an amount of corporation tax.
(1) Section 3 of TCGA 1992 (annual exempt amount) is amended as follows.
(2) For subsection (2) substitute—
(2) The exempt amount for a tax year is £10,600.
(3) For subsections (3) and (4) substitute—
(3) If there is a relevant increase in RPI in relation to a tax year—
(a) the exempt amount is to be increased in accordance with Steps 1 and 2, and
(b) subsection (2) has effect from then on (for that and subsequent tax years) as if it referred to the increased amount,
unless Parliament otherwise determines.
(3A) There is a relevant increase in RPI in relation to a tax year if the retail prices index for the September before the start of the tax year is higher than it was for the previous September.
(3B) Steps 1 and 2 are—
Step 1 Increase the exempt amount for the previous tax year by the same percentage as the percentage of the relevant increase in RPI.
Step 2 If the result of Step 1 is not a multiple of £100, round it up to the nearest multiple of £100.
(4) If there is a relevant increase in RPI in relation to a tax year, the Treasury must before the start of that tax year make an order showing the amount arrived at as a result of Steps 1 and 2.
(4) The amendment made by subsection (2) has effect for the tax year 2011-12 and subsequent tax years.
(5) For the tax year 2011-12, section 3(3) of TCGA 1992 (indexation) does not apply.
(6) The amendment made by subsection (3) has effect for the tax year 2012-13 and subsequent tax years.
(1) In section 169N of TCGA 1992 (amount of relief: general)—
(a) in subsection (4) for “£5 million” substitute “ £10 million ”, and
(b) in subsection (4A) for “£5 million” substitute “ £10 million ”.
(2) The amendments made by this section have effect in relation to qualifying business disposals occurring on or after 6 April 2011.
(1) Part 2 of CAA 2001 (plant and machinery allowances) is amended as follows.
(2) In section 56 (amount of allowances and charges), in subsection (1) for “20%” substitute “ 18% ”.
(3) In section 104D (writing-down allowances: special rate expenditure)—
(a) in subsection (1) for “10%” substitute “ 8% ”, and
(b) after that subsection insert—
(1A) But, in relation to special rate expenditure incurred wholly for the purposes of a ring fence trade in respect of which tax is chargeable under section 330(1) of CTA 2010 (supplementary charge in respect of ring fence trades), the amount of the writing-down allowance to which a person is entitled for a chargeable period is 10% of the amount by which AQE exceeds TDR.
(4) Accordingly—
(a) in the heading for section 104D, after “at” insert “ 8% or ”, and
(b) in sections 56(2)(a) and 104E(1)(a), before “10%” insert “ 8% or ”.
(5) Part 10 of Schedule 22 to FA 2000 (companies within tonnage tax: capital allowances in respect of ship leasing), as it has effect (by virtue of section 57(9) of this Act) in relation to expenditure incurred before 1 January 2011, is amended as follows.
(6) In each of the following provisions, for “20%” (in each place) substitute “ 18% ”
(a) paragraph 94(3)(a) and (4),
(b) paragraph 95(4),
(c) paragraph 97(2) and (3),
(d) paragraph 98(8), and
(e) paragraph 99(2) and (5).
(7) In each of the following provisions, for “10%” substitute “ 8% ”
(a) paragraph 94(3)(b) and (4),
(b) paragraph 95(4),
(c) paragraph 97(2), (3) and (4),
(d) paragraph 98(8), and
(e) paragraph 99(2).
(8) The amendments made by this section have effect in relation to—
(a) chargeable periods beginning on or after the relevant day, and
(b) chargeable periods beginning before, and ending on or after, the relevant day.
(9) But in respect of a chargeable period within subsection (8)(b), they have effect as if—
(a) in section 56(1) of CAA 2001 and the provisions of Schedule 22 to FA 2000 mentioned in subsection (6), references to 18% were references to X%, and
(b) in section 104D(1) of CAA 2001 and the provisions of Schedule 22 to FA 2000 mentioned in subsection (7), references to 8% were references to Y%.
