Finance Act 2007

1. Introductory Text

2. Part 1 Charges, rates, thresholds etc

   1. Income tax

      1. 1. Charge and rates for 2007-08

   2. Corporation tax

      1. 2. Charge and main rates for financial year 2008

      2. 3. Small companies' rates and fractions for financial year 2007

   3. Inheritance tax

      1. 4. Rates and rate bands for 2010-11

   4. Alcohol and tobacco

      1. 5. Rates of duty on alcoholic liquor

      2. 6. Rates of tobacco products duty

   5. Gambling

      1. 7. Rates of gaming duty

      2. 8. Remote gaming duty

      3. 9. Amusement machine licence duty

   6. Environment

      1. 10. Fuel duty rates and rebates

      2. 11. Rates of vehicle excise duty

      3. 12. Rates of air passenger duty

      4. 13. Rates of climate change levy

      5. 14. Rate of aggregates levy

      6. 15. Rates of landfill tax

      7. 16. Emissions trading: charges for allocations

3. Part 2 Environment

   1. Energy-saving: houses

      1. 17. Corporation tax deduction for expenditure on energy-saving items

      2. 18. Extension of income tax deduction for expenditure on energy-saving items

      3. 19. SDLT relief for new zero-carbon homes

   2. Domestic microgeneration

      1. 20. Income tax exemption for domestic microgeneration

      2. 21. Renewables obligation certificates for domestic microgeneration

   3. Other measures

      1. 22. Aggregates levy: exemption for aggregate removed from railways etc

      2. 23. Climate change levy: reduced-rate supplies etc

      3. 24. Landfill tax: bodies concerned with the environment

4. Part 3 Income tax, corporation tax and capital gains tax

   1. Anti-avoidance

      1. 25. Managed service companies

      2. 26. Restrictions on trade loss relief for partners

      3. 27. Extension of restrictions on allowable capital losses

      4. 28. Restriction on expenses of management

      5. 29. Life policies etc: effect of rebated or reinvested commission

      6. 30. Avoidance involving financial arrangements

      7. 31. Companies carrying on business of leasing plant or machinery

      8. 32. Restrictions on companies buying losses or gains: tax avoidance schemes

      9. 33. Lloyd’s corporate members: restriction of group relief

      10. 34. Employee benefit contributions

      11. 35. Schemes etc designed to increase double taxation relief

   2. Capital allowances

      1. 36. Industrial and agricultural buildings allowances

      2. 37. Temporary increase in first-year capital allowances for small enterprises

   3. Insurance and friendly societies

      1. 38. Insurance companies: gross roll-up business etc

      2. 39. Insurance companies: basis of taxation etc

      3. 40. Insurance companies: transfers etc

      4. 41. Insurance companies: miscellaneous

      5. 42. Technical provisions made by general insurers

      6. 43. Lloyd's: cessation of business by corporate members

      7. 44. Transfers of business by friendly societies to insurance companies etc

      8. 45. Tax exempt business of friendly societies

      9. 46. Purchased life annuities: self-assessment

   4. Repos

      1. 47. Sale and repurchase of securities

   5. CFCs

      1. 48. Controlled foreign companies

   6. R&D

      1. 49. Vaccine research relief: amount of deduction for SMEs

      2. 50. Research and development tax relief: definition of SME etc

   7. Venture capital schemes etc

      1. 51. Venture capital schemes etc

   8. REITs

      1. 52. Real Estate Investment Trusts

   9. Alternative finance

      1. 53. Alternative finance investment bond

      2. 54. Profit share agency

   10. Trusts

       1. 55. Trust income

       2. 56. Trust gains on contracts for life insurance

   11. Other corporation tax measures

       1. 57. Offshore funds

       2. 58. Election out of special film rules for film production companies

       3. 59. Securitisation companies

   12. Other income tax measures

       1. 60. Gift aid: limits

       2. 61. Enterprise management incentives: excluded activities

       3. 62. Benefits code: whether employment is “lower-paid employment”

       4. 63. Armed forces redundancy schemes

       5. 64. Armed forces: the Operational Allowance

       6. 65. Service charge income

       7. 66. Charge on benefits received by former owner of property: late elections

       8. 67. Unpaid remuneration and employee benefit contributions

5. Part 4 Pensions

   1. 68. Abolition of contributions relief for life assurance premium contributions

   2. 69. Alternatively secured pensions etc

   3. 70. Miscellaneous

6. Part 5 SDLT, stamp duty and SDRT

   1. SDLT: anti-avoidance provisions

      1. 71. Anti-avoidance

      2. 72. Partnerships

   2. Reliefs in relation to shares etc

      1. 73. Exemptions: intermediaries, repurchases etc

      2. 74. Acquisition relief: disregard of company holding own shares

   3. Other reliefs etc

      1. 75. SDLT: alternative finance arrangements

      2. 76. SDLT: exchanges

      3. 77. SDLT: shared ownership trusts

      4. 78. SDLT: shared ownership lease

      5. 79. Certain transfers of school land

   4. SDLT: administration

      1. 80. Payment of tax

      2. 81. Self-certificate declarations

7. Part 6 Investigation, administration etc

   1. Investigation etc

      1. 82. Criminal investigations: powers of Revenue and Customs

      2. 83. Northern Ireland criminal investigations

      3. 84. Sections 82 and 83: supplementary

      4. 85. Criminal investigations: Scotland

      5. 86. Search warrants

      6. 87. Cross-border exercise of powers

   2. Filing dates

      1. 88. Personal tax returns

      2. 89. Trustee’s tax return

      3. 90. Partnership tax returns

      4. 91. Consequential amendments

      5. 92. Commencement

   3. Other administration

      1. 93. Mandatory electronic filing of returns

      2. 94. Mandatory electronic payment

      3. 95. Payment by cheque

      4. 96. Enquiry into returns

      5. 97. Penalties for errors

8. Part 7 Miscellaneous

   1. Value added tax and insurance premium tax

      1. 98. VAT: joint and several liability of traders in supply chain where tax unpaid

