(1) Chapter 3 of Part 6 of ITTOIA 2005 (income from individual investment plans) is amended in accordance with subsections (2) to (5).
(2) In section 694 (income from individual investment plans), after subsection (1) insert—
(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 children of settlor).
(3) After section 695 insert—
Investment plans for children
695A (1) This section applies where investment plan regulations provide that income of a child from investments under a plan (a “child plan”) is exempt from income tax (either wholly or to such extent as is specified in the regulations).
(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 made for a child,
(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 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,
(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 creditors, and
(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 investments are held—
(i) by the child, or
(ii) by another child in relation to whom the child has parental responsibility,
the contract has effect as if the child had been 18 or over when it was entered into.
(4) Where, by virtue of provision made in investment plan regulations under subsection (2)(a), investments are made for a child under a child plan, for the purposes of this Chapter the child is treated as having made those investments.
(5) In this section—
“assignment” includes assignation, and “assign” is to be construed accordingly;
“bankruptcy”, in relation to a child, includes the sequestration of the child's estate;
“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;
“parental responsibility” means—
parental responsibility within the meaning of the Children Act 1989 or the Children (Northern Ireland) Order 1995, or
parental responsibilities within the meaning of the 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—
(9) In this section references to an investor include an individual entitled to an exemption given by investment plan regulations by virtue of section 694(1A).
(5) In section 701 (general and supplementary powers), at the end insert—
(6) In this section references to an investor include an individual entitled to an exemption given by investment plan regulations by virtue of section 694(1A).
(6) In section 151 of TCGA 1992 (personal equity plans), in subsection (2)—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) for the words from “but with” to the end substitute
but with the following modifications—
(a) any reference to income tax is to be read as a reference to capital gains tax,
(b) the reference in section 695A(1) to the case where regulations provide that income of a child from 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 to relief from capital gains tax in respect of the investments,
(c) the reference in section 695A(4) to that Chapter is to be read as a reference to this section, and
(d) that Chapter has effect as if sections 699(9) and 701(6) were omitted.
41 Gift aid: increase of limits on total value of benefits associated with gifts
(1) In section 418 of ITA 2007 (gifts to charities by individuals: restrictions on associated benefits), in subsection (3), for “£500” substitute “ £2,500 ”.
(2) In section 197 of CTA 2010 (gifts to charities by companies: restrictions on associated benefits), in subsection (3), for “£500” substitute “ £2,500 ”.
(3) Accordingly, omit section 60(1)(b) of FA 2007.
(4) The amendments made by subsections (1) and (3) have effect in relation to gifts made on or after 6 April 2011.
(5) The amendment made by subsection (2) has effect in relation to gifts made in an accounting period ending on or after 1 April 2011.
(1) Part 5 of ITA 2007 (enterprise investment scheme) is amended in accordance with subsections (2) to (4).
(2) In section 158 (form and amount of EIS relief), in subsection (2A) for “20%” substitute “ 30% ”.
(3) In the following provisions for “EIS rate” substitute “ EIS original rate ”
(a) section 209(3);
(b) section 210(1)(b);
(c) section 213(2);
(d) section 220(1)(b);
(e) section 224(2);
(f) section 229(1)(b).
(4) After section 256 insert—
Meaning of “the EIS original rate”
256A In this Part “the EIS original rate”, in relation to EIS relief, means the EIS rate for the tax year for which the EIS relief was obtained.
(5) In Schedule 4 to that Act (index of defined expressions), at the appropriate place insert—
EIS original rate (in Part 5) | section 256A
(6) This section comes into force on such day as the Treasury may by order appoint.
(7) The amendments made by this section have effect in relation to the tax year 2011-12 and subsequent tax years.
(8) But where the EIS relief attributable to shares was obtained for the tax year 2007-08 or an earlier tax year, the references to the EIS original rate in the provisions mentioned in paragraph (a) to (f) of subsection (3) are to be read as references to 20%.
Schedule 10 contains provision about the consequences, for the purposes of corporation tax on chargeable gains, of a company ceasing to be a member of a group.
Schedule 11 contains provision about losses accruing to a company before the time when it becomes a member of a group of companies and losses accruing on assets held by a company at such a time.