(10) For the purposes of subsection (9)—
X
=
(
20
BRD
CP
)
+
(
18
ARD
CP
)
Y
=
(
10
BRD
CP
)
+
(
8
ARD
CP
)
(11) Where X or Y would be a figure with more than 2 decimal places, it is to be rounded up to the nearest second decimal place.
(12) In subsection (10)—
BRD is the number of days in the chargeable period before the relevant day,
ARD is the number of days in the chargeable period on and after the relevant day, and
CP is the number of days in the chargeable period.
(13) The relevant day is—
(a) for corporation tax purposes, 1 April 2012, and
(b) for income tax purposes, 6 April 2012.
(1) Section 51A of CAA 2001 (entitlement to annual investment allowance) is amended as follows.
(2) In subsection (5) (maximum allowance), for “£100,000” substitute “ £25,000 ”.
(3) In subsection (8) (power to amend maximum allowance), for “other” substitute “ greater ”.
(4) The amendment made by subsection (2) has effect in relation to expenditure incurred on or after the relevant day.
(5) Subsections (6) and (7) apply in relation to a chargeable period (“the actual chargeable period”) which—
(a) begins before the relevant day, and
(b) ends on or after that day.
(6) The maximum allowance under section 51A of CAA 2001 for the actual chargeable period is the sum of each maximum allowance that would be found if—
(a) the period beginning with the first day of the chargeable period and ending with the day before the relevant day, and
(b) the period beginning with the relevant day and ending with the last day of the chargeable period,
were treated as separate chargeable periods.
(7) But, so far as concerns expenditure incurred on or after the relevant day, the maximum allowance under section 51A of CAA 2001 for the actual chargeable period is the maximum allowance, calculated in accordance with subsection (6), for the period mentioned in paragraph (b) of that subsection.
(8) Subsections (6) and (7) are also to apply for the purpose of determining the maximum allowance under section 51K of CAA 2001 (operation of annual investment allowance where restrictions apply) in a case where one or more chargeable periods in which the relevant AIA qualifying expenditure is incurred are chargeable periods within subsection (5), but the modifications in subsections (9) to (11) are to apply.
(9) There is to be taken into account for the purpose mentioned in subsection (8) only chargeable periods of one year or less (whether or not they are chargeable periods within subsection (5)), and if there is more than one such period, only that period which gives rise to the greatest maximum allowance.
(10) For the purposes of subsection (9) any chargeable period—
(a) which is longer than a year, and
(b) which ends in the tax year 2012-13,
is to be treated as being a chargeable period of one year ending at the same time as it actually ends.
(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(12) Nothing in subsections (8) to (11) affects the operation of sections 51M and 51N of that Act.
(13) In this section “the relevant day” means—
(a) for corporation tax purposes, 1 April 2012, and
(b) for income tax purposes, 6 April 2012.
(1) Part 2 of CAA 2001 (plant and machinery allowances) is amended as follows.
(2) In section 86 (short-life asset pool)—
(a) in subsection (2), for “four-year” (in each place) substitute “ relevant ”,
(b) for subsection (3) substitute—
(3) In this Chapter “the relevant cut-off” means—
(a) if any of the qualifying expenditure incurred on the provision of the short-life asset was incurred before the designated day, the fourth anniversary of the end of the relevant chargeable period, and
(b) in any other case, the eighth anniversary of the end of the relevant chargeable period.
(3A) In subsection (3)—
“the designated day” means—
for corporation tax purposes, 1 April 2011, and
for income tax purposes, 6 April 2011;
“the relevant chargeable period” means—
the chargeable period in which the qualifying expenditure was incurred on the provision of the short-life asset, or
if the qualifying expenditure was incurred in different chargeable periods, the first chargeable period in which any of the qualifying expenditure was incurred.