      2. 99. VAT: non-business use etc of business goods

      3. 100. VAT: transfers of going concerns

      4. 101. IPT: meaning of “premium”

   2. Petroleum revenue tax

      1. 102. Abolition of PRT for fields recommissioned after earlier decommissioning

      2. 103. Tax-exempt tariffing receipts

      3. 104. Allowance of unrelievable loss from abandoned field

   3. Other miscellaneous measures

      1. 105. Amendments connected with Gambling Act 2005

      2. 106. VED: exempt vehicles

      3. 107. Limitation period in old actions for mistake of law relating to direct tax

      4. 108. Disclosure of tax avoidance schemes

      5. 109. Meaning of “recognised stock exchange” etc

      6. 110. Mergers Directive: regulations

      7. 111. Excise duties: small consignment relief

      8. 112. Updating references to Standing Committees

9. Part 8 Final provisions

   1. 113. Interpretation

   2. 114. Repeals

   3. 115. Short title

10. SCHEDULES

    1. SCHEDULE 1

       Remote gaming duty

       1. Part 1 Imposition of duty

          1. 1. The sections set out below are to be inserted in...

          2. 2. Those sections are— Remote gaming duty Interpretation (1) For the purposes of remote gaming duty “remote gaming”...

       2. Part 2 Consequential amendments

          1. 3. In BGDA 1981, before section 26N (non-sterling amounts) (as renumbered...

          2. 4. In section 31 of that Act (protection of officers), after...

          3. 5. In section 32 of that Act (subordinate legislation), after subsection...

          4. 6. In section 33(2) of that Act (no legalising effect), after...

    2. SCHEDULE 2

       Climate change levy: reduced-rate supplies etc

       1. 1. Introductory

       2. 2. Reduced-rate supplies

       3. 3. In paragraph 5(3) (supplies of electricity), for “or 24” substitute...

       4. 4. In paragraph 6(2A) (supplies of gas), after “24” insert “or...

       5. 5. (1) Paragraph 34 (other commodities: deemed supplies) is amended as...

       6. 6. In paragraph 39(1)(c) (regulations as to time of supply), for...

       7. 7. For paragraph 44 substitute— (1) For the purposes of this Schedule, a taxable supply...

       8. 8. (1) Paragraph 45 (reduced-rate supplies: variation of notices under paragraph...

       9. 9. After that paragraph insert— Reduced-rate supplies: deemed supply (1) This paragraph applies where— (a) a taxable supply has...

       10. 10. In paragraph 147 (interpretation), in the definition of “reduced-rate supply”—...

       11. 11. Notifications and certificates

       12. 12. (1) Paragraph 101 (civil penalties: incorrect notifications etc) is amended...

       13. 13. Commencement

    3. SCHEDULE 3

       Managed service companies

       1. Part 1 Amendments of ITEPA 2003

          1. 1. ITEPA 2003 is amended as follows.

          2. 2. In section 7(5) (meaning of “employment income” etc), for paragraph...

          3. 3. In section 48(2) (workers under arrangements made by intermediaries: scope...

          4. 4. After section 61 insert— Chapter 9 Managed service companies Application...

          5. 5. In section 218(1) (exclusion of lower-paid employments from parts of...

          6. 6. After section 688 insert— Managed service companies: recovery from other...

          7. 7. In section 717(4) (orders and regulations not subject to negative...

          8. 8. In Part 2 of Schedule 1 (index of defined expressions),...

       2. Part 2 Calculation of profits of MSCs: deduction for deemed employment payments

          1. 9. Deduction for deemed employment payments for income tax purposes

          2. 10. Deduction for deemed employment payments for corporation tax purposes

    4. SCHEDULE 4

       Restrictions on trade loss relief for partners

       1. 1. Limit on amount of sideways relief and capital gains relief available in any tax year

       2. 2. Disregard of contributions made for purpose of accessing sideways relief and capital gains relief

       3. 3. Provision corresponding to paragraphs 1 and 2 for tax year 2006-07

       4. 4. Consequential amendments

       5. 5. In section 32 (liability not dealt with in the calculation),...

       6. 6. In section 82(a) (exploitation of films), for “sections 115 and...

       7. 7. (1) Section 102 (overview of Chapter 3 of Part 4)...

       8. 8. After section 103 insert— Meaning of “limited partner” (1) In this Chapter “limited partner” means an individual who...

       9. 9. After section 103C (as inserted by paragraph 1(1) above) insert—...

       10. 10. In— (a) section 104(5) (restriction on reliefs for limited partners),...

       11. 11. In— (a) section 105(11) (meaning of “contribution to the firm”...

       12. 12. Omit section 106 (meaning of “limited partner”).

