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Finance Act 2013

  • Explanatory Notes Table of contents

Please note:

All reference to 'Parts' and 'sections' are from the Finance Act 2013. For other versions of these Explanatory Notes, see More Resources.

  1. Introduction

    1. Section 1: Charge for 2013-14

      1. Summary

      2. Details of the Section

      3. Background

    2. Section 2: Personal Allowance for 2013-14 for Those Born after 5 April 1948

      1. Summary

      2. Details of the Section

      3. Background

    3. Section 3: Basic Rate Limit for 2013-14

      1. Summary

      2. Details of the Section

      3. Background

    4. Section 4: Corporation Tax: Charge and Main Rate for Financial Year 2014

      1. Summary

      2. Details of the Section

      3. Background

    5. Section 5: Corporation Tax: Small Profits Rate and Fractions for Financial Year 2013

      1. Summary

      2. Details of the Section

      3. Background

    6. Section 6: Corporation Tax: Main Rate for Financial Year 2015

      1. Summary

      2. Details of the Section

      3. Background

    7. Section 7, Schedule 1: Temporary Increase in Annual Investment Allowance

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

      4. Background

    8. Section 8: London Anniversary Games

      1. Summary

      2. Details of the Section

      3. Background

    9. Section 9: Glasgow Commonwealth Games

      1. Summary

      2. Details of the Section

      3. Background

    10. Section 10: Expenses of Elected Representatives

      1. Summary

      2. Details of the Section

      3. Background

    11. Section 11: Exemption from Income Tax of Contributions to Pension Schemes

      1. Summary

      2. Details of the Section

      3. Background

    12. Section 12: Childcare Exemptions: Meaning of Disabled Child

      1. Summary

      2. Details of the Section

      3. Background

    13. Section 13: Income Tax Exemption for Universal Credit

      1. Summary

      2. Details of the Section

      3. Background

    14. Section 14, Schedule 2: Tax Advantaged Employee Share Schemes

      1. Summary

      2. Details of the Schedule

        1. Part 1, Retirement of Participants

        2. Part 2, 'Good Leavers' (other than Retirees)

        3. Part 3, Material Interest Rules

        4. Part 4, Restricted Shares

        5. Part 5, Share Incentive Plans: Partnership Shares

        6. Part 6, Share Incentive Plans: Dividend Shares

        7. Part 7, Share Incentive Plans: Employee Share Ownership Trusts

        8. Part 8, Enterprise Management Incentives: Consequences of Disqualifying Events

      3. Background

    15. Section 15: Abolition of Tax Relief for Patent Royalties

      1. Summary

      2. Details of the Section

      3. Background

    16. Section 16, Schedule 3: Limit on Income Tax Reliefs

      1. Summary

      2. Details of the Schedule

        1. The limit

        2. Consequential Amendments

        3. Commencement and transitional provision

      3. Background

    17. Section 17, Schedule 4: Cash Basis for Small Businesses

      1. Summary

      2. Details of the Schedule.

      3. Background

    18. Section 18, Schedule 5: Trade Profits: Deductions Allowable at a Fixed Rate

      1. Summary

      2. Details of the Schedule.

      3. Background

    19. Section 19, Schedule 6: Employment Income: Duties Performed in the UK and Overseas

      1. Summary

      2. Details of the Schedule

      3. Background

    20. Section 20, Schedule 7: Remittance Basis: Exempt Property

      1. Summary

      2. Details of the Schedule

      3. Background

    21. Section 21: Payments on account

      1. Summary

      2. Details of the Section

      3. Background

    22. Section 22: Arrangements Made by Intermediaries

      1. Summary

      2. Details of the Section

      3. Background

    23. Section 23: Taxable Benefit of Cars: the Appropriate Percentage

      1. Summary

      2. Details of the Section

      3. Background

    24. Section 24, Schedule 8: Gains from Contracts for Life Insurance

      1. Summary

      2. Details of the Schedule

        1. New section 528 Reduction in amount charged on basis of non-UK residence where individual liable for tax

        2. New 528A Reduction in amount charged on basis of non-UK residence of deceased person

      3. Background