, and
(c) in subsection (4), for “four-year” substitute “ relevant ”.
(3) In section 65 (the final chargeable period), in subsection (3), for “four-year” substitute “ relevant ”.
(4) In section 87 (short-life assets provided for leasing), in subsection (1)—
(a) in paragraph (b), for “four-year” substitute “ relevant ”, and
(b) in paragraph (c), for “4 years” substitute “ 8 years ”.
(5) In section 89 (disposal to connected person), in subsections (1) and (5), for “four-year” (in each place) substitute “ relevant ”.
(6) In Schedule 1 (defined expressions)—
(a) at the appropriate place insert—
relevant cut-off (in Chapter 9 of Part 2) | section 86(3)
, and
(b) omit the entry for “four-year cut-off (in Chapter 9 of Part 2)”.
(1) ALDA 1979 is amended as follows.
(2) In section 5 (rate of duty on spirits), for “£23.80” substitute “ £25.52 ”.
(3) In section 36(1AA)(a) (standard rate of duty on beer), for “£17.32” substitute “ £18.57 ”.
(4) In section 62(1A) (rates of duty on cider)—
(a) in paragraph (a) (rate of duty per hectolitre in the case of sparkling cider of a strength exceeding 5.5 per cent), for “£217.83” substitute “ £233.55 ”,
(b) in paragraph (b) (rate of duty per hectolitre in the case of cider of a strength exceeding 7.5 per cent which is not sparkling cider), for “£50.22” substitute “ £53.84 ”, and
(c) in paragraph (c) (rate of duty per hectolitre in any other case), for “£33.46” substitute “ £35.87 ”.
(5) For the table in Schedule 1 substitute—
TABLE OF RATES OF DUTY ON WINE AND MADE-WIN
PART 1 WINE OR MADE-WINE OF A STRENGTH NOT EXCEEDING 22 PER CENT
Description of wine or made-wine | Rates of duty per hectolitre £
Wine or made-wine of a strength not exceeding 4 per cent | 74.32
Wine or made-wine of a strength exceeding 4 per cent but not exceeding 5.5 per cent | 102.21
Wine or made-wine of a strength exceeding 5.5 per cent but not exceeding 15 per cent and not being sparkling | 241.23
Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent but less than 8.5 per cent | 233.55
Sparkling wine or sparkling made-wine of a strength of 8.5 per cent or of a strength exceeding 8.5 per cent but not exceeding 15 per cent | 308.99
Wine or made-wine of a strength exceeding 15 per cent but not exceeding 22 per cent | 321.61
PART 2 WINE OR MADE-WINE OF A STRENGTH EXCEEDING 22 PER CENT
Description of wine or made-wine | Rates of duty per litre of alcohol in wine or made-wine £
Wine or made-wine of a strength exceeding 22 per cent | 25.52
.
(6) The amendments made by this section are treated as having come into force on 28 March 2011.
14 General beer duty: reduced rate for lower strength beer
(1) Part 3 of ALDA 1979 (beer) is amended as follows.
(2) In section 36 (general beer duty), in subsection (1AA) (rates of duty)—
(a) before paragraph (a) insert—
(za) in the case of beer that is of a strength which exceeds 1.2 per cent but does not exceed 2.8 per cent, £9.29 per hectolitre per cent of alcohol in the beer;
,
(b) in paragraph (a), after “that” insert “ is of a strength which exceeds 2.8 per cent and ”,
(c) in paragraph (b), after “small brewery beer” insert “ that is of a strength which exceeds 2.8 per cent and is ”, and
(d) in paragraph (c), after “small brewery beer” insert “ that is of a strength which exceeds 2.8 per cent and is ”.
(3) For the italic heading immediately preceding section 36A substitute “ Beer from small breweries ”.
(4) In section 36D (rate of general beer duty for small brewery beer from singleton breweries)—
(a) in subsection (2), after “section” insert “ , unless the beer is within section 36(1AA)(za) (rate for lower strength beer) ”, and
(b) in the heading after “beer” insert “ (other than lower strength beer) ”.