(1) Chapter 4 of Part 24 of CTA 2010 (investment trusts) is amended as follows.
(2) For section 1158 (meaning of “investment trust” in the Corporation Tax Acts) substitute—
Meaning of “investment trust”
1158 (1) For the purposes of the Corporation Tax Acts a company is an “investment trust” with respect to an accounting period if—
(a) conditions A to C are met throughout the period, and
(b) the company is approved for the period by the Commissioners for Her Majesty's Revenue and Customs (see section 1159).
(2) Condition A is that the business of the company consists of investing its funds in shares, land or other assets with the aim of spreading investment risk and giving members of the company the benefit of the results of the management of its funds.
(3) Condition B is that the shares making up the company's ordinary share capital (or, if there are such shares of more than one class, those of each class) are admitted to trading on a regulated market.
(4) For this purpose “regulated market” has the same meaning as in Directive 2004/39/EC of the European Parliament and of the Council on markets in financial instruments (see Article 4.1(14)).
(5) Condition C is that the company is not—
(a) a venture capital trust (within the meaning of Part 6 of ITA 2007), or
(b) a company UK REIT (within the meaning of Part 12 of this Act).
(6) The Treasury may by regulations provide—
(a) for one or both of conditions A and B to be treated as met in the cases, and subject to any conditions, specified in the regulations, and
(b) for the period for which the condition or conditions are treated as met.
(7) The Treasury may also by regulations amend subsection (3) or (4).
(8) A statutory instrument containing the first regulations under subsection (6) may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.
(9) Any other statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.
(3) For section 1159 (conditions for approval) substitute—
Approval
1159 (1) The Treasury may by regulations make provision about the approval of a company for an accounting period for the purposes of section 1158(1)(b), including provision about—
(a) applications for approval,
(b) the determination of applications for approval,
(c) requirements to be met by the company while approved,
(d) the withdrawal of approval by notice, or
(e) the consequences of the withdrawal of approval.
(2) The regulations may, in particular—
(a) include provision under which an application for approval—
(i) is to be made by reference to the accounting period in which the application is made or such earlier or later accounting period as may be specified in the application, and
(ii) is to constitute an application for approval for that and all subsequent accounting periods,
(b) specify the form and content of, and information to accompany, an application,
(c) permit or require the Commissioners to grant or refuse an application where conditions specified in the regulations are met (or appear to the Commissioners to be met) in relation to the company,
(d) permit or require the Commissioners to withdraw approval where—
(i) conditions specified in the regulations are met (or appear to the Commissioners to be met) in relation to the company, or
(ii) the company has failed to comply with requirements imposed by the regulations,
(e) include provision prohibiting a company from which approval has been withdrawn from reapplying, or
(f) include provision under which approval may or must be withdrawn in relation to an accounting period that ends before the notice withdrawing approval is given.
(3) Regulations under this section—
(a) may make different provision for different cases or purposes, and
(b) may make incidental, consequential, supplementary or transitional provision.
(4) A statutory instrument containing the first regulations under this section may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.
(5) Any other statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.
(6) In this section “the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs.
(4) Omit sections 1160 to 1165 (which relate to the interpretation of the provisions replaced by this section).
(5) In Schedule 4 (index of defined expressions), omit the following entries—
“company (in Chapter 4 of Part 24)”
“scheme of reconstruction (in Chapter 4 of Part 24)”
“shares (in Chapter 4 of Part 24)”.
(6) The amendments made by this section have effect in relation to accounting periods beginning on or after such day as the Treasury may by order appoint.
50 Power to make provision about treatment of transactions
In Part 13 of CTA 2010 (special types of company etc), after Chapter 3 insert—
CHAPTER 3A Investment trusts
Power to make provision about treatment of transactions
622A (1) The Treasury may by regulations provide that a transaction of a specified kind entered into by an investment trust is to be treated for the purposes of the Corporation Tax Acts as entered into by it otherwise than in the course of a trade.
(2) Regulations under this section—
(a) may make different provision for different cases or purposes, and
(b) may make incidental, consequential, supplementary or transitional provision.