    25. Section 25, Schedule 9: Qualifying Insurance Policies

      1. Summary

      2. Details of the Schedule

        1. Details of the new Part A1 of Schedule 15 to ICTA

        2. Details of new rules for qualifying policies

      3. Background

    26. Section 26, Schedule 10: Transfer of Assets Abroad

      1. Summary

      2. Details of the Schedule

        1. Part 1

        2. Part 2

        3. Part 3

      3. Background

    27. Section 27, Schedule 11: Payments of Interest

      1. Summary

      2. Details of the Schedule

        1. Interest payable on compensation

        2. Specialty debt

        3. Interest in kind

      3. Background

    28. Section 28, Schedule 12: Disguised Interest

      1. Summary

      2. Details of the Schedule

      3. Background

    29. Section 29: Restriction on Surrender of Losses: Controlled Foreign Company Cases

      1. Summary

      2. Details of the Section

      3. Background

    30. Section 30: Loss Relief Surrenderable by Non-UK Resident Established in Eea State

      1. Summary

      2. Details of the Section

      3. Background

    31. Section 31: Arrangement for Transfers of Companies

      1. Summary

      2. Details of the Section

      3. Background

    32. Section 32: CHANGE IN OWNERSHIP: COMPANY RECONSTRUCTIONS

      1. Summary

      2. Details of the Section

      3. Background

    33. Section 33, Schedule 13: Change in Company Ownership: Shell Companies

      1. Summary

      2. Details of the Schedule

      3. Background

    34. Section 34, Schedule 14 Transfer of Deductions

      1. Summary

      2. Details of the Schedule

      3. Background

        1. Current corporate tax loss buying rules

    35. Section 35, Schedule 15: R&D EXPENDITURE CREDITS

      1. Summary

      2. Details of the Schedule

      3. Background

    36. Section 36, Schedules 16, 17, 18: Relief for Television Production and Video Games Development

      1. Summary

      2. Details of the Section

      3. Details of the Schedules

        1. Schedule 16

          1. Part 1: Amendments of CTA 2009

            1. Chapter 1: Introduction

            2. Chapter 2: Taxation of Activities of Television Production Company.

            3. Chapter 3: Television Tax Relief

            4. Chapter 4: Programme losses

            5. Chapter 5: Provisional Entitlement to Relief

          2. Part 2: Commencement

        2. Schedule 17

          1. Part 1: Amendments of CTA 2009

            1. Chapter 1: Introduction

            2. Chapter 2: Taxation of Activities of Video Games development Company

            3. Chapter 3: Video Games Tax Relief

            4. Chapter 4: Video Game Losses

            5. Chapter 5: Provisional Entitlement to Relief

          2. Part 2: Commencement

        3. Schedule 18

      4. Background

    37. Section 37: Corporation Tax: Health Service Bodies: Exemption

      1. Summary

      2. Details of the Section

      3. Background

    38. Section 38: Chief Constables Etc (England and Wales): Exemption

      1. Summary

      2. Details of the Section

      3. Background

    39. Section 39, Schedule 19: Real Estate Investment Trusts: UK Reits Which Invest in Other UK Reits

      1. Summary

      2. Details of the Schedule

      3. Background

    40. Section 40: Corporation Tax Relief for Employee Share Acquisitions Etc

      1. Summary

      2. Details of the Section

      3. Background

    41. Section 41: Derivative Contracts: Property Total Return Swaps Etc

      1. Summary

      2. Details of the Section

      3. Background

    42. Section 42, Schedule 20: Corporation Tax: Tax Mismatch Schemes

      1. Summary

      2. Details of the Schedule

      3. Background

    43. Section 43: Tier Two Capital

      1. Summary

      2. Details of the Section

      3. Background

    44. Section 44: Financing Costs and Income: Group Treasury Companies

      1. Summary

      2. Details of the Section

      3. Background

    45. Section 45: Condition for company to be an “investment trust”

      1. Summary

      2. Details of the Section

      3. Background

    46. Section 46, Schedule 21: Community Amateur Sports Clubs

      1. Summary

      2. Details of the Schedule

      3. Background

    47. Section 47: Lifetime Allowance Charge: Power to Amend the Transitional Provision in Part 2 of Schedule 18 to FA 2011 Etc.