(5) In section 36F (rate of general beer duty for small brewery beer from co-operated breweries)—
(a) in subsection (2), after “section” insert “ , unless the beer is within section 36(1AA)(za) (rate for lower strength beer) ”, and
(b) in the heading after “beer” insert “ (other than lower strength beer) ”.
(6) Immediately above section 36H (power to vary reduced rate provisions) insert as an italic heading “ Power to vary rates ”.
(7) The amendments made by this section come into force on 1 October 2011.
(1) Schedule 1 contains provision for and in connection with a duty of excise on high strength beer.
(2) The Commissioners for Her Majesty's Revenue and Customs are responsible for the collection and management of that duty.
(1) For the table in Schedule 1 to TPDA 1979 substitute—
TABLE
1. Cigarettes | An amount equal to 16.5 per cent of the retail price plus £154.95 per thousand cigarettes
2. Cigars | £193.29 per kilogram
3. Hand-rolling tobacco | £151.90 per kilogram
4. Other smoking tobacco and chewing tobacco | £84.98 per kilogram
.
(2) The amendment made by this section is treated as having come into force at 6 pm on 23 March 2011.
(1) In section 11(2) of FA 1997 (rates of gaming duty), for the table substitute—
TABLE
Part of gross gaming yield | Rate
The first £2,067,000 | 15 per cent
The next £1,425,000 | 20 per cent
The next £2,496,000 | 30 per cent
The next £5,268,000 | 40 per cent
The remainder | 50 per cent
.
(2) The amendment made by this section has effect in relation to accounting periods beginning on or after 1 April 2011.
19 Fuel duties: rates of duty and rebates from 23 March 2011
(1) HODA 1979 is amended as follows.
(2) In section 6(1A) (main rates)—
(a) in paragraph (a) (unleaded petrol), for “£0.5895” substitute “ £0.5795 ”,
(b) in paragraph (aa) (aviation gasoline), for “£0.3835” substitute “ £0.3770 ”,
(c) in paragraph (b) (light oil other than unleaded petrol or aviation gasoline), for “£0.6867” substitute “ £0.6767 ”, and
(d) in paragraph (c) (heavy oil), for “£0.5895” substitute “ £0.5795 ”.
(3) In section 8(3) (road fuel gas)—
(a) in paragraph (a) (natural road fuel gas), for “£0.2615” substitute “ £0.2470 ”, and
(b) in paragraph (b) (other road fuel gas), for “£0.3304” substitute “ £0.3161 ”.
(4) In section 11(1) (rebate on heavy oil)—
(a) in paragraph (a) (fuel oil), for “£0.1088” substitute “ £0.1070 ”, and
(b) in paragraph (b) (gas oil), for “£0.1133” substitute “ £0.1114 ”.
(5) In section 14(1) (rebate on light oil for use as furnace fuel), for “£0.1088” substitute “ £0.1070 ”.
(6) In section 14A(2) (rebate on certain biodiesel), for “£0.1133” substitute “ £0.1114 ”.
(7) The amendments made by this section are treated as having come into force at 6 pm on 23 March 2011.
20 Fuel duties: rates of duty and rebates from 1 January 2012
(1) HODA 1979 is amended as follows.
(2) In section 6(1A) (main rates)—
(a) in paragraph (a) (unleaded petrol), for “£0.5795” substitute “ £0.6097 ”,
(b) in paragraph (aa) (aviation gasoline), for “£0.3770” substitute “ £0.3966 ”,
(c) in paragraph (b) (light oil other than unleaded petrol or aviation gasoline), for “£0.6767” substitute “ £0.7069 ”, and
(d) in paragraph (c) (heavy oil), for “£0.5795” substitute “ £0.6097 ”.
