http://www.legislation.gov.uk/id/ukpga/2020/14

SCHEDULES

SCHEDULE 2The loan charge: consequential amendments

Sections 15 and 16

PART 1Amendments to F(No.2)A 2017 in consequence of section 15

1

Schedule 11 to F(No.2)A 2017 (employment income provided through third parties: loans etc outstanding on 5 April 2019) is amended as follows.

2

In paragraph 1 (application of Part 7A of ITEPA 2003: relevant step) in sub-paragraph (2) for the words from “before” to the end substitute “ before the end of 5 April 2019. ”

3

For the italic heading before paragraph 2 substitute “Meaning of “ loan ” and “quasi loan” ”.

4

In paragraph 2 (meaning of “loan”, “quasi-loan” and “approved repayment date”) omit sub-paragraph (6).

5

1

Paragraph 4 (when an amount of a loan is outstanding: certain repayments to be disregarded) is amended as follows.

2

In sub-paragraph (1)(b)(ii) for “the relevant date” substitute “ 5 April 2019 ”.

3

In sub-paragraph (2) for “the relevant date” substitute “ 5 April 2019 ”.

4

Omit sub-paragraph (4).

6

In paragraph 5 (meaning of “outstanding”: loans where A or B acquires a right to payment of the loan) in sub-paragraph (1)(b) for “6 April 1999” substitute “ 9 December 2010 ”.

7

In paragraph 13 (meaning of “outstanding”: quasi-loans where A or B acquires a right to the payment or transfer of assets) in sub-paragraph (1)(b) for “6 April 1999” substitute “ 9 December 2010 ”.

8

Omit paragraph 19 (meaning of “approved fixed term loan”) and the italic heading before that paragraph.

9

For the heading of Part 2 substitute “ Accelerated payments ”.

10

Omit paragraphs 20 to 22 and the italic headings before each of those paragraphs.

11

Omit the italic heading before paragraph 23.

12

1

Paragraph 23 (accelerated payments) is amended as follows.

2

In sub-paragraph (1)—

a

in paragraph (d) for “the relevant date” substitute “ 5 April 2019 ”, and

b

in paragraph (e) for “the relevant date” substitute “ 5 April 2019 ”.

3

Omit sub-paragraph (4).

13

1

Paragraph 35A (when the duty to provide loan charge information arises) is amended as follows.

2

Omit sub-paragraph (3).

3

In sub-paragraph (4) in the words before paragraph (a) for “third” substitute “ second ”.

4

In sub-paragraph (5)—

a

in the words before paragraph (a) for “fourth” substitute “ third ”,

b

in paragraph (a) for the words from the beginning to “conditions” substitute “ neither the first nor the second condition ”, and

c

in paragraph (b)—

i

for “and (2)(b)” substitute “ and (2) ”, and

ii

omit the words from “(and if paragraph” to “omitted)”.

5

In sub-paragraph (6) in the words before paragraph (a) for “fourth” substitute “ third ”.

6

In sub-paragraph (7) omit paragraph (b).

14

In paragraph 35B (duty of appropriate third party to provide information to A) in sub-paragraph (1) omit “Q,”.

15

1

Paragraph 35D (meaning of “loan charge information”) is amended as follows.

2

In sub-paragraph (1)—

a

in paragraph (e) omit “, or the loan mentioned in paragraph 35A(3)(a),”,

b

in paragraph (j) omit “, Q”, and

c

in paragraph (k) omit “, or in a case within paragraph 35A(3)(a),”.

3

In sub-paragraph (2) omit paragraph (a).

16

1

Paragraph 36 (duty to provide loan charge information to B) is amended as follows.

2

In sub-paragraph (1)(b) for “6 April 1999” substitute “ 9 December 2010 ”.

3

In sub-paragraph (2) for the words from “the period” to the end substitute “ 15 April 2019 ”.

4

Omit sub-paragraph (4).

17

Schedule 12 to F(No.2)A 2017 (trading income provided through third parties: loans etc outstanding on 5 April 2019) is amended as follows.

18

For the italic heading before paragraph 2 substitute “Meaning of “ loan ” and “quasi loan” ”.

19

In paragraph 2 (meaning of “loan”, “quasi-loan” and “approved repayment date”) omit sub-paragraph (6).

20

Omit paragraphs 15 to 18 and the italic heading before each of those paragraphs.

21

1

Paragraph 19 (accelerated payments: application of paragraph 20) is amended as follows.