      1. Summary

      2. Details of the Section

      3. Background

    48. Section 48, Schedule 22: Lifetime Allowance Charge: New Standard Lifetime Allowance for the Tax Year 2014-15 and Subsequent Tax Years

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

        1. Part 1 “Fixed protection 2014”

        2. Part 2 Other provision

      4. Background

    49. Section 49: Annual Allowance: New Annual Allowance for the Tax Year 2014-15 and Subsequent Tax Years

      1. Summary

      2. Details of the Section

      3. Background

    50. Section 50: Drawdown Pensions and Dependants’ Drawdown Pensions

      1. Summary

      2. Details of the Section

      3. Background

    51. Section 51: Bridging Pensions

      1. Summary

      2. Details of the Section

      3. Background

    52. Section 52: Abolition of Contracting Out of State Second Pension: Consequential Amendments

      1. Summary

      2. Details of the Section

      3. Background

    53. Section 53: Overseas Pension Schemes: General

      1. Summary

      2. Details of the Section

      3. Background

    54. Section 54: Overseas Pension Schemes: Information and Inspection Powers

      1. Summary

      2. Details of the Section

      3. Background

    55. Section 55, Schedule 23:  Employee Shareholder Shares

      1. Summary

      2. Details of the Schedule

        1. Part 1: Income tax treatment of employee shareholder shares

          1. New Section 226A of ITEPA: Amount treated as earnings

          2. New Section 226B of ITEPA: Deemed payment for employee shareholder shares

          3. New section 226C of ITEPA: Only one payment deemed to be made under associated agreements

          4. New section 226D of ITEPA: Shareholder or connected person having material interest in company

          5. New section 385A of ITTOIA: No charge to tax on purchase by company of exempt employee shareholder shares

        2. Part 2: Capital Gains Tax exemption for employee shareholder shares

          1. New section 236B of TCGA: Exemption for employee shareholder shares

          2. New section 236C of TCGA: Only first £50,000 of shares under associated agreements to be exempt

          3. New section 236D of TCGA: Shares not exempt if shareholder or connected person has material interest in company

          4. New section 236E of TCGA: Identification of exempt employee shareholder shares

          5. New section 236F of TCGA: Reorganisation of share capital involving employee shareholder shares

          6. New section 236G of TCGA: Relinquishment of employment rights is not disposal of an asset

        3. Part 3: Corporation Tax

        4. Part 4: Employment Income Exemption

        5. Part 5: Commencement

      3. Background

    56. Section 56: Seis: Income Tax Relief

      1. Summary

      2. Details of the Section

      3. Background

    57. Section 57: Seis: Reinvestment Relief

      1. Summary

      2. Details of the Section

      3. Background

    58. Section 58: Disincorporation Relief

      1. Summary

      2. Details of the Section

      3. Background

    59. Section 59: Disincorporation Relief: Qualifying Business Transfer

      1. Summary

      2. Details of the Section

      3. Background

    60. Section 60: Disincorporation Relief: Making a Claim

      1. Summary

      2. Details of the Section

      3. Background

    61. Section 61: Disincorporation Relief: Effect of Disincorporation Relief

      1. Summary

      2. Details of the Section

      3. Background

    62. Section 62: Attribution of Gains to Members of Non-Resident Companies

      1. Summary

      2. Details of the Section

      3. Background

    63. Section 63: Heritage Maintenance Settlements

      1. Summary

      2. Details of the Section

      3. Background

    64. Section 64, Schedule 24: EMI Options and Entrepreneurs’ Relief Etc