(3) A statutory instrument containing the first regulations under this section may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.
(4) Any other statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.
(5) In this section “specified” means specified in regulations under this section.
51 Taxable benefits: calculating the appropriate percentage for cars
(1) In section 139 of ITEPA 2003 (cars with a CO2 emissions figure: the appropriate percentage), as substituted by section 59 of FA 2010 with effect for the tax year 2012-13 and subsequent tax years, in subsection (5) for “100 grams” substitute “ 95 grams ”.
(2) The amendment made by this section has effect for the tax year 2013-14 and subsequent tax years.
(1) In section 398A(1)(a) of CTA 2010 (election out of qualifying change of ownership), after “day”)” insert “ before 23 March 2011 ”.
(2) The amendment made by this section is to be treated as having come into force on 23 March 2011.
55 Companies with small profits: associated companies
(1) For section 27 of CTA 2010 (meaning of “associated company”: attribution to persons of rights and powers of their partners) substitute—
Attribution to persons of rights and powers of their associates
27 (1) This section applies if—
(a) it is necessary to determine in accordance with section 25(4) and (5) whether a company is an associated company of another company, and
(b) the relationship between the two companies is not one of substantial commercial interdependence.
(2) In the application of section 451 (meaning of “control”: rights to be attributed) for the purposes of the determination, any person to whom rights and duties fall to be attributed under subsections (4) and (5) of that section is to be treated, for the purposes of those subsections, as having no associates.
(3) The Treasury may by order prescribe factors that are to be taken into account in determining whether a relationship between two companies amounts to substantial commercial interdependence for the purposes of this section.
(2) The amendment made by this section has effect in relation to accounting periods ending on or after 1 April 2011.
(3) But a company may elect that the amendment made by this section is of no effect in relation to an accounting period that begins before that date.
(4) An election under subsection (3) must be made within one year from the end of the accounting period to which it relates.
(5) The first order under section 27(3) of CTA 2010 (as substituted by subsection (1) of this section) may be made so as to have effect in relation to accounting periods ending on or after 1 April 2011.
57 Tonnage tax: capital allowances in respect of ship leasing
(1) Part 10 of Schedule 22 to FA 2000 (companies within tonnage tax: capital allowances in respect of ship leasing) is amended as follows.
(2) In paragraph 94 (quantitative restrictions on allowances)—
(a) in sub-paragraph (3)(a), for “a rate of 20% per annum” substitute “ the rate determined under sub-paragraph (3A) ”,
(b) in sub-paragraph (3)(b), for “a rate of 10% per annum” substitute “ the rate specified in section 104D(1) of the Capital Allowances Act 2001 ”,
(c) after sub-paragraph (3) insert—
(3A) The rate mentioned in sub-paragraph (3)(a) is—
(a) if the rate of the writing down allowance to which the lessor would be entitled in respect of the expenditure apart from this paragraph is that specified in section 56(1) of the Capital Allowances Act 2001, that rate, and
(b) otherwise, the rate specified in section 104D(1) of that Act.
,
(d) in sub-paragraph (4)—
(i) omit the words “within each of those bands”,
(ii) after “separate pools” insert “ in accordance with sub-paragraph (4A) ”, and
(iii) omit the second sentence, and
(e) after that sub-paragraph insert—
(4A) The expenditure is to be allocated to the following pools—
(a) to the extent that it is expenditure in respect of which the lessor is entitled to writing down allowance at the rate specified in section 56(1) of the Capital Allowances Act 2001, a pool to be known as “the tonnage tax (main rate) pool”, and
(b) to the extent that it is expenditure in respect of which the lessor is entitled to writing down allowance at the rate specified in section 104D(1) of that Act, a pool to be known as “the tonnage tax (special rate) pool”.
(3) In paragraph 95(4)—
(a) for “(4)” substitute “ (4A) ”, and
(b) for “20%” substitute “ tonnage tax (main rate) ” and for “10%” substitute “ tonnage tax (special rate) ”.
(4) In paragraph 97—
(a) in sub-paragraphs (2) and (3), for “20%” substitute “ tonnage tax (main rate) ” and for “10%” substitute “ tonnage tax (special rate) ”, and
(b) in sub-paragraph (4), for “10%” substitute “ tonnage tax (special rate) ”.