       13. 13. In section 112 (meaning of “non-active partner” and “early tax...

       14. 14. Omit the italic-cross heading before section 114 (regulations: exclusion of...

       15. 15. In section 115 (restrictions on reliefs for firms exploiting films),...

       16. 16. Omit section 116 (exclusion from restrictions under section 115: certain...

       17. 17. In section 792 (partners claiming excess sideways or capital gains...

       18. 18. In section 809 (individuals in partnership claiming relief for licence-related...

       19. 19. In paragraph 148(3)(b) of Schedule 2 (transitionals and savings: tax...

       20. 20. In Schedule 4 (index of defined expressions)—

       21. 21. The amendments made by paragraphs 5 to 20 are deemed...

    5. SCHEDULE 5

       Avoidance involving financial arrangements

       1. 1. Amounts not forming part of a company’s income

       2. 2. (1) In section 660C of ICTA, omit subsection (4) (income...

       3. 3. Structured finance arrangements

       4. 4. In section 774D of ICTA (disregard of intended effects of...

       5. 5. In section 774E of ICTA (exceptions), in subsection (7)(a) (meaning...

       6. 6. (1) Section 774G of ICTA (minor definitions etc for purposes...

       7. 7. (1) The amendments made by paragraphs 3 to 5 and...

       8. 8. (1) Section 263E of TCGA 1992 (structured finance arrangements) is...

       9. 9. Manufactured payments under arrangements having an unallowable purpose

       10. 10. Options and groups of companies

       11. 11. Loan relationships: amounts not fully recognised for accounting purposes

       12. 12. Shares treated as loan relationships

       13. 13. (1) Section 91B of FA 1996 (non-qualifying shares) is amended...

       14. 14. (1) In section 103(1) of FA 1996 (interpretation of Chapter...

       15. 15. Exchange gains and losses where loan not on arm’s length terms

       16. 16. Loan relationships and collective investment schemes

       17. 17. Plant or machinery subject to a lease and finance leaseback

       18. 18. Derivative contracts: contracts treated for accounting purposes as financial asset or liability

       19. 19. Derivative contracts: transfers of value to connected companies

    6. SCHEDULE 6

       Companies carrying on business of leasing plant or machinery

       1. 1. Company reconstructions without change of ownership

       2. 2. Sale etc of lessor companies etc

    7. SCHEDULE 7

       Insurance business: gross roll-up business etc

       1. Part 1 Amendments

          1. 1. Taxes Management Act 1970 (c. 9)

          2. 2. Income and Corporation Taxes Act 1988 (c. 1)

          3. 3. (1) Section 76 (expenses of insurance companies) is amended as...

          4. 4. Omit section 333B (involvement of insurance companies with plans and...

          5. 5. In section 403E (relief for overseas losses of UK resident...

          6. 6. (1) Section 431 (interpretative provisions relating to insurance companies) is...

          7. 7. In section 431A(3)(a) (power to amend), omit “and Schedule 19AA”....

          8. 8. After section 431B insert— Meaning of “child trust fund business”...

          9. 9. (1) Section 431D (meaning of “overseas life assurance business”) is...

          10. 10. After section 431E insert— Meaning of “gross roll-up business” In this Chapter “gross roll-up business” means business of any...

          11. 11. In section 431F (meaning of “basic life assurance and general...

          12. 12. In section 432ZA(7) (linked assets), for “long-term business other than...

          13. 13. (1) Section 432A (apportionment of income and gains) is amended...

          14. 14. (1) Section 432AA (Schedule A business or overseas property business)...

          15. 15. In section 432AB (losses from Schedule A business or overseas...

          16. 16. (1) Section 432B (apportionment of receipts brought into account) is...

          17. 17. For section 432C substitute— Section 432B apportionment: non-participating funds (1) This section specifies the extent to which the net...

          18. 18. Omit section 432D (section 432B apportionment: value of non-participating funds)....

          19. 19. (1) Section 432E (section 432B apportionment: participating funds) is amended...

          20. 20. In section 432F(2) (section 432B apportionment: supplementary provisions)—

          21. 21. For section 432G substitute— Section 432B apportionment: business transfers-in (1) There is referable to the life assurance business of...

          22. 22. (1) Section 434 (franked investment income etc) is amended as...

          23. 23. (1) Section 434A (computation of losses and limitation on relief)...

          24. 24. Omit section 436 (pension business: separate charge on profits).

          25. 25. Before section 437 insert— Gross roll-up business: separate charge on...

          26. 26. (1) Section 438 (pension business: exemption from tax) is amended...

          27. 27. Omit section 438B (income or gains arising from property investment...

          28. 28. Omit section 438C (determination of policy holders' share for purposes...

          29. 29. Omit section 439 (restricted government securities).

          30. 30. Omit section 439B (life reinsurance business: separate charge on profits)....

          31. 31. (1) Section 440 (transfers of assets etc) is amended as...

          32. 32. In section 440A(2) (securities)— (a) in paragraph (a), for sub-paragraphs...

          33. 33. In section 440B(4) (modifications where tax charged under Case I...

          34. 34. Omit section 441 (overseas life assurance business).

          35. 35. In section 444A(3) (transfers of business)— (a) for “436(3)(c) or...

          36. 36. (1) Section 444AC (transfers of business: excess of assets or...

          37. 37. (1) Section 444AF (demutualisation surplus: life assurance business) is amended...