      1. Summary

      2. Details of the Schedule

      3. Background

    65. Section 65, Schedule 25: Charge on Certain High Value Disposals by Companies Etc

      1. Summary

      2. Details of the Schedule

      3. Background

    66. Section 66: Currency Used in Tax Calculations: Chargeable Gains and Losses

      1. Summary

      2. Details of the Section

      3. Background

    67. Section 67: Allowances for Energy-Saving Plant and Machinery: Northern Ireland

      1. Summary

      2. Details of the Section

      3. Background

    68. Section 68: Cars With Low Carbon Dioxide Emissions

      1. Summary

      2. Details of the Section

      3. Background

    69. Section 69: Gas Refuelling Stations: Extension of Time Limit for Capital Allowance

      1. Summary

      2. Details of the Section

      3. Background

    70. Section 70: First Year Allowance to Be Available for Ships and Railway Assets

      1. Summary

      2. Details of the Section

      3. Background

    71. Section 71, Schedule 26: Restrictions on Buying Capital Allowances

      1. Summary

      2. Details of the Schedule

      3. Background

    72. Section 72: Hire Cars for Disabled Persons

      1. Summary

      2. Details of the Section

      3. Background

    73. Section 73 Contribution Allowances: Plant and Machinery

      1. Summary

      2. Details of the Section

      3. Background

    74. Section 74, Schedule 27: community Investment Tax Relief

      1. Summary

      2. Details of the Schedule

      3. Background

    75. Section 75, Schedule 28: Lease Premium Relief

      1. Summary

      2. Details of the Schedule

      3. Background

    76. Section 76: Manufactured Payments: Stock Lending Arrangements

      1. Summary

      2. Details of the Section

      3. Background

    77. Section 77, Schedule 29: Manufactured Payments: General

      1. Summary

      2. Details of the Schedule

      3. Background

    78. Section 78: Relationship between Rules Prohibiting and Allowing Deductions

      1. Summary

      2. Details of the Section

      3. Background

    79. Section 79, Schedule 30: Close Companies

      1. Summary

      2. Details of the Schedule

        1. Insertion of new Chapters 3A and 3B

        2. Amendments to section 455 CTA10

        3. Amendments to section 459 CTA10

        4. New Chapter 3A – charge to tax: other arrangements

        5. Section 464A Charge to tax: conferring benefit

        6. Section 464B Relief in case of return payment to company

        7. Commencement of sections 464A and 464B

        8. New Chapter 3B: Treatment of certain repayments and return payments

        9. Rule One: the 30 day rule

        10. Rule Two: Arrangements rule

        11. Provisions applying to both the 30 day rule and the Arrangements rule

        12. Other features of Chapter 3B

        13. Commencement of Chapter 3B

        14. Part 2 of Section 79: Other Amendments

      3. Background

    80. Section 80: Decommissioning Relief Agreements

      1. Summary

      2. Details of the Section

      3. Background

    81. Section 81: Decommissioning Relief Agreements: Meaning of “Decommissioning Expenditure”

      1. Summary

      2. Details of the Section

      3. Background

    82. Section 82: Decommissioning Relief Agreements: Annual Report

      1. Summary

      2. Details of the Section

      3. Background

    83. Section 83: Decommissioning Relief Agreements: Effect of Claim on Prt

      1. Summary

      2. Details of the Section

      3. Background

    84. Section 84: Decommissioning Relief Agreements: Terminal Losses Accruing by Virtue of Another’s Default

      1. Summary

      2. Details of the Section

      3. Background

    85. Section 85: Decommissioning Relief: Decommissioning Relief Agreements: Claims under Agreement Not to Affect Oil Allowance