(5) In paragraph 98(8), for “20%” substitute “ tonnage tax (main rate) ” and for “10%” substitute “ tonnage tax (special rate) ”.
(6) In paragraph 99 (quantitative restrictions: change of circumstances taking case out of restrictions)—
(a) in sub-paragraph (2), for “20%” substitute “ tonnage tax (main rate) ” and for “10%” substitute “ tonnage tax (special rate) ”,
(b) in sub-paragraph (4), for the words from “the whole of” to the end substitute “ the amount that the tax written down value of the ship would have been, at the time the change of circumstances occurs, had paragraph 94 never applied. ”, and
(c) omit sub-paragraph (5).
(7) In consequence of the amendments made by this section, omit section 80(5) to (7) of FA 2008.
(8) The amendments made by this section have effect in relation to chargeable periods ending on or after 1 January 2011.
(9) But the amendments made by this section are of no effect in relation to expenditure incurred before that date.
58 Transfer pricing: application of OECD principles
(1) In section 164 of TIOPA 2010 (Part to be interpreted in accordance with OECD principles), for subsection (4) substitute—
(4) In this section “the transfer pricing guidelines” means—
(a) the version of the Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations approved by the Organisation for Economic Co-operation and Development (OECD) on 22 July 2010, or
(b) such other document approved and published by the OECD in place of that (or a later) version or in place of those Guidelines as is designated for the time being by order made by the Treasury,
including, in either case, such material published by the OECD as part of (or by way of update or supplement to) the version or other document concerned as may be so designated.
(2) The amendment made by this section has effect (in relation to provision made or imposed at any time)—
(a) for corporation tax purposes, for accounting periods beginning on or after 1 April 2011, and
(b) for income tax purposes, for the tax year 2011-12 and subsequent tax years.
In Part 8 of TIOPA 2010 (offshore funds), after section 363 insert—
Residence of offshore funds which are undertakings for collective investment in transferable securities
363A (1) This section applies to an offshore fund (within the meaning of section 355) which—
(a) is, for the purposes of the UCITS Directive, an undertaking for collective investment in transferable securities, and
(b) is authorised pursuant to Article 5 of the UCITS Directive in a Member State other than the United Kingdom.
(2) If—
(a) the offshore fund is a body corporate which, under the law of the Member State in which it is authorised pursuant to Article 5 of the UCITS Directive, is treated as resident in that State for the purposes of any tax imposed under that law on income, and
(b) (apart from this section) the body corporate would be treated as resident in the United Kingdom for the purposes of any enactment (within the meaning of section 354) relating to income tax, corporation tax or capital gains tax,
the body corporate is instead to be treated as if it were not resident in the United Kingdom.
(3) If, by virtue of section 99 or 103A of TCGA 1992, that Act applies in relation to the offshore fund as if it were a company, that Act applies as if the company were neither resident nor ordinarily resident in the United Kingdom (if it would not otherwise do so).
(4) In this section “the UCITS Directive” means Directive 2009/65/EC of the European Parliament and of the Council.
(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 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 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).
(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.
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.
(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, 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 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 falls before that date, and so much of the period as falls on or after that date, were separate accounting periods.
63 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 the authorisation day falls ”.
(2) For section 350 of that Act (meaning of “new oil field”) substitute—
New oil field”
350 (1) In this Chapter “new oil field” means an oil field—
(a) which is a qualifying oil field, and
(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 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.
(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
(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 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.
(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 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 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.
(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.
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, ”.
(3) After section 753 insert—
Interest on unpaid relevant contributions
753A (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.
(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;
“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.
70 Power to make further provision about section 67 pension scheme
(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.
(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,
(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 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.
(7) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.
71 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 Pensions (No.2) Act (Northern Ireland) 2008.
(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,
(b) capital gains tax,
(c) corporation tax,
(d) inheritance tax,
(e) value added tax,
(f) stamp duty land tax,
(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.
(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.
(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.