(3) In section 8(3) (road fuel gas)—
(a) in paragraph (a) (natural road fuel gas), for “£0.2470” substitute “ £0.2907 ”, and
(b) in paragraph (b) (other road fuel gas), for “£0.3161” substitute “ £0.3734 ”.
(4) In section 11(1) (rebate on heavy oil)—
(a) in paragraph (a) (fuel oil), for “£0.1070” substitute “ £0.1126 ”, and
(b) in paragraph (b) (gas oil), for “£0.1114” substitute “ £0.1172 ”.
(5) In section 14(1) (rebate on light oil for use as furnace fuel), for “£0.1070” substitute “ £0.1126 ”.
(6) In section 14A(2) (rebate on certain biodiesel), for “£0.1114” substitute “ £0.1172 ”.
(7) The amendments made by this section come into force on 1 January 2012.
21 VED rates for light passenger vehicles, light goods vehicles, motorcycles etc
(1) Schedule 1 to VERA 1994 (annual rates of duty) is amended as follows.
(2) In paragraph 1 (general)—
(a) in sub-paragraph (2) (vehicle not covered elsewhere in Schedule otherwise than with engine cylinder not exceeding 1,549cc), for “£205” substitute “ £215 ”, and
(b) in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£125” substitute “ £130 ”.
(3) In paragraph 1B (graduated rates of duty for light passenger vehicles)—
(a) for the tables substitute—
TABLE 1 RATES PAYABLE ON FIRST VEHICLE LICENCE FOR VEHICLE
CO2 emissions figure | Rate
(1) | (2) | (3) | (4)
Exceeding | Not exceeding | Reduced rate | Standard rate
g/km | g/km | £ | £
130 | 140 | 105 | 115
140 | 150 | 120 | 130
150 | 165 | 155 | 165
165 | 175 | 255 | 265
175 | 185 | 305 | 315
185 | 200 | 435 | 445
200 | 225 | 570 | 580
225 | 255 | 780 | 790
255 | 990 | 1000
TABLE 2 RATES PAYABLE ON ANY OTHER VEHICLE LICENCE FOR VEHICLE
CO2 emissions figure | Rate
(1) | (2) | (3) | (4)
Exceeding | Not exceeding | Reduced rate | Standard rate
g/km | g/km | £ | £
100 | 110 | 10 | 20
110 | 120 | 20 | 30
120 | 130 | 85 | 95
130 | 140 | 105 | 115
140 | 150 | 120 | 130
150 | 165 | 155 | 165
165 | 175 | 180 | 190
175 | 185 | 200 | 210
185 | 200 | 235 | 245
200 | 225 | 250 | 260
225 | 255 | 435 | 445
255 | 450 | 460
;
(b) in the sentence immediately following the tables, for paragraphs (a) and (b) substitute—
(a) in column (3), in the last two rows, “250” were substituted for “435” and “ 450 ”, and
(b) in column (4), in the last two rows, “260” were substituted for “445” and “ 460 ”.
(4) In paragraph 1J (VED rates for light goods vehicles)—
(a) in paragraph (a), for “£200” substitute “ £210 ”, and
(b) in paragraph (b), for “£125” substitute “ £130 ”.
(5) In paragraph 2(1) (VED rates for motorcycles)—
(a) in paragraph (a), for “£15” substitute “ £16 ”,
(b) in paragraph (b), for “£33” substitute “ £35 ”,
(c) in paragraph (c), for “£50” substitute “ £53 ”, and
(d) in paragraph (d), for “£70” substitute “ £74 ”.
(6) The amendments made by this section have effect in relation to licences taken out on or after 1 April 2011.
22 VED rates for certain goods vehicles without road-friendly suspension
(1) Part 8 of Schedule 1 to VERA 1994 (rates for goods vehicles) is amended as follows.