      1. Summary

      2. Details of the Section

      3. Background

    86. Section 86: Decommissioning Relief: Removal of Iht Charges in Respect of Decommissioning Security Settlements

      1. Summary

      2. Details of the Section

      3. Background

    87. Section 87: Decommissioning Relief: Loan Relationships Arising from Decommissioning Security Settlements

      1. Summary

      2. Details of the Section

      3. Background

    88. Section 88: Decommissioning Relief: Decommissioning Expenditure Taken into Account for Prt Purposes

      1. Summary

      2. Details of the Section

      3. Background

    89. Section 89, Schedule 31: Decommissioning Relief: Miscellaneous Amendments Relating to Decommissioning

      1. Summary

      2. Details of the Schedule

        1. Part 1

          1. Expenditure on abandonment guarantees

          2. Expenditure under abandonment guarantees

          3. Reimbursement by defaulter in respect of abandonment expenditure

          4. Consequential amendments

        2. Part 2

      3. Background

    90. Section 90: Decommissioning Relief: Expenditure on Decommissioning Onshore Installations

      1. Summary

      2. Details of the Section

      3. Background

    91. Section 91: Decommissioning Relief: Expenditure on Decommissioning Certain Redundant Plant Or Machinery

      1. Summary

      2. Details of the Section

      3. Background

    92. Section 92: Decommissioning Relief: Expenditure on Site Restoration

      1. Summary

      2. Details of the Section

      3. Background

    93. Section 93, Schedule 32: Decommissioning Relieg: Restrictions on Allowances for Certain Oil-Related Expenditure

      1. Summary

      2. Details of the Schedule

      3. Background

    94. Sections 94 – 174, Schedules 33, 34, 35: Annual Tax on Enveloped Dwellings

      1. Summary

      2. Details of the Sections

        1. Section 94 – Charge to Tax

        2. Section 95 – Entitlement to interests

        3. Section 96 – Person Liable

        4. Section 97 – Liability of persons jointly entitled

        5. Section 98 - Collective Investment Schemes: liability for and collection of tax

        6. Section 99 – Amount of tax chargeable

        7. Section 100 – Interim Relief

        8. Section 101 – Indexation of annual chargeable amounts

        9. Section 102– Taxable value

        10. Section 103 – Section 102: “substantial” acquisitions and disposals

        11. Section 104– No double charge

        12. Section 105– “Adjusted chargeable amount”

        13. Section 106 – Adjustment of amount chargeable

        14. Section 107 – Chargeable interests

        15. Section 108 – Meaning of ‘single-dwelling interest’

        16. Section 109 – Different interests held in the same dwelling

        17. Section 110 – Interests held by connected persons

        18. Section 111 – Different Interests held in the same dwelling – effect of reliefs etc

        19. Section 112 – Meaning of “dwelling”

        20. Section 113 - Substantial performance of “off-plan” purchase

        21. Section 114 – Power to modify meaning of “use as a dwelling”

        22. Section 115 – Parts of a greater whole

        23. Section 116 – Dwelling in Grounds of another Dwelling

        24. Section 117 – Dwellings in the same building

        25. Section 118 – Section 117: supplementary

        26. Section 119 – Terraces etc

        27. Section 120 – Acquisitions and disposals of chargeable interests

        28. Section 121 – Date of acquisition or disposal

        29. Section 122 – Contract and conveyance: the purchaser

        30. Section 123 – Contract and conveyance: the vendor

        31. Section 124 – New dwellings

        32. Section 125 – Dwellings produced from other dwellings

        33. Section 126 – Demolition of a dwelling

        34. Section 127 – Demolition without replacement

        35. Section 128 – Demolition and replacement: new dwellings

        36. Section 129 – Demolition and replacement: other cases

        37. Section 130 – Conversion of dwelling for non-residential use

        38. Section 131 – Damage to a dwelling

        39. Section 132 – Effect of Reliefs under Sections 133-150

        40. Section 133 – Property rental businesses

        41. Section 134 - Rental property: preparation for sale, demolition etc

        42. Section 135 – Non-qualifying occupation: look forward and look back

        43. Section 136 – Meaning of “non-qualifying individual”

        44. Section 137 – Dwellings open to the public

        45. Section 138 – Property developers

        46. Section 139 –Property developers: exchange of dwellings

        47. Section 140 – Property developers: supplementary

        48. Section 141 – Property traders

        49. Section 142 – Property traders: supplementary

        50. Section 143 – Financial Institutions acquiring dwellings in the course of lending

        51. Section 144 - Section 143: supplementary

        52. Section 145 – Occupation by certain employees or partners

        53. Section 146 – Meaning of “qualifying employee” and “qualifying partner” in Section 145

        54. Section 147 – Meaning of “10% or greater share in a company”

        55. Section 148 – Farmhouses

        56. Section 149 – “Farm worker” and “former long-serving farm worker”

        57. Section 150 – Providers of social housing

        58. Section 151 – Charitable companies

        59. Section 152- Section 151: supplementary

        60. Section 153 – Public bodies

        61. Section 154 – Bodies established for national purposes

        62. Section 155 – Dwelling conditionally exempt from inheritance tax

        63. Section 156 – Modification of reliefs

        64. Section 157 – Land sold to a financial institution and leased to a person