(1) In Part 2 of TIOPA 2010 (double taxation relief), in Chapter 3 (miscellaneous provisions), after section 130 insert—
Interpreting provision about UK taxation of pensions etc
130A (1) Subsection (3) applies if double taxation arrangements make the provision, however expressed, mentioned in subsection (2).
(2) The provision is that pensions and other similar remuneration which—
(a) arise outside the United Kingdom, and
(b) are paid to persons who are resident in the United Kingdom,
are not to be subject to United Kingdom tax.
(3) That provision does not prevent a pension or other similar remuneration of a person resident in the United Kingdom being chargeable to income tax if—
(a) the pension or other similar remuneration is paid out of sums or assets that were the subject of a relevant transfer or related sums or assets, and
(b) the relevant transfer or any transaction forming part of that transfer was, or formed part of, a tax avoidance scheme.
(4) But nothing in subsection (3) prevents credit being allowed under Chapter 2 of this Part (double taxation relief by way of credit) against any tax so charged.
(5) In determining whether a pension or other similar remuneration is paid out of sums or assets within subsection (3)(a), it is to be assumed that it is paid out of such sums or assets in priority to any other sums or assets.
(6) A “relevant transfer”, in respect of any sums or assets, is a transaction or series of transactions as a result of which—
(a) the sums or assets are transferred out of a pension scheme, and
(b) the sums or assets or related sums or assets (or both) are transferred into the pension scheme under which the pension or other similar remuneration is paid.
(7) A scheme is a “tax avoidance scheme” if the main purpose, or one of the main purposes, of any party to the scheme in entering into the scheme is to secure an income tax advantage for any person under this Part by virtue of provision mentioned in subsection (2) made by double taxation arrangements.
(8) For the purposes of subsection (7)—
(a) “scheme” includes any scheme, arrangements or understanding of any kind whatever, whether or not legally enforceable, involving a single transaction or two or more transactions,
(b) it does not matter whether or not the double taxation arrangements were in existence at the time the tax avoidance scheme was entered into or given effect to, and
(c) “income tax advantage” is to be construed in accordance with section 572A(3) to (5) of ITA 2007.
(9) In this section—
“pension” and “other similar remuneration” have the same meaning as in the Model Tax Convention on Income and on Capital published (from time to time) by the Organisation for Economic Co-operation and Development;
“pension scheme” has the same meaning as in Part 4 of FA 2004 (see section 150 of that Act);
“related sums or assets”, in relation to other sums or assets (“the original sums or assets”), means sums or assets which arise, or (directly or indirectly) derive, from the original sums or assets or from sums or assets which so arise or derive.
(2) The amendment made by this section has effect in relation to the tax year 2011-12 and subsequent tax years (and it does not matter whether the tax avoidance scheme was entered into or effected before, or on or after, 6 April 2011).
(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—
(b) the provision to a person, otherwise than for a consideration, of a sample of goods.
(3) Omit sub-paragraph (3).
(1) In Part 2 of Schedule 8 to VATA 1994 (zero-rating: groups), Group 3 (books, etc) is amended as follows.
(2) For “Note: Items 1 to 6—” substitute—
Notes
(1) Items 1 to 6—
.
(3) At the end insert—
(2) Items 1 to 6 do not include goods in circumstances where—
(a) the supply of the goods is connected with a supply of services, and
(b) those connected supplies are made by different suppliers.
(3) For the purposes of Note (2) a supply of goods is connected with a supply of services if, had those two supplies been made by a single supplier—
(a) they would have been treated as a single supply of services, and
(b) that single supply would have been a taxable supply (other than a zero-rated supply) or an exempt supply.
(4) The amendments made by this section have effect in relation to supplies made on or after the day on which this Act is passed.
(1) In Part 2 of VATA 1994 (reliefs, exemptions and repayments), after section 33A insert —
Refunds of VAT to Academies
33B (1) This section applies where—
(a) VAT is chargeable on—
(i) the supply of goods or services to the proprietor of an Academy,
(ii) the acquisition of any goods from another member State by the proprietor of an Academy, or
(iii) the importation of any goods from a place outside the member States by the proprietor of an Academy, and
(b) the supply, acquisition or importation is not for the purposes of any business carried on by the proprietor of the Academy.