          38. 38. (1) Section 444AK (mutual surplus: Case VI categories of life...

          39. 39. Omit sections 458 and 458A (capital redemption business).

          40. 40. In section 460(2) (registered friendly societies: exemption from tax in...

          41. 41. In section 461 (registered friendly societies: other business), omit subsection...

          42. 42. In section 461B (incorporated friendly societies), omit subsection (2A).

          43. 43. (1) Section 466 (interpretation of Chapter 2 of Part 12)...

          44. 44. In section 502H(2)(a)(ii) and (4)(b) (insurance company as lessor), for...

          45. 45. In section 539(3) (life policies, life annuities and capital redemption...

          46. 46. (1) Section 553B (overseas life assurance business: capital redemption policies)...

          47. 47. (1) Section 755A (treatment of chargeable profits and creditable tax...

          48. 48. In section 804A(1) (life assurance companies with overseas branches etc:...

          49. 49. (1) Section 804B (insurance companies carrying on more than one...

          50. 50. In section 804C(14) (insurance companies: allocation of expenses etc in...

          51. 51. (1) Section 804D (interpretation of section 804C in relation to...

          52. 52. In section 804E (interpretation of section 804C in relation to...

          53. 53. In section 806L(5) (carry forward or carry back of unrelieved...

          54. 54. In section 808 (restriction on deduction of interest or dividends...

          55. 55. Omit Schedule 19AA (overseas life assurance fund).

          56. 56. In paragraph 2(1A)(a) of Schedule 25 (cases where section 747(3)...

          57. 57. Finance Act 1989 (c. 26)

          58. 58. In section 88(3A) (corporation tax: policy holders' fraction of profits),...

          59. 59. In section 89(1A) (policy holders' share of profits), for paragraph...

          60. 60. Taxation of Chargeable Gains Act 1992 (c. 12)

          61. 61. In section 204(10) (policies of insurance and non-deferred annuities)—

          62. 62. In section 210B— (a) omit paragraph (b) of subsection (6)...

          63. 63. In section 212(2) (annual deemed disposal of holdings of certain...

          64. 64. In section 213(1A) (spreading of gains and losses under section...

          65. 65. Finance Act 1996 (c. 8)

          66. 66. In paragraph 12(3) of Schedule 9 (loan relationships: special computational...

          67. 67. (1) Schedule 11 (loan relationships: special provisions for insurers) is...

          68. 68. Capital Allowances Act 2001 (c. 2)

          69. 69. (1) Section 255 (apportionment of allowances and charges) is amended...

          70. 70. (1) Section 256 (different giving effect rules for different categories...

          71. 71. (1) Section 545 (investment assets) is amended as follows.

          72. 72. Finance Act 2001 (c. 9)

          73. 73. Finance Act 2002 (c. 23)

          74. 74. (1) Schedule 12 (tax relief for expenditure on research and...

          75. 75. (1) Schedule 26 (derivative contracts) is amended as follows.

          76. 76. Income Tax (Trading and Other Income) Act 2005 (c. 5)

          77. 77. In section 473(2) (policies and contracts to which Chapter 9...

          78. 78. In section 476(3) (special rules: foreign policies), in the definition...

          79. 79. In Schedule 2 (transitionals and savings etc), in paragraph 118(2),...

       2. Part 2 Transitional provisions

          1. 80. Introduction

          2. 81. Carry forward of unused pension business losses

          3. 82. Carry forward of unused non-pension business losses

          4. 83. (1) In paragraph 82 “unused non-pension business loss”, in relation...

          5. 84. “Section 432F(2) excesses”

    8. SCHEDULE 8

       Insurance companies: basis of taxation etc

       1. Part 1 Amendments

          1. 1. Income and Corporation Taxes Act 1988 (c. 1)

          2. 2. (1) Section 76 (expenses of insurance companies) is amended as...

          3. 3. In section 431(2) (interpretative provisions relating to insurance companies), insert...

          4. 4. For section 432 (and the italic cross-heading before it) substitute—...

          5. 5. In section 432A(7)(c)(ii) (apportionment of income and gains), for “85(2C)(c)”...

          6. 6. In section 437(1A) (annuities), for “, otherwise than in accordance...

          7. 7. Omit section 439A (taxation of pure reinsurance business).

          8. 8. (1) Section 440B (modifications where tax charged under Case I...

          9. 9. After that section insert— Modifications for change of tax basis...

          10. 10. In section 755A(2) and (6)(a) (controlled foreign companies: apportionments to...

          11. 11. Finance Act 1989 (c. 26)

          12. 12. In section 83(6)(c) (receipts to be taken into account), for...

          13. 13. In subsection (1) of section 85 (charge of certain receipts...

          14. 14. After that section insert— Excess adjusted Case I profits (1) Where for any accounting period an insurance company is...

          15. 15. (1) Section 88 (policy holders' fraction of profits) is amended...

          16. 16. (1) Section 89 (policy holders' share of profits) is amended...

          17. 17. Finance Act 1991 (c. 31)

          18. 18. Taxation of Chargeable Gains Act 1992 (c. 12)

          19. 19. Finance (No. 2) Act 1992 (c. 48)

          20. 20. Finance Act 1996 (c. 8)

          21. 21. Finance Act 1998 (c. 36)

          22. 22. Capital Allowances Act 2001 (c. 2)

          23. 23. In section 256(1) (different giving effect rules for different categories...