        65. Section 158 – Responsibility for collection and management

        66. Section 159 – Annual Tax on Enveloped Dwellings return

        67. Section 160 – Return of adjusted chargeable amount

        68. Section 161 – Return to include self-assessment

        69. Section 162 – Returns, enquiries, assessments and other administrative matters

        70. Section 163 – Payment of tax

        71. Section 164 – Information and enforcement

        72. Section 165 – Collection and recovery of tax etc

        73. Section 166 – Companies

        74. Section 167 – Partnerships

        75. Section 168 – Miscellaneous amendments and transitory provisions

        76. Section 169 – Orders and regulations

        77. Section 170 – Meaning of “chargeable day” and “within the charge”

        78. Section 171 – References to the state of affairs “on” a day

        79. Section 172 – Connected persons

        80. Section 173 – Connected persons: cell companies

        81. Section 174 – General interpretation of Part 3

      3. Details of the Schedules

        1. Schedule 33: Annual Tax on Enveloped Dwellings: Returns, Enquiries, Assessments and Appeals

          1. Part 1: Returns

          2. Part 2: Duty to Keep and Preserve Records

          3. Part 3: Enquiry into Return

          4. Part 4: HMRC determination where no return delivered

          5. Part 5: HMRC Assessments

          6. Part 6: Relief in case of overpaid tax or excessive assessment

          7. Part 7: Reviews and Appeals

          8. Part 8: Supplementary

        2. Schedule 34: Annual Tax on Enveloped Dwellings: Information and Enforcement

          1. Part 1: Information and Inspection Powers

          2. Part 2: Penalties

        3. Schedule 35: Annual Tax on Enveloped Dwellings: Miscellaneous Amendments and Transitory Provision

          1. Details of the Schedule

            1. Part 1: Miscellaneous amendments

            2. Part 2: Transitory provision

      4. Background

    95. Section 175: Open Ended Investment Companies and Authorised Unit Trusts

      1. Summary

      2. Details of the Section

      3. Background

    96. Section 176, Schedule 36: Treatment of Liabilities for Inheritance Tax Purposes

      1. Summary

      2. Details of the Schedule

      3. Background

    97. Section 177: Election to Be Treated as Domiciled in United Kingdom

      1. Summary

      2. Details of the Section

      3. Background

    98. Section 178: Transfer to Spouse Or Civil Partner Not Domiciled in United Kingdom

      1. Summary

      2. Details of the Section

      3. Background

    99. Section 179: Fuel Duties: Rates and Rebates from 1 April 2013

      1. Summary

      2. Details of the Section

      3. Background

    100. Section 180: Rates of Alcoholic Liquor Duties

      1. Summary

      2. Details of the Section

      3. Background

    101. Section 181: Rates of Tobacco Products Duty

      1. Summary

      2. Details of the Section

      3. Background

    102. Section 182: Meaning of “Tobacco Products”

      1. Summary

      2. Details of the Section

      3. Background

    103. Section 183: Rates of Gaming Duty

      1. Summary

      2. Details of the Section

      3. Background

    104. Section 184: Combined Bingo

      1. Summary

      2. Details of the Section

      3. Background

    105. Section 185: Air Passenger Duty: Rates of Duty from 1 April 2013

      1. Summary

      2. Details of the Section

      3. Background

    106. Section 186: Air Passenger Duty: Miscellaneous Provision

      1. Summary

      2. Details of the Section

      3. Background

    107. Section 187: Ved Rates for Light Passenger Vehicles, Light Goods Vehicles, Motorcycles Etc

      1. Summary

      2. Details of the Section

      3. Background

    108. Section 188: Not Exhibiting Licence: Period of Grace

      1. Summary

      2. Details of the Section

      3. Background

    109. Section 189: Vehicles Not Kept Or Used on Public Road

      1. Summary

      2. Details of the Section

      3. Background

    110. Section 190, Schedule 37: vehicle Licences for Disabled People

      1. Summary

      2. Details of the Schedule

      3. Background

    111. Section 191: Repayments of Value Added Tax to Health Service Bodies

      1. Summary

      2. Details of the Section

      3. Background

    112. Section 192, Schedule 38: Valuation of Certain Supplies of Fuel

      1. Summary

      2. Details of the Schedule

      3. Background

    113. Section 193: VAT: Reduced Rate for Energy-Saving Materials

      1. Summary

      2. Details of the Section

      3. Background

    114. Section 194: Pre-Completion Transactions: Existing Cases

      1. Summary

      2. Details of the Section

      3. Background

    115. Section 195 Schedule 37: Stamp Duty Land Tax: Pre-Completion Transactions

      1. Summary

      2. Details of the Schedule

        1. Meaning of “pre-completion transactions” and associated terms

        2. Other key expressions in relation to pre-completion transactions

        3. Assignments of rights: application of rules about consideration and completion

        4. Assignment of rights: transferor deemed to make a separate acquisition

        5. Effect of rescission, annulment etc of the original contract on SDLT charged on a notional land transaction under paragraph 5(1)

        6. Assignments of rights of a part of the subject-matter of the original contract

        7. Assignments of rights: identity of “the vendor”

        8. Free-standing transfers: application of rules about consideration and substantial performance

        9. Free-standing transfers and pre-completion transactions where there is mixture of both assignments of rights and free-standing transfers: identity of “the vendor”