2

In sub-paragraph (1)—

a

in paragraph (e) for “the relevant date” substitute “ 5 April 2019 ”, and

b

in paragraph (f) for “the relevant date” substitute “ 5 April 2019 ”.

3

Omit sub-paragraph (3).

22

In paragraph 23 (meaning of “loan charge information”) in sub-paragraph (2) omit paragraph (a).

PART 2Amendments in consequence of section 16

ITEPA 2003

23

ITEPA 2003 is amended as follows.

24

1

Section 554A (application of Chapter 2 of Part 7A: the main case) is amended as follows.

2

In subsection (2) after “paragraph 1” insert “ or 1A ”.

3

For subsection (4) substitute—

4
Chapter 2 does not apply by reason of—
a
a relevant step taken on or after A's death if—
i
the relevant step is within section 554B, or
ii
the relevant step is within section 554C by virtue of subsection (1)(ab) of that section,
b
a relevant step within paragraph 1 of Schedule 11 to F(No.2)A 2017 which is treated as being taken on or after A's death, or
c
a relevant step within paragraph 1A of Schedule 11 to F(No.2)A 2017 in a case where the initial step (within the meaning given by sub-paragraph (1)(a) of that paragraph) is treated as being taken on or after A's death.

25

In section 554Z (interpretation: general) in subsection (10)(d) after “paragraph 1” insert “ or 1A ”.

F(No.2)A 2017

26

Schedule 11 to F(No.2)A 2017 (employment income provided through third parties: loans etc outstanding on 5 April 2019) is amended as follows.

27

In paragraph 2 (meaning of “loan”, “quasi-loan” and “approved repayment date”)—

a

in sub-paragraph (2), in the words before paragraph (a), for “paragraph 1” substitute “ paragraphs 1 and 1A ”,

b

in sub-paragraph (4) for “paragraph 1” substitute “ paragraphs 1 and 1A ”, and

c

in sub-paragraph (5) for “paragraph 1” substitute “ paragraphs 1 and 1A ”.

28

In paragraph 3(1) (meaning of “outstanding”: loans) for “paragraph 1” substitute “ paragraphs 1 and 1A ”.

29

In paragraph 4 (when an amount of a loan is outstanding: certain repayments to be disregarded) in sub-paragraph (6) for “the relevant step treated as taken by paragraph 1” substitute “ a relevant step treated as taken by paragraph 1 or 1A ”.

30

In paragraph 5 (meaning of “outstanding”: loans where A or B acquires a right to payment of the loan) in sub-paragraph (2)(b) for “paragraph 1(4)” substitute “ paragraphs 1(4) and 1A(5) ”.

31

In paragraph 7 (meaning of “outstanding”: loans in currencies other than stirling) in sub-paragraph (3) after “relevant step” insert “ within paragraph 1 ”.

32

In paragraph 10 (meaning of “outstanding”: loans made in a depreciating currency) in sub-paragraph (1)(b) after “relevant step” insert “ within paragraph 1 ”.

33

In paragraph 11(1) (meaning of “outstanding”: quasi-loans) for “paragraph 1” substitute “ paragraphs 1 and 1A ”.

34

In paragraph 12 (certain payments or transfers to be disregarded for the purposes of paragraph 11) in sub-paragraph (5) for “the relevant step treated as taken by paragraph 1” substitute “ a relevant step treated as taken by paragraph 1 or 1A ”.

35

In paragraph 13 (meaning of “outstanding”: quasi-loans where A or B acquires a right to the payment or transfer of assets) in sub-paragraph (2)(b) for “paragraph 1(4)” substitute “ paragraphs 1(4) and 1A(5) ”.

36

In paragraph 15 (meaning of “outstanding”: quasi-loans in currencies other than sterling) in sub-paragraph (3) after “relevant step” insert “ within paragraph 1 ”.

37

In paragraph 18 (meaning of “outstanding”: quasi-loans made in a depreciating currency) in sub-paragraph (1)(b) after “relevant step” insert “ within paragraph 1 ”.

38

After paragraph 35 insert—

Exclusion for relevant step within paragraph 1A where initial step excluded
35ZA
Chapter 2 of Part 7A of ITEPA 2003 does not apply by reason of a relevant step within paragraph 1A if that Chapter does not apply by reason of the initial step (within the meaning given by sub-paragraph (1)(a) of paragraph 1A).