          24. 24. In section 257(2) (life assurance: supplementary), for paragraphs (a) and...

          25. 25. Finance Act 2002 (c. 23)

          26. 26. In paragraph 13(1) of Schedule 12 (tax relief on R&D:...

          27. 27. In Schedule 29 (gains and losses of a company from...

       2. Part 2 Transitional provisions

          1. 28. Unused pre-commencement section 76(12) etc excesses

          2. 29. Shifts in basis of taxation at first post-commencement accounting period

    9. SCHEDULE 9

       Insurance companies: transfers etc

       1. 1. Definition of “insurance business transfer scheme”

       2. 2. Transfer schemes: expenses, losses etc

       3. 3. Transfer schemes: deemed periodical returns

       4. 4. Transfer schemes: taxing the transferor

       5. 5. Transferor’s period of account including transfer

       6. 6. Transfer schemes: taxing the transferee

       7. 7. Repeal of section 444AD

       8. 8. Transfer schemes: anti-avoidance

       9. 9. Repeal of FA s.82C

       10. 10. Transfers: receipts to be taken into account

       11. 11. Transfers and demutualisations: losses where assets added to long-term insurance fund

       12. 12. In section 436A(3) of ICTA (gross roll-up business), for “83AB”...

       13. 13. Transfer schemes: old annuity contracts

       14. 14. Transfer schemes: no gain/no loss

       15. 15. Transfer schemes: old reinsurance business

       16. 16. Power to amend transfer provisions

       17. 17. Commencement

    10. SCHEDULE 10

        Insurance companies: miscellaneous

        1. 1. Contingent loans

        2. 2. “Structural” assets

        3. 3. Losses on disposal of authorised investment fund assets to connected manager

        4. 4. Priority of section 83(2) of FA 1989 etc

        5. 5. Tidying up of TCGA 1992

        6. 6. Tidying up of Chapter 2 of Part 4 of FA 1996

        7. 7. Correction of erroneous repeal

        8. 8. Non-profit companies, non-profit funds and with-profits funds

        9. 9. Internal linked funds and net value

        10. 10. Fair value

        11. 11. Generalisation of definitions

        12. 12. (1) Section 431A (power to amend) is amended as follows....

        13. 13. In section 83A(1) of FA 1989 (“brought into account”)—

        14. 14. (1) Omit the following provisions. (2) In ICTA—

        15. 15. Minor changes

        16. 16. Obsolete etc provisions

        17. 17. Commencement

    11. SCHEDULE 11

        Technical provisions made by general insurers

        1. 1. Restriction on amount of technical provisions made by general insurers

        2. 2. Enforcement

        3. 3. Supplementary

        4. 4. Repeal of section 107 of FA 2000

        5. 5. Commencement

    12. SCHEDULE 12

        Friendly societies: transfers to insurance companies etc

        1. 1. Exempt life or endowment business

        2. 2. (1) Section 464 of ICTA (maximum benefits payable to members)...

        3. 3. In section 466(2) of ICTA, in the definition of “tax...

        4. 4. Other exempt business

        5. 5. (1) Section 461B of ICTA (exemption of incorporated friendly societies...

        6. 6. Commencement

    13. SCHEDULE 13

        Sale and repurchase of securities

        1. 1. Purpose of Schedule

        2. 2. Meaning of debtor repo

        3. 3. Meaning of debtor quasi-repo

        4. 4. Ignoring effect on borrower of sale of securities: debtor repos, debtor quasi-repos and other arrangements

        5. 5. Relief for borrower for finance charges in respect of the advance: debtor repos and debtor quasi-repos

        6. 6. Ignoring sale and subsequent purchase for purposes of chargeable gains: debtor repos

        7. 7. Meaning of creditor repo

        8. 8. Meaning of creditor quasi-repo

        9. 9. Ignoring effect on lender of sale of securities: creditor repos and creditor quasi-repos

        10. 10. Charge on lender for finance return in respect of the advance: creditor repos and creditor quasi-repos

        11. 11. Ignoring purchase and subsequent sale for purposes of chargeable gains: creditor repos

        12. 12. Repo under arrangement designed to produce quasi-interest: anti-avoidance

        13. 13. Requirements to deduct tax from manufactured payments: creditor repos and debtor repos

        14. 14. Interpretation etc

        15. 15. Power to modify Schedule

    14. SCHEDULE 14

        Sale and repurchase of securities: minor and consequential amendments

        1. 1. Income and Corporation Taxes Act 1988 (c. 1)

        2. 2. (1) Section 231AA (no tax credit for borrower under stock...

        3. 3. (1) Section 231AB (no tax credit for original owner under...

        4. 4. Omit sections 730A and 730B (treatment of price differential on...

        5. 5. Omit section 730BB (exchange gains and losses on sale and...

        6. 6. (1) Section 731 (purchase and sale of securities: application and...

        7. 7. Omit sections 737A to 737C (sale and repurchase of securities:...

        8. 8. Omit section 737E (power to modify sections 730A, 730BB and...

        9. 9. In section 774E(4) (exceptions to sections 774B and 774D), for...

        10. 10. In section 807A (disposals and acquisitions of company loan relationships...

        11. 11. Taxation of Chargeable Gains Act 1992 (c. 12)

        12. 12. (1) Section 263A (agreements for sale and repurchase of securities)...