        10. Other key expressions for the purposes of paragraph 10

        11. Minimum consideration rule

        12. Calculation of minimum amounts for the purposes of the minimum consideration rule

        13. Calculation of the second minimum amount for the purposes of the minimum consideration rule

        14. Relief for the original purchaser in assignment of rights cases

        15. Relief for the original purchaser in qualifying subsale cases

        16. Relief for successive subsales

        17. Tax avoidance arrangements

        18. Exclusion of transactions from duty to make returns etc

        19. Definition of connected persons

        20. Interpretation of Schedule

      3. Background

    116. Section 196, Schedule 40: Stamp Duty Land Tax Relief from 15% Rate

      1. Summary

      2. Details of the Schedule

      3. Background

    117. Section 197 and Schedule 41: Stamp Duty Land Tax: Leases

      1. Summary

      2. Details of the Schedule

        1. Leases that continue after a fixed term

        2. Agreement for lease

        3. Abnormal rent increases

        4. Commencement

      3. Background

    118. Section 198: Standard Rate of Landfill Tax

      1. Summary

      2. Details of the Section

      3. Background

    119. Section 199: Climate change levy: MAIN RATES

      1. Summary

      2. Details of the Section

      3. Background

    120. Section 200, Schedule 42: Climate Change Levy: Supplies Subject to Carbon Price Support Rates Etc.

      1. Summary

      2. Details of the Schedule

        1. Part 1 – Earlier provision not to have effect

        2. Part 2 – New provisions having effect from 1 April 2013

        3. Part 3 – Carbon price support rates from 1 April 2014

        4. Part 4 – Carbon price support rates from 1 April 2015

      3. Background

    121. Section 201: Insurance Premium Tax: Contracts That are Not Taxable

      1. Summary

      2. Details of the Section

      3. Background

    122. Section 202: Bank Levy: Rates from 1 January 2013

      1. Summary

      2. Details of the Section

      3. Background

    123. Section 203: Bank Levy: Rates from 1 January 2014

      1. Summary

      2. Details of the Section

      3. Background

    124. Section 204: No Deductions for UK Or Foreign Bank Levies

      1. Summary

      2. Details of the Section

      3. Background

    125. Section 205 Bank Levy Definition of High Quality Liquid Assets

      1. Summary

      2. Details of the Section

      3. Background

    126. Sections 206 – 215, Schedule 43: General Anti-Abuse Rule

      1. Summary

      2. Details of the Sections

      3. Details of the Schedule

      4. Background

    127. Section 216, Schedule 44: Vulnerable Beneficiary Trusts

      1. Summary

      2. Details of the Schedule

      3. Background

    128. Section 217: Unauthorised unit trusts

      1. Summary

      2. Details of the Section

      3. Background

    129. Section 218, Schedule 45: Statutory Residence Test

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

        1. Part 1

          The Rules

          1. Introduction

          2. Interpretation of enactments

          3. The basic rule

          4. The automatic residence test

          5. The automatic UK tests

          6. The automatic overseas tests

          7. The sufficient ties test

          8. Sufficient UK ties

        2. Part 2

          Key concepts

          1. Days spent

          2. Days spent “in” a period

          3. Home

          4. Work

          5. Location of work

          6. Rules for calculating the reference period

          7. Significant breaks from UK or overseas work

          8. Relevant jobs on board vehicles, aircraft or ships

          9. UK ties

          10. Family tie

          11. Accommodation tie

          12. Work tie

          13. 90-day tie

          14. Country tie

        3. Part 3

          Split year treatment

          1. Introduction

          2. Definition of a “split year”

          3. Case 1: starting full-time work overseas

          4. Case 2: the partner of someone starting full-time work overseas

          5. Case 3: ceasing to have a home in the UK

          6. Case 4: starting to have a home in the UK only

          7. Case 5: starting full-time work in the UK

          8. Case 6: ceasing full-time work overseas

          9. Case 7: the partner of someone ceasing full-time work overseas

          10. Case 8: starting to have a home in the UK

          11. General rules for construing Cases 1 to 8

          12. The overseas part

          13. Priority between Cases 1 to 3

          14. Priority between Cases 4 to 8

          15. The UK part

          16. Special charging rules for employment income

          17. Special charging rules for pension income

          18. PAYE income

          19. Special rules for trading income

          20. Special charging rules for property income