(2) The Commissioners shall, on a claim made by the proprietor of the Academy at such time and in such form and manner as the Commissioners may determine, refund to that proprietor the amount of VAT so chargeable.
(3) Subject to subsection (4), the claim must be made before the end of the period of 4 years beginning with the day on which the supply is made or the acquisition or importation takes place.
(4) If the Commissioners so determine, the claim period is such shorter period beginning with that day as the Commissioners may determine.
(5) Subsection (6) applies where goods or services supplied to, or acquired or imported by, the proprietor of the Academy cannot be conveniently distinguished from goods or services supplied to, or acquired or imported by, it for the purpose of a business carried on by that proprietor.
(6) The amount to be refunded under this section is such amount as remains after deducting from the whole of the VAT chargeable on any supply to, or acquisition or importation by, the proprietor of the Academy such proportion of that VAT as appears to the Commissioners to be attributable to the carrying on of the business.
(7) References in this section to VAT do not include any VAT which, by virtue of an order under section 25(7), is excluded from credit under section 25.
(8) In this section—
(a) references to the proprietor of an Academy are to the proprietor of the Academy acting in that capacity, and
(b) “Academy” and “proprietor” have the same meaning as in the Education Act 1996 (see section 579 of that Act).
(2) In section 79 of that Act (repayment supplement in respect of certain delayed payments or refunds)—
(a) in subsection (1), after paragraph (c) insert
, or
(d) the proprietor of an Academy who is registered is entitled to a refund under section 33B,
,
(b) in subsection (5), after paragraph (c) insert
, and
(d) a supplement paid to the proprietor of an Academy under subsection (1)(d) shall be treated as an amount due to that proprietor by way of refund under section 33B.
, and
(c) in subsection (6)(b) after “33A” insert “ or 33B ”.
(3) In section 90 of that Act (failure of resolution under the Provisional Collection of Taxes Act 1968), in subsection (3) after “33A,” insert “ 33B, ”.
(4) In Part 2 of Schedule 9 to that Act (exemptions: groups), in Group 14 (supplies of goods where input tax cannot be recovered), in Note (9) after “33A,” insert “ 33B, ”.
(5) The amendments made by this section have effect in relation to supplies made, and acquisitions and importations taking place, on or after 1 April 2011.
(1) In Schedule 2 to the Value Added Tax (Imported Goods) Relief Order 1984 (S.I. 1984/746) (reliefs for goods of certain descriptions), in item 8 of Group 8 (consignments of goods not exceeding a certain value), for “£18” substitute “ £15 ”.
(2) The amendment of that Schedule by this section is without prejudice to any power to amend that Schedule by subordinate legislation.
(3) The amendment made by this section has effect in relation to goods imported on or after 1 November 2011.
(1) In Schedule 6 to FA 2000 (climate change levy), omit paragraph 11A (exemption for Northern Ireland gas supplies).
(2) Subsection (3) applies to a supply of gas if—
(a) the supply is made by a gas utility (within the meaning of that Schedule (see paragraph 147)),
(b) the person to whom the supply is made intends to cause the gas to be burned in Northern Ireland, ...
(ba) the supply is not a supply for use in scrap metal recycling (within the meaning of that Schedule (see paragraph 147)), and
(c) the supply is treated as taking place on or after 1 April 2011 but before 1 November 2013.
(3) Paragraph 42 of that Schedule (amount payable by way of levy) has effect as if—
(a) for sub-paragraphs (1) and (1A) there were substituted—
(1) The amount payable by way of levy on a taxable supply is—
(a) if the supply is treated as taking place before 1 April 2012, £0.00059 per kilowatt hour, and
(b) if the supply is treated as taking place on or after that date, £0.00064 per kilowatt hour.
, and
(b) in sub-paragraph (3) the reference to a reduced-rate supply were a reference to a supply in relation to which this subsection applies.
(4) In FA 2001, omit section 105(2) (which inserted paragraph 11A of that Schedule).
(5) The amendments made by subsections (1) and (4) have effect in relation to a supply of gas to a person if the gas is actually supplied to the person on or after 1 April 2011.
(6) Subsections (2) and (3) are treated as having come into force on 1 April 2011.