        13. 13. (1) For paragraph 12 of Schedule 7AC substitute— (1) This paragraph applies where— (a) a company (“the borrower”)...

        14. 14. Finance Act 1996 (c. 8)

        15. 15. In section 91C(3) (shares treated as loan relationships: condition 1...

        16. 16. (1) Section 97 (manufactured interest) is amended as follows.

        17. 17. In section 100 (money debts etc not arising from the...

        18. 18. For paragraph 15 of Schedule 9 (and the italic cross-heading...

        19. 19. Finance Act 1994 (c. 9)

        20. 20. Finance Act 2006 (c. 25)

        21. 21. Income Tax Act 2007 (c. 3)

        22. 22. In section 602(1)(b) (deemed manufactured payments: repos), for “the repurchase...

        23. 23. In section 607 (treatment of price differences under repos), after...

        24. 24. In section 886(2) (interest paid by recognised clearing houses etc),...

    15. SCHEDULE 15

        Controlled foreign companies

        1. 1. Imputation of chargeable profits and creditable tax of controlled foreign companies

        2. 2. Residence

        3. 3. Elections and designations under section 749: supplementary provisions

        4. 4. Territories with a lower level of taxation

        5. 5. Reduction in chargeable profits for certain activities of EEA business establishments

        6. 6. Interpretation

        7. 7. Exempt activities test

        8. 8. Abolition of public quotation exemption

        9. 9. Discovery assessments

        10. 10. Commencement

    16. SCHEDULE 16

        Venture capital schemes etc

        1. Part 1 Limit on number of employees of company in which investment is made

           1. 1. Corporate venturing scheme

           2. 2. Enterprise investment scheme

           3. 3. Venture capital trusts

        2. Part 2 Limit on amount raised annually by company through risk capital schemes

           1. 4. Corporate venturing scheme

           2. 5. Enterprise investment scheme

           3. 6. Venture capital trusts

           4. 7. Enterprise investment scheme: reinvestment

           5. 8. Transitional provision

        3. Part 3 Excluded activities: receipt of royalties and licence fees

           1. 9. Corporate venturing scheme

           2. 10. In paragraph 86(2) (substitution of new shares for old shares),...

           3. 11. Enterprise investment scheme

           4. 12. Venture capital trusts

           5. 13. Commencement

           6. 14. Transitional provision

        4. Part 4 Meaning of “qualifying 90% subsidiary”

           1. 15. Corporate venturing scheme

           2. 16. Enterprise investment scheme etc

           3. 17. Venture capital trusts

           4. 18. Commencement

        5. Part 5 Other amendments

           1. 19. EIS: approved investment funds

           2. 20. VCTs: disposal of holding

           3. 21. VCTs: power to make regulations as to breaches of conditions

    17. SCHEDULE 17

        Real Estate Investment Trusts

        1. 1. Part 4 of FA 2006 (REITs) is amended as follows....

        2. 2. In section 106 (conditions for company)— (a) in subsection (1),...

        3. 3. In section 107 (conditions for tax-exempt business)—

        4. 4. In section 108(2) (profit condition), for paragraph (b) substitute—

        5. 5. In section 109 (notice), after subsection (2) insert—

        6. 6. In section 115 (profit: financing cost ratio)—

        7. 7. In section 116 (minor or inadvertent breach)—

        8. 8. In section 117 (cancellation of tax advantage), insert at the...

        9. 9. In section 120 (calculation of profits)— (a) in paragraph (a)...

        10. 10. In section 123(a) (attribution of distributions), for “Condition 4” substitute...

        11. 11. After section 126 (movement of assets into ring fence) insert—...

        12. 12. In section 127 (interpretation), for “126” substitute “126A”.

        13. 13. In section 133 (early exit), insert at the end—

        14. 14. In section 138 (joint ventures), after subsection (3) insert—

        15. 15. In paragraph 3 of Schedule 16 (excluded income: owner-occupied property),...

        16. 16. (1) Schedule 17 (modifications for groups) is amended as follows....

        17. 17. In section 505(1) of ICTA (charities: exemptions), after paragraph (a)...

        18. 18. In section 531 of ITA 2007 (charities: exemptions)—

    18. SCHEDULE 18

        Pensions schemes: abolition of relief for life assurance premium contributions etc

        1. 1. Introduction

        2. 2. Life assurance premium contributions not to be relievable pension contributions

        3. 3. Life assurance premium contributions

        4. 4. Commencement: schemes other than occupational pension schemes

        5. 5. (1) This paragraph specifies when a policy of insurance is...

        6. 6. Commencement: occupational pension schemes

        7. 7. (1) This paragraph specifies when a policy of insurance is...

        8. 8. Power to amend commencement provisions

    19. SCHEDULE 19

        Alternatively secured pensions and transfer lump sum death benefit etc

        1. 1. Introduction

        2. 2. Alternatively secured pension: guaranteed pension and maximum

        3. 3. In paragraph 12 of Schedule 28 (pension rules: alternatively secured...

        4. 4. Maximum dependants' alternatively secured pension

        5. 5. Abolition of transfer lump sum death benefit

        6. 6. Omit section 172B(5)(a) (reduction for transfer lump sum death benefit)....

        7. 7. In section 188(5) (amounts not to be treated as contributions),...

        8. 8. In section 280(2) (index), omit the entry relating to transfer...

        9. 9. In Schedule 29, omit paragraph 19 (transfer lump sum death...