          21. Special charging rules for savings and investment income

          22. Special charging rules for miscellaneous income

          23. Special charging rules for relevant foreign income charged on remittance basis

          24. Special charging rules for capital gains

          25. Trustees of a settlement

          26. Definitions in enactments relating to income tax and CGT

        4. Part 4

          Anti-avoidance

          1. Introduction

          2. Meaning of temporarily non-resident

          3. Residence periods

          4. Sole UK residence

          5. Temporary period of non-residence

          6. Year of departure

          7. Period of return

          8. Consequential amendments: income tax

          9. Consequential amendments: capital gains tax

          10. New special rule: lump sum payments under pension schemes etc

          11. New special rule: distributions to participators in close companies etc

          12. New special rule: chargeable event gains

        5. Part 5

          Miscellaneous

          1. Interpretation

          2. Consequential amendments

          3. Commencement

          4. Transitional and saving provision

          5. Background

    130. Section 219, Schedule 46: Ordinary Residence

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

        1. Part 1

          Income tax and capital gains tax: remittance basis of taxation

          1. Remittance basis restricted to non-doms

          2. Treatment of relevant foreign earnings

          3. Consequential amendments

          4. Commencement

          5. Savings

          6. Interpretation

        2. Part 2

          Income tax: arising basis of taxation

          1. ICTA 1988

          2. ITEPA 2003

          3. ITTOIA 2005

          4. ITA 2007

        3. Part 3

          Capital gains tax: accruals basis of taxation

          1. TCGA 1992

        4. Part 4

          Other amendments

          1. FA 1916

          2. F(No.2)A 1931

          3. TMA 1970

          4. IHTA 1984

          5. FA 2004

          6. FA 2005

          7. F(No.2)A 2005

          8. CTA 2009

          9. CTA 2010

          10. TIOPA 2010

          11. Constitutional Reform and Governance Act 2010

      4. Background

    131. Section 220, Schedule 47: Controlled Foreign Companies Etc

      1. Summary

      2. Details of the Schedule

        1. Relevant finance leases

        2. Limit on double taxation relief in cases involving qualifying loan relationships of CFCs

        3. Miscellaneous

        4. Commencement and transitional provision

        5. Accounting periods ending before 20 March 2013

        6. Accounting periods ending on or after 20 March 2013

      3. Background

    132. Section 221: Agreement between UK and Switzerland

      1. Summary

      2. Details of the Section

      3. Background

    133. Section 222: International Agreements to Improve Tax Compliance

      1. Summary

      2. Details of the Section

      3. Background

    134. Section 223: Disclosure of Tax Avoidance Schemes

      1. Summary

      2. Details of the Section

      3. Background

    135. Section 224, Schedule 48: Powers under the Proceeds of Crime Act 2002

      1. Summary

      2. Details of the Schedule

      3. Background

    136. Section 225: Definition of “Goods” for Certain Customs Purposes

      1. Summary

      2. Details of the Section

      3. Background

    137. Section 226: Detention of Excise Goods

      1. Summary

      2. Details of the Section

      3. Background

    138. Section 227: Penalty Instead of Forfeiture of Larger Ships

      1. Summary

      2. Details of the Section

      3. Background

    139. Section 228: Data-Gathering from Merchant Acquirers Etc.

      1. Summary

      2. Details of the Section

      3. Background

    140. Section 229, Schedule 49: Corporation Tax: Deferral of Payment of Exit Charge

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

      4. Background

    141. Section 230, Schedule 50: Penalties: Late Filing, Late Payment and Errors

      1. Summary

      2. Details of the Schedule

      3. Background

    142. Section 231: Overpayment Relief: Generally Prevailing Practice Exclusion and Eu Law

      1. Summary

      2. Details of the Section

      3. Background

    143. Section 232: Overpayment Relief: Time Limit for Claims

      1. Summary

      2. Details of the Section

      3. Background

    144. Section 233, Schedule 51: Withdrawing a Notice to File a Self Assessment Return

      1. Summary

      2. Details of the Schedule

      3. Background

    145. Section 234 Restrictions on Interim Payments in Proceedings Relating to Taxation Matters

      1. Summary

      2. Details of the Section

      3. Background

  2. Hansard References

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Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.

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