(2) In—
(a) paragraph 9(1) (rigid vehicles exceeding 3,500 kilograms revenue weight in case of which pollution requirements are not satisfied), and
(b) paragraph 9A(2) (rigid vehicles exceeding that weight in case of which pollution requirements are satisfied),
after “(3)” insert “ and paragraph 11D ”.
(3) In—
(a) paragraph 11(1) (tractive units exceeding 3,500 kilograms revenue weight in case of which pollution requirements are not satisfied), and
(b) paragraph 11A(2) (tractive units exceeding that weight in case of which pollution requirements are satisfied),
for “paragraph 11C” substitute “ paragraphs 11C and 11D ”.
(4) In paragraph 11C(2) (tractive units between 41,000 and 44,000 kilograms revenue weight, with 3 or more axles and used for conveyance of semi-trailers with 3 or more axles and usable on public road in accordance with law immediately before 21 March 2000), for “The” substitute “ Subject to paragraph 11D, the ”.
(5) After paragraph 11C insert—
Certain vehicles without road-friendly suspension
11D (1) This paragraph applies to goods vehicles which do not have road-friendly suspension.
(2) A goods vehicle does not have road-friendly suspension if any driving axle of the vehicle has neither—
(a) an air suspension (that is, a suspension system in which at least 75 per cent of the spring effect is caused by an air spring), nor
(b) a suspension which is regarded as being equivalent to an air suspension for the purposes under Annex II of Council Directive 96/53/EC.
(3) The annual rate of vehicle excise duty applicable to a rigid goods vehicle to which this paragraph applies and which has—
(a) a revenue weight of 15,000 kilograms, and
(b) two axles,
is £238.
(4) The annual rate of vehicle excise duty applicable to a rigid goods vehicle to which this paragraph applies and which—
(a) is a vehicle with respect to which the reduced pollution requirements are satisfied,
(b) has a revenue weight of 21,000 kilograms, and
(c) has three axles,
is £193.
(5) The annual rate of vehicle excise duty applicable to a rigid goods vehicle to which this paragraph applies and which—
(a) is a vehicle with respect to which the reduced pollution requirements are satisfied,
(b) has a revenue weight of not less than 23,000 kilograms but less than 26,000 kilograms, and
(c) has three axles,
is £299.
(6) The annual rate of vehicle excise duty applicable to a rigid goods vehicle to which this paragraph applies and which—
(a) is a vehicle with respect to which the reduced pollution requirements are satisfied,
(b) has a revenue weight of 27,000 kilograms, and
(c) has four or more axles,
is £314.
(7) The annual rate of vehicle excise duty applicable to a tractive unit to which this paragraph applies and which has two axles and either—
(a) has a revenue weight of 25,000 kilograms, or
(b) is a vehicle with respect to which the reduced pollution requirements are satisfied and has a revenue weight exceeding 25,000 kilograms but less than 28,000 kilograms,
is £266.
(8) The annual rate of vehicle excise duty applicable to a tractive unit to which this paragraph applies and which—
(a) has a revenue weight of 28,000 kilograms,
(b) has two axles, and
(c) is to draw semi-trailers with two or more axles,
is £177.
(9) The annual rate of vehicle excise duty applicable to a tractive unit to which this paragraph applies and which—
(a) is a vehicle with respect to which the reduced pollution requirements are satisfied,
(b) has a revenue weight of 31,000 kilograms,
(c) has two axles, and
(d) is to draw semi-trailers with two or more axles,
is £403.
(10) The annual rate of vehicle excise duty applicable to a tractive unit to which this paragraph applies and which—
(a) is a vehicle with respect to which the reduced pollution requirements are satisfied,
(b) has a revenue weight of 36,000 kilograms,
(c) has three axles, and
(d) is to draw semi-trailers with two or more axles,
is £394.
(11) The annual rate of vehicle excise duty applicable to a vehicle to which paragraph 11C and this paragraph apply and which—
(a) is a vehicle with respect to which the reduced pollution requirements are satisfied, and
(b) has a revenue weight less than 44,000 kilograms,
is £464.