        10. 10. In paragraph 17A of Schedule 36 (“enhanced protection”)—

        11. 11. Untraceable members

        12. 12. Increase in rights on death

        13. 13. After that section insert— Increase in rights on death arising...

        14. 14. Minimum alternatively secured pension and dependants' alternatively secured pension

        15. 15. In section 241(1) (scheme chargeable payment), after paragraph (a) insert—...

        16. 16. Charity lump sum death benefit

        17. 17. Discharge of liability to scheme chargeable payment

        18. 18. Non-UK schemes

        19. 19. Inheritance tax

        20. 20. (1) Section 151A (person dying with alternatively secured pension fund)...

        21. 21. (1) Section 151B (relevant dependant with pension fund inherited from...

        22. 22. After that section insert— Rate or rates of charge under...

        23. 23. (1) Section 151C (dependant dying with other pension fund) is...

        24. 24. In section 216(6)(ac) (delivery of account)— (a) after “occurs” insert...

        25. 25. In section 226(4) (payment), after “Act” insert “, or under...

        26. 26. In section 233(1)(c) (interest on unpaid tax), after “Act” insert...

        27. 27. In Schedule 2 (provisions applying on reduction of tax), omit...

        28. 28. Consequential amendment

        29. 29. Commencement

    20. SCHEDULE 20

        Pension schemes etc: miscellaneous

        1. 1. Introduction

        2. 2. Persons by whom registered pension schemes may be established

        3. 3. Omit section 155 (persons by whom scheme may be established:...

        4. 4. In section 273 (members liable as scheme administrator)—

        5. 5. Unauthorised payments reduced by amount of scheme sanction charge

        6. 6. Surrenders

        7. 7. Scheme pensions where ill-health condition met

        8. 8. Unsecured and dependants' unsecured pensions: reference periods

        9. 9. Pension commencement lump sums

        10. 10. In section 219(7) (multiple benefit crystallisation events occurring by reason...

        11. 11. (1) Schedule 29 (authorised lump sums) is amended as follows....

        12. 12. Winding-up lump sums

        13. 13. Lump sum death benefits

        14. 14. Taxable property held by investment-regulated pension schemes: indirect holdings in REITs

        15. 15. Transitional provision: primary protection

        16. 16. Transitional provision: enhanced protection

        17. 17. (1) Paragraph 12 (when enhanced protection ceases) is amended as...

        18. 18. In paragraph 14 (relevant contributions), after sub-paragraph (3) insert—

        19. 19. (1) Paragraph 15 (relevant benefit accrual) is amended as follows....

        20. 20. Inheritance tax: lump sum death benefits

        21. 21. Benefits under employer-financed retirement benefits schemes

        22. 22. Consequential amendments

        23. 23. (1) In section 1(1) of the Pension Schemes Act 1993...

        24. 24. Commencement

    21. SCHEDULE 21

        Exemptions from stamp duty and SDRT: intermediaries, repurchases etc

        1. 1. Intermediaries

        2. 2. (1) Section 80B of FA 1986 (exemption from stamp duty...

        3. 3. (1) Section 88A of FA 1986 (exemption from SDRT: sales...

        4. 4. (1) Section 88B of FA 1986 (exemption from SDRT on...

        5. 5. Repurchases and stock lending

        6. 6. (1) Section 89AA of FA 1986 (exemption from SDRT: repurchases...

        7. 7. Exemptions from stamp duty and SDRT in cases involving recognised investment exchanges

        8. 8. Consequential repeal

    22. SCHEDULE 22

        Amendments and repeals consequential on extension of HMRC powers

        1. Part 1 Amendments

           1. 1. In section 20D(1) of TMA 1970, for “sections 20A, 20BA...

           2. 2. In section 67 of the Criminal Justice and Police Act...

        2. Part 2 Repeals

           1. 3. The provisions listed below are omitted.

           2. 4. In TMA 1970— (a) sections 20C and 20CC (search warrants),...

           3. 5. In CEMA 1979— (a) section 118C(3)(c) (gaming duty), and

           4. 6. In BGDA 1981— (a) paragraph 16 of Schedule 1 (general...

           5. 7. Section 148(4) of FA 1989 (definition of “business” for purposes...

           6. 8. In VATA 1994— (a) section 72(9) (powers of arrest), and...

           7. 9. In Schedule 7 to FA 1994 (insurance premium tax)—

           8. 10. In Schedule 5 to FA 1996 (landfill tax)—

           9. 11. In Schedule 6 to FA 2000 (climate change levy)—

           10. 12. In FA 2001 (aggregates levy)— (a) paragraph 6 of Schedule...

           11. 13. (1) In the Criminal Justice and Police Act 2001—

           12. 14. Section 36(2) and (3) of the Tax Credits Act 2002...

           13. 15. Section 323(3)(e) and (f) of the Proceeds of Crime Act...

           14. 16. Part 7 of Schedule 13 to FA 2003 (stamp duty...

           15. 17. In CRCA 2005— (a) section 13(3)(b) and (c) (Commissioners' functions...

    23. SCHEDULE 23

        Extension of HMRC powers: Scotland

        1. 1. Criminal Law (Consolidation) (Scotland) Act 1995 (c. 39)

        2. 2. The heading to that Part becomes “Investigation of Revenue and...

        3. 3. At the beginning of that Part insert— Investigation of offences...

        4. 4. In section 24 (detention and questioning by customs officers)—

        5. 5. In section 25(1) (right to have someone informed of the...

        6. 6. In section 26 (detention in connection with drug smuggling offences),...

        7. 7. After that section insert— Power of arrest Power of arrest...

        8. 8. Criminal Procedure (Scotland) Act 1995 (c. 46)

        9. 9. In subsection (1), in the definition of “officer of law”,...

        10. 10. After that subsection insert— (1A) The inclusion of officers of...

        11. 11. Criminal Justice and Police Act 2001 (c. 16)

        12. 12. In section 63(2) (powers to obtain hard copies etc of...

        13. 13. In Schedule 1— (a) in Part 1, after paragraph 59...

        14. 14. (1) The amendments made by this Schedule come into force...

    24. SCHEDULE 24

        Penalties for errors

        1. Part 1 Liability for penalty

           1. 1. Error in taxpayer’s document

           2. 2. Under-assessment by HMRC

           3. 3. Degrees of culpability

        2. Part 2 Amount of penalty

           1. 4. Standard amount

           2. 5. Potential lost revenue: normal rule

           3. 6. Potential lost revenue: multiple errors

           4. 7. Potential lost revenue: losses

           5. 8. Potential lost revenue: delayed tax

           6. 9. Reductions for disclosure

           7. 10. (1) Where a person who would otherwise be liable to...

           8. 11. Special reduction

           9. 12. Interaction with other penalties

        3. Part 3 Procedure

           1. 13. Assessment

           2. 14. Suspension

           3. 15. Appeal

           4. 16. An appeal may be brought to— (a) the General Commissioners,...

           5. 17. (1) On an appeal under paragraph 15(1) the appellate tribunal...

        4. Part 4 Miscellaneous

           1. 18. Agency

           2. 19. Companies: officers' liability

           3. 20. Partnerships

           4. 21. Double jeopardy

        5. Part 5 General

           1. 22. Interpretation

           2. 23. HMRC means Her Majesty’s Revenue and Customs.

           3. 24. An expression used in relation to income tax has the...

           4. 25. An expression used in relation to corporation tax has the...

           5. 26. An expression used in relation to capital gains tax has...

           6. 27. An expression used in relation to VAT has the same...

           7. 28. In this Schedule— (a) a reference to corporation tax includes...

           8. 29. Consequential amendments

           9. 30. In paragraph 7 of Schedule 1 to the Social Security...

           10. 31. In paragraph 7 of Schedule 1 to the Social Security...

    25. SCHEDULE 25

        Amendments connected with Gambling Act 2005

        1. Part 1 Amendments of the Tax Acts

           1. 1. Exemption from corporation tax for profits of charitable companies from certain lotteries

           2. 2. Exemption from income tax for profits of charitable trusts from certain lotteries

        2. Part 2 Amendments of BGDA 1981

           1. 3. Introductory

           2. 4. Bookmakers: spread bets

           3. 5. Liability to pay general betting duty

           4. 6. Bet-brokers

           5. 7. Definitions for purposes of betting duties

           6. 8. Combined bingo

           7. 9. Definitions for purposes of bingo duty

           8. 10. Definition of “gaming”

           9. 11. Supplementary provisions as to betting duties

           10. 12. Exemptions from bingo duty

        3. Part 3 Amendments of FA 1993 relating to lottery duty

           1. 13. Introductory

           2. 14. Charge to lottery duty

           3. 15. Disclosure of information

        4. Part 4 Amendments of FA 1997 relating to gaming duty

           1. 16. Introductory

           2. 17. Charge to gaming duty

           3. 18. Banker’s profits from gaming

           4. 19. Definition of “gaming”

           5. 20. Gaming Duty Register

        5. Part 5 Miscellaneous amendments

           1. 21. Provision of FA 1966 relating to repealed law

           2. 22. Customs and Excise Management Act 1979

        6. Part 6 Commencement

           1. 23. (1) Paragraphs 3, 4, 6, 7(1) and (5), 11(1) and...

    26. SCHEDULE 26

        Meaning of “recognised stock exchange” etc

        1. 1. Meaning of “recognised stock exchange” etc in Tax Acts and TCGA 1992

        2. 2. For section 841 of ICTA substitute— Meaning of “recognised stock...

        3. 3. In section 288 of TCGA 1992 (interpretation), after subsection (5)...

        4. 4. Valuation of shares listed on recognised stock exchange for purposes of TCGA 1992 etc

        5. 5. (1) In ITTOIA 2005, for sections 450 and 451 substitute—...

        6. 6. Minor and consequential amendments

        7. 7. (1) ICTA is amended as follows. (2) In section 210(4)...

        8. 8. (1) TCGA 1992 is amended as follows.

        9. 9. In paragraph 4(2C)(b) of Schedule 26 to FA 2002 (derivative...

        10. 10. (1) ITEPA 2003 (persons to whom section 421J applies) is...

        11. 11. (1) ITTOIA 2005 is amended as follows.

        12. 12. (1) ITA 2007 is amended as follows.

    27. SCHEDULE 27

        Repeals

        1. Part 1 Environment

        2. Part 2 Income tax, corporation tax and capital gains tax

        3. Part 3 Pensions

        4. Part 4 SDLT, stamp duty and SDRT

        5. Part 5 Investigation, administration etc

        6. Part 6 Miscellaneous