(12) This paragraph does not apply to a vehicle for which the annual rate of duty is determined under paragraph 9(2) or 11(2).
(6) The amendments made by this section have effect in relation to licences taken out on or after 1 April 2011.
(1) In Schedule 6 to FA 2000 (climate change levy), for the table in paragraph 42(1) substitute—
TABLE
Taxable commodity supplied | Rate at which levy payable if supply is not a reduced-rate supply
Electricity | £0.00509 per kilowatt hour
Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility | £0.00177 per kilowatt hour
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state | £0.01137 per kilogram
Any other taxable commodity | £0.01387 per kilogram
.
(2) The amendment made by this section has effect in relation to supplies treated as taking place on or after 1 April 2012.
(1) Section 16 of FA 2010 (increase in rate of aggregates levy from 1 April 2011) is repealed.
(2) Accordingly, the amendment made by section 20 of FA 2008 (increase in rate of aggregates levy from 1 April 2009) continues to have effect in relation to aggregate subjected to commercial exploitation on or after 1 April 2011.
(3) This section is treated as having come into force on 31 March 2011.
(1) In section 42(1)(a) and (2) of FA 1996 (amount of landfill tax), for “£56” substitute “ £64 ”.
(2) The amendments made by this section have effect in relation to disposals made (or treated as made) on or after 1 April 2012.
26 Employment income provided through third parties
Schedule 2 contains provision about steps which are taken in pursuance of, or which have some other connection with, arrangements concerned with the provision of rewards or recognition or loans in connection with current, former or prospective employments.
28 Amounts not fully recognised for accounting purposes
Schedule 4 contains amendments of Parts 5 and 7 of CTA 2009 (loan 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 company” insert “ or any company connected with it ”.
(2) In section 419 of that Act (section 418: supplementary), after subsection (6) insert—
(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 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 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 before that day.
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.
(2) In subsection (2A)—
(a) for “Where” substitute “ Subsection (2AA) applies where ”, and
(b) for paragraphs (c) and (d) and the words following those paragraphs substitute—
(c) at the time company A ceases to be a member of the first 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 ”), and
(d) subsequently—
(i) company A ceases to be a member of the second group, or
(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 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 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 acquisition, and
(c) subsection (2) may operate to prevent subsection (1) applying by virtue of paragraph (b), unless subsection (2AB) applies.
(2AB) This subsection applies if company A's ceasing to be a member of the first group at the same time as one or more associated companies forms part of arrangements the main purpose, or one of the main purposes, of which is the avoidance of a liability to corporation tax.
(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.
(1) Chapter 6 of Part 2 of CAA 2001 (which includes provision about lessees under 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 commencement PVMLP.
(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,
(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 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 arrangement.
(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 modifications) for the purposes of this section as for the purposes of that section.
(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—
(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 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 minimum lease payments).
(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 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 was entered into).
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
(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.
(5B) In subsection (5A)—
“relevant salary sacrifice arrangements” means arrangements (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 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 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.
(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,
Condition C is not prevented from being met by reason only that the scheme is not open to relevant low-paid employees.
(5B) In subsection (5A)—
“relevant salary sacrifice arrangements” means arrangements (whenever made) under which the employees for whom the 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 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 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 subsequent tax years.
(1) In section 292 of ITEPA 2003 (accommodation expenses of MPs), after subsection (4) insert—
(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 under section 5(1) of the Parliamentary Standards Act 2009 on or after 1 November 2010.
(1) In Chapter 8 of Part 4 of ITEPA 2003 (employment income: special kinds of employment), after section 304 insert—
Experts seconded to other European Union bodies
304A (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.
(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 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 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 exemptions), after section 326 insert—
Monitoring schemes
Fees relating to monitoring schemes relating to vulnerable persons
326A (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 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 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 (a).
(2) The amendment made by this section has effect for the tax year 2010-11 and subsequent tax years.